♠ Posted by Unknown at 00:52
Brace yourselves Facebook fans for more paid status updates, sponsored stories, App Center, and mobile ads, as the social network tries to prove its worth after getting a black eye from General Motors, one of the largest advertisers in the U.S.
If you haven't heard the news, GM will stop advertising on Facebook after discovering that people don't shop for cars between status updates, pokes, likes, and virtual crop harvests. Given that Facebook's initial public offering is set to take place Friday, the timing for this news couldn't get much worse.
Facebook Users Should Brace for Fallout After GM Ad DecisionGM will still have a presence on the social network through its Facebook pages, but that activity doesn't contribute to Facebook's bottom line, according to The Wall Street Journal. “We remain committed to an aggressive Facebook content strategy through all of our products and brands moving forward,” GM said on its Facebook page.
If you haven't heard the news, GM will stop advertising on Facebook after discovering that people don't shop for cars between status updates, pokes, likes, and virtual crop harvests. Given that Facebook's initial public offering is set to take place Friday, the timing for this news couldn't get much worse.
Facebook Users Should Brace for Fallout After GM Ad DecisionGM will still have a presence on the social network through its Facebook pages, but that activity doesn't contribute to Facebook's bottom line, according to The Wall Street Journal. “We remain committed to an aggressive Facebook content strategy through all of our products and brands moving forward,” GM said on its Facebook page.
Facebook's direct financial hit from GM's ad break-up doesn't appear to be that big. The car company contributed about $10 million to Facebook's $3.7 billion in revenue for 2011, according to the Journal. But GM is more than just a blank check for advertising dollars; it's the company responsible for the Corvette, Camaro, Pontiac GTO, and Trans Am. It's an iconic company that makes iconic products and some critics are wondering whether GM's decision might inspire other companies to reassess their Facebook ad spending.
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