Interesting insight from Brian LaRue of ADOTAS about GM’s news yesterday that they yanked a portion of their ad spend on Facebook. Including insight from Friend2Friend CEO, Roger Katz:
“It sends a huge message about the new GM and their willingness to walk from things,” he said. Katz considered the $10 million cut a ceremonial gesture (“It’s a very small sliver” of GM’s total ad budget, he pointed out), and he suggested the company’s timing — right around the time of both Facebook’s IPO and the TV upfronts (“We’re not talking about ESPN,” he noted) — had some significance. “The fact they’d come out and talk about it this week is an interesting message,” he said. “I’m expecting that this kind of announcement is pretty nuanced.” “Facebook is not the place people go first to buy a car,” Katz acknowledged. But he insisted that Facebook is simply too large and too full of opportunity to retreat from. To not cultivate audiences there in some ways is, he said, “mind-blowing,” and he pointed out, “These brand pages are the first branded communities at scale.”Read the whole article here.