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WRITTEN BY:
Sara Hall

Facebook ads actually effective

Facebook reports companies see a $3 return for every $1 invested

Facebook ads are actually effective, the company is reporting.
Source: Facebook via Wikimedia Commons
Caption: Facebook ads are actually effective, the company is reporting.

Facebook ads always seem to be the bane of its users, but the company’s executives say they are still effective as ever.

Facebook recently said in a joint report with researcher ComScore Inc. that their marketing and advertising efforts do in fact encourage users to buy products, despite many users’ dislike of Facebook ads.

The report says Facebook users who saw an ad for Starbucks on the site bought an item at the coffee giant within four weeks, 38 percent more often than those who didn’t see an ad. These type of Facebook ads appeared from those who “liked” Starbucks.

ComScore also examined Target Corp. results, saying they show positive results from Facebook ads as well. The report said those users who “like” Target on Facebook bought 21 percent more at the retail store.

However, this report from ComScore Inc. comes on the tails of a contradictory report from Reuters/Ipsos that said just one in five Facebook users bought products because they were influenced by Facebook ads.

Still, Facebook is still reporting companies see a $3 return on every $1 they spend on Facebook ads and marketing, Brad Smallwood, head of measurement and insights at Facebook, said.

For half of the campaigns, there was a $5 return for every $1 invested on Facebook ads.

These reports come from more than 60 advertising campaigns over the past few years, Smallwood said.

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