GM has reported that it will no longer spend money advertising on Facebook, instead focusing on their free Facebook page for which they pay no fee. The U.S. auto company’s marketing executives decided Facebook’s ads had little impact on consumers.
“We regularly review our overall media spend and make adjustments as needed…it’s not unusual for us to move our spending around various media outlets – especially with the growth of multiple social and digital media outlets,” GM said in a statement. “In terms of Facebook specifically, while we currently do not plan to continue with advertising, we remain committed to an aggressive content strategy through all of our products and brands, as it continues to be a very effective tool for engaging with our customers.”
GM is the country’s third largest advertiser behind Procter & Gamble Co and AT&T Inc and spent $1.11 billion on U.S. ads last year, according to Kantar Media. GM spends about $40 million on its Facebook presence, but only about $10 million of that is paid to Facebook for advertising, the rest going to agencies.
Source: Reuters
