Click-throughs
on online advertisements are meaningless, asurvey done on Facebook has found.
In a survey
done jointly with Datalogix, Facebook Inc(NASDAQ:FB) found that about 99
percent of sales generated from online branding ad campaigns were from people
who saw but did not interact with the ads, according to blog post it made on
the survey.
The social
network's contention is that it is the impression that the ads make on the
people that translate into sales and not necessarily the click-throughs.
The finding
is “proof that it is the delivery of the marketing message to the right
consumer, not the click, that creates real value for brand advertisers,” the
company said.
This places
online ads on par with traditional ads, either on television or in print, where
interaction with the ads is non-existent but the ads have the capability to
leave a powerful impression on the viewers.
Facebook's
head of measurement and insights, Brad Smallwood, talked about the findings of
the survey at a conference on advertising in New York.
According to
the survey, brand campaigns that maximized reach had, on average, 70 percent
higher return on investment. Those that reallocated high frequency impressions
to folks seeing too few impressions would notice a 40 percent uptick in return
on investment, Facebook and Datalogix found.
Smallwood
said that "online marketers who maximize the reach of and nail down the
right frequency for their messages will significantly improve their return on
investment."
Venture Beat
commented that "the findings are extremely favourable for Facebook, which
is often criticized for low click-through rates."
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