General Motors has pulled $10 million in ads from Facebook because they just didn't work, according to Wall Street Journal reporter Dennis K. Berman.
GM is the first major advertiser to indicate dissappointment with Facebook and reduce its spend. GM is the third-largest advertiser in the U.S., and although the cancellation isn't material to Facebook's numbers it will be psychologically devastating to sales management there.
GM, started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads. GM marketing executives, including Mr. Ewanick, met with Facebook managers to address concerns about the site's effectiveness and left unconvinced advertising on the website made sense, according to people familiar with GM's thinking.
The Journal also noted that of the $40 million GM devotes to creating content for Facebook, only $10 million of it actually went to Facebook in the form of paid media.
The report comes awkwardly in front of Facebook IPO, expected Friday. It's part of a drumbeat of background noise to the offering, suggesting that advertising on Facebook is less effective than clients would like it to be.
Click-through rates are much lower on Facebook than they are on the internet generally, or on Google, according to WordStream:
Facebook: 0.051%
Google: 0.4%
Average: 0.1%
GM had previously invested heavily in Facebook-oriented products and media. In 2011, it allowed customers to customize their vehicles on Facebook and share the designs with friends. GM also integrated Facebook with OnStar, alowing drivers to respond to Facebook messages with voice commands.
Facebook has also been a source of stress for GM. In November, Saab lovers virtually occupied a GM Facebook account, flooding it with messages urging the brand be preserved. The social network was also the medium through which environmental groups embarrassed the company into ending its funding of the Heartland Institute.
沪江英语快讯：据《华尔街日报》的记者丹尼斯·伯尔曼报道称，通用汽车已取消在Facebook上投放的价值达1000万美元的广告行动，原因是这些广告并不起作用。通用汽车是第一家表达对Facebook不满意并减少支出的大广告客户。这篇报道正值Facebook即将于本周五IPO前夕，此消息或将对Facebook的IPO产生一些不利影响，或将暗示Facebook网站的广告效果距离客户的期望仍存在不小的差距。