Facebook comments, ads don't sway most users: poll

(Reuters) - Four out of five Facebook Inc users have never bought a product or service as a result of advertising or comments on the social network site, a Reuters/Ipsos poll shows, in the latest sign that much more needs to be done to turn its 900 million customer base into advertising dollars.

The online poll also found that 34 percent of Facebook users surveyed were spending less time on the website than six months ago, whereas only 20 percent were spending more.

The findings underscore investors' worries about Facebook's money-making abilities that have pushed the stock down 29 percent since its initial public offering last month, reducing its market value by $30 billion to roughly $74 billion.

About 44 percent of respondents said the botched market debut has made them less favorable toward Facebook, according to the survey conducted from May 31 to June 4. The poll included 1,032 Americans, 21 percent of whom had no Facebook account.

Facebook's 900 million users make it among the most popular online destinations, challenging entrenched Internet players such as Google Inc and Yahoo Inc. But not everyone is convinced that the company has figured out how to translate that popularity into a business that can justify its lofty valuation.

Shares of Facebook closed Monday's regular trading session down 3 percent at $26.90. Facebook did not have an immediate comment on the survey.

While the survey did not ask how other forms of advertising affected purchasing behavior, a February study by research firm eMarketer suggests that Facebook fared worse than email or direct-mail marketing in terms of influencing consumers' purchasing decisions.

"It shows that Facebook has work to do in terms of making its advertising more effective and more relevant to people," eMarketer analyst Debra Williamson said.

Those concerns were exacerbated last month when General Motors Co, the third largest advertiser in the United States, said it would stop paid-advertising on Facebook.

Measuring the effectiveness of advertising can be tricky, particularly for brand marketing in which the goal is to influence future purchases rather than generate immediate sales.

And the success of an ad campaign must be considered in relation to the product, said Steve Hasker, president of Global Media Products and Advertiser Solutions at Nielsen.

"If you are advertising Porsche motor cars and you can get 20 percent of people to make a purchase that's an astonishingly high conversion rate," said Hasker.

"If you are selling instant noodles, maybe it's not," he

WANING ENGAGEMENT

About two out of five people polled by Reuters and Ipsos Public Affairs said they used Facebook every day. Nearly half of the Facebook users polled spent about the same amount of time on the social network as six months ago.

The survey provides a look at the trends considered vital to Facebook's future at a time when the company has faced a harsh reception on Wall Street.

Facebook's $16 billion IPO, one the world's largest, made the U.S. company founded by Mark Zuckerberg the first to debut on markets with a capitalization of more than $100 billion.

It's coming out-party, which culminated years of breakneck growth for the social and business phenomenon, was marred by trading glitches on the Nasdaq exchange. A decision to call certain financial analysts ahead of the IPO and caution them about weakness in its business during the second quarter has triggered several lawsuits against Facebook and its underwriters.

Forty-six percent of survey respondents said the Facebook IPO had made them less favorable towards investing in the stock market in general.

While Facebook generated $3.7 billion in revenue last year, mostly from ads on its website, sales growth is slowing.

Consumers' increasing use of smartphones to access Facebook has been a drag on the company's revenue. It offers only limited advertising on the mobile version of its site, and analysts say the company has yet to figure out the ideal way to make money from mobile users.

Facebook competes for online ads with Google, the world's No. 1 Web search engine, which generated roughly $38 billion in revenue last year. Google's search ads, which appear alongside the company's search results, are considered among the most effective means of marketing.

The most frequent Facebook users are aged 18 to 34, according to the Reuters/Ipsos survey, with 60 percent of that group being daily users. Among people aged 55 years and above, 29 percent said they were daily users.

Of the 34 percent spending less time on the social network, their chief reason was that the site was "boring," "not relevant" or "not useful," while privacy concerns ranked third.

The survey has a "credibility interval" of plus or minus 3.5 percentage points.

