Facebook To Develop Return On Investment Metrics


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Facebook To Develop Return On Investment Metrics


Feb 8, 2010 by Mark Maier



Facebook plans to add a conversion tracking tool to its suite of advertising products based on demand from the marketplace. The platform will allow marketers to track clicks through conversion, Brian Boland, manager of direct response solutions for Facebook, told OMMA Social attendees in San Francisco on Tuesday.

The conversion tracking tool being tested by a "handful" of Facebook advertisers doesn't have a launch date, but Boland believes it should become available sometime before the end of March. A JavaScript snippet will go into the Web page. Marketers will have an option to set up multiple tags to track numerous conversions.

Reports will provide a list of tracked conversions and the impressions and the clicks that led to each. The feature will help marketers build out messages as the campaign expands into a variety of pieces.

Conversion tracking aims to complement Facebook Connect, a tool that allows advertisers to target fans of brands, as well as friends of the connected fans. The Facebook Connect tool reports back on everything from demographics to interests listed in Facebook profiles. Ads connecting to Facebook Connect tie in social context, such as the person's name.

Boland also served up advice on how to calculate a cost-per-fan metric to determine the campaigns return on investment (ROI). Not only the cost to acquire a fan, but the fan's worth. "Some businesses have looked at it as the depth in which they have the community engaged and look at the downstream effects," he says, pointing to Starbucks and Threadless as two examples."

This is great news for properties looking to capitalize on the Facebook audience they have developed, start managing campaigns for their clients and integrating it back to a profit center with growth potential.


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