It does not pay to advertise on Facebook

Common Motors's decision to stop marketing on Facebook may be considered a wake-up call for the No. one social community, but major marketing executives say it is far too early to know if your web page will require off as an marketing system.

"There's loads of potential but it is not a slam-dunk," explained Martin Sorrell, chief executive of WPP, the world's major marketing company.

"Showing the influence of branding on Facebook will probably take a prolonged time," he extra.

Facebook is due to start off dealing on Nasdaq on Friday in an original public giving that can raise about $15.two billion, the greatest ever from Silicon Valley. With practically a billion people, Facebook generated virtually $4 billion in profits final year, largely from marketing.

News on Tuesday that GM, the third major advertiser from the America, was pulling back again from Facebook raised queries about no matter whether Iklan ads for the social community are definitely more practical than on classic media.

Also, the organization final month noted its 1st quarter-to-quarter profits slide in not less than two many years.

"For GM, marketing on Facebook could be the equivalent of hanging up posters in a substantial college ... why would any person cease to take a look at the posters once they are congregating, conversing from the hall?" Russ Lange, co-founder of promoting consultancy CMG Associates explained.

When companies established their advertising and marketing budgets in August and September, Lange expects them to consider the question of no matter whether Facebook might be a powerful marketing resource.

"They're likely to see the GM pullout being a reality verify," explained Ronald Camhi, head with the Promoting Marketing and Media apply at regulation agency Michelman & Robinson.

Promoting experts do not expect many companies to follow GM. Famous labels such as Nike, Nordstrom, Wal-Mart and Ford explained they were continuing to promote on Facebook.