Tuesday, October 2, 2012

Facebook & Datalogix: Finding the sweetspot of ad frequency

Source: http://techcrunch.com/2012/10/01/facebook-ads-frequency/

Facebook Will Use Datalogix Offline Purchase Records To Show Ads The Perfect Number Of Times:

Show someone a Facebook ad once and they’ll forget, 100 times and they’ll be annoyed. So Facebook is going to use offline purchase data to help businesses increase ROI up to 40% by showing them the “sweetspot” of ad frequency, it announced today at New York’s Advertising Week.
Privacy fears flared recently when the Financial Times revealed Facebook was working with in-store purchase tracker Datalogix. Facebook has since reassured users their personal data is only shared securely and they can opt out. Most won’t, and the data will let the social network draw a bold line from smart advertising on Facebook to big sales.

That’s the plan. Facebook’s Head of Measurement and Insights Brad Smallwood wrote in a blog post this morning that “for every online campaign there is a “sweetspot” of effective frequency that maximizes return on investment, and that the DataLogix tool can help marketers empirically isolate that sweetspot for each brand and campaign.”
Meanwhile, Reuters printed that “Facebook says it will soon offer advertisers’ insight on the il deal number of ad impressions for a particular campaign.” I’ve spoken with Facebook and for now these reports on optimal frequency are only available from Datalogix, not from Facebook itself.

It seems like click through rates may no longer be the determining factor for measuring an advertiser's return-on-investment.  Having this capability of determining the optimal amount of ad frequency through facebook's platform will allow clients to optimize their ad impression frequencies, hence ROI, based on the direct link to Datalogix's in-store sales data.  This will provide better marketing data to determine the effectiveness of Facebook advertisements that influence buying habits.  I think Facebook may have hit a new high with being able to measure the influence ads have on consumers in the long run...

No comments:

Post a Comment