South Africa: General Motors Drop Facebook Advertising On Eave of IPO - Why?

opinion

General Motors (GM), the third biggest advertising spender in the US, has announced that it would no longer be allocating any budget to Facebook advertising because paid ads on the site have little impact on consumers' car purchases, according to a GM official.

This news has had the web buzzing with wildly differing views from the likes of 'Who cares? The US$10 million is a tiny portion of both GM's ad budget, which is around US$1.8 billion, and a drop in the ocean in Facebook's revenue of U$3.7 billion' to 'This is the beginning of the end for Facebook" which lists this week (eg see Reuters and BusinessInsider.com).

...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.