GM pulls ads from Facebook, could other automakers follow?
Forbes and number of other news outlets reported this news today. Many in the auto industry and business world find this quite an interesting move by GM.
The company apparently feels that paid ads on Facebook do not have the impact with consumers that warrants them to be spending significant money on ads.
According to the Wall Street Journal GM (which some people still refer to as Government Motors) spends around $40 million on Facebook marketing. It is important to note that only $10 million of the $40 million is for paid advertisements on Facebook. The other $30 million goes into social media marketing for various GM automotive brands Facebook pages, which the company clearly feels is a better place to invest time, energy, and most importantly money.
General Motors “is definitely reassessing our advertising on Facebook, although the content is effective and important.” said GM marketing chief Joel Ewanick, when speaking with theWall Street Journal.
“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 said in a statement today.