The Reason Why Facebook Ads is not working for GM

Facebook ads is not the same as Google ads. Although both ads have the intention to target the right suitable viewers, their advertising algorithm is totally different. Thus the results can be different when same advertisement is place at Facebook and Google. In order to obtain best results from online advertising, we have to understand how Facebook and Google target viewers with their ads. Lately General Motors or GM decided to stop advertising with Facebook claiming that paid ads have little impact on product sold. For further details, please check out article title “GM Says Facebook Ads Don’t Pay Off” from The Wall Street Journal Autos and article title “GM Halts Facebook Ads; Site Faces User Distrust Ahead of IPO” from Yahoo Finance. This case raises the question of whether advertising on Facebook can help increase sales in products or services.

I have to say GM is making a right decision in this case. It is kind of difficult to increase sales or revenue by advertising at Facebook. In fact this goes the same as other products and services too. The reason is simple. When customers are trying to look for a service or trying to find a product, they go for Google search. Facebook does not have any features that help customers when it comes to shopping. The best that Facebook can do is predict or assume which users might be interested in purchasing the product or service and tries to place suitable advertisement. And Facebook can only make their best judgment according to users’ profile and wall. In the other hand, Google has the advantage of search engine. Google can instantly know for sure that customers are going shopping when customers use keywords like “buy car”, “car sales” and “purchase car”.  Next thing Google has to do is help customers find the best product or service. The more specific keywords customers used the better understanding for Google to serve advertisement. Thus placing the right suitable advertisement makes the business deal a success.

Facebook lack the advantage of a search engine to help users find products and services. This decreases the conversion rate of Facebook ads greatly. The best effect which Facebook ads can do is information sharing or news release as the social network has a lot of users. But when it comes to conversion rate, the number is lower than expected.

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