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GM India continues to bank on social media

31-May-2012
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GM India continues to bank on social media

General Motors, the largest automobile manufacturer in USA that recently announced that it will stop advertising on Facebook because it is not getting the necessary consumer attention and Return on Investment (RoI), has received good response on Facebook in the Indian market for its popular brand Chevrolet.

The brand has crossed the 2 lakh mark of its Facebook likes. It has registered a growth rate of more than 122 per cent since the last one year. Globally Chevrolet has close to 1.2 million fans on Facebook, whereas General Motors has over 3 lakh fans on Facebook.

“Chevrolet India’s interactive social media campaigns on Facebook focus on engaging automobile enthusiasts, existing/prospective customers and Chevrolet fans with the intent of offering a unique brand experience,” an official from General Motors said.

General Motors India does not advertise on Facebook but has been active on social media platforms. “Many use Facebook advertising to build their community on Facebook, to get more people to like their page. Once the community is in place, there are ways to keep communicating with them, at low or no additional cost,” explained Sanjay Mehta, Joint CEO, Social Wavelength. The automaker has aggressive social and digital media plans for its brands in India.

Globally General Motors spends close to $40 million of which a large share is spent in the US market alone. The auto giant had made the announcement just a few days before Facebook went public with its much-awaited IPO. After the announcement in the US, P Balendran, Vice President of General Motors India had told exchange4media that regular review and shift of money in media mix is a regular course of business.

In the US market, GM is the third largest advertiser. It ranks only behind Procter & Gamble and AT&T in advertising spending. GM reportedly spent close to $1.1 billion on ads in US last year. It spent about $271 million on online display and search ads excluding Facebook advertising. The company spends about $40 million on its Facebook presence, but only about $10 million of that is paid to Facebook for advertising, according to the Wall Street Journal.

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