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(BusinessWeek)   Remember when GM pulled their Facebook ads because they "didn't work"? Turns out, the real reason they didn't work is because GM just sucks at online marketing   (businessweek.com) divider line 61
    More: Followup, Facebook, conversion rate, landing pages, return on investments, Facebook Ads, TV spot, ginger, I'll turn  
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4728 clicks; posted to Main » on 22 May 2012 at 10:19 AM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-22 08:53:18 AM  
Remember when GM pulled their Facebook ads because they "didn't work"? Turns out, the real reason they didn't work is because GM just sucks at online marketing
 
2012-05-22 09:01:04 AM  
Over in one.

/Will never ever buy a GM product ever again.
 
2012-05-22 09:22:05 AM  
They have ads on Facebook? Huh.
 
ZAZ [TotalFark]
2012-05-22 09:31:23 AM  
The dirty secret social-media gurus won't reveal is that Facebook likes are becoming a devalued currency. Facebook now receives 1.17 trillion likes and comments from consumers annually, which works out to 3.5 per Facebook user per day. Forty-two million Facebook pages now have 10 or more likes. In a world where liking is as common as blinking, a like no longer signals that a consumer loves your brand.

I don't even use Facebook and I figured that out.

If Facebook wants likes to be valuable they could be treated like outbound links in the page rank algorithm. The more likes you give, the less they are worth individually.
 
2012-05-22 10:23:24 AM  
DjangoStonereaver: Over in one.

/Will never ever buy a GM product ever again.


Don't buy Ford either, both my parents cars are rusting out after only 5 years and have had to go in for repairs on more than one occasion.


Meanwhile my tiny civic is going on 12 years with no major repair bills, looks brand new and still runs like day 1 off the lot.
 
2012-05-22 10:23:27 AM  

Lando Lincoln: They have ads on Facebook? Huh.


News to me as well.
 
2012-05-22 10:24:27 AM  
Groupon calling GM. Groupon calling GM.
 
2012-05-22 10:24:39 AM  
I use Facebook all the time. I am not even aware of the ads since FB so nicely puts them off to the side for me to completely ignore.
 
2012-05-22 10:26:09 AM  

kvinesknows: I use Facebook all the time. I am not even aware of the ads since FB so nicely puts them off to the side for me to completely ignore.


A little add-on called fbpurity wipes ALL ads etc from the page.
 
2012-05-22 10:27:46 AM  

kvinesknows: I use Facebook all the time. I am not even aware of the ads since FB so nicely puts them off to the side for me to completely ignore.


That's all blank over there for me. I have noticed yahoo news showing up in my feed. I mark it as spam and it goes away for a few days.
 
2012-05-22 10:29:39 AM  
Facebook vs Google is 1 click through for every 200 on google for our small business ads

Same ad
geographically targeted.
 
2012-05-22 10:30:53 AM  
The only advertising I need for something as expensive as a car (or even a washing machine for that matter) comes out in an Ad called "Consumer Reports". I love their ads so much I pay to get them.

No amount of husky voice overs or slo-mo shots of spinning tires on a dirt road is going to change the fact that if you make a shiatty product I won't be buying it.


/knows he's in the minority
 
2012-05-22 10:32:02 AM  
Has anyone mentioned yet that Facebook's click-throughs are one of the worst in the industry?
 
2012-05-22 10:32:58 AM  

ZAZ: The dirty secret social-media gurus won't reveal is that Facebook likes are becoming a devalued currency. Facebook now receives 1.17 trillion likes and comments from consumers annually, which works out to 3.5 per Facebook user per day. Forty-two million Facebook pages now have 10 or more likes. In a world where liking is as common as blinking, a like no longer signals that a consumer loves your brand.

I don't even use Facebook and I figured that out.

If Facebook wants likes to be valuable they could be treated like outbound links in the page rank algorithm. The more likes you give, the less they are worth individually.



"Liking" companies is particularly insignificant when most bribe people into doing it.

"'Like' Chick-Fil-A and get a free 4-count Chicken Minis!""

"'Like' Redbox for a free rental!"

"'Like' our law firm for a chance to win a brand new iPad 2!"
 
2012-05-22 10:33:53 AM  
Seems like they didn't grok this new advertising medium. All they have to do was use Facebook as a platform to engage customers and potential customers on a level that any company couldn't do before the social media boom.

Instead, this is almost like after years of putting up billboards and then suddenly introduced to TV and radio advertising, GM was trying to figure out how to send billboards through the airwaves to potential customers then saying, "This doesn't work. Derp!"

