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What Does It Mean That General Motors Will Stop Paid Advertising On Facebook?

Pete Semple

GM logoIt means Facebook is still a strong channel for brands. In fact GM still recognizes that value in their page on the network. What does it mean for ad revenue for FB? That's an open question.

What It Means for Small Business and Social Media Marketing

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GM's move is a strong vote for the social media network. Look, Facebook is still a huge gathering place for people which makes it a great place to put forth interesting content and dialogue with people.

FacebookHow Facebook makes money out of those people is an open question, but they're starting with a good amount of the raw materials.

GM And Facebook Implications

Here's what it doesn't mean:

  • Pay per click (PPC) advertising on Facebook is worthless
  • Facebook is worthless
  • PPC advertising is worthless

The article in the Wall Street Journal (subscription required beyond intro) draws some interesting conclusions:

 

The largest U.S. auto maker will continue to expand its use of marketing through Facebook's pages, in which markers can display content at no cost, these people said.

The news comes at a bad time for Facebook Inc. The Menlo Park-based social network is expected to hold a historic initial public offering on Friday. ...

Read full article here...

We're not sure it's bad news because there is still a strong presence of eyeballs on Facebook based on their decision to be there.  And where there are eyeballs the marketers will figure out how to monetize them.

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