GM spends about $40 million dollars on its Facebook presence, but only $10 million of that goes to Facebook itself, in the form of ads. Unfortunately for Facebook, it turns out that their cut will soon be zero.
GM has confirmed a report by the Wall Street Journal, claiming that the auto maker’s executives determined paid ads on Facebook had little impact on consumers’ car purchases.
“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 said.
GM, the country’s third largest advertiser, will continue to have Facebook pages for its vehicles. Facebook provides these pages to companies at no cost.
GM plans to stop advertising on Facebook [Reuters]