And Facebook was letting them for 10 million dollars.
 
2012-05-22 10:35:09 AM  
I actually got my Volkswagen CC after seeing an ad. I'd never seen it before, and ended up checking it out and loving it. They never asked why I was looking at it though.
 
2012-05-22 10:36:49 AM  
FTAThat's wrong-headed, because no free market spends billions on a media format with zero return.

Did this guy sleep through the Dot-com bubble, the housing bubble, the S&L crisis?
 
2012-05-22 10:37:07 AM  
Does advertising for any company really work on Facebook? I can't say that I have ever clicked on an ad link on that site. Not once. I think it was a smart move by GM.
 
2012-05-22 10:38:47 AM  
Salespeople notoriously steal credit for respondents whose interest was triggered by advertising; they often get higher commissions for leads they generate

Um, this sounds made up
 
2012-05-22 10:40:04 AM  
I agree, General Mills sucks.

TyrantII: Don't buy Ford either, both my parents cars are rusting out after only 5 years and have had to go in for repairs on more than one occasion.

Meanwhile my tiny civic is going on 12 years with no major repair bills, looks brand new and still runs like day 1 off the lot.


That's not really the case any more though. Honda, Toyota, and the other imports that used to be considered high quality, aren't so much any more. A lot of the same problems that plague other brands have crept in. Things like transmission failure, broken interior bits, and such. I'm not sure why but I'm willing to bet it has something to do with China.
 
2012-05-22 10:42:22 AM  
GM is "making money" by taking it out of taxpayers pockets.

Fark 'em. Either run your company where it can make a profit, or go out of business. Don't expect the government and the taxpayers to hand you a few billion to make up for your bad decisions and a few million more so you can give bonuses to the idiots running your company.
 
2012-05-22 10:43:13 AM  
They could create an interactive game of some sort that would give people a reason to integrate their cars with building friendships. I've never played an fb game but I understand that they are decently successful.

I agree though that a purchase as large as a car is would lean towards more reliable advertising, such as consumer reports; aka build a good car and people will buy it.
 
2012-05-22 10:44:06 AM  

fortheloveofgod: Does advertising for any company really work on Facebook? I can't say that I have ever clicked on an ad link on that site. Not once. I think it was a smart move by GM.


Lots of people. People click like to get a free product, they like the product, they buy it next time. It's as useful as coupons and works better than TV ads or billboards.
 
2012-05-22 10:48:23 AM  
Oh, I don't know about that, subby...

blog.foreignpolicy.com

Make Tour Own Tahoe Commercial
 
2012-05-22 10:49:18 AM  
Yes, yes, and yes. The real reason that internet advertising will never be financially viable is that the software to block internet advertising and tracking will always be one step ahead, allowing users to completely remove them from their browsing experience. Right now ad companies believe they are ahead of the curve, but this Facebook debacle is going to be a very strong lesson in where they actually stand....well behind the curve. Ultimately they will have to target their efforts at sites populated by grandmothers who have no idea what ad blocking software is, and call their home page "The Google". But there really isn't an industry future for online advertising unless they can get the government to mandate ad acceptance, tracking, etc., which will pretty much cause the delightful souls who bless us with genuinely useful software to reveal an entirely new internet. (It is already in development anyway.)
 
2012-05-22 10:50:46 AM  
This article blows. The guy starts out telling us that GM sucks at online marketing. Then he tells us how FB online marketing should work, but he never A) gives us an example of a firm that has found success marketing on FB and B) he never tells us what type or ROI would be considered a success in this medium and C) how using FB as a medium compares with other ways to reach consumers.

So my question is "why is this guy trying so hard to tell me why FB is awesome?"
 
2012-05-22 10:50:46 AM  

The Jami Turman Fan Club: fortheloveofgod: Does advertising for any company really work on Facebook? I can't say that I have ever clicked on an ad link on that site. Not once. I think it was a smart move by GM.

Lots of people. People click like to get a free product, they like the product, they buy it next time. It's as useful as coupons and works better than TV ads or billboards.


Really think that would work that well for a car though?
 
2012-05-22 10:53:04 AM  

fortheloveofgod: Does advertising for any company really work on Facebook? I can't say that I have ever clicked on an ad link on that site. Not once. I think it was a smart move by GM.


