General Motors Stops Advertising With Facebook Just Days Before Going Public

According to the Wall Street Journal, General Motors is stopping all advertising with Facebook, after stating that their paid advertising on Facebook are not very effective on car purchases.  While they will still remain active on their Facebook pages, they will stop all paid advertising with the social giant.

GM Marketing Chief Joel Ewanick met with Facebook advertising managers earlier this year but was not convinced that Facebook advertising made sense.

This comes at the worst possible timing with Facebook filing their IPO within just a few days.  This news also comes just one day after Forrester analyst wrote about marketers not having enough tools for marketing effectively on Facebook by stating, “Marketing on Facebook doesn’t work very well, and marketers can’t count on things improving anytime soon.”

GM currently spends approximately $10 million per year on Facebook advertising.

Do you think this will give investors a bad taste in their mouth a few days away from Facebook going public?

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