Acquiring good customer data is only one ingredient in “the sauce” for successful marketing, but you need to realize that it is just the base ingredient. Through surveys and demographic data, you can gain the foundation that will allow you to make informed decisions on which direction to go with your marketing strategies. However, savvy entrepreneurs and other business professionals understand that they need to trust their instincts and creativity to develop a successful and effective marketing strategy. Continue reading
You have the perfect product or service that you know everyone needs, but sales just aren’t were they should be. Chances are you don’t really know who your customers are. When bringing a new product or service to the market, or attempting to expand your market share, you need to carefully consider a deluge of demographic data to ensure profitability. Continue reading
Information is the prime asset of enterprise, the departure point for all decisions leading to product innovation, marketing strategy, and ongoing competitive advantage. IT generates an abundance of business information; the problem is selecting data most useful to your enterprise purposes and using it to devise suitable long-term objectives. Data driven decision-making is based on big data analytics, which particularizes and coordinates enterprise-derived information towards specific organizational objectives. Analyzing large data-sets for assessment of strategic performance is the current best practice technique of enterprise decision-making. Continue reading
Factor analysis is what every business needs to get the most from their operation. Examining statistics allows you to dissect variables such as demographics and target consumers. By breaking down the key factors, you can tweak processes to create the most effective channels and strategies. Put simply, factor analysis takes the guesswork out of budgeting, advertising and even staffing. It is a practical tool created through successful market research and analysis in any industry. Continue reading
Market research and analysis of large volumes of data are necessary when it comes to analyzing and determining the right market segment, potential demand, and potential areas of competition, product development requirements and all other facets of the business marketing portfolio. One of the most common tools used to deal with the vast amounts of data is Factor Analysis. Continue reading
It is vitally important for you to take every aspect of your business seriously. If you don’t, the product you provide will decline, your customers will look for other companies and you’ll eventually fall out of business.
Because of this, it is important to know every inch of the company. Every aspect that is both visible to the customers and visible to only those working for the business. Although there are internal checks you can perform, the best way to understand how outsiders perceive the business is through customer surveys. Continue reading
Customers should be should be at the forefront when decisions are made regarding a company’s products and services. Businesses that are customer-centric are shown to have more success than businesses that are purely profit driven. As a market research manager, it is good to be close to your buyers. Continue reading
Any sound business strategy should be backed by thorough market research. Otherwise, just guessing may not help market research managers identify the demand for a firm’s products or services. While guesswork can sometimes help you to establish the market demand for your products, you might not be so lucky at all times. Continue reading
Market research and survey analysis provide businesses with the information they need to ensure new products are developed and positioned to satisfy their target audience. The results of researching, surveying and analyzing the market are extremely important in developing products that fill a need and capture the attention of your consumers. Continue reading
The most anticipated tech stock to date debuted after weeks of speculation as to where the final numbers of its IPO meter would land. Coming out of the social media sector; Facebook’s decision to become a public company may have been the biggest news of the year. Unfortunately for the advertising giant, disappointing news about one of the largest U.S. advertisers is making a big splash in the media world as well: automaker General Motors has decided to withdraw its $10 million spend on Facebook ads due to subpar results of their click-through metrics and marketing data analysis.
The burning questions all revolve around the single word ‘Why?’ While there has been lots of speculation as to why GM experienced lackluster results from Facebook ads, we wanted to share some of the key points that we feel merit a closer look.
1. Is it Facebook, or did the ads themselves contribute to the sub-par click-through performance?
Although the nature of GM’s ads likely had a part to play in the lack of success, Facebook doesn’t get off scot-free. According to recent studies, nearly 60% of Facebook users say they never click on ads or sponsored content. Eye-tracking research shows a decrease in visitor interest in advertisements that are shown in the Timeline feature rolled out a few months ago.
2. Is click-through the best measure of Facebook ad performance?
Some important details left out of all the media reports is what other, if any, key performance indicators was GM using to measure the success of Facebook ads. Click-through rates can be a bit tricky when it comes to social media; which is a notably different advertising platform than Search. Ad click-through rate needs to be considered alongside other metrics, depending on the marketing objectives. Other valuable metrics may include the number of Facebook fans or engagement rates.
3. Is GM more disappointed with the lack of new ad innovations for Facebook advertisers?
Facebook has been known to place more emphasis on the platform’s user experience over advertising innovations. The social media giant has yet to prove that creating a solid advertising model is high on their list of priorities. In fact, Facebook currently does not even support advertising on smartphones or tablets, one of the fastest growing segments for reaching consumers.
4. Did GM’s multi-agency approach to Facebook advertising play a factor in poor performance?
Facebook claims the lackluster ad performance could be due, in part, to GM’s multiple agency approach. While GM budgeted $10 million to Facebook ads, they spent $30 million on agency costs. Multiple agencies working within a single channel can lead to major inefficiencies and a disconnect in strategy. If we had more behind the scenes details on how GM’s Facebook strategy materialized, I’m relatively certain we’d discover some level of culpability here.
GM’s decision to cut ad expenditures doesn’t appear to be a knock specifically on their confidence in Facebook. The auto giant plans to continue focusing on its free Facebook presence and continue engaging consumers. Perhaps Facebook should be charging for site privileges for companies who do not pay any advertising costs. Maybe we will see new Facebook user categories in the future: free or paid.