Facebook Introduces New Way to Track Ad Performance


Facebook is now to track ad performance which the company feels is more accurate than the traditional click-through rate.

Traditionally, click-through rate, which is defined as the number of clicks on an ad divided by the number of appearance the ads make, has been the popular way to measure the success of a campaign.

Facebook has challenged this idea for long time now

Way back in 2012, the company demonstrated that only a correlation of 0.07% exists between a high click-through rate and actual sales.

Facebook tracks what they call a conversion lift which is the sales boost generated by the users by placing an ad in their stream. Advertisers need to sign up for a free research study by Facebook. In each test, a test group and a research group was formed.

Test group members are fed with advertisements in their feeds while control group members saw nothing such. Facebook monitors the behaviour of each group and check which group buys the products more and whether they prefer online or physical stores for their purchases. The difference between the figures is defined as the conversion lift and Facebook claims that this is a much better way to judge the success of any campaign.

Facebook is not using eye tracking technology, although the company is concerned about how the viewers watch an ad. This is a very refined technology which can tell us exactly where the users are looking at. Google user extensive eye tracking to judge how the Google search will look on the tablets. However, even when they are not using this technology, the benefits of social media marketing is becoming more evident every day.

If the businesses can know the exact financial data of how the advertisement is helping the business, they will be prone to buy more ad space and spend more on Facebook campaign. What more might Facebook want as the company thrives on Ad revenue mostly.

On a parting note, the revenue saw a 64 percent year to year growth from 2013 to 2014 and stood at nearly 3 billion dollars. This new tool will surely help the trend to catch fire.

1 Comment(s)

  1. Anonymous
    15th May 2017

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