Up until now, online marketing has been intensely focused on the click. The main goal for ad companies is to get people click on ads, hoping that they can convert that into sales. Brad Smallwood, Facebook’s head of measurement and insights, spoke Monday at the IAB MIXX conference, sharing the company’s findings from a partnership with Datalogix in an effort to help marketers achieve success through the social network.
Smallwood presented the results of the partnership, where the companies studied more than 50 digital campaigns. He noted that impressions create value, as 99 percent of sales generated from online branding ad campaigns were from people who saw ads (but didn’t interact with them). This shows that it’s not so much about generating clicks, but delivering the right message to the right consumer.
Facebook also feels that reach drives revenue for online brand marketers. Smallwood said TV marketers get this concept, but it’s relatively new online. He added that companies’ campaigns that maximized reach had, on average, a 70 percent higher return on investment. Smallwood noted that finding the right message frequency is key. The Facebook/Datalogix study showed that if brands reallocated high-frequency impressions to people seeing too few impressions, they’d see a 40 percent increase in ROI with the same budget. For every online campaign, there is a happy medium of effective frequency that maximizes ROI, and Smallwood felt that the Datalogix tool could help marketers find that spot for each brand and campaign.
Smallwood continued to address the issue, as noted in the Facebook Studio Blog:
These findings demonstrate a clear road map to success for digital marketers focused on reaching the right consumers at the right frequency. And 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. Products like Nielsen Online Campaign Ratings measurement solution can help brands optimize for reach and effective frequency for their digital campaigns, and Datalogix’s new tool can measure real return on investment by connecting those brand digital ad exposures to in-store sales. This is something that has never been done before at this scale.
Readers: What is your Facebook ad campaign game plan?