If you read any other news other than auto news, then you know that social-networking giant Facebook is on its way to file an IPO later this week. Facebook plans on offering its shares for $34 to $38 per share, putting the company’s valuation at $93 billion to $104 billion.
While things may sound all nice and peachy, Facebook is facing a lot of scrutiny from investors and advertisers. According to a new AP-CNBC poll, 57 percent of Facebook users say they never click ads or other sponsored content. Only about 4% of users say they often click on ads.
General Motors spokesperson confirmed that the advertisement is having a little impact than the expected on the viewers. According to the Wall Street Journal, General Motors has just said that it will stop advertising on Facebook, citing the ‘ineffectiveness of paid ads’. The GM spokesperson Tom Henderson gave the fact that they regularly review the overall media expenses and later they make adjustments if required.
GM spends around $40 million per annum to make its presence on facebook out of which $10 million is used only for paid ads and rest is used for creating pages of the brands and models of the company on the site. That really puts things into perspective as to how much other companies probably dump into the social-networking website.
GM’s Joel Ewanick, head of marketing at the company, said that the company will still make use of the free Facebook pages for marketing.
See the video how effective is the Facebook –