After giving a share of $105 billion to the world’s largest social networking site facebook for the advertisement, General Motors spokesperson confirmed that the advertisement is having a little impact than the expected on the viewers. After a journal reported that the facebook advertisement of General Motors will be discontinued, the latter released this statement in the support of the company. The GM spokesperson Tom Henderson gave the fact that they regularly review the overall media expenses and later they make adjustments if required.
This is a regular practice of business and the expense adjustments on media is not unusual if the growth of multiple social and digital media outlet are also considered. He also added that in terms of facebook advertising the commitment for reassessing the advertisement remain with an aggressive content strategy which also includes all the products and brands because it is a very effective tool for engaging with the customers without extra efforts. General Motors spends around $40 million per annum to make its presence on facebook out of which $10 million is used only for paid ads and rest is used for creating pages of the brands and models of the company on the site.
The expenditure on facebook advertising is just a mere part of the General Motors annual marketing budget. Detroit automaker was the third largest advertiser in U.S.A. in the year 2011 by spending $1.11 billion on ads out of which $271 million was used for online display and search ads only. The facebook executives should seek into the problem because GM are the biggest advertisers of U.S. which promotes its every brand and product with heavy amount of investments and now they are not keen into advertising there brand on the world’s largest social networking site.
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