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Facing GM: What does GM’s decision to suspend advertising on Facebook teach us?

May 17, 2012 0

General Motors has decided to suspend paid advertisements on Facebook. GM was spending $10 million annually. GM is the third largest advertiser worldwide with an ad budget of $3 billion. Facebook has 901 million users, a revenue of $3.7 billion in 2011 and is expected to be valued at $100 billion for the I.P.O. In context, the $10 million GM was spending on Facebook advertising is not a big number for them. Nor is it a large number for Facebook in relation to its overall revenue. Yet, it hurts Facebook, says something telling about GM, and has others questioning the value of advertising on Facebook. “Several analysts believe that GM’s decision will cause other marketers to take at least a second look at their own Facebook strategy”. more…

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