After taking fire from companies like General Motors about the ROI it delivers to advertisers, Facebook responded by issuing a new study that shows most advertisers turn around $3 for every $1 spent on its social networking site.
by Staff
June 14, 2012
2 min to read
SAN FRANCISCO — Facebook ads promise a higher level of ROI than companies like General Motors have claimed, according to new data released by the social network in conjunction with comScore, a provider of digital business analytics.
According to the report, most advertisers (70 percent) are turning around $3 for every $1 spent. Almost half of the companies took in $5 for each dollar. The study, “The Power of Like 2,” focused on reach, brand resonance and sales.
Ad Loading...
Target was among the major brands researched. Fans who “like” the store’s page and their friends are 21 percent more likely to make a purchase there, according to the report. Similarly, Starbucks’ fans and friends were 38 percent more likely to buy something at Starbucks every four weeks than those who were not viewing the company’s marketing messages.
The study also delved into marketers who target certain time periods, such as holidays for advertising. For instance, Target saw 3.5 times more activity in the week ending Nov. 30 than the month prior. Official with Facebook said identifying a company’s key times to advertise is one strategy the site will continue to explore with its clients.
The report was issued weeks following GM’s announcement that Facebook ads were ineffective and that it was pulling out on its $10 million campaign with the social media network.
“(The findings) provide quantifiable evidence that earned media exposure can be valuable in influencing consumer behavior – and specifically the sort of behaviors that brands most want to induce, such as purchase,” Andrew Lipsman, author on the report, said on comScore’s website. “Secondly, they demonstrate that there is a latent branding effect that continues to drive increasing lift in purchase behavior weeks following exposure. Both of these conclusions provide more evidence that Facebook can be very valuable as a branding medium.”
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.