Tuesday, May 15, 2012
IPO No No
Subtitle, Does social media marketing pay?
I read about GM pulling their paid ads off of Facebook after marketing executives determined the ads had little impact on consumers. Here is a news flash GM, nether do your cars. OK, maybe that is harsh. But, it seems to me that a newly organized company who had a large (but not large enough) IPO would not release this information right before Facebook’s IPO.
GM is a company that needed a government bailout to stay afloat, and then has still not been able to raise their stock price to a point where the tax payers can break even. We need to be able to sell our stock at $43.67 and GM stock is at 21.42 today. So I don’t think I am going to listen too much to them talking down a profitable new media company like Facebook.
What does it mean? Well there are two points. Does the marketing work, and why go public.
Does social media marketing work? Yes and no. Remember Social Media marketing is still marketing, and some marketing is good, and some, not so good. Think Super Bowl ads. Some are catchy, well designed ads that actually talk about the product or service. Some are funny, with no connection to a product or service I can see, and some just suck. So some of these are good marketing decisions and some are not, but you can’t say placing an ad during the Super Bowl is just good, or just bad.
I believe Social Media marketing works when you can generate a buzz about a product or service. Getting spikes and having something go viral is key to social media. It is hard to get enough people to get so excited about a car that this process can happen. How many people that use facebook have an Apple product versus a GM product? I think that is the issue.
The why go public? Attention. Trying to create the viral effect I mentioned above, in and with the media they know, old media. Simple as that.
The real winners will be companies who understand how to add social media into their existing marketing strategy effectively. Not a company that can’t track an increase in sales to click ads in a social media platform.