Facebook Inc(NASDAQ:FB) is now tracking consumer
behavior with the help of a data mining firm to portray to marketers that
consumers are purchasing products advertised on the social network. Data from
70 million U.S.
households has been bought from Datalogix, which accumulates the information
from loyalty cards and programs from more than 1,000 retailers. A Facebook
account is created by matching emails and data from those cards and programs
with emails and information needed for an account. This information can be used
to track if a consumer has bought an item after seeing its ad on the site.
45 campaigns have been monitored, according to
Brad Smallwood, Facebook’s head of measurement and insights. A dollar spent on
Facebook has given sales of $3 as per the results of 70% of those campaigns.
Due to enhanced features offered to marketers, brands need not wait for
Facebook users to “Like” the brands, in order to advertise a particular
product.
Facebook has recently entered into a $9.5 million
settlement with the Federal Trade Commission regarding privacy issues. Users
need to be intimated if their information is being used and their approval is
required before any details can actually be used. This tracking method has once
again raised questions about the privacy of users. However, Facebook has
reassured that individual user data is not compromised and the privacy of users
will not be hampered as this is just a method for tracking consumer behavior in
order to know more about their preferences.
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