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Facebook stock is soaring and its revenue strides impressing investors, but it's advertising strategy is another story. In fact, it's a pitch that Facebook has abandoned, according to influential tech consultant Forrester.
Forrester argues in a new report that Facebook has enabled businesses to set up their own branded pages in an attempt to promote their services, but has done little in the past 18 months to improve its branded page format or the tools marketers use to manage and measure those pages. And the consultant doubts Facebook will make the changes needed to win back marketers' hearts. In fact, Forrester argues Facebook is blind to the problem given its recent financial success. Facebook reported $1.6 billion in total advertising revenue for the second quarter of 2013.
Facebook said in a statement the Forrester report was not only wrong, but at times illogical.
"Facebook hasn't delivered on its promise and in fact has quietly become reliant on the traditional advertising models it once lampooned."—Nate Elliott, principal analyst at research firm Forrester
"Its enormous revenues have blinded it to marketers' growing dissatisfaction. But if it doesn't change, the results will be dire."—Elliott