The GM Facebook Advertising Saga Plays Out Like an Episode of Mad Men

Shortly before Facebook’s turbulent IP “uh oh”, GM announced that it was pulling its $10 million advertising budget from Facebook. Controversy erupted. Accusations ensued. Camps divided into three factions, those who support GM, those who support Facebook and those not yet ready to take a stance either way, but are paying attention.

It will forever be known as “the meeting” between Facebook sales executives and General Motors Global CMO Joel Ewanick and other GM senior marketing executives. In the end, Facebook and GM each walked away with less than they had walking into the meeting. Facebook lost a premier advertiser and also lost Ewanick as an advisor to its invitation-only client council. GM lost the ability to demonstrate leadership in a time where the advertising and automotive industries are flailing. All is not lost however as GM will continue to spend $30 million annually in managing its Facebook presence through earned and shared media strategies.

So what happened in that now infamous meeting? Perhaps one day, its premise will inspire an episode of AMC’s Mad Men…

It’s a dark, dimly lit room illuminated only by a projector. Cigarette smoke fills the only visible light. On the wall is an image of Facebook’s timeline. Don Draper leans forward. His words cut through the smoke. In a calm voice with menacing undertones, Draper asserts his one and only reason for staying in that room, “my client has requested a home page takeover. Now, before you respond, allow me to be clear. This, what it is you’re selling, your advertising products, they don’t work for us. We have deep pockets and we’re willing to invest in the right partner that shares our vision. Now, how about you play nice like all of the other media partners and give us what we want.”

Facebook responds, “no thank you.” The sales team then shuts their iPad and MacBook Air lids and proceeds to leave the room in what almost seems like a well-rehearsed exit. They must do this often. Draper sits back in his chair and exerts a simple, but telling response, “huh…”

While many speculated what actually took place in the meeting, Advertising Age’s Cotton Delo reported that the scenario above is probably not far from the truth. GM is interested in Facebook’s audience, but believes that the ad formats currently available are unattractive and ineffective. The automaker’s team desired bigger, higher-impact ad units. After all, GM and many other brands around the world have learned the art and science of advertising by investing in campaigns that stand out from others, literally and figuratively.

So why is Facebook steadfast in its position to not cash in? The answer is user experience. Facebook is home to over 900 million engaged users. U.S. users alone spend 441 and 391 minutes per month on average interacting on Facebook’s desktop and mobile platforms respectively. Mark Zuckerberg and the storied “build and ship” culture he’s created is passionately dedicated to improving and not compromising the user experience. For the time being, anything that disrupts that experience is off the negotiation table even it means the company must walk away from $10 million deals. As a publicly traded company however, it must now also improve investor experiences.

At some point, brands will need to see additional options for paid media. By design, advertisements should be engaging rather than distractions. But a large part of the problem has nothing to do with form, but instead function. Advertisers are still deploying uninspired digital ads on other platforms. Many bring that methodology to social media. Accordingly, the metrics traditional marketers use to measure success in social networks are limited to impressions, reach, clicks, and engagement.

“A bad ending follows a bad beginning.” – Euripides

Advertisers need to think about new end-to-end experiences that inspire and engage a far more connected and discerning audience. Home page takeovers are for Myspace and the digital nomads who roam elsewhere on the web. Facebook is a new type of co-created canvas that requires different strokes to attract a savvy clientele.

Even though GM remains committed to Facebook through earned, owned, and shared programs, it appears to carry a traditional philosophy and approach to its everyday community strategy. General Motors currently is home to 383,000 Likes. Chevrolet boasts just over 1.2 million. Changing lanes for a moment, its competitor Ford has more than 10 million fans globally with 4 million supporting Mustang, the single largest vehicle fan page on Facebook.

I reached out to Scott Monty who leads Ford’s Global Digital Communications for his thoughts on GM’s move. Ford sees Facebook as a new vehicle for storytelling where paid, earned, owned, shared, and promoted media converge to create a new story board that begets new rules. According to Monty, “Ford is accelerating our efforts in Facebook and other social platforms. It’s all down to execution. We’ve found Facebook ads to be very effective when strategically combined with engagement, great content and innovative ways of storytelling, rather than treating them as a straight media buy.”

One of Ford’s much touted successes on Facebook was its introduction of the 2011 Ford Explorer via its “Reveal” campaign. The company claims that the combination of advertising and creative storytelling helped it outperform a traditional Super Bowl advertisement for a fraction of the cost.

