The Internets are buzzing over the upcoming initial public offering of Facebook, but General Motors doesn't seem all that impressed. The Huffington Post reports that The General has pulled its Facebook ad campaigns just days before the social media site is scheduled to officially hit the stock market.
The pricey ad buy reportedly wasn't paying sufficient dividends for GM, which spends billions of dollars on advertising every year. GM Spokesperson Pat Morrissey confirmed that Facebook was being reassessed, but added that the automaker routinely reviews where it is spending its ad dollars. Morrissey then added that GM is looking for effectiveness when it doles out marketing cash, which doesn't bode well for Facebook's ability to draw clicks.
If GM's decision sounds at all irrational, the statistics seem to show that Facebook isn't exactly an ad-click magnet. A recent CNBC poll showed that 50 percent of all Facebook users never click on any ads, and only 12 percent of those polled feel comfortable purchasing anything through Facebook. Google appears to be more effective at attracting clicks, as The Wall Street Journal cites a click-rate that is seven times that of Facebook.
Regardless of GM's decision to break up with Facebook, we're guessing that the news probably won't drown out much of the anticipation for the IPO. After all, it isn't every day that an Internet site with 900 million mostly addicted users goes public.