It’s not a new study, but it’s findings about what makes online campaigns effective are still interesting and relevant. From driving retail purchase to overall branding, what drives success? Here’s what Facebook and Datalogix had to say:
- 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.
The takeaway is that clicks don’t matter that much. In another post from CNet, Facebook “says that a majority of sales come from people who see, but don’t necessarily click on, online ads that promote campaigns.”