We’ve not read Facebook’s S-1, but doubt very much that it would address this basic question – how many of the fundamental rules of marketing are Zuckerberg and Co. going to completely rewrite before next month’s IPO?
Since Facebook has most of the online marbles – i.e., daily users – marketers are falling right into line, regardless of the frantic changes being mandated these past couple of months. Here is a great illustration from Hy-Vee, the popular Midwest grocer.
“A Hy-Vee store [in Iowa]…used social media today to promote ‘mystery sale’ prices that will be available only on its Facebook page…‘These prices are so astonishing we can't print them!’…‘an added bonus of being our Facebook fans [sic] is that we will be posting the great prices for this ad on Facebook.’ ”
Beyond the observation that grammar still isn’t teached in Iowa – what kind of segmentation scheme is this?!? Targeting customers based on media channel went out of style a little after the Mad Men era.
Does Hy-Vee know who these Facebook “fans” are – really? Using crude overall demographics courtesy of Checkfacebook.com, we estimate that, at best, half of Hy-Vee’s customers belong to the social network. Of those, only half use the site daily. Roughly 60% of those are women. One-half of that group are in the “sweet spot” age range between 25 and 54.
That leaves Hy-Vee’s Facebook-only promo with coverage of just 7.5% of its customer base. Of whom the grocer has absolutely no idea what proportion behaves in a high-value manner. And of whom it won’t know anything about changes in individual shopping behavior at the end of each day.
All Hy-Vee will know is if its Facebook tactic can (a) increase aggregate sales (at a reduced profit margin!) and (b) increase more Facebook “fans.” BFD.
Brands on Facebook seem to be going to the woodshed willingly. The recent Timeline reset appears to be in direct conflict with networking fundamentals. For example, here is a quote from a Gen Y “guru” in relation to Macy’s evolving social media strategy (from MediaPost):
“ ‘The Gen Y mindset involves looking for a different kind of shopping experience,’ Dan Schawbel, of Millennial Branding, tells Marketing Daily. ‘They are looking for something modern, so Macy’s history isn’t that interesting to them.’ ”
Well, howdy-f&ckin-doodie. Macy’s history = Macy’s Facebook Timeline. Not interesting. Waste of space.
The capstone to all this mishegas is Facebook’s “Reach Generator,” too complicated to explain in this venue, but can be thought of as “ransom.”
An IPO can do wonders when a company is looking to maximize revenue opportunities. Facebook will generate a lot of “likes” among those who have the guts to get in (and out) in the first 30 days post-IPO.
Everyone else, Facebook marketers included, should plan on losing some Face.
