From my Forbes.com blog The New Persuaders:
Facebook may have disappointed investors with its first earnings report as a public company, but the results also reflect disappointment among an even more important group of constituents: marketers and agencies.
It’s not that Facebook did badly on the sales front. It exceeded admittedly dampened expectations, not to mention hitting the Street’s profit target. Nor do the folks who write the checks to run ads on Facebook spend much time watching FB on the stock ticker. “Whether the stock is up or down is not a big concern,” says David Berkowitz, VP of emerging media at Japanese ad giant Dentsu’s digital agency 360i.
What is? Results. While Facebook today trotted out plenty of stats and examples of success stories for the Sponsored Stories that it clearly views as the most effective ad it offers, the company hasn’t yet managed to close the deal for many marketers and agencies. “Facebook has to do a better job of articulating the value of its advertising to the brands,” says Heather Pidgeon, VP of services for iProspect, a digital agency owned by Aegis Group. “They have yet to say, ‘This type of advertisement works for this type of advertiser.’” …
Filed under: advertising, display, Facebook, social Tagged: | 360i, advertising, Aegis Group, David Berkowitz, Dentsu, display, earnings, Facebook, Google, iProspect, Mark Zuckerberg, mobile, social, social networking, targeting