This. After being bombarded with advertising in nearly every other conceivable place, I've clicked on a grand total of ONE facebook ad, and only because it was for an item that I had seen nowhere else. And then, when it required "opting-in" to some application, (translation: giving the application permission to access my friends list, post to my page, and post advertisements to all of my friend's pages in my name,) I quickly chucked it. I go to facebook for social purposes. Advertising isn't "social"; it's commercial.

You're welcome in advance.
 
2012-05-22 10:53:31 AM  
FTA - University of Phoenix showed up in my Facebook feed after I liked them; the school offered teaching certification, while my Facebook profile says I work in advertising. Um, no thanks. Pepsi popped up with an extended version of its latest TV ad. Thanks, Pepsi, but if I want your TV spot, I'll turn on the tube. Liking these brands and receiving this level of "engagement" felt like asking a girl for a kiss and being handed a business card.

Translation: "Boo hooo, Facebook isn't Twitter. I sure wish huge companies would send me personalized messages."

What kind of message do you expect Pepsi or U Phoenix to send to your News Feed?
This guy seems to know a bunch about online marketing and social media, but has no clue about how a company Facebook page is ran. Any post a company makes can only filter the users it sends to by language or location and it is a pretty good assumption that somebody who "Likes" your page is going to enjoy promotion material like commercials or marketing images - which many people then share with their friends.
 
2012-05-22 11:07:44 AM  
Sounds like a winning sales pitch for facebook.

"Hello client with millions of dollars to spend, your ads didn't work because you're stupid. It can't be us, we're farking facebook. FACEBOOK. Now how about some more of that cash?"
 
2012-05-22 11:12:22 AM  
vodka:
That's not really the case any more though. Honda, Toyota, and the other imports that used to be considered high quality, aren't so much any more. A lot of the same problems that plague other brands have crept in. Things like transmission failure, broken interior bits, and such. I'm not sure why but I'm willing to bet it has something to do with China.


Possibly. Also chasing after the other brands into their "luxury" builds, which really just means more shiat to go wrong. I drive a stick (pretty much only way a tiny 1.6 liter makes sense) so the transmission is much less of a issue, and if it does go it's easier and less costly to replace. Like in NE, and no rust yet which is excellent. Just replaced the timing belt and water pump, and gearing for another 110K hopefully.

I read that civic's this last year got panned in reviews for econ cars because of... road noise. Forget that they're now much quieter than my 2000 is, they're not loaded with heavy soundproofing and the suspension isn't as floaty as other cars, so they get pinged on those things. So guess what Honda's going to be gearing after towards next year? Screw reliability and gas mileage, I can hear the road a little bit while going 90 on the highway!

Not every car needs to be a Lexus. Unfortunately consumers say they want cheap, repairable and reliable; then compare the downsides to the luxury fleet that is not cheap, not repairable, and not reliable.

I know a chick with one of those god ugly Lexus SUVs, and apparently it's $120-200 for a oil filter change. They need to remove a "protective" plastic molding bolted to the bottom of the car, which doesn't protect much besides Lexus guaranteed service profits.
 
2012-05-22 11:12:25 AM  

Aboleth: Seems like they didn't grok this new advertising medium. All they have to do was use Facebook as a platform to engage customers and potential customers on a level that any company couldn't do before the social media boom.

Instead, this is almost like after years of putting up billboards and then suddenly introduced to TV and radio advertising, GM was trying to figure out how to send billboards through the airwaves to potential customers then saying, "This doesn't work. Derp!"

And Facebook was letting them for 10 million dollars.


completely agreed.

/And I'm not really sure that the King Arthur Flour FB page's efforts at social engagement are or aren't helping...
//I was gonna buy their stuff anyway.
 
2012-05-22 11:13:39 AM  

HotWingConspiracy: Sounds like a winning sales pitch for facebook.

"Hello client with millions of dollars to spend, your ads didn't work because you're stupid. It can't be us, we're farking facebook. FACEBOOK. Now how about some more of that cash?"


actually it was interesting that the article basically said "you all suck. and it's because you're doing wrong, but I can't give you any examples of doing it right."

Oh, thanks, buddy! Wouldn't have figured that out on our own!
 
2012-05-22 11:15:30 AM  
While i'm not a fan of Chevy, if they made the volt affordable i would prob buy one. Outside of that the Cruz is the only interesting thing they got going on.
 
2012-05-22 11:19:42 AM  
as for facebook, the ad revenue isn't where they'll be getting their income. Which is why all the focus on ad revenue and their IPO is STUPID.

Personal information and the marketing data that provides is their cash cow. Ad revenue is just icing on the cake.

