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Important Research Concerning the Value of Facebook Ads

written by on Thursday, May 6th, 2010 at 4:54 pm

In a recent report released by Neilsen and Facebook, researchers analyzed the value and effectiveness of a Facebook ad campaign. The study surveyed over 800,000 Facebook users regarding more than 125 individual Facebook advertising campaigns from 70 brand advertisers.

The study found that the key to social network marketing success is to create a mixture of impressions that involves both paid and earned media. There are three major types of ad media on Facebook and they include:
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  1. Homepage ads: Above-the-fold ads that contain an ad creative along with an option for users to engage with the brand (e.g. “Become a Fan”). This is known as paid media.
  2. Homepage ads with Social Context: These ads include the names of a user’s friends who are already fans of the brand. This advertisement is both paid and earned media.
  3. Organic Impressions: These are social stories that appear in the News Feed of friends of users who have engaged with a brand of become a fan. This is known as earned media.

Homepage ads and earned media held the greatest value for increasing brand awareness at a level of 4%. But, by including both homepage ads and organic ads, awareness increased to 13%.Exposure to these Facebook ads also increased purchase intent from the ad at a level of 8%.

The final conclusion to the report reveals that the more a user is exposed to both paid and earned media –combining both is the strongest technique—the better the ad recall, awareness and purchase intent.

Tips for advertising on social media:

* Start every advertising campaign with an interesting homepage ad. Engagement will go up as organic impressions increase.
* Purchasing paid media on social networks is the best way to acquire earned media.
* The “perfect” social media ad campaign is a balancing act of reach and frequency across homepage, social, and organic impressions.
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To read the full report, click here. For more information on creating a successful online advertising campaign, visit

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  • Shaqattack says:

    I really enjoyed this post, especially the “examples in this post” portion which made it really easy for me to SEE what you were talking about without even having to leave the article. Thanks

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