On the week of Facebook’s (NASDAQ:FB) IPO, GM (NYSE:GM) pulled its ads from the social network, citing their ineffectiveness. It was certainly a factor in the offering’s horrible performance. Yet Facebook is now fighting back.
According to a study from comScore, the company’s ads actually help to boost sales. Although, the research was a bit limited, focusing on the fan behavior of Starbucks (NASDAQ:SBUX) and Target (NASDAQ:TGT). What’s more, Facebook also provided some of the funding for the project.
Despite all this, the research is still encouraging. And hey, Facebook has generated about $3.7 billion in revenues for the past year, which is impressive.
However, comScore did have some negative news. That is, Facebook’s growth in unique visitors has been decelerating. If so, it could mean that the business will slow down as well — even if the ads are effective for generating sales.