General Motors and Facebook have restarted talks. According to Adweek.com, Joel Ewanick, GM's head of global marketing, and Facebook global head of sales Carolyn Everson recently met during the Cannes Lions Festival of Creativity in France. Those conversations eventually led to talks between GM CEO Dan Akerson and Facebook chief operating officer Sheryl Sandberg, indicating the automaker may be interested in restarting its advertising efforts with the social media giant.

GM dealt Facebook a serious blow when the manufacturer pulled its ad commitments with Facebook just days before the site went public. The automaker reportedly spent $10 million on Facebook ads, but said the efforts were largely wasted. The departure sparked a larger conversation about the value of social media marketing and may have contributed to Facebook's stock faltering shortly after going public.

Neither GM nor Facebook are commenting on whether the automaker will reopen its advertising account.


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  • 20 Comments
      thedriveatfive
      • 2 Years Ago
      Bad move GM, facebook is not a good market. It is certainly not the people who lust after GM vehicles nor can they afford new vehicles.
        Henry
        • 2 Years Ago
        @thedriveatfive
        Wow! 900 million sign ups and counting and no percentage of them likes GM products much less able to afford their vehicles. Really? What market is TV ad, and what market is display ad? I'll hate for you to lead any marketing and advertising department of any business establishment because they will be doomed for failure.
        Synthono
        • 2 Years Ago
        @thedriveatfive
        40-50 year old women (Facebook's largest growth segment, last I saw) can't afford new cars? That's probably news to all the 40-50 year old women and their families who have new cars.
      postpast
      • 2 Years Ago
      "The automaker reportly spent 10 million dollars on Facebook ad's" GM also spends over a quater BILLION every year on Billboard advertisments. 10 million is a regional print and radio campain to GM
      Craig Ewing
      • 2 Years Ago
      What's interesting in this article is what is not said: Who initiated the talks. The comments below make the assumption that GM needs Facebook, but the other direction is just as true. Considering the impact of GM's announcement on Facebook's IPO, maybe more so. For GM, it's just a question of whether or not the money spent on Facebook provides a reasonable return. If Facebook lowers their price, GM can take another look. I would.
      Randy
      • 2 Years Ago
      Tip: The deal will be "Branding and Brand Awareness" not sale/conversion based and based on a CPM model and not a PPC model. As well, it will be designed to safe Face (pun intended) for FB's further embarrassment(s) and give GM the exposure they're looking for. FB is good but it won't succeed in the stock market IMO. Here's how social things work. 1. Copy someone (like FB copied AOL and stuck it in a browser). 2. Build your user base. 3. Get investors to fund you because of #2 4. Investors push for IPO to get their money back. 5. Over priced IPO happens 6. Initial investors get their money back and more (from unwise investors). 7. The stock plummets and the unwise investors lose most of their investment. 8. They sell 9. Stock drops more from panic 10. Company announces horrendous quarterly reports 11. Stock plummets further 12. Major company or investment group buys stock at pennies on the ten spot 13. New majority stake holder ousts everyone at the top 14. New owner uses failing and falling company as a long term investment with an average 10% ROI until it drops below costs to keep it running on skeleton crew. 15. Owner takes it private by buying the rest of the stock at pennies on the 100 spot, then sells it to another company that thinks they're smarter than everyone. 16. Site becomes the next Tripod/AOL/Prodigy/MySpace It's that easy!
        • 2 Years Ago
        @Randy
        [blocked]
      budwsr25
      • 2 Years Ago
      People who use facebook the most are the ones who can't go out and buy new GM cars. Plus EVERYTHING GM makes is over priced garbage.
        BG
        • 2 Years Ago
        @budwsr25
        Your second statement is definitely wrong. But I agree with the analysis about the typical facebook demographic not having the means to buy new cars. It is one thing to "like" a certain pattern of thong and rush to the mall to buy it for $25; quite another to buy a car. And as for the old folks who use it to keep up with grandkids: I doubt they are the least bit swayed by an ad on Facebook.
        • 2 Years Ago
        @budwsr25
        [blocked]
      Henry
      • 2 Years Ago
      If GM is rethinking their stand in so short a time, or is even considering ad push on facebook.com, it is a sure sign that they underestimated the value of social media. But more than that, it shows that they never got it in the first place. You don't shoot first and ask questions later. They need to seriously reevaluate the value of whomever precipitated that decision in the first place because they did not do their home work. Display ads are seriously creating havoc for search ads. Ask google. There is a reason why TV ads and outdoor display rule the roost. Publishers are getting smarter and savvy as well. You don't put your ads on my site for free anymore and I only get paid when somebody clicks thru and then for you to turn around and tell me it's a questionable click. If you want your ad on my site you pay for it. Just seeing your business name, web address, and your products on my site creates value for you and nothing for me unless you pay for it. You don't get free advertising at my expense anymore. That's facebook model which I am beginning to emulate.
      bluemoonric
      • 2 Years Ago
      They should be great friends. Both companies are overrated and were overpriced at the time of the public offering.
      ngiotta
      • 2 Years Ago
      Good to see 5x as many people like Ford on Facebook.
        • 2 Years Ago
        @ngiotta
        [blocked]
      joe shmoe
      • 2 Years Ago
      nothing sells well when advertised on facebook, mostly because most people who use facebook don't have the money to buy the advertised products.
      Spartan
      • 2 Years Ago
      Facebook isn't a good marketplace for advertising for GM. That money would be MUCH better spent making cars better instead of padding FB pockets.
      Mike
      • 2 Years Ago
      Translation: FB and GM marketing execs went to an exclusive industry conference, drank too much Bordeaux, and agreed to stop the pissing match. Now that everyone's feelings are better they will figure out what the right role and mix of paid advertising is for GM on FB. If it were me, I'd schedule a secret "offsite" meeting in Napa to work things out.
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