The effect of Facebook Ads is suspected now

Mon 21 May 2012 08:30, Qin Hu

The effect of Facebook Ads is suspected now

Last Wednesday, GM confirmed that its 10 million Facebook Ads budget was pulled.  Definitely, it can have a huge impact on Facebook, especially as Facebook is on the stock market now.

“We regularly review our overall media spend and make adjustments as needed,” a GM spokesperson said in a statement. “This happens as a regular course of business and it’s not unusual for us to move our spending around various media outlets – especially with the growth of multiple social and digital media outlets. In terms of Facebook specifically, while we currently do not plan to continue with advertising, we remain committed to an aggressive content strategy through all of our products and brands, as it continues to be a very effective tool for engaging with our customers.”

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This statement is food for thought to marketers. They realize that if the content of Ads is interesting and persuasive enough, they do not need to advertise on Facebook. In addition, these Ads will spread on the internet like a virus, including Facebook. In other words, advertising on Facebook can be free of charge. Just like what Lynx has done for promoting of its sunglasses. Because its offline Ads were so unique and creative, the Ads were spreading online automatically.

However, GM’s biggest competitor, Ford holds different opinions about the effect of Facebook Ads. Ford has been a supporter of Facebook for quite a long time, and it was one of the first companies to pay for Facebook’s new logout Ads. When GM announced the news, Ford immediately took shots at GM on Twitter. “We’ve found Facebook Ads to be very effective when strategically combine with engagement, great content and innovative ways of storytelling, rather than trating them as a straight media buy,” a Ford spokesperson said in a statement. “We continue to have a strong, collaborative relationship with Facebook, which includes first-of –a-kind vehicle reveals, advertising and innovative ways of sharing content. Our engineers have also been working with Facebook engineers to develop unique and safer ways of integrating the car experience with Facebook.”

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How do you think about the Facebook ads?


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