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

Lesotho Faces New Round of Violence, Political Crisis

Brutal killing of military officer has sent former leaders back into S. Africa where they're watching anxiously as regional officials head in to try to restore peace More

Video US Diplomat Expects Adoption of Bosnian Massacre Anniversary Resolution

Samantha Power says there's broad consensus about killings in Bosnia's war, but Russia calls resolution 'divisive,' backs UN countermeasure More

UN Report Exposes Widespread Boko Haram Atrocities

Damning report graphically details pattern of vicious, widespread atrocities committed by Islamist militants More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Olympics Construction Scars Sacred Korean Mountaini
X
July 02, 2015 4:10 AM
Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video US Silica Sand Mining Surge Worries Illinois Residents, Businesses

Increased domestic U.S. oil and gas production, thanks to advances known as “fracking,” has created a boom for other industries supporting that extraction. Demand for silica sand, used in fracking, could triple over the next five years. In the Midwest state of Illinois, people living near the mines are worried about how increased silica sand mining will affect their businesses and their health. VOA’s Kane Farabaugh has more in this first of a series of reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Texas Defies Same-Sex Marriage Ruling

Texas state officials have criticized the US Supreme Court decision giving same-sex couples the right to marry nationwide. The attorney general of Texas says last week's decision did not overrule constitutional "rights of religious liberty," and therefore officials performing wedding services can refuse to perform them for same-sex couples if it is against their religious beliefs. Zlatica Hoke reports on the controversy.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.
Video

Video Saudi Leaks Expose ‘Checkbook Diplomacy’ In Battle With Iran

Saudi Arabia’s willingness to wield its oil money on the global diplomatic stage appears to have been laid bare, after the website WikiLeaks published tens of thousands of leaked cables from Riyadh’s Ministry of Foreign Affairs. VOA's Henry Ridgwell reports.
Video

Video In Kenya, Police Said to Shoot First, Ask Questions Later

An organization that documents torture and extrajudicial killings says Kenyan police were responsible for 1,252 shooting deaths in five cities, including Nairobi, between 2009 and 2014, representing 67 percent of all gun deaths in the areas reviewed. Gabe Joselow has more from Nairobi.

VOA Blogs

World Currencies

EUR
USD
0.9012
JPY
USD
122.90
GBP
USD
0.6400
CAD
USD
1.2582
INR
USD
63.438

Rates may not be current.