General Motors has recently announced a reassessment of their $10 Million-worth of advertising spend on Facebook services. The automaker said their company will continue to use Facebook as part of their marketing mix, but like many companies their opinions are mixed when it comes to the value of Facebook advertising.
As with many large purchase decisions, the purchase cycle for automotives is long with many factors to consider. Keeping that in mind, one would understand how a small ad on Facebook might not show the results that companies are looking for, although it would contribute to the overall brand awareness and reminder advertising for the company.
GM Spokesman Tod Henderson didn`t want to comment, but many experts are saying adjustments or revaluations of marketing spend are quite common in many companies, therefore GM's decision isn't unusual.
"We’ve found that Facebook ads are very effective, and they’re most effective when we strategically combine them with great content and innovative forms of storytelling rather than a straight media buy," says Scott Monty, Fords head of social media.
As part of their marketing efforts, Facebook recently revealed that only 16% of fans actually see company posts on their news feed. After releasing this information, Facebook urged companies to buy advertising from Facebook in order to see better results.