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Facebook Advertising: What We Can Learn From Ford And GM?

Posted: 28 Jun 2012 01:48 PM PDT

In early May, GM made a big announcement. Not about a new product line or a CEO or the kind of financial difficulties that were such big news just a few years ago, but about their decision to pull $10 million of their advertising off of Facebook. Their reasoning: they weren't getting a return on their investment, the kind of attention they were so used to measuring using traditional means.

And, because the world is a place of irony, this of course got them a lot of attention in the media, especially when Ford Tweeted in response: "It's all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation."

And so, the great GM vs. Ford social wars began. Which one has it right, and what can we learn from their mentality, strategies, and results?

Marketing is no longer a one way street

While Henry Ford may have pioneered the industrial technology that revolutionized the auto industry in the early 1900s, GM is the company that's stuck with an assembly line mentality. It still believes that advertising is a one way street, devoting $2.8 billion domestically and $3.9 billion globally to its overall advertising budget in 2010, making them the 3rd largest advertiser in the US. They carry this mentality into the social media sphere, using a "build it and they'll come" approach without investing time or money into promoting engagement on the diverse channels through which consumers connect with brands.

For instance, GM developed a pretty cool initiative - the Chrevolet Plant a Tree Campaign - in which they promised to plant a tree for every one virtual tree planted by a user on an app they developed. But they promoted this app not by, say, producing a video on youtube and posting it to their Facebook page, tweeting out frequent messages about the program and retweeting involved users, or doing any of the constant, repeated and multi-channel efforts that comprise a tight social media campaign. They posted a message about it once and left it at that.

Know what social media is and can do

It may sound like a small thing, but this example unveils a fundamental misunderstanding about what social media is and can do. As Scott Monty, Head of Social Media at Ford, articulates so cogently in this PowerPoint presentation, social media is about humanizing a company and increasing engagement. It's not a place to post an ad and wait for the dollars to roll in. It's a place where trust is built based on accessibility, transparency and authenticity. It's about building relationships.

That takes time, effort, money, and patience

Think about this way. Social media (Facebook in particular) is a place where people hang out with their friends. If you're the new kid on the block and you think the kids goofing off in that corner are the coolest, there are two ways you can try to get them to trust you and let you in:

Walk right up to them and say, "Hi. I'm a really fantastic person and I think you'll enjoy my many positive features, including by not limited to my sense of humor, my brilliant smile, my intelligence, and my general success in life. Offer valid for a limited time only."
Hang out near them, thinking of witty things to say when it's appropriate, listening to them and letting them know when you've heard about something really cool that would be relevant or fun for them attend.

How do we know GM is #1 and Ford is #2?

Just take a look at the differences between GM and Ford's Facebook pages. While GM features four slick, magazine-esque close-ups of its logo, Ford features twelve different ways that users can engage with their brand. That's twelve different opportunities for users to connect with like-minded people, access the brand they follow and share quality content with friends (i.e. potential customers), and it's all right there on Ford's Facebook page.

Traditional strategies and measurements alone don't work

If you're saying, "True, but this all relates to the unpaid aspects of a Facebook presence, not Facebook ads," you're right. The click through rates (CTR) for Facebook banner ads are dismal, especially in comparison to Google, whose users are 10 times more likely to click on its banners than on Facebook. Even worse, 57% of Facebook users admitting to never clicking through on ads or sponsored content.

But this again points to a lack of understanding about what social media is and how people engage with it. People go to Google already motivated to find a theory, explanation, product or service, while people go to Facebook to connect or catch up with friends. That means they spend far less time on Google than on Facebook (53.5 billion minutes vs. 12.5 billion minutes for Google in May 2011), so any measurement of CTR ignores the effect of simply having a banner in a user's consciousness for hours at a time.

This means that CTR is far less important on Facebook as it is on Google. Facebook ads are not about providing a solution that's urgent to the user right now. It's about raising a brand's presence in a user's mind so that when they do need that solution, that brand will be the first to come to mind.

That's why Facebook ads are just one part of a greater social media, content and engagement strategy

A surprising or compelling yet traditional Facebook ad might not be clicked on, but it will drive traffic to a brand's Facebook page, and it can be used to promote engaging content a brand has produced on other channels. This could be a microsite that promotes a wedding roadtrip contest or a video contest to win a Ford Fiesta. Whatever the strategy, advertising is no longer just about driving users to the product. It's about driving users to the content that will drive them to the product. It's about fitting a brand into a larger relationship, trust-based, content-rich strategy.

GM should know this, given how important trust is to their big-ticket item industry, where people buy based on relationships rather than on impulse.

Take-aways

So, what can the marketing would and the automotive industry learn from Ford & GM's very different experiences with Facebook advertising?

According to Mike Priestner, CEO of dealer network GoAuto, "We need to understand what social media is and is not." Mike's tips for were:

Focus on developing rich, engaging, quality content.
Engage regularly in conversations with your users.
Don't use a build it and they will come mentality. Promote on multiple channels.
Don't just measure CTR. Measure engagement.
Be patient.

And, most of all be human. That's what social media is all about.

