Facebook’s head of measurement and insights tells marketers how to measure and optimize the impact of their ad campaigns.
While clicks have proven to be an effective way in measuring the traffic and direct response with campaigns, research increasingly shows that clicks are not the right way to measure marketing goals beyond direct responses.
Facebook's head of measurement and insights discussed finding from a study in conjunction with Datalogix. Datalogix helps marketers who have offline sales objectives to successfully measure and get the most out of their digital campaigns.
The study analyzed nearly 50 digital campaigns which reveals that the traditional online marketing approach may not attract new consumers.
Brad Smallwood, Head of measurement and insights at Facebook said that the impression a digital ad makes on a consumer is more valuable that the amount of clicks on the ad.
"99 percent of sales generated from online branding ad campaigns were from people that saw, but did not interact with, ads -- proof that it is the delivery of the marketing message to the right consumer, not the click, that creates real value for brand advertisers," said Smallwood.
The ability of a digital brand campaigns "reach" was found to drive revenue. The concept is familiar to TV marketers who usually have a reach objective. When applied to digital campaigns, the study found that they maximising their reach resulted in a 70% higher ROI.
The study also suggested that finding the "right consumers at the right frequency" is very important to the success of a campaign.
"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," said Smallwood.
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