Ahead of IPO, Effectiveness of Facebook’s Ads in Question

(Ping! Zine) – For some online users, advertisements appearing on social networks represent more of a nuisance than something they’re actually inclined to take interest in. For others users, they simply choose to ignore the influx of commercialism.

As many have already noticed, Facebook is undergoing an evolution in the advertising arena. More sponsored ads from big names companies are appearing on the site. If you recently logged out of the social network, you may have even noticed a big Microsoft Bing ad that appears on occasion.

With the company set for its big IPO debut tomorrow, some are wondering the effectiveness of Facebook’s advertising platform. According to a report from the Associated Press, vehicle manufacturer GM has decided against continuing to use Facebook to advertise. Why? GM concluded that it wasn’t working out.

However, that doesn’t necessarily equate to too large of a hit for the company. It’s just one advertiser for a platform that could be worth over an estimated $100 billion with tomorrow’s initial public offering. Meanwhile, the U.S.’s other  top car company Ford will stay on with Facebook as an advertiser. The move by the automakers comes around the same time that Facebook signaled it would provide additional shares for its IPO filing.

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