By Doug Tulin, Media Manager
In the wake of General Motors pulling their advertising dollars out of Facebook and with the Facebook IPO making headlines, both good and bad, around the world, many are wondering where the social media marketing giant is going.
According to the Wall Street Journal “the IPO had increased both in price and in the size of the offering to accommodate expected investor demand after months of anticipation.”
If anything, the IPO was a disappointment on the stock market, with shares struggling to stay above the initial offering price, leaving many questions and few answers about its future as a traded stock for the time being.
While on one hand, it would be easy to leap to the conclusion that if such a powerful advertising brand such as General Motors has lost faith in this social advertising medium, then the future there is dim. However, to do so would be to ignore a number of salient facts which, we believe, lead to a very different conclusion for the future of Facebook advertising.
- First, while GM has pulled its advertising out, it will continue to market on the platform for both its corporate and brand pages.
- Second, other auto manufacturers such as Ford and Chrysler have made it clear they will continue to spend on advertising with Facebook.
- Third, on the economy of scale, small business will continue to find Facebook advertising affordable, manageable, flexible and productive for some fairly simple reasons.
For the smaller business, Facebook allows for a significantly precise level of demographic targeting to only those potential customers or fans with similar interests to what is at the heart of the given media message. Age, geographic location and user interests can also be taken into account. And this targeting will only continue to improve with the combination of the broad user interest categories and the precise interest targeting options, a combination that is already starting to make its way into the new Facebook advertising account.
Smaller businesses can also control their costs as well as change the content of the ads at will.
Moreover, Facebook advertising doesn’t need to be expensive for the average business. Advertisers have the ability to determine how much they want to spend, what their daily budgets are going to be, and what sort of result they hope to achieve. The advertising can be bought on a CPC (Cost Per Click) basis or on a CPM (Cost Per Thousand Impressions) basis and the respective costs for these are controlled through the process of bidding what one is willing to pay, either for clicks or impressions.
Additionally, calls to action can take a variety of forms, such as “buy this now,” to business site visits, or “Likes” of the business’ fan page, which help to build a base to which they can then market in the future.
In the advertising world, few media channels offer the same flexibility as Facebook, much less in an environment where one can control cost, targeting, content and timing to such a specific degree.
As with any sort of paid media placement, several factors will determine the success of the efforts. Good advertising will always require innovative, engaging content that hopefully tells a story or strikes a chord with the audience.
In our experience, creating such content, conducting A/B testing to determine what users are most responsive to, and looking for innovative ways to present the message leads to engagement and consistently drives successful results for our clients.
What is the future of Facebook advertising? You decide. We believe it will continue to grow and produce positive results.





