Facebook Taps Datalogix For Ad Tracking

by , Sep 24, 2012, 11:38 AM
  • Comment
  • Recommend (3)
Subscribe to Around the Net In Online Marketing

Facing greater pressure to generate ad revenue, Facebook has tapped data miner Datalogix to track whether users who see product ads on the site end up buying them in stores.

With the tie-up, however, Web watchers think Facebook might be asking for trouble.

Dubbing Datalogix “controversial,” Financial Times writes: “Facebook is gradually wading into new techniques for tracking and using data about users that raise concerns among privacy advocates.”

That said, “the ‘holy grail’ of online measurement has always been tracking to offline sales,” Marketing Land reminds us. “Indeed, 95% of retail sales happen in stores and clicks are often a poor proxy for those in-store activities.”

It’s no surprise, then, that marketers were reportedly clamoring for Facebook to “close the loop” between online purchase intent and offline purchases. "We kept hearing back [from marketers] that we needed to push further and help them do a better job," Brad Smallwood, Facebook's head of measurement and insights, tells FT.

“While such access is great news to marketers, privacy advocates wonder whether using Datalogix violates Facebook’s $9.5 million settlement with the Federal Trade Commission over privacy practices,” Mashable writes. “As part of the deal, Facebook must make it clear to users when the social network shares their information beyond what their privacy settings mandate.”

As such, the partnership “has some privacy advocates worried,” Business Journal writes.

At present, Datalogix has purchasing data from about 70 million U.S. households, which it gathers through loyalty cards and similar programms at more than 1,000 retailers.

By matching email addresses -- or other identifying information associated with those cards against emails or information used to establish Facebook accounts -- Datalogix can track whether consumers eventually buy a product in a store after seeing an ad on Facebook.

Be the first to comment on "Facebook Taps Datalogix For Ad Tracking"

Leave a Comment

Sign in to leave a comment. Don't have an account? Join Now

Recent Around the Net In Online Marketing Articles

  • Cheaper Nook's Getting Web Browsers, Email  

    Nook Simple Touch, Barnes & Noble’s inexpensive line of e-readers, is getting a Web browser and ...

  • Foursquare Gets $41M In Private Equity  

    Giving itself more time to grow and mature as a business, Foursquare just took $41 million ...

  • Google Unveils Google Keep App  

    Confirming earlier reports, Google on Thursday unveiled a new note-taking app named Google Keep. But, despite ...

  • Nexflix Friends Facebook  

    In what Web watchers are calling a long-overdue integration, Netflix has finally tapped Facebook to offer ...

  • Mason Out At Groupon  

    Andrew Mason is out at Groupon. Yes, after another disappointing quarter -- which sent the deal ...

  • Groupon Loses Market Value  

    In the surest sign yet that the once-booming daily-deal space has busted, Groupon lost a quarter ...

  • Foursquare To Take Credit, Debit Cards  

    In conjunction with its check-in deals program, Foursquare will now accept Visa, Mastercard and debit cards. ...

  • Pinterest Valued At $2.5B  

    Social scrapbooking sensation Pinterest has secured $200 million at a valuation of $2.5 billion. “There have ...

  • HP To Adopt Google's Android System  

    Reshaping the mobile landscape, Hewlett-Packard reportedly plans to adopt Google’s Android operating system to run a ...

  • Amazon Creating App Currency  

    Amazon on Tuesday unveiled a virtual currency for Kindle Fire owners to purchase apps and games, ...

» Around the Net In Online Marketing Archives