General Motors plans to stop advertising on Facebook because campaigns on the site don't seem to have an impact on car sales, according to a report in The Wall Street Journal.
The Journal says the decision highlights growing doubts among marketers over the effectiveness of advertising on the social media Web site.
Facebook is in the middle of an initial public offering that is set to value the company at moreÂ than 100 billion dlrs in new capital. But that high valuation assumes at least in part that the Web site is valuable for its advertising appeal.
The Journal said GM will continue to have pages on Facebook, but it won't pay for these. The carmaker spent about 10 million dlrs last year on Facebook advertising, insiders told WSJ.
GM's marketing chief, Joel Ewanick, told the Journal that Facebook pages are effective and important, but he confirmed that GM "is definitely reassessing" its advertising on the site.
According to the Journal, GM spends about 30 million dlrs a year on its unpaid Facebook content, which includes agency fees and the management of its pages.