On the heels of a major Facebook announcement (cue shock of IPO announcement), an unexpected story began to emerge. A couple of days ago, rumors broke of General Motors cutting its $10 million budget for Facebook advertising. GM plans on finishing their current advertising and continuing to use Facebook as an area for content strategy. This set off a flurry of news as top media outlets began to question GM’s decision, discussed the ramifications for Facebook on the eve of their IPO and brought attention to the rapid response from rival auto manufacturer Ford Motor Company.

Was GM right in cutting their budget? Are Facebook ads effective? The answer is all in how they’re executed.

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