SAN FRANCISCO -- Gokul Rajaram, who oversaw the development of products for Facebook's advertising business, has been hired away by Square.
The defection comes as Facebook is under pressure to prove the effectiveness of advertising on the giant social network to boost its slumping stock price. Advertising accounts for about 85% of Facebook's revenue.
Rajaram led the team that created all of the advertising products on Facebook. Mike Hudack, who worked on that team focusing on measuring the effectiveness of ads, will replace him.
Pivotal Research Group analyst Brian Wieser said Facebook investors should not be alarmed. Hudack's ascension could signal a renewed push to court Madison Avenue. Hudack was the co-founder and chief executive of Blip.tv before joining Facebook and has experience working with major brands in New York.
Much like Google, Facebook has become an increasingly popular place for small- and medium-sized businesses to advertise. These businesses could account for much of Facebook's advertising revenue growth this year, Wieser said.