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Facebook IPO hits a road bump

Veronica C. | May 24, 2012

While it’s not exclusively a recruiting tool, few job seekers or hiring managers could argue about Facebook’s role in identifying and placing new employees. Not only is it a great forum for employers to post information about available opportunities and their company culture, but candidates can also network with friends and colleagues in order to seek out the best opportunities. However, with the social media behemoth’s IPO (initial public offering) occurring on May 18, some have begun to question its true value and future role.

According to Ere.net, many advertisers and recruiters have begun to suspect that despite how popular Facebook has become, it doesn’t produce great results for investors.

In particular, The Wall Street Journal notes that car company General Motors Co. has announced that it will no longer be advertising on Facebook, claiming that they have found consumers rarely respond to ads posted on the social media site. This news represents an unexpected road bump for Facebook, which is trying to win over investors with its IPO.

Despite this announcement from GM, other companies have stood by their Facebook advertising. Rival automotive manufacturer Ford has claimed that advertising is only effective through social media when paired with other engaging content. Only time will tell how this back and forth debate affects Facebook’s IPO.

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Category: Employers

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