GM Says Facebook Ads Don't Work, Pulls $10 Million Account

ayzo

ayzo

Like a boss
Jun 8, 2007
2,923
157
0
Maybe they didn't split test?

GM Says Facebook Ads Don't Work, Pulls $10 Million Account - Forbes

Just days before Facebook’s historic stock offering, General Motors said it plans to stop advertising on the social media site, concluding that its paid ads don’t have a big impact on consumers.

GM spends about $40 million a year on Facebook marketing, according to the Wall Street Journal, about $10 million of which is for paid advertisements. It will continue to post relevant content about the company and its brands on GM’s Facebook pages.

GM marketing chief Joel Ewanick told the Journal that GM “is definitely reassessing our advertising on Facebook, although the content is effective and important.”

In a statement, GM said: “We regularly review our overall media spend and make adjustments as needed. This happens as a regular course of business and it’s not unusual for us to move our spending around various media outlets – especially with the growth of multiple social and digital media outlets.

“In terms of Facebook specifically, while we currently do not plan to continue with advertising, we remain committed to an aggressive content strategy through all of our products and brands, as it continues to be a very effective tool for engaging with our customers.”

GM has been re-evaluating much of its advertising strategy over the past year, consolidating its global advertising and media-buying agencies in a bid to cut $2 billion from its marketing budget while improving the efficiency of its advertising.

The Journal, citing people familiar with GM’s thinking, said the carmaker began to question the effectiveness of its Facebook ads earlier this year and GM marketing executives, including Ewanick, met with Facebook managers to address their concerns but remained unconvinced that advertising on the website made sense.

The news comes at an awkward time for Facebook, whose $105 billion IPO is scheduled for Friday.
Click to expand...
 


GG USA for bailing out a struggling automaker that wastes $30 mil a year fucking around with facebook pages instead of doing something useful. Good fucking job.
 
I don't get:

Spending $30 mil on a Facebook page.

Spending $10 mil/year before you realize the ads don't work.

I think GM doesn't work.
 
I heard this on CNBC and was looking for a link. This is awesome news actually because it will discourage other major companies from spending on Facebook, causing them to loosen up their rules for affiliate spending.
 
JCash said:
GG USA for bailing out a struggling automaker that wastes $30 mil a year fucking around with facebook pages instead of doing something useful. Good fucking job.
Click to expand...

If you think the auto bailouts were a bad idea at this point (based on results and not principle) then you're an idiot.
 
their ads blow, they aren't engaging what so ever. Don't they know on FB it's all about the image. They should be posting shit like this:

chevy_chick_0011.jpg


Not:

chevy-camaro.jpg
 
GM spends about $40 million on its Facebook presence. About $10 million of that is paid to Facebook for advertising, the rest covers content created for the site, agencies that manage the content and daily maintenance of GM's pages, people familiar with the figures said.
Click to expand...

lol $30 million fanpage management
 
lols all around, facebook loses a sizable client days before the ipo and some dumbasses blow through $30 million to create facebook fanpage content and maintain it. Should have outsourced to a $400/mo virtual assistant, it would have been roughly the same outcome.
 
You must log in or register to reply here.
Top Bottom