Sunday, November 24, 2013

FB Ads: A success and a Failure



As we wrap up the Social Media segment of digital marketing, I wanted to take a look at two companies who both used Facebook ads with much different results. Washio is a laundry and dry cleaning pickup and delivery service based in Los Angeles. Pricing, service and schedules are reasonable, convenient and flexible. With a small budget, Washio targeted a select group of 20 – 30 year olds within their servicing zip codes and typically early on Sunday mornings. Not only is that time heavy on Facebook users but it is also the start of laundry day. This form of intelligent and specific marketing attracts and retains the right customers. Once a user clicks on the link and books the service, the next ad focuses more on customer testimonials and reviews. As a customer and author of this article states, “solid execution.”

On the flip side, General Motors pulled $10 Million from its Facebook ad campaigns stating, “The Journal, citing people familiar with GM’s thinking, said the carmaker began to question the effectiveness of its Facebook ads earlier this year and GM marketing executives, including Ewanick, met with Facebook managers to address their concerns but remained unconvinced that advertising on the website made sense.” Perhaps some products and services don’t translate well to Facebook ad campaigns given the target audience or inherent nature of the product. 

Whatever the case, Facebook needs to understand the success of certain ad placements from start to finish and determine how they can replicate it. As New York Mag’s author states, “that's the key to the company's success -- relevant, targeted local advertising that either helps me live my life better or provides information or context around some subject matter Facebook knows (or predicts) I care about.

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