Good news, Facebook shareholders. The social media site’s stock is currently down 45% from its initial purchase price. Wait a minute, that isn’t good news at all. It looks like selling one of my kidneys to buy the $38 a share stock back in May was, in fact, a horrible idea. The plummeting Facebook stock is primarily due in part to the site’s inability to turn a tangible profit.
In Facebook’s second quarter earning statement, the social media site announced they were rapidly approaching 1 billion users. However, it has also been reported that 1 in 10 Facebook users are not receptive to advertisements on the site. This failure to get users interested in ads is rapidly becoming a problem for investors and shareholders looking to capitalize on Facebook’s popularity.
Lucky for Facebook and unlucky for everyone else, Mark Zuckerberg and his team have a completely original plan to turn users into customers. Facebook has recently started experimenting with dropping ads straight into your news feed. So now in between statuses about partying in Vegas and Becky being a slut, you can expect to see advertisements from McDonald’s or some other corporation you hate. I’m lovin’ it.
A Facebook representative told TechCruch:
“We want to be thoughtful about how we introduce ads in news feed, so we have limits in place to ensure that people’s news feeds are not filled with advertising.”
It looks like Facebook wants to avoid flooding users’ feeds with ads. But, with hungry investors breathing down their necks, who knows how long Facebook will keep the public’s best interests in mind.
Facebook will begin testing the new ad system today, which will, at first, only be available to a small amount of businesses. If you don’t see ads in your feed, don’t count yourself lucky just yet. So far, this trial period is only affecting a small test group. If all goes well with Facebook’s experiment though, expect to see ads in your feed sometime soon.