AT&T, others use Facebook's new mobile ad measurement tools for operators
Facebook (NASDAQ:FB) is rolling out Telco Outcome Measurement, a new tool designed to help operators and service providers reconcile in-store sales with ad impressions delivered across the social media platform.
Telco Outcome Management leverages Facebook's mobile reach to aggregate and analyze anonymous information about devices, operating systems and carriers. "From this starting point, we can establish test and control groups to determine how and when an ad on Facebook correlates to certain actions, such as a group of people switching to new handsets, tablets or carriers," Facebook explains. "Based on the correlation between exposure to Facebook ads and resulting sales, Telco Outcome Measurement allows us to help our partners determine Facebook's impact on sales. We can provide our partners with insights regarding ROI, differences in adoption rates of devices or carriers segmented by demographic groups, and the types of ads and frequency of placements that yield the best ROI for carriers and operators."
Telco Outcome Management trials indicate that telecommunications ads delivered via Facebook News Feed on mobile are 9x more effective than ads on delivered on the desktop. "Though clicks can be an effective indicator of interaction with Facebook content, they are less useful for linking digital impressions to in-store sales," the company said. "In fact, our measurement team found that in telecommunications campaigns, more than 90 percent of people who made a purchase after viewing an ad on Facebook had never clicked on that ad."
Facebook's mobile apps automatically identify a user's phone model and wireless provider to optimize services delivered to that device, Facebook Head of Vertical Measurement Brad Smallwood told Reuters. That same data can provide critical customer insights, he added. "We have the ability to understand how the ads actually influenced the device that somebody had, and all that data sits within Facebook," Smallwood explained. Facebook said it does not provide any personal information about individual users.
Facebook is launching Telco Outcome Management in nine international markets, including the United States. Smallwood said three of the four largest U.S. mobile operators are already using the service, but mentioned only AT&T Mobility (NYSE:T) by name.
Facebook's new tool is similar to the "Full Value of Mobile" initiative Google announced earlier this year. Google's "Full Value of Mobile" effort is geared toward educating advertisers on exactly what they can expect to earn when they spend money on mobile advertisements and is part of a wider effort inside of Google to speed the development of its mobile advertising business.
Facebook now boasts 819 million mobile active users, increasing 51 percent over the second quarter of 2012. Mobile daily active users exceed 469 million. According to a recent eMarketer forecast, Facebook will surge from 5.35 percent global mobile ad share in 2012 to 15.8 percent this year, trailing only Google (NASDAQ:GOOG) at 53.2 percent. Last month, the social network announced that mobile ads now generate 41 percent of its total revenues, up from 30 percent in the first quarter of this year.
Last week, Facebook introduced automatic video playback features into users' mobile News Feed. The service will initially support videos from individuals (personal Facebook accounts or verified Pages) and musicians, although Facebook said it plans to add mobile video-based advertising efforts sometime in the future.
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