Spacebook: Marketers Liken Social Net's KPI To A Deep Space Probe
In a revelation suggesting the rationale for advertising on Facebook is more like astronomical science than marketing science, one of the social network’s clients told industry executives and Wall Street analysts that his rationale for budgeting it is akin to deep space exploration.
Calling the revelation "one of the best explanations we have heard to date about how Facebook budgets have been justified," Wall Street analyst Brian Wieser issued an equities research report this morning based on presentations at an undisclosed marketing conference.
"The marketer began with a 'gut' feel that they should be advertising on Facebook, as so many marketers have done," writes Wieser, a senior research analyst with Pivotal Research Group.
"Pointing to NASA's hunt for planets outside of the Solar System by looking for 'wobbles' of light, the marketer performed extensive analytical exercises (employing Big Data analytics consultants) which intended to look for marketing outcome 'wobbles'."
Wieser says those exploratory probes are then rationalized "with extensive testing" to determine how Facebook impacts a "range of metrics."
Wieser says the revelation indicates Facebook’s role in media-mix models is "less about proving cause-and-effect and more about providing confidence that a budgeting choice is 'less wrong' than alternative choices."
Despite the astronomical view of Facebook’s marketing ROI, Wieser says he expects Facebook’s revenues to continue to accelerate as it expands its advertiser base and adds new advertising products.
"Conflicting viewpoints were put forward by some presenters on how to maintain a social media presence," Wieser concludes, adding: "To this end it was once again evident that Facebook remains an experimental property for most marketers."
Recent Online Media Daily Articles
-
Gigya Improves Marketing, Adds 21 Social, Tech Partners May 20, 9:15 a.m.
Social services startup Gigya on Monday is expected to announce the addition of 21 social and ... -
Health/Wellness Shop Diversifies Into Happiness, Launches Platform To Fuel It May 20, 9:06 a.m.
The CementBloc, a spunky New York-based agency specializing in health and wellness marketing, is diversifying into ... -
Yahoo To Buy Tumblr For $1.1 Billion May 19, 7:26 p.m.
The Yahoo board has agreed to acquire popular blogging site Tumblr for $1.1 billion in cash, ... -
Weather.com Develops Real-Time Data Ad Targeting May 17, 5:12 p.m.
Weather.com has begun using audience segmentation data from Lotame to develop real-time ad targeting services based ... -
MetroPCS Drops Challenge To Neutrality Rules May 17, 4:44 p.m.
T-Mobile's newly acquired MetroPCS withdrew its challenge to the Federal Communications Commission's net neutrality rules on ... -
'Geo-Conquesting' Drives Higher Mobile Click Rates May 17, 3:56 p.m.
The practice of conquesting -- running advertising for a brand or product near editorial content about ... -
Cox-Backed, Skyword Raises $6.7 Million To Enhance Content Creation May 17, 3:34 p.m.
Internet services and utilities will rely more on content as the industry matures. Shereta Williams, vice ... -
Ford, Jeep, Chevy Top Digital Auto Brands May 17, 1:09 p.m.
On the digital proving track, Detroit is beating out the competition. Ford, Jeep and Chevrolet were ... -
Choosing Sides: VivaKi Backs comScore; ABC Throws In With Nielsen May 17, 9:52 a.m.
In a battle to control the future of the ad industry’s currency, Nielsen and comScore each ... -
Yahoo Adds Tweets To News Feed May 16, 6:18 p.m.
Yahoo will incorporate selected tweets into the news feed on its redesigned home page through a ...
Be the first to comment on "Spacebook: Marketers Liken Social Net's KPI To A Deep Space Probe"
Leave a Comment