Car manufacturer General Motors announced that it will quit advertising on Facebook, citing poor returns as the main reason for ending the relationship.
The Wall Street Journal reports:
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.
GM will continue to promote its products on Facebook, but without paying the social-media company, the GM official and other people familiar with the matter said. Many companies maintain free Facebook pages.
