May 16, 2012
If auto ads, generally among the most effective online promotions, fail on Facebook, then major advertisers including AT&T Inc., Procter & Gamble Co. and American Express Co. may follow GM’s lead and curb spending on the site, said Carlos Kirjner, an analyst at Sanford C. Bernstein & Co. in New York.
Facebook last week said growth in advertising sales isn’t keeping pace with gains in users, many of them logging on from mobile devices. GM said yesterday it was halting display ads on Facebook, while maintaining brand-promotion pages. Facebook is depending more on brand pages as paid ads prove less effective, said Rebecca Lieb, a digital media analyst at The Altimeter Group in New York.
Not ‘Figured Out’
“They haven’t figured it out yet and they’re not even pretending to have figured it out,” Lieb said in an interview today. “Even when they do, it doesn’t mean that brands are going to master it — it isn’t what advertising agencies have traditionally done.”
GM plans to stop advertising on Facebook mid-year, Pat Morrissey, a company spokesman, said in a telephone interview today. About 25 to 30 percent of the company’s advertising spending is on social, digital and online media, he said. That’s about 3 percent more than the automaker spent a year earlier.
The decision to cut Facebook ads came as part of a regular spending review, he said.
“It’s not unusual to move spending around based on what we’re seeing in terms of where our priorities are, return on investment, overall effectiveness.” Morrissey said. “We will be re-evaluating Facebook in the future.”
Outside of Facebook, General Motors spent $1.78 billion on advertising in the U.S. in 2011, in third place after AT&T and Procter & Gamble, said Jon Swallen, head of research at ad tracker Kantar Media. Facebook executives have spent more than a week pitching the IPO across the country, trying to convince potential investors that the company can make money off its more than 900 million users.
“Many advertisers are grappling with how best to leverage the potential of Facebook,” Swallen said yesterday. “They are weighing concerns about effectiveness and privacy issues consumers may feel.”
Annie Ta, a spokeswoman for Facebook, declined to comment. Mark Siegel, a spokesman for AT&T, and Sarah Meron, a spokeswoman for American Express, didn’t immediately return calls for comment. Procter & Gamble does pay for ads on Facebook, said spokesman Paul Fox, who declined to comment on future plans.
Other automakers say they’re sticking with Facebook. Ford Motor Co. is increasing its ad spending on the site, Jay Cooney, a spokesman, said in an interview. The Dearborn, Michigan-based company declined to provide specific dollar amounts. Subaru of America Inc. spends more than $5 million annually on Facebook advertising and plans to continue, said Chief Marketing Officer Dean Evans.
“It cost-effectively generates a fan base, generates awareness for the brand and generates traffic for our websites,” Evans said yesterday in an interview. “All of those things we find effective today.”
Facebook’s first-quarter profit fell 12 percent to $205 million as sales growth slowed and marketing costs more than doubled, the Menlo Park, California-based company said in a filing last month. Revenue climbed 45 percent to $1.06 billion, a slowdown from 55 percent growth in the December period.
Facebook plans to raise as much as $16 billion through the IPO, the biggest ever for a technology company. Its shares, to be offered at $34 to $38 each, are set to price tomorrow and begin trading under the symbol FB on the Nasdaq Stock Market the following day.
Daniel Akerson was born on October 21st, 1948 according to http://en.wikipedia.org/wiki/Daniel_F._Akerson
October 21st, 1948
10 + 21 +1+9+4+8 = 53 = his life lesson = Straight to the point.
October 21st, 1948
10 + 21 +2+0+1+1 = 35 = his personal year (from October 21st, 2011 to October 20th, 2012) = Calling it quits (with Facebook).
comprehensive summary and list of predictions for 2012:
discover some of your own numerology for FREE at:
learn numerology from numerologist to the world, Ed Peterson:
Sex Numerology available at: