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GM to Pull Facebook Advertising: WSJ
The big American carmaker still reportedly intends to do marketing through Facebook

Here we are less than three days before Facebook's historic $100 billion IPO and General Motors or "people familiar with the matter" let slip to the Wall Street Journal that GM's going to stop advertising on the social networking site because the paid ads are ineffective.

The big American carmaker still reportedly intends to do marketing through Facebook but that's not going to put any money in Facebook's pocketbook.

The paper says GM started having doubts earlier this year and met with Facebook managers, leaving the meetings "unconvinced advertising on the web site made sense."

GM reportedly spends about $10 million advertising on Facebook and another $30 million on its Facebook promotional content and managing its Facebook pages.

Ads on Facebook are hard to measure and the AP and CNBC released a poll Tuesday in which 57% said they never click on the site's ads or sponsored content.

Forrester Research in a blog post Monday repeated by the Journal said, "Companies in industries from consumer electronics to financial services tell us they're no longer sure Facebook is the best place to dedicate their social marketing budget - a shocking fact given the site's dominance among users." It is supposed to have 900 million users.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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