Infinitive Difference Blog

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The Facebook Blues


It may not matter much to the pending IPO, but it’s been a rough couple of weeks for Facebook. First there was the announcement about dipping revenue for 1Q 2012. And now GM has decided to pull its advertising from the world’s largest social network:

GM started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads.

The company, which bought about $10 million worth of paid advertising on Facebook, will continue to invest in its free presence and content on its brand and fan page (which has more than 370,000 likes).

There’s no chance big companies will abandon social marketing, but this Forrester analyst highlighted a shift of focus the company may need to make post-IPO:

As good as Facebook has been at evolving to serve consumers, that’s how bad it’s been at serving marketers. In the past five years Facebook has lurched from one advertising model to another. … [and] still hasn’t stumbled upon a model that’s proven consistently successful for marketers … At the same time, Facebook often stands directly in the way of marketers’ efforts to measure the performance of their programs.

In other words, improving its analytics toolsets and techniques will be a critical effort if Facebook is to match the current hype and deliver fully as a publicly traded company.

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