Conversion Lift to Measure the Impact of Facebook Ads
Advertisers often have a tough time determining the returns on their advertising spend. It is crucial that you know where your advertising dollars are being spent, so that you get the maximum returns on your money. Sadly, most current measurement solutions cannot give a complete picture of how a marketing channel is performing. If you market your services or products, across different channels, devices, and platforms, it is crucial that you know how each channel performs in driving business. But, how do you do this? This is where Facebook’s conversion lift comes in.
Facebook expands the scope of its conversion lift tools
Millions of companies market their products and services on Facebook. In 2013 alone, more than 25 million small businesses were active on Facebook. To help advertisers get the most of out of their advertising dollars, Facebook recently updated its conversion lift measurement platform. The development builds on Facebook’s existing offering for measuring the impact of advertising.
Conversion lift measurement is already available for offline audiences. Until December 2013, only advertisers who had tied up with Facebook measurement partners (third party companies) could use this feature, but Facebook then allowed advertisers to use on Custom Audiences, in an effort to expand the service to more advertisers on Facebook.
How does conversion lift work?
Conversion lift captures the impact of Facebook ads. By measuring online conversion lift, advertisers can accurately determine how their Facebook ads are performing. They can then use this data to take marketing decisions in the future. Here is how it works.
When an advertiser creates a campaign, Facebook develops a randomized test group and control group. The test group consists of people who see the ads and the control group consists of those who don’t. The data from the campaign is shared with Facebook. Facebook’s algorithm compares the conversions from the test group and control group to determine the additional lift gained from running Facebook ads. The client can see the results in Facebook’s Ads Manager.
What is the advantage of measuring conversion lift?
Many advertisers (Open Colleges- Australia, Land of Nod- furniture retailer) have come out in support of the new tool. Facebook is saying that conversion lift measurement is useful, not only for Facebook advertisers, but also other digital marketers. Facebook says that its measurement platform addresses several challenges that marketers currently face. Here is some more information.
Advertisers give too much attention to last click attribution
Last click attribution might make sense in search marketing, but it is not so useful in other digital environments. For instance, they do not consider the value generated when a customer sees ads. Conversion lift measures the impact of ad exposure consistently, and across multiple devices, giving a holistic view of how an ad has performed.
Customers are shifting to mobile
The technology behind the measurement tools that most advertisers are using currently, such as cookies for tracking exposure and predicting behavior, and clicks as proxy, in place of sales are not enough to measure success especially when people are using a number of devices to access the net. Basically, these measurement systems are not very useful for mobile devices.
Current testing methods are not efficient
To date, there is no widely adopted standard that can show how digital advertising directly impacts sales. On the other hand, the concept of conversion lift is based on lift measurement. It is a scientific approach, used by many industries to measure causation.
With this expansion, Facebook is trying to make conversion lift measurement available to more advertisers, from around the world. The company has also said that in time, it will cover more use-cases under conversion lift measurement, and conduct more sophisticated studies to help its clients.