25 July 2013 - 3:06pm | posted by | 3 comments

15% of Facebook users would be willing to pay more than $5 to see no ads

15% of Facebook users would be willing to pay more than $5 to see no ads 15% of Facebook users would be willing to pay more than $5 to see no

Fifteen per cent of Facebook users would be happy to pay to see no ads appear on their feeds, according to a survey by Greenlight.

The survey comes following the comments made by Twitter co-founder Biz Stone, who suggested Facebook could make $1bn a month if just 10 per cent of its global users signed up to a premium service where users pay $10 to see no ads.

The Drum spoke to Arena’s Mark Holden, head of futures, who said it was an unlikely move for Facebook as social media users have now come to expect a free service and are subsequently willing to put up with “annoying” ads.

However, Greenlight’s poll of 500 people showed 15 per cent of users would be prepared to pay Facebook to see no ads with the majority, eight per cent, indicating they would be willing to spend $5 right up to $10 and even over.

The results of the survey came ahead of Facebook’s financial results for the second quarter, which exceeded analysts’ expectations. The site generate $1.6bn in revenue from advertising, with $655.6m coming from mobile ads.

The survey was part of Greenlight’s global annual 'Search & Social Survey (2012-2013)' which asked 500 people across a range of professions how they engage with online advertising, search engines, and social networks.

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25 Jul 2013 - 16:05

What markets was this research conducted across?

25 Jul 2013 - 17:21
Greenlight's picture

The research was conducted across North America, Europe, Asia and ROW

26 Jul 2013 - 19:34
djime85218's picture

Sure. Gues what would happen after a certain amount of time? Facebook would pocket your money, then gradually re-introduce ads. Ads are just too profitable, even if Facebook runs the risk of consumer discontent.

This is what happened in the US with "pay-for-content" TV, years ago. Many years ago (I remember) TV programming used to be FREE in the US. Then the ads began. It got so bad that there were more ads than actual content, and users complained. The TV networks promised that if users would pay a fee, they could view content ad-free. Most users paid. The networks gradually began to sneak ads back into the "paid" content. Fast forward to the present - now users pay for TV content, AND they have as many ads as they did before.

This is why I stopped watching TV 18 years ago. I use my TV to watch movies. :-)


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