How effective is marketing on Facebook?

Like many other people my age, I spend a decent amount of time on the internet on Facebook. It's on my laptop and my phone, saved into my bookmark bar with my login information already saved so I can log on at a moments notice. Just like everyone else, my news feed has ads on the side of it. Right now, there's ads for Wendy's, engagement rings, a closed-captioning service, Cheez-Its, shoes and a targeted ad for Kohl's employees. 

I just ignore all these, as I'm sure most people do. However, plenty of companies advertise on Facebook. Many have fan pages, groups or just regular accounts. While these sidebar ads might be easily ignored, how effective are these regular pages? Does thousands of fans equal any measurable sales or increase in services?

According to a study done by Rice University, yes, it does. Facebook marketing is very effective. They "surveyed customers of Dessert Gallery, a popular Houston based cafe chain". Over a 3 month period, 1,700 fans were compared to the typical customer, and the following was deduced.

The Facebook fans:

• Made 36 percent more visits to DG's stores each month.
• Spent 45 percent more of their eating-out dollars at DG.
• Spent 33 percent more at DG's stores.
• Had 14 percent higher emotional attachment to the DG brand.
• Had 41 percent greater psychological loyalty toward DG.

Those statistics translate into dollar signs for the company. Considering Facebook is a free service, this is a low cost way to increase knowledge of your company, as well as increase profits.

While social media marketing is not as effective with the older generation, it certainly is popular with the tech-savvy generations. Coupons and other bargains, offered exclusively through Facebook, often keep customers coming back.

Do you follow any particular companies on Facebook? If so, do you feel more connected or more likely to interact with that company because of their Facebook page? Do you think Facebook marketing is an effective strategy for companies?