Skip to main content

Facebook consultant argues that website's ads work


"The Power of Like 2: How Social Media Works," looks at paid advertising on Facebook as well as earned media exposure-- meaning mentions of the brand made by Facebook users in status updates and the like. It is based on the experiences of large brands such as Best Buy (BBY.N), Starbucks (SBUX.O) and Target (TGT.N).

The report follows up on a July 2011 paper, "The Power of Like: How Brands Reach and Influence Fans Through Social Media Marketing."

It swipes back at recent research questioning the effectiveness of Facebook messages. A Reuters/Ipsos poll published last week showed four out of five Facebook users haven't bought a product or service as a result of advertising or comments on Facebook.

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 (AMZN.O), Best Buy, and Target. Purchase data comes via information from loyalty clubs, credit card companies, and third-party collectors, with the permission of the study participant.

In the case of Target, Facebook and comScore studied two groups. One group, made up of fans of Target and their friends, saw "earned" messages about Target - updates about Target that run in news feeds and the like.

The second group was made up of Facebook users who weren't fans of Target and saw no messages. Both groups had identical purchase behavior at Target prior to the study.

After the four-week study, the fans who saw the messages were 19 percent more likely to buy goods at Target than the group that didn't see the messages, and their friends were 27 percent more likely. A comScore spokesman said he didn't know how much messaging the groups were exposed to.

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.

Popular posts from this blog

Best Webcam Modeling Websites Where You Can Make Money 2018

So you want to be a webcam model, huh? Maybe you are not sure and just want to find out more information. Either way, you have come to the right blog! This post will tell you how you can become an online webcam model, making cash amounts that many only dream about. Yes, you can make some SERIOUS cash with webcam modeling, but we will get into that soon.

I. What is webcam modeling
II. Why you should be a webcam model
III. Requirements
IV. Pay
V. Studios and cam sites
VI. The decision

I. What is webcam modeling
Webcam modeling is basically the online version of video pornography, except for the fact that people are watching what you do LIVE. The typical webcam performer will dress herself up in sexy clothing, put on some pretty makeup, sit down and talk with a few potential customers, then when she is taken into private, she will perform sexual acts for the customer. That's where the term webcam actress comes from. During private chat, the performer will do as the customer reque…

Phone Apps That Can Help You Make Money with top webcam modeling website

Earn Money From Blogging

Remember when phones were a convenient way to talk with friends and family from your home? If you’re not that old, maybe you can recall when you used your cell phone just to talk to people from any place you happened to have service. No? Well, it really doesn’t matter; if you’re like most people (but not all), you use your smart phone for everything from time management, to navigation, to entertainment. Wouldn’t it be nice if you could use it to make a few extra bucks? Here’s a list of apps that can help you do just that.

Field Agent

This popular app utilizes crowdsourcing to gather data for businesses who register as clients. The “agents” use their phones to provide photos, scan barcodes, verify locations, complete surveys, mystery shop, and perform other useful services. Agents generally earn from $3 to $12 per job and funds can be withdrawn from the agent’s account directly to PayPal. Unfortunately, this app appears to be available only for iPhone, iPad and…

How one of the world's biggest investors is navigating this market

Talk about the land of confusion. The VIX is at eight-year lows, despite a slew of geopolitical concerns. Stocks are at record highs. Spanish debt yields less than Treasurys.
How, then, is one of the world's biggest investors navigating this market?
Dan Morris is global investment strategist at TIAA-CREF, the asset management company with $569 billion in assets under management, sat down with Talking Numbers for an exclusive interview.

The Low VIX

"A very low reading on the VIX is kind of reflecting on the relatively benign environment for equities generally," Morris said. "We think it's too low, just if you look at the historical numbers. It's going to go up but not in a way that we see as really threatening at all."

Also Read: What Lies In Your Debt?Credit Repair Magic Tools

"Even if the VIX does go up [and] even if we do get some type of correction," added Morris, "the market has been a bit too smooth. If you look at the lo…