Defining Facebook Ad Effectiveness

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By Jeremy Morris, Associate Editor, US Daily Review.

Global digital companies Resolution Media (http://www.resolutionmedia.com/) and Kenshoo (http://www.Kenshoo.com/) published a new report today that details extensive research on Facebook ads and provides actionable tips for advertisers seeking to improve the performance of their social media campaigns.

“Exposure Rate,” a new metric to measure targeted engagement on Facebook, takes center stage in this report, based on a year-long study that analyzed global data spanning 65 billion Facebook ad impressions and 20 million Facebook ad clicks. The findings represent a wide range of brands and categories including entertainment, finance, retail, and insurance, among others.

Key highlights of the report include:

A new metric to measure engagement on Facebook – Exposure Rate – which looks at unique impressions in the context of desired target audience actually reached
The ideal Frequency Rate for ads across Facebook platforms – once a user has seen the ad seven times, there is a dramatic drop in engagement
How the High Exposure/Low Frequency combination translates to higher rates of conversion
Performance models for the entire Facebook ad portfolio, and which types are most likely to drive High Exposure/Low Frequency rates – such as Sponsored Stories.
Bidding and targeting strategies that support High Exposure/Low Frequency rates to deliver higher ROI

“Social media has quickly become one of the preferred channels for brands, and when done right, can foster meaningful relationships between brands and consumers in ways that were never before possible,” says Alan Osetek, president of Resolution Media. “The purpose of this study was to define what ‘doing it right’ means in terms of measureable actions and outcomes, and giving marketers a model for demonstrating effectiveness.”

Sivan Metzger, general manager of Kenshoo Social adds, “With new channels and ad formats come new tracking capabilities. And with new tracking capabilities come new data points. With new data points come new insights. And with new insights come new key performance indicators. This study is the first in a series from Kenshoo and Resolution Media to surface KPIs and help brands define a new measurement paradigm for improved social media investments.”

The complete report, entitled Social Media Insights Part 1: Metrics That Matter, can be downloaded at www.ResolutionMedia.com/white-papers/SocialMediaInsights or www.Kenshoo.com/SocialMediaInsights.