NEW YORK: General Motors confirmed that it is pulling its advertising from Facebook because it determined paid ads had little impact on consumers.
GM had been spending about $10 million on paid advertising and $30 million on unpaid marketing on Facebook.
“We are reassessing our Facebook advertising, but we remain committed to very aggressive social media strategies and will continue to push content on Facebook through our product and brand Facebook pages,” GM spokesman Patrick Morrissey told AFP.
The news comes at a bad time for Facebook, which is expected to launch an initial public stock offering on Friday valuing the social networking site at around $100 billion.
GM’s pullback comes as other marketers are questioning the value of paid ads on Facebook despite the vast amounts of time huge numbers of consumers spend on the site.
The US auto giant is the third largest advertiser in the United States with expenditures of $1.8 billion in 2011, according to Kantar Media.
It will continue to expand its use of unpaid marketing such as the creation and management of content on the Facebook pages of its brands and cars, according to Morrissey.