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Ok I ran an ad on Facebook for a little over a month
This is what I found
You get hundreds of thousands of impressions but the click thru ratio is pretty poor
Over the month the ad did generate users I got around 37 new free member signups coming directly from the ad on facebook over the month
For me I think the best way to use facebook as an ad tool is to send people to my facebook fanclub via a paid ad. When your fanclub has a good amount of members just cancel the ad and your facebook fanclub will generate both fanclub members and signups for the site. This wont happen overnight but it does work if you are in it for the long haul.
This was done for a mainstream site btw
At the end of the day facebook might work totaly different for somebody else with a different kind of site but this is how it worked out for me.
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