To What Extent Is the Decision by Ford to Utilize Social Networks an Effective Advertising Strategy?

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* Pre IB Business IA
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* To what extent is the decision by Ford to utilize social networks an effective advertising strategy? * Word Count: 976
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* Name: Astrid Raschke
* Success Class: V1
Teacher: Ms Jennings
* Introduction:
* Social media websites like Facebook, Twitter and YouTube are becoming a growing place for companies - specifically Ford Motors - to advertise on, with Facebook generating $3.1 billion in ad revenue last year - around 85% of its total revenue (Raice, Ramsey & Schenchner 2012). Ford now devotes 25% of its advertising budget towards social media (Raice, Ramsey & Schenchner 2012). Ford currently has a channel on YouTube with over 73,500 ‘subscribers’ (Ford Motor Company 2012), a Twitter account with over 148,000 ‘followers’ (Ford Motor Company 2012) and a Facebook page with over 4.1 million ‘likes’ (Raice, Ramsey & Schenchner 2012). The use of Facebook and other social media websites as an effective advertising strategy is much disputed. While Ford believes the money is worth spending, General Motors Co. withdrew their $10 million Facebook advertising campaign, due to the lack of impact it had on their car sales (Raice, Ramsey & Schenchner 2012). *

* The question I am aiming to answer in this report is to what extent is the decision by Ford to utilize social networks an effective advertising strategy. Within this report I will focus on three different forms of social media websites - all of which are popular – Facebook, Twitter and YouTube. A conclusion will be reached by focusing on the positive and negative effects of using social media as an advertising platform, specifically whether or not Ford’s target market are Facebook, Twitter and YouTube’s main users, promotion via online media websites and the interactive ability Facebook and other social networking sites provide and the effect it has on Ford’s image. *

* Target Market:
* Ford’s target...
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