Facebook Ads: Company Claims Its System is Effective

    June 13, 2012
    WebProNews Staff

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.