Ads on Facebook are cheaper and more valuable than those placed on other online platforms, according to one company whose software analyzes advertising data.
"Probably the most shocking statistic is that ad campaigns with Facebook presence in its midst sell about 24 percent more products that those without," said David Jakubowski, CEO of Aggregate Knowledge on "Big Data Download." "The answer to why that is is that it generates more customer exposure than just about any other medium you can find. In fact, we see campaigns that don't market with Facebook are actually missing out," Jakubowski said.
Using Aggregate Knowledge’s software and algorithms, companies can use their own data to track where their ads are being viewed, who's viewing them and where those viewers are. By adding data from outside sources like credit card data and Nielsen ratings, companies can get a better view of who they're advertising to. But meanwhile they're leaving out potential customers that don't often use Facebook.
Based on the cost to advertise on Facebook, as well as the sheer number of ads on the social network, Aggregate Knowledge estimates that it costs about 68 percent less to acquire a new customer than it would on another website or portal and according to its research, telecom companies, retailers, financial firms and automakers are benefiting from Facebook ads.
Of course, companies that advertise on Facebook are swimming in data, and there's no single answer or piece of software that guarantees that companies will be able to leverage it to the best of their ability.
"Facebook sits on more data and more users. So if you're not marketing on Facebook, you're missing out," Jakubowski said. "But Facebook, as big as it is, isn't a good sledgehammer. It's not just a throw your money at it kind of a thing. You have to use the data that it gives you," Jakubowski added.
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