When the Wall Street Journal reported this week that General Motors pulled $10 million worth of Facebook ads, the news went viral.
Why? Because GM marketing executives basically say Facebook ads totally suck and aren't worth the paper they're printed on. Er, okay—forget the analogy. You get the idea.
Following this fiasco, ad agencies banded together to amplify the bad publicity for Facebook—painfully, just days before the social networking giant is slated to debut on the stock market. The CEO of VIA, which does web ads for Samsung and Klondike among other big-name brands, is quoted as saying that Facebook ads are "fundamentally some of the worst performing ad units on the web."
But ad execs are just a bunch of talking heads, right? Who cares what they say? Well, a study of Facebook users has now surfaced, which states that nearly half of users never have and never will click on a single Facebook ad.
There are over 900 million Facebook users. This means that 400 million of them aren't generating a penny worth of ad revenue for the company.
UK-based digital marketing agency Greenlight released the results of a survey it conducted, which reveals that 44% of Facebook users "never" click ads and another 31% "rarely" click. Only 13% click on the ads "often" or "regularly."
Mark Zuckerberg's company will debut on the public stock market tomorrow at $38 per share, raising up to $16 billion and valuing the company at more than $104 billion. The vast majority of Facebook's revenue and profits are generated from advertising.