GM pulls out all of its ads on Facebook ahead of IPO

Article by Christian A., on May 16, 2012

General Motors has decided to pull out all of its ads on Facebook due to their ineffectiveness, according to a report on The Wall Street Journal. Reuters said that the report has been confirmed by a GM spokesman. GM makes this move just a few days before the scheduled initial public offering of Facebook on Friday that’s likely to value the company at almost $100 billion.

However, the free Facebook pages will still be used by GM for its marketing. GM marketing chief Joel Ewanick said that GM is re-evaluating its advertising on Facebook even if the content is “effective and important," according to The Wall Street Journal’s report. All aspects of Facebook’s marketing cost around $40 million to maintain.

Of this figure, about $10 million are paid ads on Facebook. The Journal said that GM started to reassess advertising on Facebook early this year. A meeting recently took place between Ewanick and other members of GM's marketing team but GM wasn’t convinced to continue with the ads.

Advertising Age, an affiliate of Automotive News, revealed that GM used up about $2.8 billion in U.S. advertising while it spends $3.9 billion globally. This means that it is the fourth highest spender for global ads in 2010, behind Procter & Gamble Co., Unilever and L’ Oréal. The data for 2011 aren’t available yet.

If you liked the article, share on:

Topics: gm, facebook, ipo

Comments

Recommended

The distance a vehicle can travel with a full tank of gas or a single full charge is important to any driver. This is why most carmakers reveal the range...
by - October 22, 2018
More than a year after introducing the widely acclaimed ATS GT prototype at the at the luxurious Salon Privé exhibit, Automobili Turismo e Sport (ATS) has finally presented the final...
by - October 19, 2018
The diesel exodus in Europe continues. Years ago, carmakers have been in a sweeping race to offer more diesel-powered vehicles in the continent, which hunger for such transports seems unending....
by - October 19, 2018
At the 2018 Paris Motor Show earlier this month, Czech carmaker Skoda unveiled the Vision RS Concept. According to Skoda, the new Vision RS doesn’t just show how its RS...
by - October 18, 2018
That was fast! It was only a few days ago when Skoda teased its newest creation – the new all-new Skoda Kodiaq GT coupe-SUV -- through three sketched images. Now,...
by - October 18, 2018