Facebook decreases in customer satisfaction

By By Wenlei Ma | 19 July 2012
Facebook founder and chief executive, Mark Zuckerberg.

Facebook's cost per thousand impressions (CPM) has increased 58% year-on-year globally due to the introduction of mobile ads, but customer satisfaction has decreased.

TBG Digital's Facebook report found the social networking behemoth has improved its advertising revenue and reversed a downward ad engagement trend. In addition to recently rolled-out mobile ads, TBG has also attributed the greater use of Sponsored Stories to the growth.

The report said click through rates have also increased 11%, also as a result of mobile ads. Cost per click rates hit the dollar mark in the US and Canada but fell in UK, France and Germany. Sponsored Stories have a 53% higher CTR than standard ads.

However, an American Customer Satisfaction Index has signalled growing disillusionment with Facebook. As reported in The Huffington Post, the index found Facebook scored only 61 out of 100 among active users in the US. It was the fourth lowest satisfaction score among the 230 companies surveyed.

By comparison, Linkedin scored 63, Twitter scored 64, Pinterest was at 69, YouTube was at 73 while Google+ and Wikipedia tied at 78.

Yesterday, Facebook shares closed at US$29.11 on the NASDAQ, down from its IPO price of US$38.

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