Mark Zuckerberg Facebook

Facebook has over 83 million fake accounts, which consist of profiles of user’s pets and several profiles that the company refers to as “undesirable,” The Guardian reports.

The company noted that 8.7 percent of its 955 million user accounts aren’t real. The false accounts are broken into three groups, duplicate accounts, user-misclassified and undesirable. The social network is said to have 46 million duplicate profiles, or 4.8 percent of all Facebook accounts. User-misclassified accounts profiles created for non-living entities, such as groups or people’s pets, account for 23 million accounts, or 2.4 percent of Facebook’s user base. Lastly, 14 million undesirable accounts, those that have violated Facebook’s terms of service.

The Gaurdian reports that, two months prior to going public, Facebook gave an estimated number of fake user accounts on its network, which came in at around 42 and 50 million. This suggests that Facebook has seen nearly a 50 percent increase in fake user profiles in a matter of three months. Fishy accounting, no?

Recently online shopping platform provider, Limited Run, posted on its Facebook page that its software detected that 80 percent of the clicks on the social network’s ads were from “bots” or fake users.

Facebook’s stock made its market debut at $43 per share, which has since fallen as low as $20 per share on news of quarterly revenues of $1.18 billion and a loss of $157 million.

While the company’s mobile user base has grown to 543 million – which is a 67 percent year-on-year increase – Facebook has yet to covert mobile use into advertising revenue, thus struggling to entice investors to buy, or retain, Facebook shares.

According to The Guardian, Sir Martin Sorrell, chief executive of marketing firm WPP, said that he is still unconvinced that Facebook is a good advertising platform and that it provides good branding opportunities, but little else.

With news of fake accounts, poor ad revenue strategy and very little confidence by advertisers and retailers it is no wonder Facebook is losing money and market value. Even if Facebook is the largest social network, at this rate it doesn’t look as if Facebook’s model is sustainable.

[via: The Guardian]