General Motors, the world’s largest automaker, has confirmed its plan to pull $10 million worth of ads from social media behemoth, Facebook, just days before the site’s IPO.
The move reflects a lack of faith on GM’s part that its paid advertising affects the consumers being targeted enough to justify continuing the ads. This isn’t the first time in recent history that the company cut its ad spending. Earlier this year we reported that GM had consolidated most of its ad spending to Aegis Group’s Carat London operation, cutting several smaller companies out of its budget.
With so much speculation surrounding Facebook’s ground-shattering IPO, having the U.S.’ third-largest advertiser pull out can’t be a good sign, but it isn’t clear if, and by how much, the decision will affect the network moving forward.
Greg Martin, A GM spokesperson told the Detroit News, that the company regularly re-evaluates where its advertising dollars go, and that this was a routine move.
“In terms of Facebook specifically, while we currently do not plan to continue with advertising, we remain committed to an aggressive content strategy through all of our products and brands, as it continues to be a very effective tool for engaging with our customers,” he said.
While the higher-ups at Facebook might be sweating a little, most car fans probably couldn’t care less about the ads disappearing — exactly the mentality behind the move.
What they (you) probably do care about are the fan pages, which GM says will remain intact.
[Source: the Detroit News]