Facebook (FB) for Business Doesn't Really Make Sense... (GM) (F) (PSUN)
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One of the biggest questions facing companies of all sizes is where to best dedicate the lions share of their advertising and marketing budgets. In the case of Facebook (Nasdaq: FB), that question becomes even more complicated.
The current rule of thumb for a corporation/business is to maintain its own paid-for web domain for longevity purposes, but also keep a page up on Facebook for users of the social media giant looking to connect while chatting with friends or sharing photos. This is due to the uncertainty of sites like Facebook, Twitter, Reddit, etc.
But let's take a look at General Motors' Facebook page for a second. What are you looking at right now? We're not sure either. There's a headline photo of a car -- which one might expect -- and then two columns of stuff going on. Scrolling down leads to another large photo and link, then back to the double column layout. Likes include brands like Buick, GMC, GM Careers, and so on.
This is one of the drawbacks of holding a Facebook page: it's a cacophony of miscellany that's tough to navigate. Why wouldn't prospective buyers/loyal owners just travel to the GM Blog, where the information is clean and straight forward?
Have a small business or been seeking information on a small business? How many times have you gone to the company's Facebook page only to see its last update be "April 24th, 2011?" Though it might not be as pressing for someone like a locksmith, pages for restaurants, auto service centers, dentists, and others would do well to update their Facebook page at least once a month. Too many times that's not the case, either because of forgetfulness or simply not having the resources to dedicate to Facebook.
Then there's the whole concept of Facebook: a social network. Many log-on to the site to connect with friends and family, rather than looking for the latest update to TCBY's delicious menu. No one want's to be bombarded with an ad for PacSun (Nasdaq: PSUN) while checking out a friend's spring break photos, or for Coach (NYSE: COH) handbags while making plans to go shopping over the weekend.
Additionally, links on Facebook pages generally lead away from the social networking king.
All things considered, the Detroit Free Press reported GM will maintain its Facebook page because its free. This allows GM to keep its page there for curious Facebook users, saving itself $10 million per year in the process, and dedicating more funds to creating ads for its Facebook page...without a dime going to Facebook itself. Well, not to say Facebook is entirely free for GM or other corporations; the company has dedicated about 17 workers to answering customer questions and concerns issued through Facebook.
The Freep also highlighted Ford's (NYSE: F) social media chief who identified 18 different online pressure points, with Facebook being just one of them.
On the flip side, companies like Domino's Pizza (NYSE: DPZ) are said to have seen some strong response from a recent promotion. Selling a pizza, however, is a lot simpler than selling a life-changing decision, no matter how many "likes" it gets.
With millions of users, Facebook clearly has a strong base to work with. But whether or not it will be able to create a beautiful marriage of advertising, interactivity, and personalization without alienating users is the $100 billion question.
Facebook shares are indicated for another lower open Tuesday, off about 3 percent.
The current rule of thumb for a corporation/business is to maintain its own paid-for web domain for longevity purposes, but also keep a page up on Facebook for users of the social media giant looking to connect while chatting with friends or sharing photos. This is due to the uncertainty of sites like Facebook, Twitter, Reddit, etc.
But let's take a look at General Motors' Facebook page for a second. What are you looking at right now? We're not sure either. There's a headline photo of a car -- which one might expect -- and then two columns of stuff going on. Scrolling down leads to another large photo and link, then back to the double column layout. Likes include brands like Buick, GMC, GM Careers, and so on.
This is one of the drawbacks of holding a Facebook page: it's a cacophony of miscellany that's tough to navigate. Why wouldn't prospective buyers/loyal owners just travel to the GM Blog, where the information is clean and straight forward?
Have a small business or been seeking information on a small business? How many times have you gone to the company's Facebook page only to see its last update be "April 24th, 2011?" Though it might not be as pressing for someone like a locksmith, pages for restaurants, auto service centers, dentists, and others would do well to update their Facebook page at least once a month. Too many times that's not the case, either because of forgetfulness or simply not having the resources to dedicate to Facebook.
Then there's the whole concept of Facebook: a social network. Many log-on to the site to connect with friends and family, rather than looking for the latest update to TCBY's delicious menu. No one want's to be bombarded with an ad for PacSun (Nasdaq: PSUN) while checking out a friend's spring break photos, or for Coach (NYSE: COH) handbags while making plans to go shopping over the weekend.
Additionally, links on Facebook pages generally lead away from the social networking king.
All things considered, the Detroit Free Press reported GM will maintain its Facebook page because its free. This allows GM to keep its page there for curious Facebook users, saving itself $10 million per year in the process, and dedicating more funds to creating ads for its Facebook page...without a dime going to Facebook itself. Well, not to say Facebook is entirely free for GM or other corporations; the company has dedicated about 17 workers to answering customer questions and concerns issued through Facebook.
The Freep also highlighted Ford's (NYSE: F) social media chief who identified 18 different online pressure points, with Facebook being just one of them.
On the flip side, companies like Domino's Pizza (NYSE: DPZ) are said to have seen some strong response from a recent promotion. Selling a pizza, however, is a lot simpler than selling a life-changing decision, no matter how many "likes" it gets.
With millions of users, Facebook clearly has a strong base to work with. But whether or not it will be able to create a beautiful marriage of advertising, interactivity, and personalization without alienating users is the $100 billion question.
Facebook shares are indicated for another lower open Tuesday, off about 3 percent.
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