Home > Uncategorized > Yet another saga of problems for facebook

Yet another saga of problems for facebook

Facebook’s latest figures showing growth in global users also suggest as many as 83 million may come from dubious sources — duplicate accounts, pages for pets and those designed to send spam.

In a 10-Q filing with the US Securities and Exchange Commission, Facebook reported that of its 955 million monthly active users, approximately 83 million are fake or are duplicates. The company reported that people with more than one Facebook account, which is against the site’s policies, amount to 4.8% of the social network’s monthly active users. It also noted that “false accounts,” which include misclassified accounts and accounts set up for, say, spamming, represent 3.9% of the monthly active users.

That adds up to 8.7% of Facebook’s user base — or 83 million users.

This is not the only problem for Facebook this week.

An angry third-party developer blasted Facebook’s allegedly high-handed negotiation tactics in an open letter to CEO Mark Zuckerberg. The startup entrepreneur Dalton Caldwell, co-founder of sites as iMeem and PicPlz, posted on his blog an open letter to Zuckerberg in which he accused Facebook of bullying practices.

Caldwell said he demoed an iOS app that he had built on the Facebook platform. He said he was looking for support for his upcoming product launch. But that’s not what he got, according to his letter. Instead, Facebook execs told him his app competes with the new Facebook App Center, and they said they wanted to buy his company. “I quickly became skeptical and explained that I was not interested in an acqui-hire,” Caldwell wrote. “I had zero interest in seeing my product shut down and joining Facebook. I told your team I would rather reboot my company than go down that route.”

Although that was another embarrassing hit to Facebook, Dan Olds, an analyst at Gabriel Consulting Group, said he’s not surprised to hear that Facebook is using a strong business strategy. “To me, it sounds like both Caldwell and Facebook are working on very similar services and, understandably, Facebook is going to pursue their version of it rather than bless and support Caldwell’s version,” he said. “While it’s not a good result for Caldwell, it’s how business works. Sometimes you win. Sometimes you lose.”

“Any one thing isn’t so bad but the cumulative effect is terrible,” said Zeus Kerravala, an analyst with ZK Research. “Why would any investor put more money into them? This was certainly a strange situation and it makes you wonder how many skeletons might be out there.” Kerravala said between these issues and the company’s slumping stock price, which slid below $20 per share Thursday afternoon, Facebook has a lot of public relations work to do.

There is another problem, which facebook face just two days ago.

A company LimitedRun deleted its facebook account saying -80% of the clicks Facebook was charging us were bots.

The company said “A couple months ago, when we were preparing to launch the new Limited Run, we started to experiment with Facebook ads. Unfortunately, while testing their ad system, we noticed some very strange things. Facebook was charging us for clicks, yet we could only verify about 20% of them actually showing up on our site.

At first, we thought it was our analytics service. We tried signing up for a handful of other big name companies, and still, we couldn’t verify more than 15-20% of clicks. So we did what any good developers would do. We built our own analytic software.

Here’s what we found: on about 80% of the clicks Facebook was charging us for, JavaScript wasn’t on. And if the person clicking the ad doesn’t have JavaScript, it’s very difficult for an analytics service to verify the click. What’s important here is that in all of our years of experience, only about 1-2% of people coming to us have JavaScript disabled, not 80% like these clicks coming from Facebook.

So we did what any good developers would do. We built a page logger. Any time a page was loaded, we’d keep track of it. You know what we found? The 80% of clicks we were paying for were from bots. That’s correct. Bots were loading pages and driving up our advertising costs

So we tried contacting Facebook about this. Unfortunately, they wouldn’t reply. Do we know who the bots belong too? No. Are we accusing Facebook of using bots to drive up advertising revenue. No. Is it strange? Yes.”

The company has since moved to Twitter.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s