GM to end display ads on Facebook

The Wall Street Journal reports that General Motors will soon stop advertising on Facebook "after the auto maker's executives determined their paid ads had little impact on consumers' car purchases." GM will, however, engage in Facebook's "pages" that allow marketers to display promotional content at no cost. The news comes just days before Facebook's planned IPO.


  1. I often wonder how useful this kind of advertising really is; I mean the advertising on youtube has no impact on me whatever, other than the minor nuisance of getting rid of it as quickly as possible.  Sometimes the obtrusiveness of web advertising makes you particularly unreceptive to it.

      1. By the way: Looks like there’s a browser add-on called AdBlockVideo that claims to do the same on Firefox.

        Please note: I haven’t tested it, and Mozilla hasn’t finished approving it yet. If you do download it, let me know your opinion.

        1. Adblock plus for Firefox does also block all the ads on YouTube for me, and as far as I know I’m not doing anything different.  In fact, I was pretty shocked when I watched a Youtube video on a friend’s computer and had to sit there waiting for an advert, I thought he’d installed the wrong tool-bar or  got hacked or something.

  2. And buzz marketing can only be believable up to a point – ‘Wait a minute, my friend Gerald Macchio just bought ANOTHER car?’

  3. Just now someone realized that crappy small unsolicited ads don’t have an effect on major purchases of $15,000.00 and more, sometimes much more?

    Huh. Funny that.

  4. Well, yeah, we saw this coming.  I’m just surprised more companies haven’t stopped spending on Facebook.  It’s easy enough to have a robust presence there without paying for ads (that don’t work).  What’s scary is what Facebook will have to do next to appease disappointed advertisers in order to appease expectant shareholders.  It’s really the beginning of the end for Facebook…

  5. What this is is that GM wants to buy some Facebook stock. Note that last line:  “The news comes just days before Facebook’s planned IPO.” that is the main reason this is noteworthy. This looks (to me) like an attempt by GM to reduce the share value in any way possible. GM LOVES to purchase chunks of other companies so this seems right in their wheel house.

  6. In related news, small boy alleges  emperor is naked.

    It blows my mind that not once in the feverish coverage of the Facebook IPO has the words “dot bomb” or “bubble” been used, let alone “MySpace”. Memories are short. And the real tragedy is that normal smart investors will be caught in the mess if Facebook tanks once the realisation that the ads are the only source of income, and they are inherently valueless sinks in.

    1.  Indeed, IPOs are not really the opportunity that they seem to be – unless they’re chronically mispriced. The point at which the private money is getting out, and bringing public money in, would seem to indicate that most of the running has been made.

      Worth considering that something like one in eight people in the world now have Facebook accounts, it seems unlikely this can continue to increase. The only way FB can make more money is selling more ads and data – which will alienate existing subscribers.

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