A recent Mashable article regarding Facebook’s new ability to ID groups that purchase specific products has some pretty exciting news. According to Brad Smallwood, head of measurement and insights at Facebook, just advertising on Facebook provided a 22% lift in Return on Investment (ROI). This was according to 22 recent Facebook advertising campaigns against information from 70 million consumers.
How does Facebook Offer this Type of ROI?
Facebook is connecting the dots between purchasers and their purchasing habits thanks to their own data and that of their partner, Datalogix. Just in case you don’t know what Datalogix is (I didn’t), they are one of the largest companies that offer integrated database marketing and digital media. Their goal is to leverage audience purchasing information to increase online and offline sales.
Before you delete your Facebook account due to privacy concerns, you should know that Facebook is not identifying your name to corporations. Instead, they are connecting their data with Datalogix’s data in a “double-blind” method. Yes, Facebook can match your ID with information it sources via Datalogix, but Mark is promising to keep that information private. Are you convinced?
What Does This Mean for Facebook Advertisers?
As a small business owner, you’re probably wondering about how this information will benefit you. If this data is correct, and Facebook is able to match purchasing data, you will be able to laser focus your advertising campaigns on powerbuyers, occasional buyers and the occasional purchaser. You’ll also be able to target people who purchase products from your competitors. It’s hard to compete with that offering (think Google Ads).
It’s commonly accepted that approximately 50% of digital ads and TV commercials aren’t seen by their target audience. The new and improved, laser focused Facebook ad has the ability to re-caliber those statistics.
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As a marketer, it’s important to research how and when people purchase your products. What are their purchasing habits? What else do they purchase? Who are your competitors? Pairing your findings with your Facebook advertising strategy will vastly improve your results. You’re marketing budget will also be much more effective and efficient. It’s also important to keep up to date on Facebook updates including their updated newsfeed and how to personalize your Facebook settings and applications.
How often do you use Facebook for marketing now? If you’re not a big Facebook Ad fan, will you consider using them now? Why or why not? I look forward to hearing your comments below.