Facebook's (FB) Sandberg Dispels Ad Myths, Working on Google-Killer Ad Network
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Facebook (Nasdaq: FB) wants advertisers to take everything they know about Internet ads and throw it out the window.
Sheryl Sandberg spoke with CNBC earlier Monday morning, discussing topics like the Company's IPO and ad revenue. Sandberg said the the new mobile app is "boosting engagement" more than the desktop service, with mobile users about 20 percent more likely return to the website on any given day. Key to the engagement is Facebook's "promotional posts," which draws about eight-times the activity as the same post made on a desktop platform.
Though advertisement on Facebook as a whole has gotten some bad press, Sandberg said that real-world numbers would dispute that ideology. She noted that 60 studies Facebook did over the last year conclude that 70 percent of ads showed a return of three times ad spend and 49 percent were greater than five percent.
Facebook also has the capacity to do "very narrow" ad targeting. An example she gave was a 90 percent accuracy of reaching the female demographic between the ages of 18 to 28. That compares with the industry average at 35 percent.
Sandberg noted that Facebook is also testing out an ad network which could compete with the likes of Google, Inc. (Nasdaq: GOOG).
Separately, Reuters noted today that Facebook is aiming to make advertisers forget the whole "clicks equals sales" way of thinking. In a recent study with Datalogix, Facebook said that under 1 percent of in-store sales were tied to Facebook ads that users clicked. Facebook can now give brand advertisers feedback on actual in-store sales generated from campaigns, instead of just reporting on click counts.
Again, the Datalogix study aims to put Facebook users in a hopper and filter them down to identify the target audience and most effective marketing campaign.
Shares of Facebook are higher Monday, up 2.7 percent on the session.
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Sheryl Sandberg spoke with CNBC earlier Monday morning, discussing topics like the Company's IPO and ad revenue. Sandberg said the the new mobile app is "boosting engagement" more than the desktop service, with mobile users about 20 percent more likely return to the website on any given day. Key to the engagement is Facebook's "promotional posts," which draws about eight-times the activity as the same post made on a desktop platform.
Though advertisement on Facebook as a whole has gotten some bad press, Sandberg said that real-world numbers would dispute that ideology. She noted that 60 studies Facebook did over the last year conclude that 70 percent of ads showed a return of three times ad spend and 49 percent were greater than five percent.
Facebook also has the capacity to do "very narrow" ad targeting. An example she gave was a 90 percent accuracy of reaching the female demographic between the ages of 18 to 28. That compares with the industry average at 35 percent.
Sandberg noted that Facebook is also testing out an ad network which could compete with the likes of Google, Inc. (Nasdaq: GOOG).
Separately, Reuters noted today that Facebook is aiming to make advertisers forget the whole "clicks equals sales" way of thinking. In a recent study with Datalogix, Facebook said that under 1 percent of in-store sales were tied to Facebook ads that users clicked. Facebook can now give brand advertisers feedback on actual in-store sales generated from campaigns, instead of just reporting on click counts.
Again, the Datalogix study aims to put Facebook users in a hopper and filter them down to identify the target audience and most effective marketing campaign.
Shares of Facebook are higher Monday, up 2.7 percent on the session.
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