Monty emphasized support of Facebook, “We continue to have a strong, collaborative relationship with Facebook, which includes first-of-a-kind vehicle reveals, advertising and innovative ways of sharing content. Our engineers have also been working with Facebook engineers to develop unique and safer ways of integrating the car experience with Facebook.”

Ford’s Facebook strategy is also an extension of a more empathetic marketing and sales campaign that’s underway worldwide. I had the chance to interview Jim Farley, Ford’s first CMO during Blogworld Expo in Los Angeles. His mission as instructed by Ford President Alan Mulally was to, “get people to fall in love with the blue oval all over again.”

When brands approach marketing and advertising opportunities with a purpose, the results that follow are commensurate with an investment of both intention and execution. In other words, you get out of it what you put into it. And according to a report due this week, comScore has found that Facebook ads are effective. In a report by CNBC’s Julia Boorstin, she explained that comScore thinks Facebook ads are having a “statistically significant positive lift on people’s purchasing of a brand.”

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For years, advertising has made a business by thinking outside of the box. But when it comes to flat, consumerized networks such as Facebook, perhaps the industry needs to think outside of the box once again. Facebook is not without fault however. It too must help advertisers create and measure successful campaigns while enticing the community of active users to support the brands they love. Over the last few weeks alone, Facebook introduced new APIs to help advertisers design “clicks to action” within its marketing efforts to trigger what could be unconventional, but possibly more meaningful outcomes. It challenges marketers to think beyond the Like or traditional impressions for that matter.

In what seemed to be a direct response to GM’s adieu, Facebook also introduced a clever new tool that shows marketers just what they’re missing. Now within the timeline, marketers can see reach data for each post. Information includes the number of total fans who may have seen the post and the amount people who were reached through paid promotion.

Facebook is teaching marketers that it’s not just about whom you reach, the opportunity also lies among those you do not reach today.

The court of public opinion may be weighing in on the matter of Facebook vs. GM. But I think the real case is against the people in social networks vs. traditional marketing methodologies. What’s clear is that Facebook is intent on serving users first. Perhaps advertisers could take a cue from Zuckerberg to rethink experiences through advertising and marketing campaigns that consumers can’t help but click, share, and engage.

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The End of Business as Usual is officially here…

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  • http://twitter.com/moon paul mooney

    That 2011 Ford Explorer campaign was the one where they got the dirty jobs guy to play a video blogger and I Tweeted to Scotty Monty  ”do you think video blogging is a dirty job” and he UnFollowed me.

    Ford hired the actor they use on TV and they spend far more on TV ads then they ever will on Facebook 

  • http://womeninbusinessradio.com Michele Price

    We discussed this for a bit today on #BBSradio – bloggers are getting weary of brands wanting access to their hard earned audience and asking blogger to perform work for peanuts.  Yet they still pay traditional ads high cost rates that maybe being seen or heard.   Wondering when companies will understand the difference between access to the campfire where conversations are trusted VS shouting on the street corners where folks ignore you?

    And how illuminating that Facebook ( even though I do not like a lot of things about them) puts users first. My big suggestion is down the food chain to their dealers – to start leveraging better end to end experiences with your current customers.  Why are your sales and service people not sharing wins in the social channels and letting me see who likes you enough to talk about you there.

    SIGH, the silos of business and the consistent message – “You” the customer are not important enough by yourself for us to extend a hand to you in social media.  Really, we are all there together.  I am waiting for customers to start seeing their real power and giving a taste of it to brands.  A bigger taste than just flipping when companies do something we do not like –  a monumental taste that changes the game again.

  • http://www.socialnerdia.com Esteban Contreras

    With $30MM, a brand can probably create some amazing experiences and content on FB. Only 16% of fans will see it so it better be shareable awesomeness. Should all brands pay for sponsored and paid ads on Facebook? No. But should they understand the laws that govern how Facebook works? And should they know that there’s an efficient way to dvertise and an inefficient way to advertise regardless of the medium? Absolutely. Just like Pepsi and their decision to skip the Super Bowl a few years ago, only time will tell.

    • http://www.briansolis.com/ briansolis

       Well said my friend.

    • Jc

      I agree

    • Anonymous

      Esteban,

      Glad to hear you say this. You hit the nail on the head.  A companies inability to build compelling content online that screams “share me” isn’t the fault of facebook and more than it is the spoons fault that I’m fat.

