Friday, June 8, 2012

Facebook ads are 'effective,' comScore says

CNBC's Julia Boorstin explains why comScore thinks Facebook ads are having a "statistically significant positive lift on people's purchasing of a brand."

By Roland Jones

The web analytics company comScore is about to issue a big report on the effectiveness of Facebook advertising, according to CNBC.

CNBC?s Julia Boorstin explained that comScore thinks Facebook ads are having a ?statistically significant positive lift on people?s purchasing of a brand.?

The report will be issued Tuesday, CNBC said. comScore wasn't immediately available for comment.

The findings come after a Reuters report said four out of five Facebook users say they have never bought a product or service as a result of advertising or comments on the social network site, underlining, to some observers, the challenges Facebook faces when it comes to drawing in revenue.

In mid-May, just ahead of Facebook?s IPO, GM?s marketing executives said they would pull $10 million in advertising from the social network after judging the efforts had ?little impact? in reaching consumers.

GM, the third largest advertiser in the United States, also said it will continue to use the Facebook platform to promote its vehicle brands and operate a $30 million budget for content creation and management.

GM?s rival Ford said it plans to do more advertising on Facebook, however, calling the website a growing and important part of their media strategy.

Click here to check on shares of Facebook.

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