Does Facebook Advertising Influence the Bottom Line?

Social networking is hot. But how does that translate into business? After a couple of weeks of testing the facebook “flyer” program to promote a brand of mineral makeup, we have seen a few interesting trends.

We found that facebook has become the highest identifiable referring site the last first few days of running the campaign.
Of course, the bulk of the traffic from referring sites still comes from a sleuth of vertical sites that cater to this market, however, it is still very interesting that Facebook is producing over 10% of the referrals.

The real question is whether facebook’s referrals have any value at all. It is too early to tell but over the next few weeks we will be able to see if the referrals are turning into leads.

At the end of the day, an advertising channel needs to influence the bottom line, otherwise it is just another faith-based advertising medium like the 30-second TV spots.

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