“Today at IAB MIXX, Brad Smallwood, Facebook’s Head of Measurement and Insights, discussed findings from a study conducted in partnership with Datalogix—using a new tool that connects ad exposure (seeing a brand’s ad) on Facebook with in-store purchases (buying the brand’s product).”
After analyzing 50 digital campaigns, they came up with the following key conclusions. [Emphasis in italics is ours.]
- Impressions create value. 99 percent of sales generated from online branding ad campaigns were from people that saw, but did not interact with, ads— proof that it is the delivery of the marketing message to the right consumer, not the click, that creates real value for brand advertisers.
- Reach drives revenue for online brand marketers. This is a concept very familiar to TV marketers, who often start with a reach objective—but until now hadn’t been proven for online. When applied to digital brand campaigns, the study demonstrated that campaigns that maximized reach had on average a 70 percent higher return-on-investment.
- Finding the right message frequency is key. The study revealed that for online brand campaigns, if you reallocated high frequency impressions to people seeing too few impressions, you would see a 40 percent increase in ROI with the same budget. What this means is that for every online campaign there is a “sweetspot” of effective frequency that maximizes return on investment, and that the DataLogix tool can help marketers empirically isolate that sweetspot for each brand and campaign.
Takeaway: If you’re frustrated because you are not seeing a direct, instant correlation between reaching people and getting them to buy your stuff, you’re not alone. Show your stuff frequently enough to the right people and you will start to reap the value of reach.