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According to Study: Advertising to Facebook Fans Improves Conversation

Written on June 18, 2011 by Japhet Writ

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Invest in acquiring Facebook Fans. That's what Inside Facebook is suggesting to businesses that runs Facebook ads.

As opposed to targeting non-fans, the cost of converting people to sign-up for events, purchase products or register for services considerably decreases when businesses run ads that hits existing fans. This is based on Inside Facebook’s latest blog post.

Though was privy to data from the social agency, , the agency found that targeting Facebook fans was more effective than targeting non-fans. And it makes sense, because consumers who declared their appreciation for a brand are more likely to purchase their product. That’s why ’s data suggests that businesses must invest in acquiring Facebook Fans.

As explained by Josh Constine on Inside Facebook:

“For instance, if a health care company planned on acquiring 1 million registrations over a year via at $10 per registration, it could save $4.4 million by advertising to its Facebook fans instead of the general Facebook population. This means if the cost of attaining enough fans from which to secure 1 million health care registrations is less than $4.4 million, the company has produced a direct return on investment on its Facebook fan acquisition strategy without even counting the value of being able to communicate directly with the fans through Page updates.”

However, results may vary depending on the industry, market and the nature of the ad campaign. Good thing, studies like that of TBG provides solid and reliable sample size.


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  • http://pulse.yahoo.com/_GSRPMCNQCDMM2LVHBMNFEY4YHE Jencie

    I do believe you – There may be numerous industry by which Facebook advertising might not be effective but actually it is really quite valuable for most people

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