Facebook’s social networking domination plans are dependant on them being able to monitarize their attractive user base. But what happens if they cannot get their user base to click on ads or buy products?
Seoblackhat had a post recently where Quadszilla called Facebook: The Worst Traffic on the Net. In the article Quadszilla mentioned Ad click through rates of 3-7 per 10,000 pageviews are not uncommon. The reason for this horrible CTR he theorized was:
The problem is that when people are on Facebook, they are not in the mindset to purchase anything. One session from an average Facebook Whore might produce 200 page views to various groups, widgets, photos and messages; but that suffer is just not interested in buying anything; their mind is elsewhere.
Now that is an interesting theory. Over the Thanksgiving holiday I asked family members who actively use Facebook about this and they all agreed that when they are on Facebook they are not looking to shop or buy. Now my sample size was not “significantly significant” but the replies I keep hearing were very similar. Facebook is not a site for buying.
If this theory holds true, what does that mean for Facebook and its quest to dominate the social networks (and also go public)? The problem I can see with Facebook is that it is another version of Facebook. Great for keeping in touch and finding long lots friends, but if I want to buy something I will go elsewhere. That is the difference between Facebook and MySpace. MySpace was built on a music platform. It seems that almost every band in existence has a MySpace page sp clicking on widgets, downloading music and buying apparel all are logical choices.
Facebook was not built on a commercial platform. Thus its DNA is non-commercial. Unless Mark Zuckerberg can figure out a way to change the commercial intent of Facebook, we might be seeing Facebook at its zenith now. And it is a long way down!
When you are on Facebook, are you looking to socialize or buy something?
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{ 4 comments… read them below or add one }
I am absolutely not looking shop when I’m on Facebook. I occasionally click ads that show up in the Google SERPs, or banner ads on websites I’m visiting, but not on Facebook. I think the only time I have ever clicked on a Facebook ad was when my hand slipped on the mouse and I clicked it by accident.
It seems the power of facebook is probably more in sponsored communities and building brands rather then traditional banner ads.
You’re dead on. Facebook makes very little money by advertising.the average user is clueless on privacy rights and the sensitivity of the information they make public, so in a sense it’s a marketers gold mine, not to sell you stuff then and there, but deifintely to get a feel for demographics, tastes and the like.
Your analysis is spot on. I think Facebook faces 2 problems.
a) people are there to socialise not buy
b) people don’t want to be spammed either by what their friends buy/do (i.e. Beacon)
At the moment I am getting facebook overload where I have over 15 application invities / loads of notifications / and I resent any selling to me in my news feed.
Some of the applications are great like this British one called Office ASBO: http://apps.facebook.com/officeasbo. But loads are really annoying. Do I need a fun wall / super wall / fantastic wall etc. Do I want a vampire bite?