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GM to stop advertising on Facebook owing to low impact on consumers

General Motors Co said that it will stop advertising on
Facebook, saying that Facebook’s ads had little impact on consumers, reports
Reuters. The decision by GM marks the first highly visible crack in Facebook’s
strategy and underscores doubts about whether advertising on Facebook works
better than traditional media.

General Motors Co said that it will stop advertising on
Facebook, saying that Facebook’s ads had little impact on consumers, reports
Reuters. The decision by GM marks the first highly visible crack in Facebook’s
strategy and underscores doubts about whether advertising on Facebook works
better than traditional media.

“In terms of Facebook specifically, while we currently
do not plan to continue with advertising, we remain committed to an aggressive
content strategy through all of our products and brands, as it continues to be
a very effective tool for engaging with our customers,” GM said.

GM said it will still have Facebook pages, which cost
nothing to create and for which it pays no fees, to market its vehicles and
added that it is not unusual for it to move spending around various media
outlets.

In an exclusive interview earlier to India Digital Review,
Gaurav Gupta of GM had said that in January 2008 Chevrolet Captiva was launched
in India through a digital campaign. “We refrained from putting even a rupee on
TV and print and all of the media monies were put on digital. And that worked
pretty well for us taking into account the fact that Captiva is the leading SUV
in the market and went on to dethrone the Honda CRV in just about eight months
of its launch.”

Meanwhile, in 2009, the company’s sedan Chevrolet Cruze was launched
through a campaign which aimed at generate buzz and test drive requests through
the digital medium.

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