GM to pull all ads on Facebook, says $10 million FB ads are 'ineffective'

[DSG-TDI]

SAN FRANCISCO (MarketWatch) -- General Motors Co. plans to stop advertising on Facebook Inc. after it was determined that ads on the social networking site had little impact on consumers, the Wall Street Journal reported Tuesday on its website. Facebook, which is scheduled to debut on the stock market later this week, is expected to price its initial public offering at a range of $34 to $38 a share to raise at least $6.4 billion.

Further proof that youth interest in cars is declining, or simply because no one clicks on FB ads anyway?

[Golgo-13]

[TurboMinivan]

I find it at least mildly humorous that GM finds Facebook advertising to be ineffective. Why? Because, just a couple weeks ago, I saw an article talking about how The Hunger Games was advertised heavily on FB (much more so than traditional media advertising), and the company felt this was a large part of the reason for that film's gigantic commercial success. It even went so far as to say a new pattern has been established for cinema advertising, and all other movie makers are scrambling to follow suit.

I guess it works well for some products and not so well for others.

[SLC_Punker]

There are ads on Facebook?

Chrome + AdBlock Plus = win

[SebTheDJ]

There are ads on Facebook?

Chrome + AdBlock Plus = win

Exactly this

[hipster.]

There are ads on Facebook?

Chrome + AdBlock Plus = win

The ADs on the side of facebook are the least of my annoyances on facebook.

People I went to high school with bombing photo after photo of their ugly baby, now that's annoying.

[MAC]

There are ads on Facebook?

Chrome + AdBlock Plus = win

Which is why the Facebook IPO is something everyone is going to have a huge laugh about in a few years.

[blackjettah]

I would think it's safe to assume that teenagers don't have the same excitement over the 2012 Chevy Sonic as they do over pop culture. Shocking.

I would also assume that the vast majority of adults on Facebook, who aren't already blocking ads, are savvy enough NOT to click on the ads in the first place.

[Dave Zero]

Here's a clue GM, the FB crowd are a bunch of whiney 20 somethings that still live at home with mom, they aren't buying luxury trucks or sedans.

$10M of advertising money rolled into the cost of every vehicle. This is right up there with the Camaro in transformers. How about this idea, spend the money on better cars and they will sell themselves! You don't see many Ferrari ads on TV do you?

[The Ninja]

Social Media has given companies more ways to advertise then simply placing an add in a side bar which is what I think GM is speaking of. If that is the case then I agree it is a waste of money.

I think the other way to advertise on Social Media is more effect. This other way is to start up a page that consumers can like; as this builds a community around the brand. I have seen some great uses of this for Hunger Games. The movie also had a huge push on Twitter.

Now that leads me to two questions. First did GM simply have ads on the Facebook page and no page to like, and second does Facebook charge for a corporation to have a page?

[naiku]

simply because no one clicks on FB ads anyway

This, see here

[KahviVW]

Regardless of the target market (Huger Games vs GM) this is not good for the Facebook IPO.

[SSLByron]

Regardless of the target market (Huger Games vs GM) this is not good for the Facebook IPO.

Yeah, this. This was a political move. I'm just not sure of the angle.

[Turbio!]

The ADs on the side of facebook are the least of my annoyances on facebook.

People I went to high school with bombing photo after photo of their ugly baby, now that's annoying.

How do prom queens have such funny looking kids?

[hipster.]

How do prom queens have such funny looking kids?

Girls making duckfaces are bound to have ugly ducklings as offspring.

[cougar]

How do prom queens have such funny looking kids?

My wife and I have decided that ugly people make the cutest kids. Hence, our boys are quite handsome.

Yeah, this. This was a political move. I'm just not sure of the angle.

See, I'd think so too... except if this just came out and I was GM, I might consider pulling my ads too.

http://blogs.wsj.com/deals/2012/05/1...ooks/?mod=e2tw

[Shooting Brake]

What's facebook?

[cougar]

What's facebook?

[.LSinLV.]

What's facebook?

came for this

leaving stupified

[Chapel]

or simply because no one clicks on FB ads anyway?

There are ads on Facebook?

