AdAge has just posted a story discussing a big Nielsen study on Facebook advertising. The study of 800,000 people illustrated the benefits to brand recall and purchase intent. They look at the combination of Earned Media and Paid Media.

The study of more than 800,000 Facebook users and ads from 14 brands in a variety of categories shows a marked increase in ad recall, awareness and purchase intent when home-page ads on the social network mention friends of users who’ve become fans of the brand in the ad.

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For standard paid media they found a 10% increase in ad recall, a 4% increase in brand awareness and a 2% increase in purchase intent, compared to a control group. And where it get’s interesting is the impact of having both Earned and Paid which resulted in an increase of recall to 16% when ads included mentions of friends who were brand fans, and 30% when the ads coincided with a similar mention in users’ news feeds.

But the increase in recall jumped to 16% when ads included mentions of friends who were brand fans, and 30% when the ads coincided with a similar mention in users’ news feeds. Brand awareness saw similar bumps: up 2% from just a home-page ad, 8% with a “social ad” bearing mentions of friends who were brand fans and up 13% when a home-page ad appeared along with a mention of friends who were brand fans in the users’ news feeds.

The most powerful outcome from this study was their ‘other’ finding, that purchase intent increased in similar ways.

Purchase intent was 2% higher among viewers of home-page ads vs. nonviewers, but got a four-times-bigger bump, up 8% either from social ads or when ads appeared alongside organic mentions of the brand in the news feed.

And to all you digifolk, clicks only made up a small proportion of the whole picture. (Digifolk are those that have grown up in a world of focusing on click throughs, not good old fashioned reach.)

Only around 130,000, or less than 1%, “engaged” with them by clicking on them

And why’s this so important?

For years we have worked hard to get in front of our audience for 30 seconds, or half a page, with pretty profound results, reaching millions, building great brands and generating revenue. Sure now, with social media, we try to get consumers to tell each other about our message, but that’s still the same outcome – REACH.

As I’ve discussed in other posts our growing addiction to clicks is taking us away from the very valuable outcome of reaching our audience. Yes, if they click it’s great, but we all know how few do, so studies that discuss and highlight impact of digital reach – be it display, search or otherwise – on brand awareness, purchase intent and other metrics add value to our good old friend REACH. It’s not the first study of it’s kind, Nielsen released one last November – funny to see I reacted in a similar way…

Thoughts?