Facebook dims outlook for click-based ad measurements

Merely viewing an ad is just as effective a way to reach consumers, Facebook says its new data shows

Facebook said on Monday that data collected from its partnership with loyalty-card tracker Datalogix shows people are swayed to make purchases after merely viewing an ad, even if they did not click on it.

The social-networking site, which publicized its findings through a press release and at the Interactive Advertising Bureau's MIXX conference in New York, likened the findings to a term used by TV marketers, known as "reach." The findings were presented at the conference by Brad Smallwood, Facebooks head of measurement and insights.

"While these conclusions might seem familiar to traditional marketers who use TV, they represent a substantial shift from the focus on click-optimization that is more typical of digital campaign planning," Facebook said.

Facebook's announcement comes soon after its partnership with Datalogix, revealed last week, has generated controversy over how it might impact users' privacy.

Datalogix, based in Westminster, Colorado, collects data on what people buy through loyalty card programs administered by retailers. Those loyalty card users are matched to their Facebook profiles using hashes, or cryptographic representations, of users' email addresses that they've given to both retailers and Facebook, an arrangement Facebook maintains does not violate its promise to transfer personal data to other parties.

The Center for Digital Democracy and the Electronic Privacy Information Center wrote to the U.S. Federal Trade Commission last week, asking the regulatory agency to examine the privacy implications of the deal. Facebook automatically enrolls users in the program. They can opt-out by filling out a form Datalogix's website but not directly through Facebook.

Facebook studied more than 50 digital campaigns conducted using Datalogix's data. Overall, it showed that 99 percent of the sales that were generated from branding campaigns run on Facebook came from people that viewed an ad but did not click on it.

The effectiveness of the advertisements depend on the frequency with which ads are shown, which can be determined by using Datalogix's tool, Facebook said.

Also on Monday, Facebook wrote more about its partnership with Datalogix as part of Facebook Exchange (FBX), its online system that allows advertisers to bid on advertisements shown in real time.

Datalogix sends Facebook reports on "large groups of people" comparing their product purchases and whether those people saw or didn't see an ad, wrote Joey Tyson, a privacy engineer. Facebook and Datalogix use the same method to hash email addresses, which enables them to match up users and categorize them.

Facebook doesn't see any purchase data, and Datalogix does not receive information from people's profiles, Tyson wrote. An "industry-leading auditor" has confirmed how the process works, he wrote.

"In our view, this is a win-win situation for marketers and for you," Tyson wrote.

Send news tips and comments to jeremy_kirk@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?