Facebook Ads: General Motors Wants to Do Business Again
Facebook ads don’t work, General Motors boldly proclaimed days before the social networking site’s much-heralded IPO. The car manufacturer’s declaration, coupled with their decision to end their advertising campaign, is thought by many to have played a role in Facebook’s poor stock market performance. Now, about a month-and-a-half after GM decided these ads weren’t worth the money, the company is headed back to the site for another round.
According to anonymous sources close to the deal, Facebook Chief Operating Officer Sheryl Sandberg is currently in talks with Chief Executive Officer Dan Akerson about restarting GM’s campaign. These nameless individuals have also stated that the one key element crucial to sealing the deal is, of course, a proper return on investment.
Business Insider is reporting that one of the other factors luring General Motors back onto Facebook is the use of third-party data to target users and their interests. Until now, the company had prevented its advertisers from using such information to properly adjust their campaigns. Now, it would seem, Facebook is having a change of heart.
In 2011, General Motors spent an estimated $1.8 billion on advertising, $10 million of which apparently went to Facebook’s bank account. However, after pouring over advertising data, the company has decided they would like to cut such expenses by $2 billion over the next five years. In an effort to get these ventures under control, GM will temper their campaign by opting out of such expensive events as the Super Bowl. Instead, the company will explore cheaper options, says General Motors chief marketing officer Joel Ewanick.
Since none of this has been officially confirmed with either General Motors or Facebook, both companies have refused to comment on the situation as of this writing.