GM buying ad space is stupid. GM making a facebook app, allowing them to capture access to all sorts of personal information and create a direct gateway to customers with their brand, is. GM apparently thinks they're still push advertising in newspapers maybe?

I'm not even in the biz and I can think of a hundred more effective ways to spend some ad money through facebook that doesn't involve bulk buying up actual advertisements.

What GM is saying is they got played and paid someone a lot of money for nothing.
 
2012-05-22 11:20:12 AM  

jehovahs witness protection: Remember when GM pulled their Facebook ads because they "didn't work"? Turns out, the real reason they didn't work is because GM just sucks at online marketing


Done in one.

But just to be clear, Facebook sucks too.
 
2012-05-22 11:21:01 AM  

kvinesknows: I use Facebook all the time. I am not even aware of the ads since FB so nicely puts them off to the side for me to completely ignore.


These are different.

If you "Like" something you are basically giving the manager of that page permission to post ads posts in your feed. So there is value IF you place the right kinds of ads posts, so people take notice and don't unlike you, and if you have a product where such a strategy can drive sales.
 
2012-05-22 11:24:13 AM  

HAMMERTOE: fortheloveofgod: Does advertising for any company really work on Facebook? I can't say that I have ever clicked on an ad link on that site. Not once. I think it was a smart move by GM.

This. After being bombarded with advertising in nearly every other conceivable place, I've clicked on a grand total of ONE facebook ad, and only because it was for an item that I had seen nowhere else. And then, when it required "opting-in" to some application, (translation: giving the application permission to access my friends list, post to my page, and post advertisements to all of my friend's pages in my name,) I quickly chucked it. I go to facebook for social purposes. Advertising isn't "social"; it's commercial.

You're welcome in advance.



Where Facebook can really work for business is "top of mind awareness." But even then, it's best for small companies, not companies like GM for which there is no shortage of consumer awareness. If you're a small company and use a facebook page (not ad) wisely, you can be the first person a lot of people call. (that doesn't mean they'll choose you, but you can have first crack at it)

By wisely, I mean tickle their interest every day or so with a genuinely interesting or helpful (TO THEM) comment or link regarding your business, NOT just an ad... not just a pissant special that doesn't add up to much, or that you've gamed by escalating your price and marking it down, or made such an absurd volume discount that it's useless and uncompetitive even to those who are actively seeking your service.

e.g. If you're a nursery, post some regional gardening tips or local garden photos and solicit submissions... not "Come to Joe Blow's Nursery for your gardening needs."

Where it can benefit big companies like GM is in creating a sense of community and a staging ground for demonstrating visibly excellent customer service. But, you need to put someone in charge of it who will actively engage with users and has the authority to speak for the company to some degree and the authority to straight up fix some shiat.

Big company or small, the key is don't focus on making it YOUR platform for getting your message to your customers, make it your customers' platform for getting their message to you. And you gotta play the game straight. You can't be deleting criticisms. Don't hide their complaints, resolve them.
 
2012-05-22 11:28:31 AM  

TyrantII: as for facebook, the ad revenue isn't where they'll be getting their income.


That's not what they told investors.
 
2012-05-22 11:32:31 AM  

TyrantII: DjangoStonereaver: Over in one.

/Will never ever buy a GM product ever again.

Don't buy Ford either, both my parents cars are rusting out after only 5 years and have had to go in for repairs on more than one occasion.


Meanwhile my tiny civic is going on 12 years with no major repair bills, looks brand new and still runs like day 1 off the lot.


our 15 year old honda finally had a major mechanical issue, and it was the steering pump which was like five minutes effort to swap out(so conveniently placed). granted i then had to hunt down a new reservoir as the old one got its filter screen clogged to hell and gone by the old pump eating itself but that's a story for another day.

yeah, it's not silent like it used to be, but that's mostly cause the oil's a touch low. damn thing has nearly a quarter of a million miles on it, gets commuted 30 miles each way daily, in seattle traffic, and is a right-out trooper.

honda of the late 90s: fooking HELL they were built to laaaaast.
 
2012-05-22 11:57:47 AM  

buttery_shame_cave: TyrantII: DjangoStonereaver: Over in one.

/Will never ever buy a GM product ever again.

Don't buy Ford either, both my parents cars are rusting out after only 5 years and have had to go in for repairs on more than one occasion.


