Forget the Nonsense, Facebook (FB) Ads Do Work
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So you've heard the horror stories of advertising on Facebook (Nasdaq: FB): "it sucks," "the ads don't work," "nobody clicks on them." Well, comScore is here to say that this may not be the case. In fact, it may be exactly the opposite.
comScore said new research showed that Facebook 'earned media' is having a "statistically significant positive lift on people's purchasing of a brand."
The firm's research uses a test versus control methodology that compares the "behavior, such as brand site engagement and purchase, of similar groups of individuals with their primary difference being whether or not they were exposed to a media impression." This is a method used for years for brand advertisers as they realize that 'clicks' is a weak indicator of true campaign performance because they ignore the importance of simply viewing an advertising message.
Coming out critical of a Reuters report last week, which said "four out of five Facebook users have never bought a product or service as a result of advertising or comments on the social network site", comScore said they have gotten the story wrong. Specifically, comScore said the survey research method used in the research tends not to provide very accurate assessments of consumer behavior.
People's accuracy in recalling their own behavior over an extended period of time can be especially unreliable, comScore said. And more importantly, the firm continued, "people don’t like to believe that advertising actually has an effect on their behavior."
comScore will be releasing more on the study next week.
The comScore study is having a positive impact on the stock Friday. Shares are up 2.6 percent to $27.
comScore said new research showed that Facebook 'earned media' is having a "statistically significant positive lift on people's purchasing of a brand."
The firm's research uses a test versus control methodology that compares the "behavior, such as brand site engagement and purchase, of similar groups of individuals with their primary difference being whether or not they were exposed to a media impression." This is a method used for years for brand advertisers as they realize that 'clicks' is a weak indicator of true campaign performance because they ignore the importance of simply viewing an advertising message.
Coming out critical of a Reuters report last week, which said "four out of five Facebook users have never bought a product or service as a result of advertising or comments on the social network site", comScore said they have gotten the story wrong. Specifically, comScore said the survey research method used in the research tends not to provide very accurate assessments of consumer behavior.
People's accuracy in recalling their own behavior over an extended period of time can be especially unreliable, comScore said. And more importantly, the firm continued, "people don’t like to believe that advertising actually has an effect on their behavior."
comScore will be releasing more on the study next week.
The comScore study is having a positive impact on the stock Friday. Shares are up 2.6 percent to $27.
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