Look who got it right

Yesterday General Motors made the overdue decision to pull all paid advertising from Facebook. My question is what took so long? And how long will it be before other companies come to the same conclusion?

As I've said many times, including here, online advertising just doesn't work as advertised.

I'm also a bit glad. Facebook has played fast and loose for so long with its privacy terms - weighing them mostly in their favor - that I can't be sorry they're taking a hit, albeit a small one, financially.

I know it seems like I'm biting the hand that feeds me. Lord knows it isn't the first time and it won't be the last. But the fact is that with so few people actually clicking on internet banner ads, page takeovers and in-app advertising to Learn More, Get Info or Buy Now, it's just not worth the expenditure.

It was only a matter of time before companies wised up. It's just surprising it was GM, not a company known for making prudent financial decisions in the past.

As both advertisers and users grow weary of Facebook and leave, which has already begun, Facebook will have to try to reinvent itself in a way that gives the customers what they want. And what they want, as proven by their total disregard for Facebook ads, is less advertising.

That's not going to help the projected earnings statement promised to investors in this week's IPO.

On the other hand, as a lot of companies head for the exit, it's going to give smaller ones the opportunity they wouldn't have otherwise had to reach whoever is left on Facebook.

Which can only be good news for these guys.