Wednesday, May 16, 2012
By Manoj Kumawat
General Motors to cut its spending on Facebook ads
Going against the wind (or call it an advertising storm), General Motors has decided not to invest more on Facebook advertisements. GM spends more than $40 million on its Facebook presence. The move has certainly shattered the belief of companies who are pumping immense resources and money in making Facebook as their major source of clientele.
Notably, General Motors with over 378,342 followers has been popularizing its brand cars belonging to its subsidiaries such as Chevrolet, Buick, GMC, Cadillac, Opel and others and it has been more than a success story. Chevrolet cars India Facebook page has a whooping over 199,000 likes. Similarly Chevrolet Sonic, Chevrolet Beat and almost all other GM cars have great many ‘likes’ on their Facebook pages. Notably, Facebook will start trading on NASDAQ this Friday.
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Perhaps sensing that Facebook is more so for entertainment rather than serious marketing, the American car maker seems to now spend less time on it contrary to the hours its page owners Michael James Savoni, Rebecca Harris Burns and Mary Roznowski Henige spent earlier. Now the car maker that has some of the stunning offerings such as Chevrolet Beat, Chevrolet Cruze, Chevrolet Impala, Volt, Malibu and others, has decided not to float adds on Facebook.
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Where Facebook ads and expanding the fan base on the social marketing is the talk of the town these days and more and more car makers going this route, GM’s decision seem a little weird to other car makers and publicity analysts. However, the basic proposition of GM is that the Facebook ads leave little impression on the consumers and thus spending a big sum is not worth the returns. Meanwhile, General Motors has clarified that it will be maintaining its Facebook pages giving the latest information to the car buyers and enthusiasts as well as GM car owners about General Motor Cars.