Everybody wants to be liked. The question for Facebook Inc. is how much advertisers are willing to pay for the opportunity.
The centerpiece of Ford Motor Co.'s online campaign for the 2012 Focus was a free Facebook page hosted by an orange-colored puppet that in a few weeks won over a new, younger audience for the once-stodgy compact.
Ford spokespuppet "Doug" drew crowds to online conversations and videos that starred him clowning around the new Focus. Doug inspired more than 43,000 Facebook users to click "Like," the icon that broadcasts to friends a thumbs-up approval of a brand or product.
While Ford shelled out an estimated $95 million to advertise the new Focus across a broad range of media, it spent just pennies on the dollar for Facebook ads.
Facebook's estimated market value, now in the neighborhood of $70 billion, is founded on the belief that companies will spend big to advertise on the site. Facebook's revenues, which come largely from ads, were $1.6 billion in the first half of this year, up $800 million from a year earlier.
But most of its ads were for small advertisers, such as local businesses and small-scale websites, according to comScore Inc. Facebook is under pressure to grow its advertising on a grand scale, and to snag the sort of big brand names who now drive billions of dollars to TV, radio and print campaigns.
Doug's ad campaign shows Facebook's uphill battle. It mirrors the experience of other brands—including Progressive insurance, Intel and Pepto-Bismol—that chased customers to online social networks. After some experimenting, the companies found they could reach a target audience at a steep discount through what's akin to word-of-mouth campaigns that spring from free
Name - Rakesh prasad
PGDM 3rd
Companies That 'Like' Facebook Ads
See the number of ad impressions from major marketers in September, and the portion that appeared on Facebook.
Ford spokespuppet "Doug" drew crowds to online conversations and videos that starred him clowning around the new Focus. Doug inspired more than 43,000 Facebook users to click "Like," the icon that broadcasts to friends a thumbs-up approval of a brand or product.
While Ford shelled out an estimated $95 million to advertise the new Focus across a broad range of media, it spent just pennies on the dollar for Facebook ads.
Facebook's estimated market value, now in the neighborhood of $70 billion, is founded on the belief that companies will spend big to advertise on the site. Facebook's revenues, which come largely from ads, were $1.6 billion in the first half of this year, up $800 million from a year earlier.
But most of its ads were for small advertisers, such as local businesses and small-scale websites, according to comScore Inc. Facebook is under pressure to grow its advertising on a grand scale, and to snag the sort of big brand names who now drive billions of dollars to TV, radio and print campaigns.
Doug's ad campaign shows Facebook's uphill battle. It mirrors the experience of other brands—including Progressive insurance, Intel and Pepto-Bismol—that chased customers to online social networks. After some experimenting, the companies found they could reach a target audience at a steep discount through what's akin to word-of-mouth campaigns that spring from free
Name - Rakesh prasad
PGDM 3rd
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