Facebook has been working with Datalogix, which connects digital media and offline purchasing data, to help advertisers understand how their spends on Facebook affect in-store sales, the Financial Times reports. After measuring 45 campaigns over the past year, the companies found that in 70 percent of cases, every $1 spent on Facebook led to an additional $3 in sales.
Datalogix says it has purchasing data from about 70 million American households based on loyalty cards and programs at more than 1,000 retailers. It then matches email addresses or other information associated with those memberships with the email addresses or information associated with their Facebook accounts. The emails and other personally identifiable information is anonymized, but the companies can compare the differences in sales among groups who saw certain Facebook ads versus those who didn’t.
“We know that people share a lot of information on Facebook, and we have taken great care to make sure that we measure the effectiveness of Facebook ads without compromising the commitments we have made on privacy,” a Facebook spokesperson said in a statement. “We don’t sell people’s personal information, and individual user data is not shared between Facebook, Datalogix or advertisers.”
Facebook also has a partnership with ComScore and has been working with Nielsen Company since 2009 to measure the impact of its ads. For example, Facebook works with Nielsen to run polls on the right-hand side of Facebook.com to measure brand awareness, ad recall and purchase intent. Datalogix can go a step further and understand the actual spending habits of Facebook users who were or weren’t exposed to an ad campaign.
As advertisers put more money and effort into Facebook marketing, the social network needs increasingly sophisticated ways to prove its value. The company currently has open positions for a Partner Measurement Group Lead, three Partner Measurement Leads and a Marketing Mix Measurement Lead.
In July, Facebook and the Advertising Research Foundation issued a challenge to the measurement community to come up with innovative ideas to tie social marketing back to business metrics in ways that allow for cross-platform comparability around the world. Facebook said it would consider providing funding, access to data assets and collaboration on pilot studies. Its partnership with Datalogix is separate from this initiative.