Why GM Should Run Facebook Ads
By Evan Gassman & Mike Schwartz
The big news in social marketing this week, especially in light of Facebook’s planned initial public offering of stock, is that General Motors has opted out of Facebook advertising because GM is “disappointed in the results.” The company had a Facebook ad budget of $10 million and reportedly is the third-largest online advertiser, with an overall budget of $40 million.
At the David All Group, we know Facebook advertising works because we have used the ads in highly successful campaigns for clients. GM obviously was not achieving such success, but the company should not necessarily blame Facebook. The problem is more likely with its Facebook content or possibly with its overall marketing strategy.
We have a mantra at DAG: “Move beyond the ‘like.’” Our chief creative officer David All explained that mentality in a PR Week article last year, and it is one that GM needs to take to heart while rethinking its social strategy.
Companies and brands often find themselves counting Facebook “likes” and trying to quantitatively determine how many they need to sell a product, drive a campaign or promote an issue. They measure return on investment based on how many fans they have. There is a better approach.
Brands should forget about impressions, conversions and sales for a moment. Social media offers them an opportunity to tell the stories of their brand, products and services. Successful storytelling will increase fan following — not because a company spends $10 million but because it engaged fans on a personal level and with interesting content.
Many brands have succeeded in this area, including GM rival Ford, which responded to GM’s situation publicly:
It’s all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation.
— Ford Motor Company (@Ford) May 15, 2012
With that in mind, let’s take a closer look at GM’s decision to abandon Facebook.
For starters, GM seemed more focused on building apps than building an engaged community. Studies have shown that Facebook users do not spend a lot of time using apps. Apps often are necessary pieces of brand campaigns — for Facebook contests, for example — but they are not a “silver bullet” to drive fan engagement. They should be part of a larger content strategy, one that includes a smart use of Facebook ads. (See another example of a successful Facebook ad campaign here.)
The bigger issue for GM may be its underlying marketing approach. According to TopCar.com, not a single GM brand is among the top 10 most popular car brands with women. Further, the company’s market share has dropped 2 percent since 2011. Consumers clearly are not as fond of GM vehicles when compared with other brands.
These statistics understandably may leave members of the marketing team concerned that their campaigns are not working and prompt them to try new tactics. In a sales-driven culture like GM, marketers want to see immediate and obvious impact.
But they need to remember that social communities like Facebook operate differently. They are not necessarily ideal forums for driving direct sales, but they are great for cultivating conversations about brands and engaging with consumers. Persistent and compelling advertising to Facebook consumers will yield long-term, positive results.
Two good litmus tests for marketing teams on Facebook are creating a realistic goal and determining whether your content and products meet expectations. Are you sharing noteworthy content? Is your product performing well on its own, or are you looking toward advertising to rescue it?
Questions like these are vital, and address the goal of moving beyond the “like.” Marketers should put content first when it comes to a social communications strategy.
Evan Gassman is an account manager at the David All Group. Mike Schwartz contributed to this post.






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