Ahead of Facebook IPO, poll finds user distrust
Facebook’s public offering tomorrow will be the largest and perhaps most highly anticipated internet deal in history. But a lot of people don’t seem to be that excited about it. Half of the 1,000 people polled by the Associated Press and CNBC called Facebook a passing fad.The survey, which was more focused on Facebook’s value as an investment, finds the company is staring down some unnerving obstacles when it comes to key areas of monetisation and growth: public distrust and advertising apathy.According to the new poll, 57 percent of Facebook users say they never click ads or other sponsored content when they use the site, with another 26 percent saying they hardly ever engage in such activity. Only four percent of users say they often click on ads — results that are only slightly better than the two-to-three percent clickthrough rate some experts consider the benchmark for effective banner ads.On top of that, users say they didn’t feel safe buying products or services through Facebook. An MSNBC poll shows that 54 percent of users say they don’t feel safe buying goods or services, and only eight percent say they feel completely safe.While internet users not clicking on ads isn’t news, it does mean that Facebook can’t solely rely on ad income going forward. The company is trying to reduce its reliance on ads: right now 82 percent of Facebook’s revenue is from advertisements, down from 98 percent in 2009.The flip side of the argument is that that small portion of users is all that Facebook needs: with around 900 million users, even a fraction of the population clicking through on ads is sure to generate huge revenue. Facebook is looking into other ways to monetise the service despite that, recently testing a new highlighted posts feature that would allow individuals and brands to pay a small amount of money to bump important posts.