GM unfriends Facebook

General Motors drops Facebook in favour of more traditional avenues to advertise

Advertising on Facebook doesn't pay, according to General Motors. The car games maker is withdrawing its advertising budget on the social media site, amounting to around $10 million of the $40 million it spends between its fan pages and ads. GM is one of the USA's biggest advertisers.

According to the Wall Street Journal, GM's marketing team including chief Joel Ewanick met with Facebook managers earlier this year "but left unconvinced that advertising on the site made sense".

After word got out that GM was no longer advertising on Facebook its social media agents posted the following on its fan page:

"Just wanted to let our millions of Facebook fans know, we're still here, and we 'like' you back! We may not be advertising on Facebook at the moment but we'll still be talking with you all daily. If anything, we will be providing more content across our many GM Facebook pages -- including Chevrolet, Buick, GMC and Cadillac -- to keep the dialogue going."

GM's ad-spend withdrawal comes just before Facebook's IPO (scheduled for May 18) which could soften investor interest, according to stock analysts. The pool of money spent on advertising by automakers is the largest of any group and of obvious importance to Facebook.

Local outfits including Mercedes-Benz Australia, Holden and Ford have regularly updated Facebook fan pages, all with thousands of 'likes'.

Mercedes-Benz Australia spokesman Jerry Stamoulis told motoring.com.au his company used Facebook as a way to keep its customers and fans informed.

"It's a great platform for talking about what's coming up and about our history," he said. "It allows us to offer information on stuff not always readily seen, like our behind-the-scenes activity in the recent Melbourne Fashion Week."

According to Stamoulis, Mercedes-Benz Australia has identified two types of Facebook fans to its page: Those who are current owners and/or collectors of the brand's products, and enthusiasts interested in buying.

Ford Australia's Facebook page has great content and separate fan pages for owners and fans of the Ford Motor Company, Falcon and Ranger models.

"We utilised Facebook very effectively -- and specifically -- for our Ranger Global Challenge, which was a hit nationally and laid a template for other markets where Ranger is being launched," explained Ford Australia spokesman Neil McDonald.

On Ford Australia's stand regarding Facebook's effectiveness to the industry, McDonald told motoring.com.au: "We think Facebook has an important place when strategically combined with engaging content and innovation. Social media is an effective tool to reach both existing customers -- as well as intending customers -- as well as maintain dialogue with enthusiasts."

Ford Australia admits Facebook is effective "as part of a general strategy but not as a straight media strategy."

It is expected GM's marketing strategy will turn back to television and print advertising, and involve in-showroom deals to customers over the next six months. Its local arm, Holden has the most likes on Facebook of any automotive brand in Australia, at around 290,000.

The Holden Facebook page was developed late 2007 to "connect with our current customers and enthusiasts," said Holden's Social Media and Digital Communications Manager, Andrea Matthews. She couldn't confirm what Holden spends on its Facebook presence however admitted the company had invested a lot of time including a dedicated team of social media representatives.

Holden has previously advertised on Facebook but like GM has no immediate plans to reinvest marketing budget with the site.

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