"Facebook hasn't delivered on its promise and in fact has quietly become reliant on the traditional advertising models it once lampooned," he said in a report released on Monday.
With 1.16 billion monthly active users, Facebook is the most popular social networking site in the world, followed by Twitter and MySpace. Facebook reported $1.60 billion in total advertising revenue for the second quarter of 2013.
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The site has enabled businesses to set up their own branded pages in an attempt to promote their services, but Elliott says that it has done little in the past 18 months to improve its branded page format or the tools marketers use to manage and measure those pages. He added that it no longer supports social marketing and he doesn't believe Facebook will make the changes needed to win back marketers' hearts. In fact, it does not even see the need for change, he argued.
"Its enormous revenues have blinded it to marketers' growing dissatisfaction. But if it doesn't change, the results will be dire," Elliott said.
Survey results from Forrester make for dismal reading for Facebook when 395 marketers from the U.S., the U.K. and Canada were asked how satisfied they were with the business value they get from 13 different online marketing sites and tactics. Facebook came last behind the likes of Twitter, Google Plus, and YouTube. Out of the six largest online and social properties as marketing partners, Facebook once again fared poorly with just 51 percent of respondents saying they were satisfied - behind Google, LinkedIn, and Yahoo.
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"Everyone who clicks the 'like' button on a brand's Facebook page volunteers to receive that brand's messages — but on average, (Facebook) only shows each brand's posts to 16 percent of its fans," Elliott said in an open letter to Mark Zuckerberg, founder and chief executive officer of Facebook.
The social media site hit back at the claims saying that some of the conclusions in the report were "illogical" and "irresponsible".