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GM isn't the only company to see weak results for its Facebook (FB) ads: Wordstream estimates...

  • Tuesday, May 15, 2012, 5:53 PM ET
    GM isn't the only company to see weak results for its Facebook (FB) ads: Wordstream estimates Facebook ads have an average click-through rate of just 0.051%. That's barely half the 0.1% rate typically seen for Internet ads, and a small fraction of Google's (GOOG) 0.4%. Moreover, Facebook's 6.5% Q/Q revenue decline in seasonally weak Q1 compares unfavorably with the 1% estimated increase posted by Google's display ad ops, off a much larger base. (previous)
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This news story has 3 comments:

  •  
    Google works, but FB as Yahoo 2.0 does not. GM made the right decision.
    15 May 2012, 06:49 PM Reply Like
  •  
    I thought FB was about sharing or liking not click throughs.
    15 May 2012, 07:20 PM Reply Like
  •  
    GM has bungled its approach to this media, spending $30 million of its $40 million Facebook budget last year on its own FB pages and applications and just $10 million on the ads that you'd nominally compare to Google. Even then, its FB spending is a rounding error on GM's $3 billion annual ad budget. Considering that this news comes during an overall consolidation of its media planning with a new agency, I think it's a non-story. Rival Ford probably agrees: "We've 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." This report seems mostly timed as F.U.D. to take some froth out of the IPO.
    16 May 2012, 10:12 AM Reply Like
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