Facebook ineffective as far as paid advertising…

I remember when Facebook first started. I was in college (it was only for college students), and suddenly ads started to appear. Most of the ones I saw were for parties, or bar crawls, or networking events. Pretty effective and I definitely remember being one individual who clicked.

Fast forward many years later, and facebook ads are ineffective. At least that’s what GM thinks.

A few days before the Facebook IPO, GM decided to discontinue paid advertising on facebook. However, they will still be using the free services on the site for user engagement.

Apparently, GM wasn’t seeing the type of ROI they wanted to see for $10 million in advertising on the social network.

I’m not terribly surprised either. Depending on the campaign, facebook advertising isn’t very effective for me. However, the fact that the car company is still leaving their unpaid efforts intact on the site could send a message to other advertisers on facebook. “Don’t pay for anything here, but continue to use the service as part of a larger strategy.”

The message is fine. However, I wonder if more and more advertisers will see the lack of ROI. Won’t this make monetizing facebook a bit harder in the future? Some of it’s initial IPO pricing is based off of the monetizing factor, right?

Either way, GM’s exit of paid advertising on facebook just leaves more room for another advertiser.

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