According to the Wall St Journal as Facebook prepares
to go public, one question looms: does advertising on the social network work?
Advertisers say they're still not sure what they're getting for their dollars. Facebook Inc. has built a $3 billion-a-year
advertising business by convincing marketers to buy new forms of advertising
designed to create buzz around their brands.
But some advertisers with big spending accounts are wondering whether
they're getting their money's worth.
The doubt lingers as bankers and prospective investors
decide how to value Facebook for an initial public offering planned for May 18,
said people familiar with the matter. Facebook executives will be pitching the
company to big investors in an IPO roadshow starting Monday, these people said.
Last week, Facebook showed its advertising growth doesn't
always go up. The company reported its first-quarter ad revenue rose 37% to
$872 million from a year ago, but it was down 7.5% from the previous three
months. Facebook blamed "seasonal trends" for the decline, as well as
shifting user growth where the company generates less revenue per user….
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