Marketing on Facebook
Ads still effective
Most brand exposures on Facebook occur through users' news feeds, comScore said, rather than visits to dedicated brand pages on Facebook. Fans - consumers who click a button that they like a certain brand or product - tend to outspend others for that particular brand, comScore said, citing examples such as Amazon
To measure the impact of paid advertising, ComScore conducted a similar study involving a national retailer. It looked at groups of Facebook users who were exposed to a paid online Facebook campaign about that brand, and a test group that was not. Again, the two groups had identical purchase behavior before the study. By the fourth week of the study, the group that saw the messages was 16 percent more likely to buy goods at the retailer than the group that did not see the messages. Separately, Facebook said it had conducted research on about 60 campaigns to measure their return on investment, or how many dollars in sales were generated by every dollar spent on Facebook advertising.
About 70 percent of campaigns showed a return of three times or more on the money spent for the advertising, a spokeswoman said. About half of campaigns showed a return of five times or better. Evaluating the effectiveness of advertising has proved challenging for Madison Avenue, no matter the media, brands have long said. They find it hard to gauge how many people saw a particular ad, and connecting the message with purchases is even more difficult. Facebook is a comScore client. Along with many other large brands, it hires comScore to measure advertising effectiveness. Shares of Facebook closed at $27 Monday, down slightly from Friday's close of $27.10, and 29 percent below their offering price of $38 on May 18.
Published Date: Jun 12, 2012 06:56 pm | Updated Date: Jun 12, 2012 06:56 pm