By Alexei Oreskovic SAN FRANCISCO  Newscribe : get free news in real time 

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Competition begins at home

Much is being done to make sure M'sia can compete with the best on the world

BY now, most people would have heard of the term middle-income trap.

This describes a situation where a nation makes rapid progress in terms of economic growth and in increasing incomes from a low base, but is unable to make that final leap to becoming a high-income nation.

Why this happens is often not clear but economists theorise that once the economic factors of production such as land, labour and capital have been sufficiently harnessed, it needs real gains in productivity to further increase income.

Put in another way, there is only so much land, labour and capital. Once you have made optimum use of these, the next stage is simply to ensure that you use these much more efficiently, and that there is a further increase in productivity.

Are we stuck in a middle-income trap?

It’s too early to answer the question. If we don’t reach high-income status by our target date of 2020, then perhaps we are.

But let me tell you we are doing everything possible to get to high income.

In a nutshell, competitiveness is crucial for high income. We simply must do things better than before and more efficiently.

High income goal: ‘In a nutshell, competitiveness is crucial for high income. We simply must do things better than before and more efficiently.’

 

We need a technological and knowledge leap, and to foster an environment which breeds and encourages competitiveness.

To become a high-income country, we have to be globally competitive, and focus on areas where we can bring our competitiveness to bear with the highest impact in terms of economic contributions and earnings.

Often, we hear the New Economic Model or NEM which is aimed at moving us into a high income country, is dead and is replaced by the Government and Economic Transformation Programmes. Nothing can be further from the truth and I am keen to dispel this transformation blues.

The moves we are taking to transform arise from the NEM - we are NOT replacing it.

We are implementing the NEM as best as we can through measures aimed at making major changes to our operating environment.

The Strategic Reform Initiatives have been put in place as an enabling process.

The National Economic Advisory Council (NEAC) recommended in the NEM, 51 broad and cross cutting policy measures to enable us to realise our goal of transforming our nation into a high income, sustainable and inclusive economy. We are implementing, albeit at different stages, all the 51 strategic reform initiatives.

There are six areas in which we are making major changes:

·Competition, standards and liberalisation
·Improving public finance
·Better public service delivery
·Defining and reducing the Government’s role in business
·Human capital development
· Narrowing disparities

Like charity, competition begins at home.

We introduced the Competition Act, which is being enforced this year so that all anti-competitive behaviour among Malaysian industries can be removed and there will be free and fair competition.

This is a major milestone and our adoption of this, despite powerful vested interests, demonstrates our commitment towards a competitive economy.

We have made amendments to the Standards of Malaysia Act 1996, approved in Dec 2011, to accelerate the development of standards.

This includes reducing the period of adoption of international standards from a year previously to nine months.

These are key requirements for an industry to be internationally competitive.

In the last Budget, 17 sub-sectors were announced for liberalisation, with up to 100% foreign equity participation.

Nine sectors have been fully liberalised while the remaining will be liberalised in stages by end-2012.

For changes to take place we need a healthy fiscal position.

We have made progressive improvements in tax collection, and collected additional RM25bil through improved efficiencies in 2011.

We have other measures in the pipeline to be disclosed in due course.

In terms of public service delivery we are re-engineering business processes. 395 licences will be eliminated by year end, which is estimated to reduce RM729mil in business licence compliance costs.

We are exploring open recruitment between the private sector and the civil service, and introducing real time performance monitoring.

We have introduced a minimum wage to force industry to become more competitive and various other initiatives to improve skills and upgrade the workforce.

Concurrently, we are modernising labour laws, providing a labour safety net, recognising talented women, strengthening human resource management and providing labour market analysis.

In making Malaysians more employable in the ICT industry and addressing the industry’s talent supply issue, the MyProCert programme does its part in upskilling Malaysians with international certification standards on programmes such as iOS Mobile Development and Oracle Certified Professional Programmes.

