General Motors De-Friends Facebook
GM has decided to stop advertising on Facebook. According to the a source close to the automaker, the social media site was not generating enough buzz and sales.
Speaking to Reuters, Brian Wieser, Internet and media analyst at Pivotal Research Group says GM’s decision could be an exception in the advertising world, it marked the first highly visible crack in the Facebook strategy.
“This does highlight what we are arguing is the riskiness of the overall Facebook business model,” he said. “It is not a sure thing. It sure looks likely that it will be one of the most important ad-supported media properties, but it’s not certain because there will be marketers who are challenged to prove the effectiveness of the marketing vehicle.”
Only time will tell if other big brands follow through and if this will have an impact on Facebook’s new IPO.