General Motors will stop advertising on Facebook because it has determined that paid ads on the site are, well, not effective.GM still plans to use Facebook as an advertising platform--it will promote its products on Facebook, and continue to build social rapport with its customers via Facebook--it just won't utilize Facebook's paid ads feature.
If other Facebook advertisers are paying attention to GM's actions then this could be an issue for social network, which relies almost entirely on advertising sales to turn a profit.
General Motors, the world’s largest automaker and third biggest advertiser in the U.S., plans to stop advertising on Facebook, The Wall Street Journal reported on Tuesday. After meeting with Facebook managers to address concerns, the company’s marketing executives were left unconvinced of the effectiveness of the site’s advertising methods, claiming its paid ads had little impact on consumers.
