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Comment RSS75% Don’t Click on Facebook Ads
Written by Pace LattinMay 17, 2012 # 8:00 pm # Industry News, Specials # 11 Comments
If you didn’t hear General Motors has decided to stop working with Facebook as it “just didn’t work” according to the brand. It’s a huge blow to Facebook’s IPO when major companies are starting to leave Facebook.
Well, the glowing folks at Greenlight Digital, who have released several studies that don’t bode well for Facebook, are now claiming that as much of 44% of users have never clicked on a Facebook Advertisement on the social network. On top of that another 31% rarely click on ads.
The 44% number is what is really troubling for Facebook, because it means the methodology in which Facebook uses and the format is pretty bad. Facebook’s biggest problem continues to be their advertising system: while it’s making lots of money, more and more people are saying it’s not effective. On top of that, the Media has gone nuts on Facebook lately, claiming that Facebook advertising sucks in general.
Written by Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
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yea I heard about this. Honestly though I could see them using facebook for a fan page that they also invest millions in its overall presence, but to spend as much as they did on advertising with facebook in my opinion was just plain stupid for that particular industry.
Do you guys know how much GM spent on advertising? check this out from forbes
“Estimates suggest that, prior to GM’s decision, it had spent $10 million on Facebook advertising. Even though it measures revenue in billions, any company will be unhappy to lose that amount. But it isn’t the immediate sum of money that will worry Facebook the most, it is the possibility of other companies taking note and following suit.”
Facebook better hope other big boys don’t follow GM they will suffer a big decrease in revenue.
Sorry but I kind of think its funny GM wasted all that money and even funnier that Facebook will be losing the business.
This is really true we all know that almost all the people who knows about this social media site called face-book , don’t click anything, the only thing they do is to add friend or to chat.
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Im personally a fan of facebook ads. It all depends on how you use them. Can get a lot of cheap clicks still, that convert into leads.
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Some people see the bad part – 44% don’t click on ads… But the thing is that maybe the ads didn’t try to reach a big chunk of that 44%.
Meaning 44% of the people on facebook didn’t find an interesting ad to click on.
Or to put it another way, at least 56% of Facebook users have clicked on one ad …
I’d say that isn’t too bad …
Yeah it’s a stupid model with low CTRs that could be easily changed, BUT it does work. The clicks are quality, the targeting is tight if you know what you’re doing, and it’s easy to test. Too bad their reps suck and are non-existent for the most part.
No surprise here.
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I think that if the focus is on GM maybe someone should find out who was managing the facebook campaigns and see if they were doing it effectively and see what they were doing wrong and change it. I do not believe that 10 mil is not wirth the branding but I think GM spent the 10 million on incorrect ways on social media.
They should have used it as Branding and not sales driven as I believe it was.
anyhow food for thought
Mike G
So I can only get access to 56% of 800 MILLION PEOPLE??
And, I get to see all their demographic data down to what kind of kitty they like to use in marketing?
Woe is me!
For sure, everyone should stop using FB ads – right now!
PS. Not me.
Of course people click facebook ads but is more complicated ,than google ads to set a campaign properly.With some research peoples can have lot of success with facebook advertising.
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Geeesh! people! get into the 21st century.
Ad blockers are extremely popular these days. I rarely see anyone’s facebook page with ads on it anymore. It seems as if this info has been excluded from the studies for some reason, but without it the studies are lacking in truth.