A report released by comScore today argues that marketing on social networking giant Facebook Inc. (NASDAQ: FB) influences the behavior of consumers and leads to higher purchases of brands that use FB.
The report, entitled “The Power of Like 2: How Social Media Works,” focuses on paid advertising on Facebook and is based on the experiences of major brands like Best Buy, Starbucks and Target.
The report contradicts a Reuters/Ipsos poll published recently that showed 80% of Facebook users have not purchased a product or service as a result of advertising or comments on the social networking site. comScore noted in its report that majority of brand exposures on Facebook take place through users’ news feeds, instead of visits to dedicated brand pages on the website.
comScore notes that consumes who click a button that they like a certain brand are more likely to outspend others for that brand.
Andrew Lipsman, Vice President of Industry Analysis at comScore, said that social media continues to emerge as an important marketing channel and major brand marketers are devoting more time and attention to understanding its impact on consumers. Lipsman said that while marketers understand the importance of a channel that now accounts for 1 in every 7 minutes spent online, many are challenged to quantify its effectiveness.
Facebook shares are gaining in pre-market trading today. At last check, FB shares were trading 1.20% higher at $27.33. The stock is still trading well below its IPO price of $38.
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