GM Pulls Ad Spend from Facebook Ads

GM and Facebook Advertising


On May 15 General Motors (GM) announced that the company was pulling advertising spend from Facebook this year. This news caused a large stir among advertisers currently invested in Facebook’s advertising and has brands debating the effectiveness of paid media on Facebook.

In response to GM’s decision to cut advertising spend, one of GM’s largest competitors, Ford, stated via Twitter “It’s all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation.” Ford further states that the company has, “…found Facebook ads to be very effective when strategically combined with engagement, great content and innovative ways of storytelling, rather than treating them as a straight media buy”.

Resolution POV:

Social is still an emerging and quickly evolving channel and measuring the effectiveness of Facebook ads is difficult. Similar to the history of paid search, metrics will evolve and tracking will advance as the channel matures. Resolution recommends a portfolio approach to managing social campaigns. Just as search performance isn’t defined by a single keyword, social impact isn’t defined by a single engagement. A key component of a successful social program is an always-on approach supported by a comprehensive measurement solution.

In Resolution Media’s experience, brands that leverage Facebook advertising as a component of a holistic social customer communication and engagement strategy realize the most value from their Facebook advertising investments. Facebook paid advertising can be an effective tactic when employed with clear and measurable goals designed to reach and engage current and prospective customers.

The first consideration in successfully delivering on a social strategy is investing in content creation and community management. Before paid advertising is activated to grow and engage a brand’s audience on or off Facebook, a strategy needs to be crafted to deliver on the brand’s social goals that align back to overall business objectives.

Measurement of Social

As a step forward in this evolution of paid social measurement, Resolution Media and Kenshoo have recently conducted a joint study that offers guidance for marketers to determine how to best leverage Facebook ad types, measure the success of Facebook advertising programs, and how to effectively optimize ads based on various measurement metrics. Ongoing testing and measurement strategies are critical to driving continued value and ROI through social media.


Social media effectiveness doesn’t depend on a platform like Facebook, rather, clearly defined metrics. Facebook paid advertising is most effective when leveraged as part of an overall media and social strategy.  While the metrics and measurement frameworks will continue to evolve with the channel, developing engaging content, creating measurable goals and implementing the appropriate tracking will ensure that marketing dollars are effectively utilized and optimized to drive value for a brand.