Facebook not big on big ads

AdAge reports that General Motors pulled out of Facebook because the social networking company wouldn't allow a full-page ad.

by Donna Tam

May 29, 2012 10:53 AM PDT Follow @DonnaYTam

The General Motors page on Facebook.

(Credit: Screenshot by Jonathan Skillings/CNET)

It seems there is more to the story about why General Motors ended its $10 million advertising campaign on Facebook last month.

General Motors asked Facebook if it was possible to run "bigger, higher-impact ad units," or full-page ads, versus the more subtle ads Facebook features, according to AdAge. Currently, companies can advertise through sponsored posts or small ads on the right side of pages.

Facebook, which traditionally opts for the user experience over advertising dollars, said no to the automaker, according to the report.

Publicly, GM has said that its Facebook advertising wasn't successful, while Facebook has said that GM ran a weak campaign.

The whole situation highlights one of Facebook's weakest points. How does one of the most visited sites on the Web turn traffic into advertising dollars?

As AdAge points out, this kind of conflict will continue to be an issue as Facebook grows and does business with bigger companies that are used to getting their way when it comes to advertising real estate.

Both Facebook and GM have yet to respond to messages seeking comment.

Update, 12:31 p.m. PT: Facebook has declined to comment.