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Saturday August 30th 2014

General Motors pulls its $10 million ad budget from Facebook – says it isn’t working

General Motors’ decision to stop advertising on Facebook. The $10 million it was spending is a drop in Facebook’s revenue bucket, but the symbolism was hard to escape: One of the leading brand advertisers in the world thinks advertising on Facebook doesn’t work. And while marketers have voiced such uncertainties for some time, both in the Wall Street Journal recently and earlier in Forbes stories and posts, the exit of an iconic advertiser like an automaker is particularly worrisome.

The news comes as a survey also shows more than half of Facebook users don’t feel safe buying on Facebook. Both developments threaten to mute investor interest in Facebook’s IPO, for which reports so far had indicated strong demand. And that IPO is just a couple of days away…

Facebook, and others in social media such as Twitter, Pinterest, StumbleUpon and even Google with its YouTube service, have yet to come up with the 21st century equivalent of the 30-second TV ad. Indeed, they haven’t come up with anything to rival the search ad, a click on which remains the most powerful statement in advertising history of a consumer’s intent to buy.

Read more: Forbes

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