GM May Be Returning To The Facebook Fold
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.
More by Derek Kreindler
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I think likes are just about ego. That's all they are. Ego points. Worthless ego points
All this says to me is that facebook is getting ad banners soon. It's just a matter of time before Facebook succumbs to normal internet advertising. When companies start looking at ROI in a hard way, Facebook doesn't really pay off. Sure Ford may get some success with some models but I seriously doubt that it has much if any affect on their total sales.
Facebook is stupid, there I said it. Better for GM to spend the money it owes us on something which will bring new buyers into the fold.
Great, more chances for GM to mortally butcher the "lingo" of the "millennial generation" while hamfistedly attempting to promote their latest crapbox that's supposed to be omgforthekidz!!!11 You want the millennials to pay attention? Bring over the 5-door Cruze. Want even more? Then fit it with optional AWD if you can, then make a Cruze SS with the turbo Ecotec straight out of the Regal/Verano GS. Then field a rallycross car in next year's X Games. Then again, if GM quit royally failing at gen-Y marketing, then there goes half of the ammo for my favorite TTAC column!