And like you said, users on Facebook want to stay on Facebook, not go to another website.

I’ve heard facebook ads werne’t the best ROI but as the author mentioned it’s important to atleast test it. How can 1,000,000 be wrong? Also what may work for you may no twork for others.

As to other measures of ROI, if at least companies could show something like an in increase in branded search, or perhaps in the strength of their relationships in the industry through social media (for more, click my name to go to my post on social media analytics), I might be convinced. But almost all the Facebook marketing I’m seeing – including our own FacebookCamp Montreal – is focused on apps for their own sake (though I note in passing that apps can also be justified by concrete ROI). Me 2 marketing.

It’s like that saying: “I know that half my advertising budget is wasted, but I don’t know which.” I think we figured out what half .

This mindset runs contrary to the core of what makes SEOs like you, me and many other readers of our blog, successful as marketers. I’m not sure I buy it either.

Jeremiah brought a lot more concrete and ROI focused perspective than was likely evident in the post above. The onus is on the panel for being a little “loosey goosey” on the ROI accountability of FB apps and marketing.

“Owyang: Any companies looking to increase sales and revenue?

Panel: This space is so new, no one has really developed a ROI formula that works. The value is the ability to create virality around your brand. It’s a different way of thinking about achieving your objectives.”

Different how? Different like we can’t get the most targeted traffic in the world to click and convert? Puh-lease. People are doing it, it’s just that the big names are lagging behind others and their larger budgets for ‘creative’ stuff don’t trim away fat very well – like marketing that builds “engagement.” You’ll recall a certain Internet Bubble that was built on “engagement”…

“Owyang: What about demographic and targeting based on self volunteered personal info? Cites an example of being able to reduce the number of potential job candidates from millions to 200 people by this kind of segmentation and targeting. However, when the ad campaign to work for Forrester was executed, it didn’t generate results.”

If that’s really 200 people they narrowed it too, whoever ran that doesn’t quite get FB ads. You’re lucky to get 0.1% CTR (1/1000) and a superstar at .2% (2/1000 or 1/500). What were they expecting with 200 people viewing the ad? Even if they overcame banner blindness somehow after being exposed to the ad (maybe they looked for an app in their sidebar and finally noticed it), how are you going to convert on such tiny numbers?

” * Be clear with your objectives
* Test spending money on Facebook marketing even if you aren’t sure about the return. Hey, 1,000,000 visits can’t be wrong!
* Understanding the ROI of Facebook requires a new kind of mindset
* Don’t take away the social features of Facebook from users
* Facebook marketing is not about driving traffic to your web site. Keep Facebook users on Facebook”

That’s self-contradictory. Be clear with your objectives, but keep people on Facebook. What if your objective is to convert folks at your site?
And the ROI requires a new kind of mindset? Like … don’t pay for your dollars to make dollars … pay for engagement? Typical Web 2.0 excess, and the type of talk that’s overinflating the current bubble imho (though this is far from being the only instance/main cause of the bubble; that’s likely the Youtube sale way over its yearly revenues, for traffic that doesn’t convert).