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Image: "Tomislav Pinter/Shutterstock"

3 Simple And Cost-Effective Ways To Improve Your Website

Posted: 28 Jun 2012 06:27 AM PDT

Your website is your shop front to the world, it is the way you present yourself to potential new customers and prospects, and it should also be seen as an investment in your business – helping you to achieve and maintain growth and build your revenue. With all this in mind, why is it that I have seen as many poorly executed websites as I have had hot dinners? If you owned a retail store in the 'offline' world, you wouldn't neglect your shop front with peeling paint and dirty windows – so why should you treat your website that way?

Of course, as a business owner, you are likely to be rushed off your feet, and for many small to medium sized businesses in particular, while your website may be a priority – when time is at a premium, it can slip down the list of areas you need to cover. With this in mind, in this article I would like to discuss a few simple but effective ways to help kick your website into shape and start getting the return on the investment you put into it. Let's get started!

# 1. Sort Out Your Home Page

Let's face it - there is little sense in having a website at all if your home page isn't up to scratch. Your home page is inevitably the main port of entry for most visitors to your site, and if you want to wow potential new customers - then let's make sure it is doing you justice.

I recommend ensuring that you have three key elements in place:

A one-line summary or statement of what it is you do or offer, displayed either in your logo / slogan, or in a prominent heading located in the top-half of your home page. Remember – the average attention span of a web user is ever-decreasing, and so you need to grab your site visitors and let them know what you can offer them! Otherwise, they may simply bounce away from your site altogether - and find their way to your competitor's neatly executed home page instead.
A compelling call-to-action for what it is you want your site visitor to do. If there was one action you would want someone arriving on your site to take - what would it be? For most, it will involve calling your business, sending you an email, making a purchase on your online store, or signing up to your newsletter. The easiest way to maximise the chances that they take this action is to detail the primary call-to-action on your home page in a visible way. I often recommend implementing this either just above the main image on your home page, or on the top-right hand side of the page, with a short and succinct sentence. If your primary goal is customer contact, add your phone number or email address via a 'Contact Us' label on the top-right hand side of the home page.
A strong visual appeal. In short – wow your site visitor. Make it so that they instantly remark – 'wow, nice website'! The sharpest, most 'on-the-money' websites I have encountered all tend to have a strong visual appeal, usually achieved via a slideshow of images, a pleasing colour-scheme, or clever use of design elements such as buttons, links and forms. A great way to start here is to look for or analyse websites that you admire. There will be elements that you can borrow and take inspiration from, whilst still stamping your own style and mark upon them.

Remember, if your website is your store front, then your home page is the front door. Keep it smart, tidy, effective - and a destination that will compel people to keep coming back to knock on when they need what it is you have to offer.

# 2. Give People Something Of Value

I spend a lot of time online. It is both my job to be online, and I also just enjoy reading useful, informative and inspiring articles in the areas related to what it is I do. The clincher, however, is that I can count on one hand the number of websites (excluding social networks) that I visit on a regular basis. And the reason there are so few is because they collectively fulfill a need I have for interesting, relevant and compelling content that makes me want to come back each time.

The net result is that they command my attention and are consistently on my radar as 'go-to' places on the web, which inform, inspire and provide quality content on what matters most. This makes them stand out from similar websites or businesses which don't invest the time or resources in meeting this need.

When it comes to your website, do you want to be easily forgotten, or do you want to be a 'go-to' place for your customers and prospects? If the latter, then start creating value for them that will compel them to keep coming back to you. The difference that makes you stand out is proportional to the effort you put in to grabbing, engaging, and keeping your readers on board.

In practice, this is easily achieved through implementing one or more of the following features on your site:

A frequently-updated and engaging blog, filled with useful, well-written, relevant content
An 'Articles' section, which might contain industry case studies or white papers of interest
A 'Reviews' section, a 'Useful Tips' page, or any resource that provides value to your visitors

The key is to create content regularly, and keep things fresh, up-to-date, and continually delivering real value for your readers.

# 3. Bring In The Trust Factor

Remember the adage – 'People buy from people'? Of course, and why should it be any different with the online experience? All things being equal, you would rather buy from a site you perceive as trustworthy, reputable, and easy to interact with - than one that lacks these qualities. There are several simple but often neglected ways that you can improve your website's trust factor:

Company name, address and contact details: Ensure that these are located either in the footer of your home page, or via a visible 'About Us' or 'Contact Us' page
Company registration number: This lends your business an air of trust from the get-go, since you are allowing your visitor to see that if needs be, they can check you out through official channels
Testimonials: I recently chose a service provider based on the strength of their website testimonials, along with the expertise they demonstrated via their blog and general online presence. Testimonials from those who have purchased the product or service you provide are a massive endorsement in the eyes of those you hope will purchase the product or service you provide! Don't neglect this avenue, and don't be afraid to ask for testimonials from past and existing happy customers.

I hope that this article has provided you with some valuable pointers that you can now run with and implement quickly and efficiently. Give your website that extra boost it may need, and you may likely find that the return you receive is far greater that the effort you put in. Good luck!

What tactics have you used in the past to give your website a lift? What grabs your attention most on other websites, when it comes to making a purchase decision, or when deciding whether to contact a business?

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vineri, 29 iunie 2012