Are Facebook Ads Worth Much For Your Business?
The big news recently in the stock market has been Facebook's much anticipated and highly touted IPO. However, it appears that General Motors has decided that Facebook advertisements are not worth the pages upon which they are written. Just four days before Facebook's IPO, the Wall Street Journal reported the news that General Motors will no longer pay Facebook around $10 million dollars per year for Facebook ads.
According to the Wall Street Journal, General Motors has concluded that its paid ads on Facebook have “little impact on consumers.” General Motors is not abandoning its Facebook pages, which are free to any business. It's just abandoning paying Facebook anything for them.
General Motors is still the largest car maker in the United States. There is an old urban myth that dates from the 1950's: “What's good for General Motors is good for the country.” It was allegedly said by the President of General Motors during a committee hearing in Washington, DC. However true or untrue, the myth may hold roots for many in corporate America.
If so, other corporate titans may follow General Motors' departure from paid advertisements on Facebook. And if that happens, woe to those who buy into Facebook's IPO. For if it's not good for General Motors, then it's likely not good for your business too.