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EyeTrackShop on Why Facebook Needs a New Business Model

Press Release   •   Jul 28, 2012 11:30 EDT

New York, NY (July 27, 2012) - A new study from EyeTrackShop, developers of the world's first online eye tracking solution for webcams, reveals that Facebook needs a new business model for their Mobile Ads, or their ARPU (Average Revenue Per User) will decline quite rapidly.

In the study that compares consumers’ viewing habits in terms of Facebook’s Web ads vs. its iPhone and iPad ads, mobile ads underperformed compared to Web. iPhone users not only noticed Facebook’s mobile ads 6 percent less, the time in which they spent looking at them is 14 percent less, and consumers recalled the ads 20 percent less. Ads on iPads, on the other hand, did well in comparison to Web ads: the ads were seen by 18 percent more users and users stayed on the ad 29 % longer.  

As more and more users convert to mobile platforms, Facebook’s current ARPU - which is based mainly on Web advertising as of today - will decrease substantially. Before Facebook’s shareholders can expect a healthy ROI in the near future, the current business model for mobile ads clearly seems to need some major surgery.

"People are much quicker to move on to something else on their phones when compared to the Web," said Jeff Bander, President of Americas - General Manager of EyeTrackShop Inc. "Facebook is sensitive to their user base, as they should be. They'll improve the mobile ads in baby steps, and they'll eventually get it." 

For more information, please contact: 
Mathias Plank, CEO & Founder of EyeTrackShop, +46 70 536 02 00

EyeTrackShop is the world’s first biometric online eye tracking solution. We deliver fast actionable insights for optimizing communication and design, and help marketers increase ROI by using communication that is seen. Our solution is simple with no hardware or software to install. We utilize consumers’ regular webcams to test simultaneously around the word at a fraction of the cost of traditional eye tracking.