Washington, May 16 (ANI): General Motors plans to stop advertising on Facebook after deciding that paid ads on the social networking site have little impact on consumers' car purchases.
General Motors will continue to promote its products on Facebook, but without paying the firm, a GM official and other people familiar with the matter said.
People familiar with the matter said that General Motors spent only about 10 million dollars last year to advertise on Facebook, The Wall Street Journal reports.
According to Kantar Media, that is a fraction of GM's total 2011 U.S. advertisement spending of 1.8 billion dollars.
It is also a tiny share of Facebook's total 2011 revenue of 3.7 billion dollars, most of which was advertising sales, the paper said.
The paper quoted the auto maker's marketing chief, Joel Ewanick, as saying that the company 'is definitely reassessing our advertising on Facebook, although the content is effective and important.'
General Motors is the third-biggest advertiser across all media in the U.S, according to Kantar. (ANI)