GM Pulls Advertising From Facebook, Journal Reports

Many companies have been questioning whether advertising on Facebook is effective, and General Motors Co. has just determined that they, in fact, aren’t. The company has planned to stop advertising on Facebook, revealing that their paid ads have had little impact on consumers, reports the Wall Street Journal.

GM will still continue to expand its marketing efforts through its Facebook page, however, which is at no cost.

This is an inopportune time for Facebook, to say the least, since it comes the same week as the social networking giant’s IPO.

GM marketing chief Joel Ewanick is quoted in the WSJ article saying the company “is definitely reassessing our advertising on Facebook, although the content is effective and important.”

The company spends a reported $40 million on Facebook, $10 million for paid advertising, the rest for content and agencies to manage that content.

Could other big advertisers on Facebook follow suit?