Is Facebook Doomed?

Those who don’t like social media will love this news. Those in love with social media will try to come up with some craziness as to why this news doesn’t matter. What’s the news? Just as Facebook is ready to go public and become a $100 billion+ company GM reports that they are dropping their Facebook advertisements.

“General Motors (GM), for one, appears to no longer believe in the power of Facebook — the automaker plans to stop advertising on the site because it said its paid ads had “little impact on consumers’ car purchases…”

WOW! I saw that one coming.

We do a lot of work in the construction and remodeling industries and often get those kinds of questions from clients of whether Facebook is worth investing advertising dollars in. Especially for those industries I don’t think it is. The social media sphere is so much more geared towards consumer products, stuff you use all the time. You remodel your home maybe once every 10 years.

Well, it appears it doesn’t make sense for GM to continue this campaign either and most people will buy a new car every 6 years or so. Is this the end of Facebook? Will it slip away like MySpace and Friendster or will it continue to stay strong and become the next Apple or Google?