Facebook isn’t crazy about clicks as digital advertising’s be-all, end-all performance metric. Rather, the company is more concerned with conversions.
In the fall, Facebook partnered with data provider Datalogix to launch a tool that helps advertisers figure out how many ads it should show a given user. The tool compiles this Goldilocks recipe based on Facebook’s ad impression data and Datalogix’s offline purchase data. Now, Facebook is opening up a bit about results.
Across 29 campaigns, Facebook found that splitting households into four subgroups based on how much they’ve purchased a brand’s products or a product in a given category has produced an average 22 percent lift in profits, said Brad Smallwood, the company’s vp of measurement and insights, in a preview of a presentation he'll make today at the Advertising Research Foundation’s Re:think 2013 conference.