I manage over $100k/month in adwords advertising spend for clients who demand results. I've also spent a few thousand dollars on Facebook ads for those same clients. Facebook ads do not work as a direct response type of advertising.
However they work fabulously well for sending traffic to your company Facebook fan page and building your fan base. You can typically get new fans for about 40 cents to a dollar a fan. These are people who you will be able to influence on a daily basis for years to come, and although you won't be able to directly track sales/leads/whatever to your Facebook advertising, I also believe there is tremendous value in interacting with your fans in this more personal way. It's a lot harder to convince clients of this value, but it's real.
I think he means that you are signed up on the fan page's mailing list. Companies of which you are a fan gain access to your social inbox, which I would assume allows them to garner much more of your attention than if they reached for your spam-filtered, labels-and-filter-ridden, adblocker-protected email inbox.
Another intangible but real benefit is the backchannel that fan pages open from the users to the company, and the other fans. Hard to quantify indeed.
What I am curious to see is hard data on acquisition cost of fans vs. mailing list subscribers, and subsequent mailing conversion rates.
People who are up to three degrees of separation can still have an influence on us. If you have a friend of a friend of a friend who has been influenced by advertising, the influence can trickle through his friends to you, and you don't even realize you were effected by advertising. The influence of advertising is pervasive and unavoidable.
Did you know they were Pumas without looking? Do you know any sports teams that wear Puma? Do any of your friends have Puma clothing? If you answered yes to any of these then the advertising has worked IMO.
Yes, I spent a month tracking down speedcats in my size last year because I am picky about my footwear. They're very comfortable and I've worn nothing but black speedcats since I happened upon them in a sale in nordstrom four years ago.
No.
No.
Also I haven't watched network tv in 10 years without DVR mediation
However they work fabulously well for sending traffic to your company Facebook fan page and building your fan base. You can typically get new fans for about 40 cents to a dollar a fan. These are people who you will be able to influence on a daily basis for years to come, and although you won't be able to directly track sales/leads/whatever to your Facebook advertising, I also believe there is tremendous value in interacting with your fans in this more personal way. It's a lot harder to convince clients of this value, but it's real.