The advertising earnings of Facebook which accounted for 88% of its total profit increased 61% during the second quarter. Since companies shift a bigger portion of their advertising expenses to the leading social networking site, Facebook allots more space for the ads. This further resulted to the detraction of experience for the users.
"We haven't measured a meaningful drop in satisfaction when we asked people about their experience with Facebook," founder and CEO Mark Zuckerberg addressed the issue. "We're comparing that to the result we get when we asked the same question to people using a version of Facebook with no feed ads at all. ... Now, that said, in recent studies people have told us that they notice the ads more."
Zuckerberg said that only 5% of all stories that could be found in the news feed were advertisements. He added that ads do no lessen the experience for users. The CEO proved his point by citing Facebook's engagement rate which reached 60.5% during the second quarter. The figure was up from last year's 57.8%.
"This will create the best experience for people who use our products, the best returns for more marketers, and the best results for us," Zuckerberg concluded.
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