Facebook is Making Free Marketing on Pages Less Powerful – Automotive Digital Marketing Professional Community
Posted by Ralph Paglia
Like Google has done with giving more SERP page 1 real estate to sponsored links and other revenue generating content, Facebook will as a business necessity continuously look for ways to convert anything of value for businesses and brands from the “free” or “Earned Media” realm and migrate the process or practice into the “Paid Media” fee based Facebook Advertising manager application and Facebook marketing services… To me, there is nothing wrong with this, and I have been aware of the strategy and have embraced it since I started working with Facebook on the Ford Digital Advertising Program in 2008. Heck, it is sort of like the ads you see on ADM and other sites managed by my company, Automotive Media Partners, LLC… On a much smaller scale, of course… But that is why you see advertising on these sites, because ultimately if a network or website is to move beyond a “hobby” and towards a revenue realization model, you have got to stop giving away valuable marketing, communications, branding and advertising to transition into generating a fair income for the business owners… Facebook is no exception!
Since the early days of Facebook when I was privileged to work with Tom Chisholm (he took his FB stock, cash out and retired at end of 2010), he explained that the whole strategy around Facebook Pages for businesses was to give them away at no charge so as to drive demand for advertising within Facebook without those ads sending FB users outside of Facebook. To this day, you will find that any FB advertising that links to a site outside of Facebook does VERY poorly, especially compared to how impressively effective similar ads are when they point to a dealership’s Facebook Page or an App within it (formerly tabs). That is not the consumer, it is by design and built into the algorithm… Facebook makes sure that siphoning traffic away from Facebook is more costly and generates a lower ROI… Before you get irritated, I would do the same thing with my networks if I could easily make it happen! It makes ense from a FB perspective to encourage traffic coming into Facebook and all engagement and even business activities occur within the Facebook platform… Since FB is so eager to help companies develop their own business generating apps on the Facebook platform, it is difficult to criticize their strategy.
Take a look at last week’s cover story in Automotive News about “Dealers Getting in Your Facebook” featuring Rick Case Honda and an interview with Richard Bustillo about his $2,000 a month Facebook Advertising budget… I convinced Richard to invest in Facebook Advertising starting last March and his campaigns within Facebook continue to generate more revenue and profits than any other $2,000 he spends on non-Facebook advertising media. It is satisfying to go from convincing a dealer to try it, and then to where it is the last part of his advertising budget he would cut!
Here is an excerpt from the Automotive News Interview with Richard Bustillo:
Dealers get in your Facebook
Stores post ads directly on site’s news feeds
Richard Bustillo, general manager of Rick Case Honda in Davie, Fla., believes Facebook has finally cracked the code to help dealerships sell vehicles and service.
Marketers have long viewed Facebook as an online cocktail party — fine for socializing but weak for selling cars.
Now that’s changing. Rick Case Honda and other dealerships are starting to take advantage of Facebook’s huge potential to reach customers on the users’ digital home turf, by putting ads directly into their customers’ news feeds.
Technical improvements introduced in September allow dealerships to take their customer lists — with just names and e-mail addresses — and find those people on Facebook. The “custom audience” feature allows dealerships to push ads directly to Facebook users’ news feeds, the must-see center column of the home page that consists of a constantly updated list of posts by a user’s Facebook friends.
Facebook users are more likely to look at news-feed ads than those in the more common ad location, the right side of a Facebook page, the social media giant says.
“Facebook is starting to understand what we need to sell cars,” Bustillo said.
In June at Rick Case Honda, an employee-pricing-for-all promotion on Facebook contributed to a strong month — 615 new vehicles sold — the most of any Honda store nationally for the month, Bustillo said.
Facebook played a key role in the campaign’s success, he said. The store took its customer list with thousands of names and e-mail addresses and identified who were Facebook users. It then delivered to their news feeds the employee-pricing offer, Bustillo said.
Facebook also has improved the ability of dealerships and the factories to put promotional videos in front of car shoppers, Bustillo said. Facebook users are three to four times more likely to click on a video than a static ad, the company has found.
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About Ralph PagliaRalph Paglia; President of ADM Consulting, LLC former Vice President - Digital at Tier10 Marketing. Director - Digital Marketing at ADP Dealer Services from 2007 through end of 2010 where he was responsible for industry vertical thought leadership and solution creation while establishing new ADP digital marketing solutions. For many years, Ralph has created automotive marketing business models that support business revenue growth and generate shareholder value, while building a network of relationships and partnerships resulting in alliances that support revenue growth.
Posted on November 5, 2012, in Automotive, Automotive Digital Marketing, Automotive Professionals, Automotive Social, Automotive Social Marketing, Car Dealers, Reputation Management, Social Marketing, Social Media Marketing and tagged Automotive, Automotive Marketing, Automotive Social, Automotive Social Media, Automotive Social Media Marketing, Car Dealers, Digital Marketing, Facebook, Facebook Page, Fan Acquisition Cost, Marketing, Reputation Management, Social Marketing. Bookmark the permalink. Leave a comment.