General Motors is ending their $10 million ad campaign with Facebook, reports The Wall Street Journal, because the automaker determined their ads "had little impact on consumers." That's very bad news for a social network plagued with advertiser issues and facing an IPO.
As The Atlantic Wire wrote earlier this month, Facebook's ad problems are becoming, well, a problem. The social network's consumer-over-advertiser priorities are making some of their sponsors grumble because advertisers wanted more details on metrics --evidence that their ads are getting them results. On that note, an AP-CNBC poll found today that 57 percent of Facebookers said they never click on sponsored ads while on the site. (That doesn't actually sound so low to us when you consider what 43 percent of their total user base adds up to.) But apparently GM isn't willing to make a multi-million dollar bet on it anymore. We expect we'll see how this will impact Facebook's ad strategy as its $100 billion IPO approaches.