Wal-Mart Likes Facebook, at Least During the HolidaysAlexander Chernev
Ever since the rumors of Facebook’s initial public offering surfaced, numerous investors and business analysts have questioned the viability of its business model in general and its mobile advertising strategy in particular. This Thanksgiving, Facebook offered some insight into its strategy when it rolled out its biggest mobile-advertising campaign ever, pushing 50 million ads to its users within a three-day span, all on behalf of one client—Wal-Mart—which bought 2 billion Facebook ads over the entire holiday season. Wal-Mart prepurchased the ads, thus elbowing out the competition and boosting the credibility of Facebook’s mobile advertising model. Wal-Mart’s move was in stark contrast to General Motors’ decision earlier this year to stop advertising on Facebook and channel its online advertising to search engines such as Google.
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