General Motors Co revealed that it will no longer advertise on social network Facebook, even though latter company is going public this week. The source, as cited by a source close to the matter, said that the reason why GM pulled advertisements from the social networking site was because their advertisements failed to make an impact on consumers.
General Motors Co is one of the biggest companies ever to have pulled off its advertisements from Facebook, marking a dent in Facebook’s advertising strategy. The move by General Motors also strengthens doubts regarding whether traditional advertisement is actually better than new age advertisement.
The move by General Motors will be thought about by Facebook after it is done with its IPO as the first and most important thing on the social networking company’s mind right now is its billion dollar IPO. Moreover, analyst also believe that the move by General Motors, though ill timed, will not really affected Facebook’s Initial Public Offering and neither will it affect the attitude of other advertisers of the company. Moreover, when Facebook was asked to comment, it declined.
An Internet and media analyst, Brian Wieser, who works for Pivotal Research Group, said that the move by General Motors does highlight what they have been arguing over; the overall business model of Facebook.
On the other hand, General Motor Co said that it will still have its pages on Facebook, that charge no fee to set up. The company said that it will use these pages to market its cars. In a statement, General Motors said that in terms of the social network particularly, while they don’t plan to continue advertising their products there, they will stay committed to a serious content strategy through all of their brands and products, admitting that it is a very efficient tool to start interaction between their customers and make them engage with each another.