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).
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