GM Ads May Return To Facebook

Posted Jul 3, 2012

General Motors and Facebook are in talks to bring the automotive company back as a paid advertiser.  It was about two months ago that GM announced that they would be dropping Facebook ads.  GM global marketing chief Joel Ewanick said that paid Facebook ads did very little to influence car purchases for consumers.  He said that GM would stop placing paid ads on Facebook several days before the social network’s IPO.

Facebook COO Sheryl Sandberg is having discussions with GM CEO Daniel Akerson directly for a new campaign.  Joel Ewanick and Facebook global sales head Carolyn Everson met each other at Cannes, France according to sources with The Wall Street Journal.  Everson said that Facebook would be able to provide GM with better data on how their ads can be translated into higher revenues as they agreed to do with other advertisers.  Facebook said that they would not provide any special treatment for GM though.

GM is not committed to returning yet.  GM said they will only return if Facebook can better prove their effectiveness.  GM has been meeting with other digital advertising companies to come up with ideas to create content for Facebook Pages and applications.  One of the major reasons why GM ended their partnership with Facebook is because the social networking company criticized the auto giant for having multiple firms manage their advertising.

GM spent around $10 million last year on Facebook ads, which is a fraction of their total U.S. 2011 ad spending of $1.8 billion according to Kantar Media.  The $10 million is a fraction of Facebook’s 2011 revenue of $3.7 billion.