GM in Talks to Resume Facebook Ads

by Angela Nazworth | July 5, 2012 11:26 am

GM in Talks to Resume Facebook Ads

Less than two months after General Motors (NYSE:GM[1]) announced plans to stop advertising[2] on Facebook (NASDAQ:FB[3]), rumors have it that the giant automaker might be persuaded to rethink that decision.

GM CEO Dan Akerson[4] is said to be in talks with Facebook Chief Operating Officer Sheryl Sandberg, according to anonymous sources who spoke with Bloomberg[5]. The automaker reportedly spent $10 million of its $1.8 billion marketing budget on Facebook ads in 2011.

In addition to pulling ad dollars from Facebook, GM also decided not to advertise during Super Bowl XLVII set to air next year on CBS (NYSE:CBS[6]). While GM’s choice to drop the Superbowl has not hurt CBS[7], pulling ads from Facebook have contributed to anxiety investors have about the social media company’s monetization efforts — or lack thereof[8].

Endnotes:
  1. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  2. plans to stop advertising: http://investorplace.com/2012/05/is-gm-being-penny-wise-and-pound-foolish/
  3. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  4. Dan Akerson: http://investorplace.com/2012/06/gm-chief-apologizes-to-shareholders/
  5. Bloomberg: http://www.bloomberg.com/news/2012-07-03/gm-said-to-be-in-talks-with-facebook-about-resuming-ads.html
  6. CBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBS
  7. has not hurt CBS: http://investorplace.com/2012/05/despite-gm-defection-cbs-is-halfway-to-super-bowl-ad-goal/
  8. monetization efforts — or lack thereof: http://investorplace.com/ipo-playbook/facebook-makes-changes-to-boost-revenues/

Source URL: http://investorplace.com/2012/07/gm-in-talks-to-resume-facebook-ads/
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