May 16th, 2012

GM Says Facebook Ads Don't Pay Off

By SHARON TERLEP, SUZANNE VRANICA and SHAYNDI RAICE
The Wall Street Journal

General Motors Co. plans to stop advertising with Facebook Inc. after deciding that paid ads on the site have little impact on consumers’ car purchases, according to a GM official.

The move by GM, one of the largest advertisers in the U.S., puts a spotlight on an issue that many marketers have been raising: whether ads on Facebook help them sell more products. On Friday, Facebook is expected to sell shares in an initial public offering that could put a market value on the company of as much as $104 billion.

Executives have spent the last two weeks trying to convince investors that its advertising business makes it worthy of a sky-high valuation.

Read more: http://professional.wsj.com/article/SB10001424052702304192704577406394017764460.html

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