We are limiting the Government’s role in business to four areas – national infrastructure such as public transport; businesses that need to be owned locally such as defence; specialised industries which require large growth, catalytic or new technology; and situations where the private sector needs co-investors. There is a programme to pare down Government investments.

Last year, 80 companies participated in TERAS – a programme that aims to develop high performing bumiputra SMEs by enabling them to scale up and accelerate their growth, thus making them more competitive in the open market.

In line with the NEM, we are using the principles of being market friendly, merit-based, need-based and transparent in implementing these measures.

So far 50 more companies have qualified under this programme this year.

We are committed to encouraging competition and entrepreneurship.

The Government’s role is to set the conditions for competitiveness, enabling the private sector to take the lead and rise to the challenge. We know if we don’t successfully transform here, we will lose the battle to become a high-income nation.

But we are already taking the measures by putting in place enablers to make the economy more competitive and taking specific measures in a cross-section of areas to achieve the income we need to make us a developed country.

We will get there.

Datuk Seri Idris Jala is CEO of the Performance Management and Delivery Unit and Minister in the Prime Minister’s Department. Fair and reasonable comments are most welcome at idrisjala@pemandu.gov.my

Young and in trouble!

Many factors can trigger depression in children and teenagers.

BY the time she was six years old, Amy (not her real name) had already been sexually abused by her father for four years.

Amy never told anyone about it because her father had said it was their “little secret”. The secret was blown when Amy's uncle somehow found out about it, and informed her mother about the abuse.

Sadly, instead of believing her, Amy's mother turned her anger on the child, insisting that Amy must have been lying.

Dr Lai: Every time they get a compliment, it’s like a deposit for their self-esteem.

With her mother furious with her, Amy believed that she must have done something wrong, and that she was responsible for the mess her family was in. She took it upon herself to somehow make things right. She killed herself.

While this case did not happen in Malaysia, experts say there is definitely a disturbing trend where children as young as six years old are expressing suicidal tendencies.

Penang Hospital consultant (child and adolescent) psychiatrist Dr Lai Fong Hwa says he started noticing suicide cases among Malaysian children in the last five to 10 years.

“Kindergarten-going children can suffer from depression. Actually, even children who are four or five years old can suffer from depression, but usually these cases are due to biological causes rather than external causes,” he says.

Many factors can trigger depression in children and teenagers that, if left undetected and undealt with, could lead to suicide.

One factor, he explains, is the overemphasis on academic performance and achievement, even among pre-schoolers, which makes schools an extremely stressful environment.

“Some parents have the tendency to say things like If you want mummy to love you, you must get straight As in your exam.' What happens is the child then equates academic performance with whether his parents will love him. So if the child doesn't do well, in his mind, his parents don't love him anymore.

“Even though parents may have good intentions, they should never say things like that because it can have serious negative repercussions. What they should say is We will love you no matter what',” says Dr Lai.

Children, he says, need what is called an “emotional bank account”.

“Every time they get a compliment, it's like a deposit for their self-esteem. But every time they are criticised, the account gets depleted. What's important is that they should always have a good emotional bank account, because otherwise, when difficulty comes, they have nothing to draw from.”

He adds that children these days are constantly drummed with the message that they're “not good enough” because society expects them to achieve certain academic standards.

In the younger children, this stress can cause them to fear school.

“If a child has been quite happy attending school, and then suddenly fears school a few months down the road, it shows that something is not right. School should be fun, not torture. This is why I encourage parents to send their pre-school children to playgroups, rather than to classroom-environment kindergartens,” says Dr Lai.

Apart from academic achievements, shoving a child into multiple co-curriculur activities can also be extremely stressful.

According to Childline project director Michelle Wong, the helpline has received calls from children who are stressed out from having “too many exams”.

“One girl contacted us, saying she was having piano, violin, ballet and school exams all in the same month, and she could not cope with the pressure. She didn't know what to do,” Wong says.

Dr Lai adds that when a child has so much on his plate, the actual time spent with his parents is usually minimal, which is unhealthy for the child.

