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SoMoConf: Facebook Digital Engagement is Uncorrelated to Offline Sales

The message from Ted Zagat of Facebook to advertisers is that clicks don’t matter.  In fact, he went on to say that if the objective is offline sales, digital engagement is completely uncorrelated to that sale and optimizing around likes, shares and clicks is actually not serving a client’s best interest.

Ted sighted a few stats to reinforce his point.  One of which came from a study done by Datalogix showing that of the people exposed to an ad on Facebook that went on to make an in-store purchase, 99% did not click on the ad.

Ted also talked about the much publicized 30 million active SMB pages – 1.5 million of which are active monthly advertisers – and the social powerhouse’s efforts to attract more advertisers.  One way they are doing that is by measuring what a consumer’s conversion path is across devices before making online purchases.

Citing one local plumber advertiser, Ted shared some high level results from a recent campaign the advertiser ran.  While plumbers are not the poster child for social media, one local plumber advertiser on Facebook saw an over 30x return on ad spend.

As consumers move back and forth between devices, it is critical for Facebook to offer ad solutions that reach consumers wherever they are accessing facebook, but with a mobile first mindset.  With 152 million people using Facebook in the U.S. each day, 127 million of those are accessing the site via mobile alone.  Furthermore, 22% of all mobile time spent in the U.S. is on Facebook and Instagram.

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