General Motors plans to stop advertising on Facebook because the ad campaigns are not paying off in any measurable way. At $10 million, the company’s ad spend on Facebook is relatively small. The reaction to GM’s decision, however, has been disproportionately big. The timing of the news, of course, has much to do with the furor. Facebook is two days away from a blockbuster initial public offering whose projected $104 billion valuation is highly predicated on projected advertising revenue. GM’s decision stirred debate because it highlights a nagging sense of uncertainty marketers have expressed about Facebook.
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GM Steers Away From Facebook
Posted by: Erika Morphy May 16, 2012 03:12 PMGeneral Motors plans to stop advertising on Facebook because the ad campaigns are not paying off in any measurable way. At $10 million, the company’s ad spend on Facebook is relatively small. The reaction to GM’s decision, however, has been disproportionately big. The timing of the news, of course, has much to do with the furor. Facebook is two days away from a blockbuster initial public offering whose projected $104 billion valuation is highly predicated on projected advertising revenue. GM’s decision stirred debate because it highlights a nagging sense of uncertainty marketers have expressed about Facebook.