When Facebook went public in May, it caused a huge stir. Despite a lackluster debut, most people believe the social media standard-bearer has the potential to be enormously profitable for a long time—if only it can figure out the key to unlocking access to its 900 million users, and more importantly, their wallets.

For the time being, paid Facebook ads are the future, but it’s an unclear future at best. With mobile devices outpacing sales of laptops and PCs at about 50-to-1, the fact that Facebook has not figured out how to place ads on those mobile devices is a huge problem. With this and other problems, major companies are starting to take note and act accordingly. Right before the IPO, GM pulled Facebook ads from its advertising playbook, calling them ineffective. When the nation’s largest auto maker and fourth largest advertiser pulls $10 million worth of advertising from the world’s most popular social media site, you know there’s a problem. (more…)