Here's ComScore's Massive Report On Facebook Ad Effectiveness

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Following a week of getting beaten up in the stock market, Facebook is touting comScore’s massive report that was just released which aims to show that Facebook ads really do work and drive product sales.

The study outlines how advertisers can increase ROI — see charts and data in our slideshow — and highlights the success of both Target and Starbucks: Data imply that fans and friends of friends of those brands increased the frequency of their purchases by 21 and 38 per cent, respectively, after four weeks. So it isn’t all about immediate click-through rates, but rather increased purchasing over time. The report also emphasises the importance not just of fans, but friends of fans.

Other key stats include:

  • 70 per cent of brand campaigns showed a return on ad spend (ROI) of 3x or better
  • 49 per cent of brand campaigns showed an ROI of 5x or better
  • In the four weeks after seeing an ad on Facebook from a major offline US-based retailer, fans and their friends bought 56 per cent more frequently online from this retailer.

Although please note that this report was a “collaboration” with Facebook, so … 

It isn't just about getting fans, but utilising your fan reach.

Brands can double their reach through friends of fans, often via sponsored stories. The top 10 brands have an amplification ratio of 1.05, the top 100 have 0.84.

This graph compares amplification on a typical week with one of the heaviest promotional weeks ever, including Black Friday and Cyber Monday, to show how holiday campaigns can be effective.

Fans and friends of fans spend more than the general population.

comScore used Starbucks as an example of increased in-store purchases.

And here's a look at Target.

Facebook commissioned this data which looks at the impact of paid ad campaigns (as opposed to earned media).

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