Blending Social Media, Ads: ROI Alchemy
Homepage ads on Facebook that have social media context—that is, they include the names of users' friends who are already fans of the brand—are 4.0 times more likely than those that don't to increase purchase intent of a product or brand, twice as likely to increase awareness, and 1.6 times as likely to increase recall, according to a study conducted jointly by Nielsen and Facebook.
By contrast, among standard homepage ads, with no social context, recall increased on average just 10% between exposed and control audiences following ad exposure on Facebook. Awareness increased on average 4% and purchase intent increased 2%.
The study examined the effectiveness of three types of media on Facebook:
- Standard homepage ads: Paid media, which contain ad creative as well as an option for users to engage with the brand (e.g., "Become a Fan").
- Homepage ads with social context: A hybrid of paid and earned media, which include the names of a user's friends who are already fans of the brand.
- Organic impressions: Earned media, which are social, newsfeed stories sent to friends of users who engage with advertising on a brand.
Value of Organic Impressions
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