Does GM's return to Facebook signal new age of social media advertising?

GM gives social network a second chance with mobile ads for Chevy Sonic

After dumping Facebook a little less than a year ago, General Motors is back, running an advertising test on the social network.

GM, one of the largest US advertisers, is testing paid ads geared toward Facebook's mobile users The ads are for the Chevrolet Sonic, a car aimed at younger drivers.

"Chevrolet is testing a number of mobile advertising solutions, including Facebook, as part of its 'Find New Roads' campaign," said Chris Perry, vice-president of US Chevrolet Marketing. "Chevrolet has launched an industry-first 'mobile-only' pilot campaign for the Chevrolet Sonic that utilises newly available targeting and measurement capabilities on Facebook. "

The company noted it has had ongoing dialogue with Facebook over the past year regarding potential advertising and promotional opportunities.

GM's return to Facebook is of special note because the company pulled its advertising dollars from the social network last May, days before Facebook launched its initial public offering amid a media frenzy. GM pulled its US$10 million ad campaign, saying paid ads on the site were ineffective.

While it would no longer pay for ads on the site, GM said at the time it would continue to have a presence on Facebook and work on building up its social media followers.

GM's return, even if on a pilot basis, has to be good news for the social network and could potentially pull in more mobile advertisers, said Ezra Gottheil, an analyst with Technology Business Research.

"It's possible GM is making a new play for younger people and Facebook would fit in with that move," Gottheil said. "Going public with this has to be good, assuming the tests are successful. You know Facebook will be killing itself to make the brand ads successful."

A successful test run could also draw more advertisers to Facebook.

"I would think it would cause some companies to give Facebook another look," said Gottheil. "That kind of public humiliation of dumping Facebook right before the IPO is rare. I just don't know what would make GM do that... It looks good for Facebook that the company is back."

And having the most popular mobile app can't hurt when trying to woo new, or old and disgruntled, advertisers into the fold.

Zeus Kerravala, an analyst with ZK Research, said if GM is going for a younger market, it makes sense look to the world's biggest social network and to a mobile platform.

"Facebook could argue that if you want to appeal to the younger generation, it’s the de facto standard now," he added. "Mobile makes sense as well since the younger generation tends to not use PCs a lot. I'm sure part of this is to try and make GM not look like the stodgy old company it has been."

More Facebook news:

Follow CMO on Twitter: @CMOAustralia or take part in the CMO Australia conversation on LinkedIn: CMO Australia.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

what a load of shit, and what a major stuff up... the new brand device is sterile, boring and just plain bad. Would be better suited to a...

James Yoi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Cool stuff. https://blogs.adobe.com/digita...

Mary

Design thinking: Leading with experience

Read more

Conversation commerce is a double edged sword. Do it right and it can create customer delight. Do it wrong and it can lose customers.

Jinal Shah

Why conversational commerce is going to reshape customer engagement

Read more

I liked how Kmart decided on what to source- by placing a notional or real camera in the place of use, seeing what is touched the most in...

Jinal Shah

Kmart CEO details priorities to turn Target around

Read more

ways to use social media to boost customer loyalty.join us on www.bigsocialmedia.in

swati singh

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in