comScore's Study Suggests Facebook "Likes" May Benefit Brands

Earlier today, market research company comScore SCOR announced that it had released a research paper entitled “The Power of Like 2: How Social Marketing Works.” comScore's paper details its research results on Facebook FB users. According to the results, users who “liked” a brand and their friends spent 38% more on that brand relative to the control group. comScore stated that they matched the control group with the exposed group based on variables including demographics, engagement with Facebook, and previous exposure to and spending on the brand. The study offers evidence that liking a brand might lead to increased spending on that brand. However, as a correlational study rather than a scientific experiment, the study does not conclusively demonstrate that the independent variable, liking, caused an increase in the dependent variable, spending. In fact, a third variable, such as exposure to television advertisements, may be causing Facebook users to both like a brand and spend money on that brand. For instance, if a user sees an advertisement for Starbucks SBUX on television, that may cause him or her to like Starbucks on Facebook and also spend more money at Starbucks locations. This user might discuss Starbucks with his or her friends, causing them to also spend more on the brand. Alternatively, spending on a brand may have caused Facebook users to like that brand, rather than the converse. As an example, an individual who purchases a new Mac computer may subsequently like Apple on Facebook, and his or her friends might be inspired by the computer purchase to buy new iPods. Facebook liking may cause incremental spending on brands, but as comScore recognizes in its paper, correlational research does not in it of itself prove causation.

Disclosure: At the time of this writing, I did not own shares of any companies mentioned in this post.