Here's The Real Reason GM Pulled $10 Million In Ads From Facebook

Facebook ad sales boss Carolyn EversonFacebook’s Carolyn Everson

General Motors pulled the entirety of its $10 million ad budget from Facebook after the carmaker asked if it could run page takeover ads—the large, intrusive kind of ads you often see on media sites—and the social network said no, Ad Age reports.The report touches on a key battle that will define the future of Facebook now that it’s a public company: Whether Facebook should put its users’ needs first by limiting the advertising they’re exposed to, or whether Facebook should become more responsive to the companies that spend $1 billion per quarter or more advertising on it.

Founder Mark Zuckerberg has been famously resistant to advertising. Post-IPO, however, his ability to maintain that resistance will likely be weakened by shareholders who want to see robust earnings growth.

This year, Facebook already added Sponsored Stories to its mobile apps; a new daily deal-type format called Facebook Offers; and it’s allowed advertisers to buy certain premium homepage slots without going through Facebook’s ad sales force.

Facebook currently allows takeovers on its logout page, but vp/global marketing solutions Carolyn Everson told Age she doesn’t see home-page takeovers in Facebook’s future.

See Also:

  • The Facebook IPO: A Look Inside Its $1 Billion Ad Business
  • GM Pulled Ads After Facebook Begged It To Use Free Media
  • FURY AT FACEBOOK: General Motors Was ‘Mental’ To Pull Its Ads, Say Sources
  • FACEBOOK’S WORST NIGHTMARE: After GM, Here’s How The Other Dominoes Could Fall
  • General Motors Pulls $10 Million Campaign From Facebook Because Its Ads Don’t Work

 

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.