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New York Times: Facebook Tries to Prove Ads Work

June 15, 2012

By Tanzina Vega

After taking a beating during its initial public offering over questions about whether its ad-focused business model is solid enough for the company to succeed on a $100 billion scale, Facebook is in a hurry to offer up new data to prove that its ads do, in fact, work.

The research, conducted by comScore, is meant to show advertisers that the social media platform can have a direct influence on product sales.

“It’s a myth that Facebook is trying to figure out R.O.I.,” said Brad Smallwood, the head of measurement and insights at Facebook, using an acronym for “return on investment” or proof that money spent on advertising actually works. “Facebook is a demand-generation platform,” Mr. Smallwood said. “This is demonstrating that as you run messages on Facebook that it impacts people’s behavior when they are in store.”

Two of the companies highlighted in the research are Target and Starbucks. According to the data, four weeks after seeing a Starbucks ad on Facebook, people who were fans of the brand, and those who were friends of those fans, increased the frequency of their purchases by 38 percent, while Target fans and their friends increased their purchases by 21 percent.

ComScore will present the research findings on Tuesday at the Advertising Research Foundation.

As seen here: http://mediadecoder.blogs.nytimes.com/2012/06/12/facebook-tries-to-prove-ads-work/

 

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