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Do you think Facebook's business will be seriously affected if most of its users use ad blocking programs?
11-09-2012, 11:40 AM
Post: #1
Do you think Facebook's business will be seriously affected if most of its users use ad blocking programs?
Just a reminder: 85% of its 2011 revenues came from advertising.

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11-09-2012, 11:49 AM
Post: #2
 
Why did you ask the question if you already know the answer? our reminder is the answer........

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11-09-2012, 11:49 AM
Post: #3
 
No. That will only happen if advertisers figure out that they aren't getting any business from facebook ads. I'm not sure they are aware of how many block them, there probably aren't as many people blocking ads as you think there are, and the market is slow to figure this stuff out. Before the old '90's dotcom bust, people who were on the internet could see the bust happening at the same time they were so excited about the possibilities the internet could give us. Everyone was using "free" ad supported services and wouldn't use the ads to buy anything. Websites would encourage 'click thru scams'--if the site wasn't getting enough traffic to get ads to support it, it would encourage its users to click on ads (and not buy anything) just to keep the site alive.

When advertisers figure out that the internet doesn't give them their money's worth, they'll advertise elsewhere. It takes them time to figure out when a medium becomes ineffective (and I find it hard to believe that most forms of advertising pay for themselves, but they still run ads so it must or they wouldn't do it?), but companies don't waste money on ads nobody reads. If they did there wouldn't be so many newspapers that shut down.
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