Facebook brings a new tool for advertisers that will help them in evaluating the effectiveness of their ads on the platform
Facebook is the largest social networking platform with billions of users across the world, and this makes it the preferred platform for businesses to advertise their goods and services. Despite spending huge amounts on ads, advertisers always had to wonder if people were actually convinced to buy their products through the ads posted on Facebook. However, now Facebook is improving its tools to measure if ads are contributing to both online and offline sales.
More for advertisers
There had been studies on the effectiveness of ads in the past when Facebook worked with measurement companies like Nielsen and Datalogix. Now the social networking company is expanding its Custom Audiences ad targeting tool to measure offline data also.
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Brad Smallwood, the company’s vice president of measurements and insights, told Anthony Ha of TechCrunch that a broader group of global advertisers will get access to the conversion lift measurement. This means that from now on, all advertisers that have a direct relationship with the social networking giant will be able to conduct studies of their own to find out if their ads were actually effective in bringing about substantial improvements in online and offline sales.
How the new Facebook tool works
According to Smallwood, the primary aim of these tools from Facebook is not to show that “Facebook ads work.” Instead, the objective is to help advertisers spend their money wisely on the platform. The ads might not lead to an immediate sale every time, but they play a major role in the decision-making process of buyers. Success can often be misjudged by marketers, and they may not allocate their resources properly if their entire focus is on the final click.
“What’s really important to the marketers is figuring out what exactly is working, and more importantly what’s not working in their marketing campaign,” said Smallwood.
For measuring the effectiveness of the ad, two separate groups of users are chosen by Facebook, one group that has watched the ads and another that hasn’t, said Smallwood. Then the social networking giant compares the groups with the conversion data from the advertiser, which is generally based on Custom Audiences or an in-store point-of-sale system.