Right now Facebook is under a microscope as it prepares for its IPO. One of the biggest questions is how will Facebook continue to increase profits when its profits rely on its advertising dollars.  A recent Associated Press article reported Facebook has 900 million users, but only makes a few dollars per year from each user.

With GM pulling $10 million in advertising from the social media behemoth will marketers continue to see the value in Facebook?

The bottom line is there is not enough data to support the success of spending advertising dollars on Facebook.  This doesn’t mean that Facebook advertising doesn’t work, but just that it hasn’t been around long enough and enough studies haven’t been completed to verify its validity as a solid marketing/advertising strategy.

So if you feel Facebook advertising is a good fit for your organization, our biggest piece of advise is to develop a Facebook advertising strategy with very measurable objectives and test, test, test.

If you do not set measurable objectives – whether that is to increase sales, increase your Facebook likes, increase attendance at an event, encourage coupon download, etc. – you will never know if your Facebook advertising is working.   Also, have realistic expectations and be open to the fact that you might have to adjust your target audiences and your messages before you get it right.