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Would You Pay for Facebook?
Would you pay for Facebook, even if it got rid of all the ads and sponsored links. How many users are those ads really reaching?
Local 15's Taren Reed found out that merely 15 percent of users would pay about $10 to use Facebook ad free. That's not very many.
Greenlight, a digital marketing agency, surveyed 500 users to find out if they thought Facebook was worth paying for.
Greenlight's CEO says: "Facebook may need to pace itself a little less aggressively when it comes to cashing in on its advertising sweet spot."
Greenlight's survey also found that close to 70 percent of users say they never or rarely click on advertisements.
So the next question is how many users does Facebook actually think those ads are reaching? And how many of those are real?
There are reportedly over one billion monthly active users but as of December 2012, nearly one percent of those are fake accounts. About 5 percent may have been duplicate accounts, while 1.3 percent were accounts "improperly classified by users." That's according to the Form 10-Q filed with the Securities and Exchange Commission.
So Facebook is branching out now, maybe trying to reach more real users in the hopes they'll click on those advertisements. Rumor is the social networking site is launching new products to help the film and TV industry become more popular and even more social.
The effect on users is that it will make non-friend and non-public data more available.
If you said yes to experiencing Facebook without the ads, how much? Eight percent of those polled said $5 would suffice.