Perhaps unsurprisingly, immediately after the two companies announced their strategic love affair, Nielsen started publishing glowing reports about Facebook and how much time people are spending on social networks in general.
Today, the companies are releasing the first insights from their alliance on the effectiveness of brand advertising on social networks, and lo and behold: the take-away conclusion is that apparently, Facebook ads work well in terms of campaign effectiveness.
(On a sidenote: are you a fan of TechCrunch on Facebook already?)
According to Nielsen, the report leverages six months of research consisting of surveys of more than 800,000 Facebook users and more than 125 individual Facebook ad campaigns from some 70 brand advertisers.
Nielsen looks at advertising from a “paid” and “earned” media perspective, whereby the second is considered advertising that is passed along to or shared among friends.
The company took a look at 14 Facebook ad campaigns that incorporated the “Become A Fan” engagement unit and sliced the effectiveness results three different ways, by each of the types of ads available on Facebook:
1) Lift from a standard “Homepage Ad”
2) Lift from an ad that featured social context or “Homepage ads with Social Context”
3) Lift from “Organic Ads,” newsfeed stories that are sent to friends of users who engage with advertising on a brand.
Nielsen found that the first type of ads on average generated a 10% increase in ad recall, a 4% increase in brand awareness and a 2% increase in purchase intent among users who saw them compared with a control group with similar demographics or characteristics who didn’t.
According to Nielsen, that increase in advertising recall jumped to 16% when ads included mentions of friends who were ‘fans’, and 30% when the ads coincided with a similar mention in users’ newsfeeds.
Intent for purchase climbed 2% higher among viewers of homepage ads vs. non-viewers but went up 8% either from social ads or when ads appeared alongside organic mentions of the brand in the news feed. Brand awareness went up 2% from just a homepage ad, 8% with a social ad and 13% when a homepage ad appeared along with a mention of friends who were brand fans in the users’ newsfeeds.
In an interview with AdAge, Jon Gibbs, VP Media Analytics at Nielsen, reiterated that the company did not incorporate actual purchases because the research is still young. Gibbs added that, in next generations, he would “assume we will start incorporating offline purchase and other transactional data as part of the analysis.”
Now that would be slightly more interesting in my opinion, although I wish other measurement companies would get the same access to data as Nielsen does so we can compare different angles and research methods with one another.
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...
Nielsen is a leading global provider of information and insights into what consumers watch and buy. Nielsen is a information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands.