Today's Coming Crisis Movie

Wednesday, May 16, 2012

General Motors CANCELS paid adverts on Facebook just weeks before company's crucial IPO

General Motors, the nation's third-largest advertiser, says it has stopped buying Facebook ads because they don't produce car sales.

GM is only the latest company to question whether Facebook, despite its 900 million users, is an effective use of advertising dollars.

The Facebook skepticism, three days before the company is expected to make the largest initial public offering in history, an estimated $104 billion, could spell trouble for the social networking giant.

The Wall Street Journal reports that GM paid $10 million to advertise on Facebook last year -- a pittance compared to its $1.3 billion advertising budget. This year the company plans to stop advertising on the site entirely. Read More