Facebook stock is being pummeled over what investors discovered was a shrinking revenue stream caused by mobile device use and now the company may be losing out on more income as users are believed to be spending less time engaging through their Facebook accounts.
A recent Ipsos poll which surveyed 1,032 Americans found that 35% of Facebook users claim to be using the social network less than they have in the past while 20% of those surveyed claim to be using Facebook more than they did when they first signed up.
The survey specifically asked participants if they spent more or less time on the social network compared to six months ago.
In a sign that Facebook needs to revamp its ad network four out of five Facebook users say ads from the network have NEVER influenced them. That specific response mirrors other studies which found that the click-through-rate (CTR) for Facebook ads fall well below ads displayed by Twitter, Pinterest, LinkedIn and other large social network competitors.
Interestingly enough the Facebook IPO left 44% of respondents feeling “less favorable” towards the social network which could further decrease engagement over the next six months.
The failure of Facebook stock options at the time of its IPO also made 46% of respondents feel less confident about the US stock market in general.
Mark Zuckerberg is now facing a class-action lawsuit from investors who believe the networks founder hid details about Facebook’s ad revenue and then cashed out to the tune of $1 billion.
Do you use Facebook more or less than you did six months ago?