Is Facebook in Trouble?
Facebook has had a tough go lately, dropping last Friday to just 60 percent of its initial IPO value down to $22.28. Now, in a new study, EyeTrackShop reports that mobile-devices users were least likely to see ads and had a lower recall of them. With only between 3 and 13 percent chance of a user seeing an ad located “below the fold,” this qualifies as yet another sign of why Facebook has struggled to monetize mobile. But wait, there’s more. Limited Run, a digital-distribution outlet for musicians, has pulled its Facebook account, announcing that 80 percent of their ad clicks were from bots, those automated tools similar to robocalls. Limited Run posted, “Bots were loading pages and driving up our advertising costs. So we tried contacting Facebook about this. Unfortunately, they wouldn't reply. Do we know who the bots belong to? No. Are we accusing Facebook of using bots to drive up advertising revenue? No. Is it strange? Yes.” The world’s largest social-media outlet obviously does many things right. But growing dissatisfaction with products can be a killer for any company, even one as large as Facebook.