Ahead of Facebook's IPO this week, General Motors (GM) has stung the social network with an advertising boycott, while locally Holden is still in discussions with head office.
GM this week made a very public announcement that it was pulling ads because it had determined Facebook advertising had very little effect on consumers.
The company said it would still push content on Facebook through product and brand Facebook pages, but would not pay for advertising.
While GM only spends around US$10 million annually on Facebook advertising, and would not be a major dint in the US$872 million Facebook pulled in advertising revenue in the first quarter of 2012, the blow could create an image problem.
With Facebook's IPO launching tomorrow, any lack of confidence in the company may not bode well for the social media giant.
General Motors' Australian company Holden does not currently have any Facebook advertising in play.
A Holden spokesperson told AdNews: “This mandate will have no immediate impact. We can still make marketing decisions locally, but we are part of GM, so we are talking with GM at the moment about what this specifically means for us in Australia.”
Meanwhile, Facebook has said this week it will increase the size of it IPO to 421.2 million shares. The company initially planned to offer 337.4 million shares.
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