It's been a year since General Motors (NYSE:
) broke up with Facebook (NASDAQ:
), advertising-wise. Now the couple is a couple again.
General Motors has bought a series of test ads to run on
Facebook's mobile apps and website. The auto manufacturer
designed the ads to promote its Chevrolet Sonic subcompact car,
GM said Tuesday, according to
The change of heart on the part of GM demonstrates the
effectiveness of Facebook CEO Mark Zuckerberg's efforts in
convincing companies to use the social network as an advertising
Facebook needs to increase ad revenue in order to remain
viable. Winning back GM was a priority and a reason Facebook's
COO, Sheryl Sandberg has had a yearlong ongoing dialogue about
resuming ads with GM chief executive officer Dan Akerson.
Facebook's advertising related improvements have included a
mobile-advertising service, which began in March 2012. It was
(and is) an attempt to better monetize the growing number of
users accessing Facebook through wireless devices. More than 60
percent of the social network's 1.1 billion members access the
service on smartphones and tablets, according to a regulatory
Impressive as those numbers are, Facebook is projected to have
only about 11.5 percent of the U.S. market for mobile advertising
by 2015, according to researcher,
. Those figures pale when compared with the full 57 percent of
the U.S. market Google Inc. (NASDAQ:
) will claim by then.
Depending on how many Facebook users install the new Facebook
Home software; advertising on Facebook may make even more sense.
If, as predicted, those users spend even more time with the
service, the opportunity to interact with potential customers
will be even greater for advertisers.
Reviews of Facebook Home have been mostly positive. Walt
All Things Digital
, said the software was "easy to use, elegantly designed, and
addictive," adding that with Home he paid even more attention to
At midday, Wednesday, Facebook is trading for $27.70, up $1.12
or a little over 4 percent on the day so far. General Motors is
also up, $.63 or slightly over 2 percent at $28.16.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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