NEW YORK (TheStreet) -- When my wife returns home from work in the afternoon and asks how my day was, I like to turn on my biggest, most booming radio voice and say: All Facebook, All the Time!
I've always been impressed by the power of Facebook (FB). And I am as bullish as humanly possible on companies that will lead the mobile revolution. So it makes sense that I am a small part of the Facebook media frenzy.
Plus, somebody has to step up to defend the company against the unprecedented level of unwarranted hate the media now, suddenly, sends its way.
General Motors Is the One With Problems
When news broke that General Motors (GM) dropped $10 million worth of advertising from Facebook, the media could not contain itself. Bubbly news babes, serious news dudes, cable talk show pundits, financial media gurus and equally lost marketing slugs rambled on -- sans much, if any, critical thought -- about how the development should raise red flags about the social network's ability to grow and maintain advertising revenue.If the nation's third largest advertiser thinks Facebook is ineffective, Mark Zuckerberg is screwed, they gushed. If it were not for Twitter, another great company scribes and talking heads will likely love to hate when it goes public, I might not have come across what should have been Breaking News on CNN, courtesy of AdAge:
Rather than run sponsored stories, which look like Facebook posts, or smaller units on the right side of the pages, GM asked if it could take over a page. It was told no.Kudos to AdAge for even running the story. Even though it should have, it barely made headlines anywhere else. Instead, the media continues to malign Facebook, framing GM's decision to sponsor Manchester United as an even bigger kiss-off to the newly public company. Thankfully, Cotton Delo can think for herself. She wrote:
The rebuff says a lot not just about why [GM] yanked ads from [Facebook], but also underscores the continuing tension between Facebook and some of the country's deepest-pocketed marketers.
Facebook has shown remarkable restraint in what it will sell marketers over the years ... It has always put the user experience first, and that's helped drive the social network to 901 million global users. But that has also meant turning down advertisers.Part of the beauty of Facebook is the control it exercises over the user experience. There's a reason why Tim Cook says Facebook is the company closest to being like Apple (AAPL). Tim knows a guy who would stop at nothing to support his product. Now, he knows two (and maybe three). Figure out that riddle. In any event, advertisers who do not understand the utility and power of that idea will have lots in common with General Motors. Like GM, they'll claim ineffectiveness. They'll blame the perceived lack of results on Facebook. And they'll point to the way they've always done things. They don't get it. And the current old guard regimes at those types of companies probably never will.
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