One question he frequently uses in his clinic when testing children on who they turn to for support is: “If you are alone on an island, and you can wish for one person to be with you, who would it be?”

“A normal child below the age of 12 would usually name their mother, or father, or a sibling whom they're close to. If they've been brought up by their grandparents, then it's also quite normal for them to name a grandparent.

“But when a child starts wishing for a friend instead, it shows that he doesn't look to his family for support. This can be dangerous as his friends are not likely to be able to fully help him should he get into any problem,” Dr Lai explains.

His concern is very real. In the last few weeks, there have already been several sudden deaths involving students under the age of 18.

Last month, a 14-year-old boy hung himself after having a fight with a friend. Another 17-year-old boy hung himself over “academic issues”.

In another case, an 11-year-old boy who fell to his death from the 14th floor of a flat in Penang left behind a handwritten note. His family has, however, denied it is a suicide note, saying that he had always written letters to express himself.

Early this week, a 12-year-old boy in Sabah hung himself with his shoelaces he was apparently upset over not being able to return to his hometown to see his grandfather.

Dr Ng: Children often use acting out as a way to express their inner distress.

“The trend is worrying. Children shouldn't be killing themselves,” Dr Lai says.

Depression among children and teenagers, more often than not, may appear as irritation or agitation, as opposed to the typical expression of sadness, says clinical psychologist Dr Ng Wai Sheng who has served in various settings including children social services, substance abuse rehabilitation and inpatient and outpatient psychiatric settings.

“This may partly explain why adults often overlook depression in young people. Depressed children and adolescents may be mislabelled as “angry” or “moody” kids. For young children, their behaviour may be confused with Attention-deficit hyperactivity disorder (ADHD).

“Children often use acting out as a way to express their inner distress, resulting in some being labelled as the bad kid'. Another common sign is the deterioration in academic performance and motivation, which may lead to the mislabelling of being lazy' or not smart enough',” she explains.

Divorce between parents has also frequently been linked to depression among children, but Dr Ng says it is not so much the divorce per se but rather how the divorce is handled that could be the determining factor.

“There is evidence to show that when a divorcing couple handles the matter prudently and maturely, and remain supportive of their children, the children continue to fare well in their lives,” says Dr Ng, a Fulbright alumni.

This includes communication between the parents and the child, whereby the child is assured of continuous love and support, and there is emphasis that the child is not responsible for the parents' decision.

However, she notes that the stigma of belonging to a single-parent or blended household could pose a challenge for children in Asian societies.

Senior community consultant paediatrician Datuk Dr Amar Singh says that based on his 30 years of experience working with children, child abuse (physical, emotional, or sexual) is also a trigger factor for suicide among children. For teenagers, peer relationship (including boyfriend or girlfriend problems) is also a common cause.

So, what can be done about children and teenagers who are suicidal?

The key is communication, say the experts.

“A majority of those who commit suicide would tell at least one person before they carry out the plan, so look out for the warning signs (refer to graphic above). If one suspects that a child/adolescent may have suicidal tendency, it is important to stay with the person, and raise the issue sensitively but directly with the person. Talking about death or suicidal thoughts does not mean you're putting ideas in the person's head'. That is a myth!

“Instead, talking about it openly, albeit with care and respect, gives the child the opportunity to share with you what's already in his head, and allows you to show that you care about him. Discussing the issue also provides for at least a 50% chance for him to consider alternative options to suicide. Avoiding the subject means you lose even that 50% chance of influencing him,” says Dr Ng.

Dr Amar, who is also Head of Paediatric Department Ipoh Raja Permaisuri Bainun Hospital, agrees.
“Many Malaysians are afraid to talk about this issue, but they need to realise that drugs aren't always the solution (for depression).

“You need to probe and ask the right questions, and you most definitely need to talk about it,” he says.

Stories by LISA GOH lisagoh@thestar.com.my

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