Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Marketer Responds to GM's Facebook Decision

May 17, 2012
2 min to read


DETROIT – Facebook’s influence on car buyers was called into question after the Wall Street Journal reported on General Motors’ decision to stop advertising on the social-networking site. But one digital marketing firm is coming to the defense of Facebook.


Rick Gibbs, president and chief technology officer for Dealer.com, would not comment on GM’s decision, but said he believes Facebook has one of the strongest networks for reaching automotive customers via a comprehensive advertising, content and engagement strategy. That approach, he added, has had a positive impact on his clients' brands and bottom lines.

Ad Loading...


“Most advertisers are focused on the wrong key performance indicators when measuring Facebook advertising effectiveness,” he said. “The opportunity of social networking advertising lies beneath the surface at a micro-level of brand engagement, audience reach and customer interactions. When done correctly, the results are increased engagement and customer loyalty before, during and after the purchase.”


Quoting a GM official, the Wall Street Journal reported that the carmaker plans to stop advertising after deciding that ads on the site have little impact on consumers’ car purchases. The Detroit automaker spends about $40 million on its Facebook presence, the report said, $10 million of which is directed to Facebook ads.


Whether Facebook is effective at moving cars has been a hot topic of late. Proponents of Facebook say the social-networking site isn’t geared toward selling cars, and should be viewed as an opportunity to build brand awareness. Dealers have also wrestled with the question of whether to outsource content creation and management of their Facebook pages.


Last week, F&I and Showroom reported on a recent shopper behavior study that showed many dealerships are successfully utilizing Facebook to generate new visitors to their Websites. But the study also showed that traditional methods are still required to turn visits into leads.


"The data shows that Facebook is a good approach to getting new visitors to dealership sites,” Dylan Snyder, senior manager of business intelligence at Dataium. “The lead-to-visitor ratio, which is less than half of our network average, is disappointingly low, however. This highlights that dealerships cannot rely on Facebook alone; traditional methods are still needed to turn these new visitors into leads."

More Industry

F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Ad Loading...
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →
Salesby Hannah MitchellFebruary 19, 2026

Auto Sales Still Sluggish

February forecast has new-vehicle deliveries still off from last year at this time amid high prices and vanished EV incentives. But J.D. Power sees business picking up from here as automakers target growth.

Read More →
Industryby Hannah MitchellFebruary 18, 2026

EVs Bring Most Satisfaction to Date

Study finds that adopters are true believers and that their satisfaction with the vehicles is growing, including for public charger experience, despite pullback of federal incentives.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 17, 2026

Auto Manufacturing Drives Economic Growth

The sector generates over $64 billion in annual economic impact in South Carolina, making it the largest and fastest-growing manufacturing subsector in the state.

Read More →