According to a report by Wall Street Journal, General Motors is dropping its advertising deal with the social media giant Facebook, saying they are disappointed with the result. Facebook ads are not paying off for GM and it’s not worth spending big money on it anymore. GM will, however, keep its Facebook page alive as a way to communicate with the fans.
They will also continue promoting products using their free page, but not a dollar more will be given to Facebook. Marketing officials at GM believe paid ads on Facebook have little to no effect on consumers’ car purchases. Last year GM spent $10 million on Facebook ads.
General Motors is America’s third biggest advertiser and their decision to pull Facebook advertising is kind of a bombshell for Mark Zuckerberg and Facebook IPO. Many other businesses have been raising the question of Facebook ads effectiveness recently.
Meanwhile, Ford founds this case a perfect opportunity to mock GM. They tweeted a few lines about how their Facebook campaign is effective because they’re more innovative and have more engaging content!