Monday, October 1, 2012

Facebook Inc (NASDAQ:FB) to try and convince brand advertisers to not lose faith

In order to soothe the hassled nerves of advertisers who are claiming that they are not getting effective results from adverts on Facebook Inc(NASDAQ:FB), the social networking site is ready to provide detailed data to the brand advertisers, in order to convince them of the opposite. The site has been saying that the “click” does not provide complete knowledge of effectiveness of the adverts, and more detailed data would be necessary before judgments are passed. The site said that big-brands should stop looking for results through clicks, and they should, instead, concentrate their energies of effective techniques of advertising.

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Facebook has been going through a particularly rough time, what with General Motors pulling out of advertising on the site just a few days before the Initial Public Offering of Facebook in May. She shares have also gone down, and advertisers, which are the main source of income for the site, are questioning the effectiveness of adverts on the site.

In order to prove their theory that less than one percent of actual sales can be judged on the basis of clicks, which is tied to brand advertising, Facebook is going to tie up with Datalogix to prove to the advertisers, that just the “click” should not be the basis of judgment. Datalogix is a firm which deals with data mining, specializing in real world retail sales.

The findings will be presented at one of the biggest symposiums for advertising agencies, by Brad Smallwood, in New York on Monday. Smallwood, who is the head of measurement and insights in Facebook, said that it is unfortunate that the click has become the be-all and end-all of the parameter of advertising success. He added, however, that for brand advertisers, the click was not an adequate means of judging how successful the ad campaigns really are.

Datalogix will use the information provided by Facebook, about its users, so that the company can co-relate that information with actual sales, and come up with more relevant and insightful results. However, this has raised privacy concerns, and many people have been demanding that the site should take permission from the users before giving their personal data to Datalogix.

Shares of FB extended gain in Monday’s session and rose another 1.52% after surging 6.60% in Friday’s session.

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