Facebook Ads: Company Claims Its System is Effective

By: WebProNews Staff - June 13, 2012

Facebook ads do work, the company claims, and it has a brand new report to illustrate their point. According to Bloomberg, the company issued a report with ComScore which indicates advertisements on the social media site have helped a number of different companies, including Starbucks and Target. On average, companies that spent $1 on ads received $3 in return. Facebook also claims that roughly 70% of all advertisers get at least a three-fold return on their investment, contrary to what others would have you believe.

“[The data] provides some strong evidence that Facebook can be an effective marketing channel,” explained Andrew Lipsman, vice president of industry analysis at ComScore. “These are strong results.”

This report comes in the wake of General Motors’ pre-IPO claim that the ads they placed on the site didn’t work, a statement Facebook has been attempting to refute ever since. In an effort to change public perception, the company has released data which they feel proves their ad system not only yields result, but does so on a consistent basis.

For example, people who “liked” paid advertisements from a retailer such as Target were 21 percent more likely to visit the establishment. Additionally, those who responded positively to unpaid ads were 38 percent more likely to make a purchase from that business every four weeks. Of course, according to Reuters, 80% of polled individuals claim that the advertisements on Facebook had no influence on them whatsoever.

It’s worth noting that this data does not reflect the effectiveness of Facebook mobile’s advertising, an area where the company continues to struggle.

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  • http://www.stellarmeteor.com joe

    facebook ads are another channel for participating in the advertising marketplace. That big box retailers benefit is no surprise. What smaller businesses (less than $100,000 in sales per annum) has facebook helped? Some info on how to build from 0 to success on facebook would be helpful to struggling small business owner/operators

  • Sue

    I am so fed up with the ads, I am closing my facebook account. Some are just shy of porno. They ruined a good thing. I am not the only one who is fed up with it. I even get posts that are not mine. I went into their privacy, and nothing works. So long, facebook.