Companies ask: Does advertising on Facebook pay? | Inquirer Technology: "NEW YORK — Responding to extraordinary demand, Facebook said Wednesday that it would sell more stock in the company’s initial public offering. But ahead of the IPO, a debate emerged between two of the nation’s largest automakers: Does it pay to advertise on the social network?
General Motors, the nation’s largest automaker, said it would abandon Facebook ads after concluding they were ineffective. At the same time, Ford reaffirmed its commitment to Facebook, saying their relationship was stronger than ever.
The direct financial impact of GM’s move is minimal for Facebook, but the decision drew attention to the network’s advertising system, which some observers regard as immature.
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