Facebook And GM In Talks For A New Partnership

HFA Padded
HFA Staff
Published on
Updated on

Facebook And GM In Talks For A New Partnership

Talk about rekindling old flames. General Motors Company (NYSE:GM) and Facebook Inc (NASDAQ:FB) may be on the road towards turning over a new leaf in their once rocky advertising relationship, Reports WSJ.

Back in May, the two publicly fell out mere days before Facebook’s entrance into NASDAQ. Apparently, General Motors back then did not feel the worth of the $10 million it invested in paid ads. Joel Ewanik, General Motors’ global marketing chief, was noted then for saying that the paid ads on Facebook had negligible impact on car purchases. This came as a leaden blow to Facebook as it not only scrapped $10 million off its finances but also got a lot of negative publicity.

At the moment, the two ‘former friends’ are in talks over Facebook’s effectiveness in delivering desirable end results. Facebook has to prove that its advertisements in deed deliver. This is if at all the social network wants to give General Motors a credible reason to come back.

As it is however, nothing conclusive has been arrived at. Despite the lengthy talks, General Motors has still not come to a decisive standpoint on the whole matter. The ball lies in Facebook’s court. It is up to the social site to convince General Motors that it will extend nothing short of perfection.

Facebook Inc (NASDAQ:FB) has been previously noted for having repeatedly exclaimed on the effectiveness of its advertising in boosting company sales.  Nonetheless, recent studies from Green light- a UK based digital marketing agency- tell a somewhat different story. Through a study, Green light established that 44% of respondents never click on Facebook advertisements. To add salt to injury only 13% of respondents agreed to regular following of adverts. If this study is accurate, then Facebook will have a harder time convincing General Motors.

HFA Padded

The post above is drafted by the collaboration of the Hedge Fund Alpha Team.

Leave a Comment