General Motors is pulling its entire $10 million advertising budget from Facebook, mere days before the IPO.
According to a Wall Street Journal report, they called ads on the social network “ineffective,” but called Facebook pages “effective and important.”
Looking at the data on the infographic below, courtesy of AdWords provider WordStream, it’s easy to see why. Advertising rates on Facebook rose 40% in 2012, but click through rates fell by 8%.
In 2010, ads on Google were clicked nearly 10 times more often than ones on Facebook.
Social media ad revenue in the U.S. is predicted to jump from $840 million in 2011 to $3.1 billion in 2016.
Will advertising on Facebook ever catch up to Google, or is the space not viable for traditional advertising?
By: Stephanie Haberman via Mashable