An interview with Daniel Slotwiner, the Head of Measurement Solutions Group for Facebook, on measuring impact on Facebook.
“There are a lot of misconceptions about Facebook and data,” Chris Moody eloquently opened the interview with Daniel Slotwiner, Head of Measurement Solutions Group for Facebook. For Daniel’s team, their job is to build tools and methods of analysis to highlight the value of Facebook’s media business. But as Daniel explained, it’s not a win for a brand to measure a brand campaign by the CTR it gets. Instead, he emphasized the importance of working with an advertiser who is defining objectives and setting the right measurement program alongside. The Measurement Solutions Group not only tries to build the tools the industry can use, but also educate and work with them to get the most out of the ecosystem. The hope is that the ecosystem will be self-sufficient.
Last year Facebook announced their partnership with Datalogix, initially for measurement. However, with Datalogix’s comprehensive roster of US households, Facebook realized the impact of the information they could provide to advertisers. Datalogix and Facebook have been able to append data of frequent shoppers with consumer purchase decisions. This has aided in analyzing the impact of Facebook in driving offline sales. With more than 80 campaigns executed with these tools, Facebook can see which segments are responding to the advertising and make smarter campaign. At the end of the day, the value of this data is just to calculate ROI, but rather the scale allows for in-depth analysis and huge learnings for not only Facebook, but also advertisers.
If the unique advantage of Twitter is that everything is public, Facebook’s advantage is knowing who is saying what. The uniqueness of this data is two fold: scale and concept of identity (demographically and geographically). If advertisers can understand the value of this data, they have a fantastic starting point.
It’s hard to argue Facebook isn’t doing a good job of scaling their users. “Obviously we love new users,” David said, and it’s still a huge focus for Facebook, as it expands internationally. And they’re prioritizing serving everyone in the world, especially through segmenting. When it comes to the level of use, Facebook has found light users are more receptive to advertising in comparison to heavy users. As advertisers, understanding this user segmentation can help shape campaigns and execution on the social network. Facebook is intent building these insight back into the advertising systems to help advertisers make better decisions.
Value in Multi-Point Attribution
The world of influencing consumers is only getting more complex. In one sense it’s because there’s so many touch points. Facebook is focused on making sure the measurement systems are keeping pace with the world, but this is virtually impossible. There are a lot of approaches, but Facebook is pretty focused on multi-touch attribution systems to measure. One way they can look into this is through mobile.
Because almost all users access Facebook using mobile, they get to observe a lot and measure they information around mobile usage. This is information Facebook eventually wants to share with the industry. The platform allows for see the different paths to purchases because Facebook has so much visibility into the touch points. Facebook is in a excellent position to observe how many devices people have and how content is distributed across them.
At the end of the day, there’s a lot of data that can be utilized from Facebook. However, Daniel urges the proper use cases of the data. Research, for example is a huge opportunity given the quality of the data. Daniel cautions against the use of the data for its prediction. While a brand may use the discussion online to respond to an emergency or to participate in the conversation, it’s not clear if they should use it as an objective to drive more sales online.