facebook
twitter
rss
account
search
search
 

Report: GM dropping Facebook ads

May 15, 2012 at 6:23 PM   |   Comments

DETROIT, May 15 (UPI) -- General Motors Co. will drop high-flying Facebook from its U.S. advertising program due a lack of impact on its customers, sources told The Wall Street Journal.

The venerable automaker will maintain its Facebook page, which costs GM nothing, but will no longer buy ads on the booming social media site, which is going public Friday, the newspaper said Tuesday.

The Journal's sources said the move came after GM marketing executives determined they were not getting enough return on their Facebook investment of about $40 million, which included $10 million paid to Facebook.

The head of GM's marketing department, Joel Ewanick, told the newspaper they were "definitely reassessing our advertising on Facebook." He said the Facebook page maintained by GM was "effective and important."

The Journal said GM's decision would not be a serious blow to Facebook's bottom line, but it raised questions about Facebook's effectiveness as an advertising platform, which has been a key selling point in the run-up to Friday's IPO, which has been valued at an estimated $105 billion.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
4
Teledyne subsidiary gains contract for submarine work Teledyne subsidiary gains contract for submarine work
5
Don't panic, stocks will rebound Don't panic, stocks will rebound
Trending News
Around the Web
x
Feedback