General Motors, the automotive manufacturer, says that it will stop advertising on Facebook despite social networking sites going public.
According to reports, GM is dropping its ad efforts on Facebook because the company isn’t satisfied with its impact on consumers.
For most cases, Facebook provides the perfect marketing platform for companies. But GM’s experience proves that the social media marketing scene isn’t full proof. This means that ad campaigns in the medium need to be studied and carefully crafted to ensure success.
Facebook, which will soon be trading on NASDAQ, has raised its IPO price range—increasing its valuation at an incredible rate.
According to GM reps, the company will still maintain its Facebook pages—which cost nothing to maintain. However, paid ad arrangements with the social media site will have to wait.
The company also mentioned that it plans to continue posting content online to aggressively engage its potential customers.