Top US automaker General Motors decided this week to drop Facebook paid ads.
GM’s decision followed Facebook officials’ failure to convince top marketing executives at the U.S. automaker of the benefits of Facebook’s paid ads at a meeting that took place in the past few weeks, Reuters reports citing people familiar with the meeting.
The move prompted a swirl of marketing experts’ opinions and analyses of Facebook’s main source of revenue. All the numbers pointed to the same conclusion: Facebook ads were underperforming, and, as a result, ad revenue growth was slowing.
“Despite the recent drawback, its advertising and marketing connects nearly a billion global humans, and I believe it will have no impact on Facebook’s opening day,” said serial entrepreneur Flip Filipowski.
While GM’s slamming on the brakes with Facebook ads, Ford’s going pedal to the metal.
“We are doing more advertising on Facebook,” says Ford’s director of marketing communications, Matt VanDyke, “and it is a growing and critical part of our media mix.”
After months of anticipation, Facebook on Thursday set the share price for its first public stock offering at $38 as the social networking giant made final preparations for a record-breaking market debut Friday.
Priced at $38 a share on Thursday, the 8-year-old social-networking company, fronted by hoodie-wearing CEO Mark Zuckerberg, could raise $16 billion in funding, not including an overallotment option. It could end its first day of trading worth up to $104 billion.