Facebook has announced that advertisers on the site gain new exposure simply from users seeing their advert and not only from those who opt to click on an advert.
Brad Smallwood from Facebook sent a press release through the Interactive Advertising Bureaus MIXX Conference stating that new data from the company has found that people are interested in products and persuaded to make purchases by simply seeing an advert and that they did not need to click on the advert to change their opinion.
This way of targeting customers is known as “reach” and is already well known in television and print advertising where readers and viewers simply have to see an advert to e influenced by it.
Brad Smallwood from Facebook said: “While these conclusions might seem familiar to traditional marketers who use TV, they represent a substantial shift from the focus on click optimisation that is more typical of digital campaign planning.”
The Datalogix data looked at more than 50 campaigns on Facebook and found that a massive 99 percent of sales that came from these campaigns came from people viewing an advert on Facebook and not from people who had clicked on that advert.
To make an advert work though you need to ensure that the frequency of the advert is correct to ensure that users see it at the right time said Facebook.
The data about advertisers was gained by Facebook through their controversial partnership with Datalogix.
Datalogix collects information about what consumers are buying by tracking their loyalty cards. By using this information Datalogix is able to match information about what consumers like to buy to the adverts that appear on Facebook.
Facebook maintains that this system of targeting customers does not impinge on their promise not to pass on personal information to other parties but there have been those who have said that this move is very close to the fine line drawn by Facebook.
The partnership between Facebook and Datalogix may be working for advertisers but the Center for Digital Democracy and the Electronic Privacy Information Center have both written to the US Federal Trade Commission to ask for an investigation into the partnership and to see what implications it could possibly have on the privacy of users.
Currently Facebook does not see any of the purchase data that is collected by Datalogix while Datalogix is not able to receive any information from Facebook users profiles.
Facebook have also announced further details of their partnership with Datalogix within the Facebook Exchange, a system that allows any advertisers to be able to bid on advertisements shown on Facebook in real time.
Facebook is a mine of information for advertisers with campaigns being able to be targeted to specific groups and people but the balance between business and privacy remains a difficult one to maintain.