Facebook Inc (FB) responds to Gallup by saying its social media ads work

Posted Jun 24, 2014

The polling firm Gallup questioned whether social media ads actually work in its annual report about consumer behavior. In a section called “The Myth of Social Media,” Gallup reported that 62% of 18,000 Americans surveyed said that ads on Facebook and Twitter do not influence the purchases that they make.

Facebook did not like the study because its $10 billion per year ad business depends on brands that believe that social media ads influence purchase decisions. A Facebook spokesperson blasted Gallup’s most recent survey and the company’s method of relying on what people voluntarily tell them to produce reports. Facebook said that brands should look at its studies that have tracked how consumers actually behave after they see its ads.

?The only thing this poll shows is that self-reported behavioral data is unreliable. For decades, studies that look at people?s actual, real-world behavior have shown that ads on all mediums, including social media, affect the things people buy,” said a Facebook spokesperson in an interview. “The most successful marketers in the world don?t just take our word for it when it comes to ad effectiveness, they?ve asked us to prove that our ads work. And we have. Those marketers hold us to a very high standard; we look at actual changes in attitudes and behaviors using experimental design ? the same approach used in medical trials.” 

[Source: BI]

Stock Tag: Facebook Inc (NASDAQ:FB)