Bloomberg is reporting that General Motors and Facebook are talking again, in an attempt to get GM to resume advertising on the social network. Meetings between GM CEO Dan Akerson and Facebook COO Sheryl Sandberg were being reported.
GM spent $10 million on Facebook advertising in 2011, but decided to stop in May, 2011 after a review of expenditures. While GM has taken on other initiatives, like sponsoring the Manchester United soccer club (giving them great exposure in China and Europe), Facebook’s share price has dropped substantially, while advertising sales growth has slowed.
Facebook’s ad platform doesn’t allow third-party tracking like banner ads do, while other impressions, such as “Likes” and “Impressions” are largely worthless for measuring how ad spending turns into profits for the ad buyer. GM said that they were unable to justify the ROI related to Facebook advertising – and they’re not the only ones thinking that way.