Facebook App Attempts to Monetize User "Likes"
Millions of products have been "Liked" on Facebook (NASDAQ: FB). However, critics and advertises continue to argue over the validity of these "Likes" and their ability to persuade consumers to make a purchase.
General Motors (NYSE: GM) was so upset with Facebook that it announced that it would no longer use the site to advertise. Other corporations, such as Ford (NYSE: F) and Coca-Cola (NYSE: KO), recently pledged their support for the social network.
Last month, comScore (NASDAQ: SCOR) attempted to demonstrate the value of advertising on Facebook. comScore argued that other methods for measuring Facebook ad results were flawed. The company was particularly critical of a Reuters poll that claimed that Facebook users are not swayed by ads or user comments.
"While surveys can be useful in assessing ad effectiveness lifts across attitudinal dimensions such as brand awareness, favorability and purchase intent, people tend not to provide very accurate assessments of their own behavior," comScore wrote on its blog. "And their accuracy in recalling their own behavior over an extended period of time can be especially unreliable. People might be able to accurately tell you how many times they have eaten at a restaurant in the past week, but they would probably do a poor job estimating that number over the past three months."
The argument surrounding Facebook ads may continue for some time. But there is one company that hopes to push the site in a positive direction.
According to AllThingsD, TheFind has developed a new feature called the Universal Price Alert for its Glimpse Facebook app. In short, Universal Price Alert "gives retailers a new channel to reach out to [consumers] who are already interested by sending them carefully targeted emails with discounts and deals."
This could provide retailers with a new way to advertise to consumers while reinforcing their respective brands.
Follow me @LouisBedigianBZ
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.