GM Stops Advertising On Facebook, Actually Generates More Press-Nazar Kamangar/bridge consulting blogs
Whenever we talk about social media marketing, there are certain rules we recommend you follow; develop a strategy so that content across your platforms is complimentary without being redundant, be sure to update consistently, and engage with your customers. And when we talk about potentially purchasing advertising on social media outlets, we usually focus on a few big names that give you bang for your buck; namely, Google and Facebook. However General Motors (GM) has set off shockwaves through the media when they announced that they would no longer be advertising on Facebook.
Sources vary as to the reasons why the world’s largest automaker would suddenly part ways with the world’s largest social media platform, after spending ten million dollars in ad money. According to some sources, GM was thoroughly unimpressed with a recent meeting where Facebook officials pitched the benefits of their paid ad platforms. Insiders say that Facebook representatives focused more on touting the success of their website’s free pages than their paid ones. This, coupled with Facebook’s anemic showing against Google AdSense (it garners only half the clicks per page view) may have led to GM cutting ties. However, sources sympathetic to Facebook tell a different story. They say that Facebook advised GM to put their money in a campaign that would reach more people, but GM instead put its money into promotional apps and corporate page presence, which are useless without paid media to let people know it exists.
The timing of GM’s plan to end Facebook ad spending comes at a fortuitous time; it so happens, the announcement came the same week that Facebook’s stock went public and was thus in the proverbial public fishbowl. In the ensuing media melee over whether this announcement would hurt Facebook’s IPO, GM got the kind of press that money can’t buy. In the midst of this, they kept the press coverage going by announcing they will forego Super Bowl ads next year as well, as they have gotten too cost-prohibitive. Strangely enough, by cutting off two very expensive advertising streams, GM may have gotten more press than they would have by spending that ad money.
Ultimately though, GM electing not to pay for advertising on Facebook shouldn’t have too much of an impact on whether people continue to buy Facebook ads. Rule one in social media marketing is to choose the marketing that works best for your company; it may not be the right path for GM, but that doesn’t mean it’s not right for you.