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General Motors pulls Facebook advertising

by Catherine Robinson on 16/05/2012 | del.icio.us | digg | reddit | Tweet

Car manufacturer General Motors (GM) yesterday announced plans to stop paying for advertising space on Facebook since the ads have little impact on consumers' car purchases.

The move comes as the company restructures its marketing operations in an effort to cut billions of dollars in costs.

At a time when Facebook prepares to go public, the decision by GM, one of the largest advertisers in the United States, could raise question marks as to whether advertising on social media platforms works better than traditional media.  

General Motors will continue to communicate with consumers by using the platform's free pages which cost nothing to create but which arguably have a good track record building online fan bases.

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