“To be or not to be” on Facebook : GM Story
General Motors has pulled $10 million in ads from Facebook but GM will continue to use Facebook’s free media to promote its brands,
GM, started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads.
GM had previously invested heavily in Facebook-oriented products and media. In 2011, it allowed customers to customize their vehicles on Facebook and share the designs with friends. GM also integrated Facebook with OnStar, allowing drivers to respond to Facebook messages with voice commands.
GM dropped its Facebook ads because they were less effective than other options such as Google’s AdSense,. Facebook’s ads garner about half the clicks per page view, a measure of effectiveness, compared with the average website.
It seems that America is going Facebook mad right now in the lead up to that IPO, with everybody talking about the successes of the company, and what it needs to do going forward. But the actions of GM have highlighted what could be a key question for Facebook, as well as every other social media site: does advertising on social media websites work?
But as most of the experts say Facebook has not yet developed an aggressive social media advertising strategy for its client unlike google and other peers. In long run Facebook has to strengthen its Advertising Analytics and Effectiveness
But one more thing must be noted, although GM has made the deal void; it could not afford to leave the Facebook platform, which itself shows the effectivenss of the Facebook.