GM motors has suspended their $10 million paid ads for Facebook as WSJ reports the news. The latest development and announcement by GM about their paid Facebook ads investments appeared in the media at worst time when Facebook IPO is just going to launch.
GM dropping Facebook platform from their paid advertisement in online is not a big loss for Facebook in terms of money but it has already created a bad PR for the social media giant when every news agency and investors are focused on the 18th May when IPO of Facebook will be Launched.
Facebook is working really hard to establish its financial feasibility through advertisements. Facebook advertisers are already scrutinizing their ROI of their investment on paid ads on Facebook.
If we will read WSJ report about GM it clearly points out two facts about GM experience.
1.GM is not convinced about the impact of ads on Facebook converted in car purchases.
2.GM is convinced about the money they spend in creating the content for their Facebook page is effective and important. The money GM is spending on content is $30 million dollar. Three time more than the money spent on paid ads.
There is goldmine inside the GM announcement for Facebook and that is Facebook brand page matters too much for the GM than Facebook paid ads. GM spends three times more money in creating content for the Brand page of Facebook. GM has not said any thing about the result which GM brand page has produced for them in terms of engagement, branding and certainly sales.
One point is indeed clear that Facebook as a platform is producing result for GM. Facebook brand page is not only about creating engagement with customers. That will really belittle the importance of the Facebook page. Facebook brand page has to offer a far more than that. One thing we would like to point out that GM knew that the result they are producing through their Facebook brand page is far better than the result they are producing through Facebook paid ads.
Problem is Facebook brand page is free and Facebook has certainly started to work on this Facility. The news came at a very important time which has certainly created a frenzy in media section through out world.