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Posted by on May 16, 2012 in Companies, Social Networks |

General Motors will put ads on Facebook

(Cc) Toban Black

Just before you enter the Facebook stock , General Motors is launching a major blow to the social network, announcing that he will not buy more advertising within the site. The car factory questioned the effectiveness of ads, and although it will most avisaje will keep your fan page.

GM does not believe that buy advertising on Facebook has any impact on auto sales. Last year, the company invested $ 10 million just on ads in social network (although much, only a small fraction of the $ 1,800 million marketing budget), and were not satisfied with the results.

Still, GM wants to maintain its presence on Facebook through the fan page, which is free. According to the Wall Street Journal, the automaker spent about $ 30 million last year on maintaining and creating content for this page.

Facebook is a very important market for advertisers and marketers, considering it has 900 million users that are connected in a system designed to share information. Soon, almost all companies have become adept at using Facebook to advertise, so much so that the social network raised USD $ 3,700 million in revenue last year, mostly due to the ads.

The decision to cut the ads could also be explained by the recent major restructuring of the company and its recent exit from bankruptcy, after the economic crisis in America. The company is under pressure to use money well.

It is interesting that GM wants to continue using the free fan page – anyway it costs USD $ 30 million to maintain. If this became a trend, perhaps Facebook would consider charging for these pages. For now, GM’s announcement was a shock to potential investors and shareholders of Facebook, they might lose a little confidence about the future of the social network.

Link: GM says Facebook Ads do not pay (Wall Street Journal)

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