Since becoming a public company, Facebook shares have dropped by 29%, reducing their intial market value by US$30 billion over the last month.

The website generates most of its revenue from advertising but a recent survey indicates that four out of five Facebook users have never bought a product or used a service as a result of Facebook banner ads.

The poll also revealed that 34% of Facebook users are spending less time on the site, and the increasing use of smartphones by current Facebook users to access accounts is further stifling advertising potential.

Facebook Fatigue?

In 2008, Facebook finally overtook rival My Space to become the top social networking site -measured by number of monthly unique visitors- and currently boasts 900 million members. However, Facebook are struggling to turn this customer base into advertising revenue and to keep users interested. Are we finally tiring of what has become one of the most popular…

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