Facebook has lost 10 million in advertising from GM.
May 16, 2012- Only a few days before the historic stock offering by Facebook is scheduled to take place, General Motors announced it would stop advertising with the social media site. The automaker said its ads on the site do not have a big enough impact on possible car buyers.
GM spends over $40 million annually on marketing on Facebook and about $10 million of that is for paid advertisements. It will not stop posting relevant content about its brands and company on its GM Facebook pages.
Joel Ewanick, the head of marketing for GM said the company was reassessing its advertising on the social media site, although the content is important and effective.
GM released a statement that read, “We constantly review our spending on advertising and make adjustments where needed and this is done on a regular basis and is not unusual for GM to move spending around to a number of different media outlets. Part of that is due to the growing options for digital and social media outlets.”
The statement concluded with, “As far as Facebook is concerned, we currently will not continue with our advertising however, we are committed to our aggressive content strategy on the site and will continue to use the effective tool for engaging our customers.”
Over the last 12 months, GM has done a great deal of re-evaluating in its strategy of advertising and has consolidated its media-buying and global advertising agencies to try to cut over $2 billion from the marketing budget.
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