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Facebook film ads facing the chop

Film executives are considering cutting movie ads on Facebook, due to the site's new anti-spam algorithm.

The LA Times newspaper has reported that film chiefs in Hollywood are becoming "increasingly skeptical of Facebook ads and promotion campaigns that ask users to 'like' a movie."

This is despite the film industry originally taking the lead in Facebook advertising, culminating in the 2010 Academy Award-winning feature 'The Social Network.'

"For people who are actually looking at the research and are looking for return on investment, for metrics that indicate specifically what Facebook's role is in the movie marketing equation, the jury's still out," movie marketing consultant Jim Gallagher told the LA Times.

After changing news feed settings on the site by allowing individual users to choose what they see on their live feed, many major brands have now seen a dramatic decline in the amount of people who see their messages on Facebook.

A recent example from Facebook marketing firm BlitzMetrics says that 72% of movies and network TV shows experienced a drop in the number of people who saw new Facebook posts after the new algorithm launched.

But despite the decrease in reach and engagement, most in Hollywood are happy to publicly back the site, with Sony president Dwight Caines saying:

"Facebook continues to be an important advertising partner. They are on every campaign we do today."

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