Playbook Public Relations, LLC – The Premier Digital Marketing Firm
It’s been a wild ride this week for Facebook (FB). The company’s IPO had Wall Street and investors buzzing. On May 15th (two days before the before IPO) General Motors (GM) the largest auto manufacturer in the world, announced that it would no longer spend advertising dollars on Facebook’s paid advertising. The reason? GM’s marketing department believes that Facebook advertising does not work. Last year GM’s marketing team spent $10 million dollars on Facebook’s paid advertising. Was this an ominous foreboding for Facebook? Since the initial IPO on May 18th FB shares have plummeted by 19%.
However, it should be noted that marketing industry insiders question the timing of GM’s announcement. Apparently, a few months ago Facebook representatives criticized GM’s marketing department for allowing multiple marketing firms to manage their Facebook advertising. This suggests that GM’s marketing department intentionally withheld its decision to announce its departure from Facebook’s paid advertising.
GM still believes in digital advertising, and it will remain a part of GM’s overall marketing strategy. In fact, GM’s marketing department spent $300 million on digital advertising in 2011. GM will continue to promote its brands on the company’s various Facebook Fan pages. The $10 million spent on Facebook paid ads is a drop in the bucket for GM but a blow to the effectiveness of Facebook’s paid advertising reputation.
Facebook’s paid ads appear on the right side of the page. Every time a user navigates to a new page different two things can happen: one, different ads appear or two, the same ads follows the end user. Facebook ads are targeted based on the demographic information provided by user’s profile.
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