The U.S. based automaker General Motors has more users on its GMC page from Tehran, Iran than Detroit, Michigan, or from any other city in the US, Maximize Social Media LLC said.
The Social Media Agency said General Motors poor results with Facebook were likely a direct result of GM’s poor fan base targeting.
“The fact that GMC’s most popular city for its fan page is Tehran tells us there are serious problems with GM’s overall social media strategy. Its very possible that the GMC fan page focus on Iran shows GM trying to play catch up with its fan count by buying cheap advertising.
This poor decision then dramatically drops the user engagement on the GMC fan page, which in turn will negatively affect the company’s ability to appear in the newsfeed. Not appearing in the newsfeed then significantly hinders viral growth,” said McLaughlin.
Facebook (FB) got a black eye last week when General Motors (GM) announced it would cease advertising on the platform, yanking $10 million in annual ad spending away from Mark Zuckerberg.
The auto maker’s marketing chief, Joel Ewanick, said the company “is definitely reassessing our advertising on Facebook, although the content is effective and important.” Mr. Ewanick has spent the last year restructuring the Detroit company’s marketing operations in an effort to cut billions of dollars in costs.
GM started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads, people familiar with the figures said.
GM, which ranks behind Procter & Gamble Co and AT&T Inc in U.S. advertising spending, spent $1.1 billion on U.S. ads last year, according to ad-tracking firm Kantar Media. It spent about $271 million on online display and search ads excluding Facebook advertising.
Facebook’s stock has dropped (FB) 16 percent since the initial share sale, spurring shareholder suits from New York to California. They allege that Facebook and its underwriters misled investors by failing to disclose the figures to a wider audience.