GM Ditching Facebook Ads, Company Says They Don’t Work

GM Dropping Facebook Ads

Facebook is about to launch what could become the biggest tech IPO in history but ahead of that initial public offering the company is losing one of its biggest advertisers. General Motors (GM) executives have decided to pull GM advertising from the social network as they determined the ads to be ineffective.

In a report regarding the social networks efficacy the Wall Street Journal reports:

“Companies in industries from consumer electronics to financial services tell us they’re no longer sure Facebook is the best place to dedicate their social marketing budget—a shocking fact given the site’s dominance among users.”

To put GM’s spending in perspective the company is America’s third largest advertiser and spend $10 million annually to Facebook ads. GM also spends an additional $30 million to develop content and maintain its Facebook pages, that spend is expected to stay in place so GM can maintain its social presence however Facebook doesn’t earn any money off that $30 million spend.

In the meantime as questions continue to be raised about Facebook ads efficacy the social network will need to prove that their ad outreach can work on a more broad level.

James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at and the CEO of Aven Enterprises LLC.


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