General Motors to drop Facebook ads

General Motors, third-party advertiser in the U.S., has announced of withdrawing advertising from Facebook due to the limited impact on consumer purchases. The announcement was made ??days before the flotation of the social network.

GM’s decision encourages the doubts about the effectiveness of these advertising sites in generating a huge amount of traffic through advertising revenue. However, they are not proportional to that traffic or those close to one
billion visitors.

GM will keep their pages in Facebook, they are free, and inform their followers of the company’s products and promotions. The car company had an annual budget of $ 10 million for advertising on Facebook.

On the contrary, their competitors in the business- Ford have confirmed that they will continue advertising in the social network as the 20% of their budget is for marketing and digital media.

“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.”

The withdrawal of General Motors advertising coincides with a survey of AP-CNBC where 83% of respondents say they "almost never" or "never" open Facebook advertising. This attitude contrasts with the fact that 40% does that open
other links, photos or promotions. In the same survey, it has been indicated that only 13% completely trust this network.

The low impact of advertising contrasts, moreover, with the strength they have recommendations from friends of the social network, the main vehicle to make a purchase, but do not generate revenue in social networks.

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Posted by Farasat Ali on May 19 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry