Viewing online ads drives buyers

Facebook has rewritten the online advertising rulebook by claiming that consumers are just as likely to make a purchase by simply viewing an internet ad – even if they do not click through on it.
The company backed up its claim by showing data collected from its partnership with loyalty-card tracker Datalogix, which likened the online ad experience to viewing a TV ad in terms of ‘reach’.
Speaking at the US IAB’s MIXX conference in New York, Facebook head of measurement and insights Brad Smallwood 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.”
Facebook studied more than 50 digital campaigns conducted using Datalogix’s data. Overall, it showed that 99% of sales that were generated from branding campaigns run on Facebook came from people that viewed an ad but did not click on it.
However, the effectiveness of the advertisements depends on the frequency with which ads are shown. “In our view, this is a win-win situation for marketers and for you,” claimed Smallwood.
Earlier this year, the UK IAB revealed online advertising spend had hit nearly £5bn in the UK during 2011 – its biggest increase in five years – as brand owners boosted their use of video ads and social media.
Among the fastest growing areas, online video ads doubled in spend in the year to £109m and have now grown eight-fold since 2008. Spending on social media platforms such as Facebook, YouTube and LinkedIn was up 75% to £240m.

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