Analyst Says GM Gonna Hurt...Facebook
GM's ad-pulling from Facebook is generating more speculation than the Oracle at Delphi and has more legs than a centipede. Anyway, Facebook's loss of paid advertising from General Motors Co., may lead to other marketers rethinking ads on the site. Oops. Isn't an IPO coming soon?
Carlos Kirjner, an analyst at Sanford C. Bernstein & Co. in New York says if auto ads fail on Facebook, then AT&T Inc., Procter & Gamble Co. and American Express Co. may follow GM's lead and curb spending on the site. "The revenue loss is insignificant, but the fact that one of the largest brand advertisers in the country sees Facebook as ineffective suggests others may do so," Kirjner said in a research report.