Facebook’s Marketing Effectiveness Backed By Two Of Its Biggest Advertisers

Just days ahead of Facebook’s IPO, GM dropped Facebook Ads citing that they weren’t effective.  While Facebook lost that $10 million dollar account lost last month, today Facebook gathered support from their two largest advertisers,  Ford and Coca-Cola.  Both brands stated  that Facebook ads bring value to their marketing efforts. painting a much different picture in the Wall Street Journal article.

The two biggest issues that have arose since the IPO include the effectiveness of Facebook marketing and the ability to track efforts.  Both Ford and Coca-Cola supported the effectiveness angle, but might have added more fuel to the tracking fire.  The article states the following:

“Ford said 4.3 million Mustangs were designed since the application launched last September, and that sales of Mustangs are up 18% this year. Ford thinks at least some of the sales increase is connected.”

While the statement supports value in Facebook marketing, it actually confirms some of the reporting/tracking issues that occur with any branding campaign.  Joe Tripodi, Coca-cola CMO, also mentioned that Facebook ‘probably’ helps drive beverage sales, stating:

“If we can get 40-million plus fans, or even some subset of them talking positively about the things we’re doing, ultimately that’s a good thing for us”

He went on further to state that ”there needs to be some value” given to those people who “like” Coca-Cola on Facebook. However, no quantifiable value was provided.

For more information see the Wall Street Journal.


Related Topics: Channel: Social Media Marketing | Facebook | Facebook: Advertising | Social Media Marketing | Social Media Marketing: Advertising


About The Author: is the Director of Marketing for Cypress North, a company that specializes in social media and search marketing services and web-based application development. He has been in the Internet marketing industry for 6+ years and specializes in Social Media Marketing. You can also find Greg on Twitter (@gregfinn) or LinkedIn.

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  • http://www.facebook.com/people/Lana-Zaitseff/1426338047 Lana Zaitseff

    Facebook ads may be good for brand awareness improvement and for goods that are used by all people independently of their speciality like cars, clothing or CocaCola. Software ads fail on Facebook from my experience. 

  • http://twitter.com/seopeace SEO Peace

    Facebook Ads and Apps make an unique place in industry and try to get much user involvement in them. They are used by a lot of people to make more awareness and interaction to get their brand popularity. 

  • http://twitter.com/victorpan victorpan

    Let’s face it. Correlation does not equal causation, and that even the biggest and most powerful brands have trouble accurately attributing sales to their promotional efforts. There are just too many customer touch points before sales are made – it’s just unfair to say the first or last point of contact was the reason for the conversion.

    And so, Facebook likes, promoted posts, and fan count remain unquantifiable in terms of business value.

  • Will_Ashton

    What Coke and Ford clearly understand is that social
    ads should put your brand in a context that is easily digestible to users – a
    one size fits all approach just won’t work.  We used users anonymous
    online behavioural data to qualify audiences for brands.  By doing this,
    we have been able to provide high-quality fans to a global entertainment
    publication and major UK mobile telecoms that were 20 times more likely to
    display interest in becoming customers.

    Brands need to treat social as a new and separate medium to ensure positive
    ROIs on their direct response ads – we’ve done some work with a daily deals
    site (Cobone) and by simply using the tools available through standard Facebook
    ads and ensuring creative continuity in their ads click paths they maintain a
    strong ROI on their campaigns

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