General Motors to pull $10 million Facebook ad account

Facebook claims it now has over 900 million users worldwide, but all those people don't apparently add up to a huge audience for online ads, at least for one company. The Wall Street Journal reports that car company General Motors has decided it will pull its paid Facebook ad campaign, said to be worth $10 million, off the site after determining that the ads didn't have much of an impact for consumers.

Admittedly, that amount of money is a drop in the bucket compared to Facebook's total yearly revenue of over $3 billion. However, the fact that a major company doesn't believe that paying for ads to reach Facebook's massive user base is worth it could be a sign of things to come for the social networking site, especially as it plans to launch its IPO later this week.

GM will still pay lots of money to use Facebook. The story says the company will pay about $30 million to maintain and add content to GM's Facebook pages, which Facebook doesn't directly charge to use.

In a new survey about Facebook released today, 83 percent of the people who were polled claim to have never or hardly ever clicked on a Facebook ad.

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13 Comments

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Good for them.
Ads are annoying. In fact, I don't know any ad that I actually want to see. Sure, there have been some good ones in the past but unfortunately they don't outweigh the bad ones.

Yes, OK, but yet I have never ever in my life clicked on a Google ad either... and am not planning to do so in the near future...

Thank God! Now hopefully this will trigger their stocks to plummit and then after they are bankrupt all the house wifes who are cheating (e.g. whores) will be able to commence cheating the way they used to... on Ashley Madison

sava700 said,
FINALLY!! Some company finally steps up and starts a trend for the better!

72001 said,
Thank God! Now hopefully this will trigger their stocks to plummit and then after they are bankrupt all the house wifes who are cheating (e.g. whores) will be able to commence cheating the way they used to... on Ashley Madison

We can only hope for both of the above posts to come true!!
If for no other reason then to screw over that one pickle who renounced his citizenship to get a tax break. Hope they NEVER allow him to get his US citizenship back.

KillTheIrishman said,
Glad I didn't buy shares in the IPO.

Get in early and sell quickly before the Tech Bubble 2.0 pops. When you start to see a company supposedly valued in the billions it's time to pull out.

GM will still pay lots of money to use Facebook. The story says the company will pay about $30 million to maintain and add content to GM's Facebook pages, which Facebook doesn't directly charge to use.

I'll maintain it for... oh say.. 1 million a year?