Facebook, the world’s most popular social media site, is in negotiations with General Motors Co, the world’s largest carmaker, to secure the company as a paid advertiser just months after an original advertising deal was halted.
Whilst no agreement has been reached, sources say that discussions are ongoing, and Facebook executives are working to provide data which proves the effectiveness of the site’s paid advertisement. It hopes that such data will help the company to re-secure a high profile source of advertising revenue. General Motors are the third largest US advertiser.
General Motors announced that it would drop paid advertisement on Facebook, just days before the social network’s much publicised initial public offering. They cited low customer impact as the reason for doing so. This was the first dent in the Facebook advertising strategy and made headlines; not to mention sparking debate about whether Facebook advertising could rival traditional media.
GM retains a number of Facebook pages, for which it pays no revenue, and through which it markets its vehicles.
If Facebook could successfully win back the car company, third only to Proctor & Gamble Co and AT&T Inc in advertising revenue, it would mark a major boost to the respectability and attractiveness of a big, business Facebook ad campaign.