      Tow major auto-makers: one is succeeding at facebook the other is failing, doesn’t sound like facebook is a bad platform to me.

    • http://www.socialnerdia.com Esteban Contreras

      Strategically, it might make sense for one of two highly competitive brands to distance themselves from a specific opportunity/approach/media/tactic/etc. 

      Take SXSW as an example. GM is a sponsor, Ford is not. GM is everywhere in Austin, Ford is not. But Ford still shows up at SXSW. 

      The question is whether simply “showing up” on Facebook can have an impact.

    • Anonymous

      Esteban,

      While I agree that being able to own a venue is important, in this scenario I disagree.  SxSW is a single event of ~20,000 people with very limited brandable real estate. facebook is a platform that caters to just as many Ford fans as it does GM fans.  Walking away from facebook, in my opinion, is akin to saying “we don’t advertise on ABC because Ford advertises there.”

      Disagree?

    • http://www.briansolis.com/ briansolis

       I just wanted to chime in to let you both know that I’m enjoying your discussion. :)

  • http://twitter.com/RyanMacJones RyanMacJones

    Hi Brian,
    Enjoyed the post, thank you.  Quick quesiton, I’m wondering about how you see media on Facebook these days?  Is it really earned media or more “rented media?”  Kudos to Facebook for not allowing the screen takeover, but I’m guessing that brands are getting a little upset about spending a ton of cash building an audience that Facebook makes them pay fully access.  Thanks again for your thoughts. 

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  • Scott Spears

    I admire FB  for sticking to their guns, especially considering the sensitive nature of the timing. A constant challenge to weigh revenue opportunities vs. user experience and they stayed true to their stated vision. Tough to do when that kind of money is thrown around…

  • http://trucklicense.net/get-cdl Freedom Jackson

    To be fair GM is not a “sovereign company” they are really an extension of the government but not really like freddy mac.

    Did you hear that the bailout paid for plants to move to china?

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  • http://trucklicense.net/get-cdl Freedom Jackson

    Well you have to remember the GM is not a company as you might think.

    They are actually government motors and function now as a dept of the government.

    Its hard to know why they cut their relationship with FB that amount of money could go towards another transformers movie which was a hit for GM.

    What do you think?

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  • Patrick Laureys

    Facebook made it clear that it is aiming for the long term. Users first may be the most profitable way to go in the long term. Treat people like people and not reduce them to consumers. Interesting post, thanks Brian!

  • http://trucklicense.net/Get-CDL MikeJones

    That
    2011 Ford Explorer campaign was the one where they got the dirty jobs
    guy to play a video blogger and I Tweeted to Scotty Monty  ”do you think
    video blogging is a dirty job” and he UnFollowed me.

    Ford hired the actor they use on TV and they spend far more on TV ads then they ever will on Facebook

  • http://trucklicense.net/Get-CDL MikeJones

    While I agree that being able to own a venue is important, in this
    scenario I disagree.  SxSW is a single event of ~20,000 people with very
    limited brandable real estate. facebook is a platform that caters to
    just as many Ford fans as it does GM fans.  Walking away from facebook,
    in my opinion, is akin to saying “we don’t advertise on ABC because Ford
    advertises there.”

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  • Anonymous

    Nice post Brian, thank you, it actually helps me see a dimension of FB that I had not paid enough attention to: wanting to serve users first. But it’s a tough time for them I would say. To reach their ambition, they need to have their corporate clients transform their management basics (from push to pull) before these clients really understand what they can do within their platform to create whole new relationships with their own clients, or fans. And that is going to take time.
    I hope they manage the transition to mobile, while that transformation happens, otherwise …

    • http://www.briansolis.com/ briansolis

      Thank you…really appreciate your comment. All eyes are on mobile…including my own.

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ABOUT ME

Brian Solis is principal at Altimeter Group, a research firm focused on disruptive technology. A digital analyst, anthropologist, and futurist, Solis has studied and influenced the effects of emerging technology on business, marketing, and culture. Solis is also globally recognized as one of the most prominent thought leaders and published authors in new media. His new book, What's the Future of Business (WTF), explores the landscape of connected consumerism and how business and customer relationships unfold and flourish in four distinct moments of truth. His previous book, The End of Business as Usual, explores the emergence of Generation-C, a new generation of customers and employees and how businesses must adapt to reach them. Prior to End of Business, Solis released Engage, which is regarded as the industry reference guide for businesses to market, sell and service in the social web.

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