Big Advertisers Doubt Facebook: Report

Wednesday, 2 May 2012 | 3:04 PM ET

Facebook is facing looming questions from advertisers about how effective their advertising methods are, according to a recent report.

Concern over the social media company's advertising strategies — and whether clients are getting their money's worth — comes at a inconvenient time. The company is reportedly planning on beginning its roadshow next week. Bankers and potential investors are trying to figure out how to value Facebook for its initial public offering, according to the Wall Street Journal.

Besides critical advertisers, Facebook also recently reported it's first-quarter ad revenue was weaker compared to the previous three months. The company's ad revenue increased 37 percent from the same period last year, but declined 7.5 percent from the last three months.

email: tech@cnbc.com


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