General Motors is very popular on Facebook, even without ads.

General Motors is an incredible rebound story, from getting government bailouts to returning to profitability in a very short time.  Part of GM’s prowess is their dedication to advertising.  General Motors is the third-largest advertiser in the United States, spending a staggering $1.8 billion dollars per year on ads.  That’s an incredible amount, but there’s one place GM is going to be trimming its advertisement budget.  GM is pulling its ads from Facebook, admitting that the results from Facebook ads aren’t quite as effective as they had hoped.  GM had been spending $10 million on paid advertising on Facebook, in addition to having about $30 million in unpaid Facebook ads.

“We are reassessing our Facebook advertising, but we remain committed to very aggressive social media strategies and will continue to push content on Facebook through our product and brand Facebook pages,” said GM spokesman Patrick Morrissey.

This isn’t great timing for Facebook, considering the company is about to launch a record-breaking IPO (and just dropped $1 billion on Instagram).  Facebook depends on two things to keep running:  visitor eyeballs and ad dollars.  If more companies feel they’re not getting the proper amount of bang for their advertising buck, that won’t be good.  Even if companies like GM maintain active Facebook presences, it’s meaningless to Facebook without the spent income to go along with it.

Tags: facebook, facebook ads, general motors, gm, gm pulls its ads from facebook, gm to stop advertising on facebook, gm facebook ads, facebook ads do not work, gm says facebook ads do not work, advertising, online advertising, social networks, patrick morrissey, gm facebook advertising

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