Chrome + AdBlock Plus = win

this a million times this

I didn't even know Facebook had ads until the other day.

[hipster.]

What's facebook?

came for this

leaving stupified

Came in to post Simpsons references, leaving satisfied

[whitekryptonite]

The ADs on the side of facebook are the least of my annoyances on facebook.

People I went to high school with bombing photo after photo of their ugly baby, now that's annoying.

You sound excatly like my gf everytime she signs onto FB.

[retro_rocket]

News flash: not every advertising medium is effective for every product or brand.

Last year, GM spent $4.48 billion on advertising, worldwide, so that $10M is a drop in the bucket, all things considered - less than 1/4 of 1% of their total budget. They spent more than that on ads in this year's Super Bowl broadcast alone.

As others have noted, the more relevant story here is the effectiveness or ineffectiveness of Facebook ads for various companies/brands/industries.

[Brendan@bwalkauto]

Further proof that youth interest in cars is declining, or simply because no one clicks on FB ads anyway?

It means whoever was monitoring the analytics of that campaign doesn't know what they're doing, or that they were willing to part with $10mil in the great social media experiment.

If it was managed as poorly as GM manages their Volt Facebook page, then it's no surprise.

With behavioral targeting, remarketing, and plenty of other things, it's never been easier to chase down low funnel, in market shoppers than it ever has been. Trick is that you have to know where to serve those ads for maximum effectiveness, and they need to have a great message to entice sales. Simply serving ads in front of people is useless.

You have to have a good pitch, a good offer, and a great product, otherwise it all gets ignored. IMO, Facebook is a poor place to pitch cars, unless you target people who have shown to be shopping.

[hipster.]

As others have noted, the more relevant story here is the effectiveness or ineffectiveness of Facebook ads for various companies/brands/industries.

True. I think GM might have done more research on their current demographic, and where Ads are more likely to reach them.

And they should also see what the facebook average demographic is (I think it's safe to assume 20-somethings being the majority) and what automobiles they're buying.

To blindly market your non-20-something brand to a bunch of 20-somethings is a chance. They took the chance, didn't see any returns (probably not a huge surprise to them) and then they pull their ADs.

Unless they do some heavy brand rejuvenation, I don't see any use for GM to approach social media as an effective tool for exposure.

[J-Tim]

What, are you saying that 99.999% of people who visit Facebook are of a low income and cannot afford a new car anyway ? Now, that's a surprise!

[Egz]

This, see here

Maybe there is hope for the beginning of the end of facebook.

[RogueTDI]

F FB

[RogueTDI]

... How about this idea, spend the money on better cars and they will sell themselves! You don't see many Ferrari ads on TV do you?

[tgodbout]

As others have noted, the more relevant story here is the effectiveness or ineffectiveness of Facebook ads for various companies/brands/industries.

Indeed. I am in the industry and I yet to see a real, honest to goodness positive ROI story from ANYONE using FB. I have seen first hand for various clients that it is a largely ineffective customer acquisition medium, typically with highly negative ROAS (for every dollar spent how many dollars are generated).

Even an awareness generator or brand building tool the jury is still most definitely out. Marketers fall in love with this stuff because it sounds cool and the CEO wants Facebook ads stat! After a few million shoved right into the Zuck's pocket and no measurable return on their investment, the luster wears off quickly.

I would be interested to see how many advertisers (not agencies, the brands themselves) would be repeat customers with multiple campaigns on FB based purely on hard data and not the 'it' factor of advertising on FB.

[vwlarry]

"The internet? Pfffffffffff, is THAT thing still in business?"

[emmettlodge]

Facebook will decline and finally crash just like all the others. Its an unsustainable buisness model.

[hipster.]

Facebook will decline and finally crash just like all the others. Its an unsustainable buisness model.

[cougar]

Facebook will decline and finally crash just like all the others. Its an unsustainable buisness model.

That's assuming they're only relying on the advertising model.

[SoCalDubber]

That's assuming they're only relying on the advertising model.

Interestingly enough, Mark Zuckerberg was just quoted as saying “Simply put: we don't build services to make money; we make money to build better services."