News / Economy

Facebook Broadens Effort to Show Ad Payoff

A smartphone user shows the Facebook application on his phone, May 2, 2013.
A smartphone user shows the Facebook application on his phone, May 2, 2013.
Reuters
Facebook Inc is expanding a service that lets a group of major marketers measure the effectiveness of their ads, in the company's latest move to prove that advertising on the world's largest social network leads to real world sales.
 
The service, which Facebook quietly rolled out in the United States during the past year, analyzes its users' mobile phones and wireless providers to see who has switched handsets or carriers after looking at an ad.
 
Facebook, which says users' personal data are hidden from advertisers, will begin offering the service to telecom industry advertisers in nine other countries this week, with a target of 25 countries by year's end.
 
With 1.15 billion members, Facebook has stepped up efforts over the past year to forge stronger ties with advertisers across different industries and put to rest any skepticism about the payoff that ads on its social network can deliver.
 
In October, Facebook partnered with Datalogix, a data mining firm, to help show marketers of consumer packaged goods how their Facebook campaigns led to in-store retail sales.
 
Telecom is the third largest category of digital brand advertising in the United States, behind retail and consumer packaged goods, according to industry research firm eMarketer.
 
Facebook's mobile apps automatically detect a user's phone model and wireless provider to optimize its online service for them. That data also provides valuable insights.
 
“We have the ability to understand how the ads actually influenced the device that somebody had, and all that data sits within Facebook,” said Brad Smallwood, who oversees Facebook's measurements and insights group.
 
Facebook said three out of the four top U.S. wireless carriers are using the ad measurement service, including AT&T Mobility.
 
Shares of Facebook have climbed more than 70 percent in recent months as the company's revenue growth has accelerated, thanks in large part to the popularity of new mobile ads that appear in users' newsfeeds.
 
Mobile ads for telecom industry marketers are seven times more effective than the ads Facebook displays on personal computers, the company said.
 
Services and studies that demonstrate a marketer's return on investment reflect the “maturing” of Facebook's advertising sales operations, said Pivotal Research Group analyst Brian Wieser.
 
“Having more analyzes and case studies is helpful in the sales process,” he said. “The average advertiser wants to spend money on Facebook; they just have to justify it.”
 
A recent survey by industry magazine Advertising Age and RBC Capital Markets found that 43 percent of respondents believed their return on investment from Facebook ads had “dramatically” or “somewhat” improved over the last six months.

You May Like

Photogallery US to Send 3,000 Troops to Liberia in Expanded Ebola Effort

At US Centers for Disease Control and Prevention in Atlanta, Obama is to announce troop deployment, other details of US plans to fight Ebola outbreak More

China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7735
JPY
USD
107.03
GBP
USD
0.6155
CAD
USD
1.1011
INR
USD
60.954

Rates may not be current.