Meanwhile my tiny civic is going on 12 years with no major repair bills, looks brand new and still runs like day 1 off the lot.

our 15 year old honda finally had a major mechanical issue, and it was the steering pump which was like five minutes effort to swap out(so conveniently placed). granted i then had to hunt down a new reservoir as the old one got its filter screen clogged to hell and gone by the old pump eating itself but that's a story for another day.

yeah, it's not silent like it used to be, but that's mostly cause the oil's a touch low. damn thing has nearly a quarter of a million miles on it, gets commuted 30 miles each way daily, in seattle traffic, and is a right-out trooper.

honda of the late 90s: fooking HELL they were built to laaaaast.


I worked at a garage in the late 90s. I would get accords with 150K miles that seemed like new. Domestic cars? 90K and falling apart. Nowadays I think that is changing but previously that was certainly the norm.
 
2012-05-22 12:11:29 PM  

TyrantII: DjangoStonereaver: Over in one.

/Will never ever buy a GM product ever again.

Don't buy Ford either, both my parents cars are rusting out after only 5 years and have had to go in for repairs on more than one occasion.


Meanwhile my tiny civic is going on 12 years with no major repair bills, looks brand new and still runs like day 1 off the lot.


Depends on the person I guess, I got rid of my Civic and got a Ford, liked it so much I ended up getting a newer model of the same car once I paid the car off.

Both still run, look just as new.
 
2012-05-22 12:18:34 PM  

Balchinian: Yes, yes, and yes. The real reason that internet advertising will never be financially viable is that the software to block internet advertising and tracking will always be one step ahead, allowing users to completely remove them from their browsing experience. Right now ad companies believe they are ahead of the curve, but this Facebook debacle is going to be a very strong lesson in where they actually stand.


As someone who pays for Google ads, I can tell you that they work. I've had over £30000 of work from clients as a result of spending maybe £200 on ads. A tiny number of people install ad blockers. Most people don't.

If you run a niche business, Google ads are really, really good. I don't think they suit the likes of GM, but if you have some weirdly obscure skill, you can get ads for next to nothing.
 
2012-05-22 12:21:04 PM  

JuggleGeek: GM is "making money" by taking it out of taxpayers pockets.

Fark 'em. Either run your company where it can make a profit, or go out of business. Don't expect the government and the taxpayers to hand you a few billion to make up for your bad decisions and a few million more so you can give bonuses to the idiots running your company.


They've reorganized, they are making a profit, and are making good decisions, like not advertising on facebook.

They are making better cars too..

//Facebook and GM in the same thread, we're treading dangerously close to the derp event horizon..
 
2012-05-22 12:40:35 PM  
HotWingConspiracy: TyrantII: as for facebook, the ad revenue isn't where they'll be getting their income.

That's not what they told investors.


You believe 100% what they told their board and investors about Instagram too?

Broadcasting their intent to data mine during their IPO, when under a microscope, is bad PR. They'll coyly announce it at a quarterly meeting and change the TOS/EULA when only a few tech geeks websites are paying attention on a Friday afternoon.
 
2012-05-22 12:42:16 PM  
fortheloveofgod
Does advertising for any company really work on Facebook?


Does advertising for any company really work on TV or in a magazine?
 
2012-05-22 12:59:26 PM  
If it continues to drop in price, they'll have to rename it Faceplant.

Meanwhile, here's some interesting numbers:

i50.tinypic.com
 
2012-05-22 01:31:47 PM  

TyrantII: HotWingConspiracy: TyrantII: as for facebook, the ad revenue isn't where they'll be getting their income.

That's not what they told investors.

You believe 100% what they told their board and investors about Instagram too?

Broadcasting their intent to data mine during their IPO, when under a microscope, is bad PR. They'll coyly announce it at a quarterly meeting and change the TOS/EULA when only a few tech geeks websites are paying attention on a Friday afternoon.


So they're running a scam?

These people bought in thinking they were getting an advertising powerhouse. What happens when the EU, etc. tells FB they can't sell that data?
 
2012-05-22 02:23:01 PM  
Social media ads are seen by young people. Young people cannot afford new cars.
 
2012-05-22 02:56:18 PM  

Aboleth: Seems like they didn't grok this new advertising medium. All they have to do was use Facebook as a platform to engage customers and potential customers on a level that any company couldn't do before the social media boom.

Instead, this is almost like after years of putting up billboards and then suddenly introduced to TV and radio advertising, GM was trying to figure out how to send billboards through the airwaves to potential customers then saying, "This doesn't work. Derp!"

And Facebook was letting them for 10 million dollars.


And if you actually read the article you might have noticed GM still uses FB as a platform as they didn't pull their FB page, they are just not paying 10 million dollars for ads anymore.
 
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