GM’s Facebook Ads Didn’t Win Enough Friends

General Motors Co. says it will end its paid advertising on Facebook after concluding that the campaign didn't have much impact on users of the social media site.

The Wall Street Journal, which first reported the decision, says GM spends about $40 million per year on Facebook marketing, of which about $10 million is paid advertising.

GM says it remains committed to an "aggressive content strategy" for promoting its brands and vehicles on its Facebook pages, which the company calls a "very effective tool for engaging with our customers." GM has been reassessing all aspects of its marketing strategy over the past year in an effort to slice $2 billion from its budget.

Analysts note that GM's timing is awkward for Facebook, which is holding a $105 billion initial public offering on Friday.