As innovative and influential Facebook is, the company still mostly relies on a technology that’s been around since 1994: display advertising.
Facebook’s display ads get fewer click-throughs than those that run elsewhere, at least according to one researcher. Not surprisingly, Facebook is looking to redefine the technology and de-emphasize click-throughs as a performance metric. In an interview with Mashable, Brad Smallwood, Facebook’s head of measurement and insights (pictured), discussed how the standard metric for online advertising — the click-through — is largely irrelevant to most advertisers, why Facebook is working with Nielsen and why digital media buyers are behind the curve on online ad measurement. Excerpts from the interview appear below:
7- Coca-Cola, AT&T, Others Out to Reinvent Web Measurement: Marketers, Media Cos. Join ANA, IAB, 4As in Pilots of New Impression Rule, Audience Currency, Standard Ad Formats
Online measurement is broken. That, few would dispute. But how to fix it? Three of the biggest advertising trade organizations are banding together with 40 marketers, agencies and publishers to give it another try. They’re launching a new effort dubbed “3MS,” short for “Making Measurement Make Sense,” to create new standards for how digital advertising is measured, bought and sold — aiming to have digital ads measured in ways easily comparable to other media, and creating a level playing field that’s never existed through 16 years of online advertising.
An attempt to overcome incompatible APIs that create hassle for advertisers and others. On Wednesday, it released Mobile Rich Media Ad Interface Definitions (MRAID) for public comment. This proposed standard would let agencies run the same creative across applications from different publishers — as long as the publisher complies with the specification. Today, publishers and application providers often use proprietary, incompatible APIs that force advertisers to re-write the programming behind their ad creative several times for a single campaign.
Nielsen has obtained accreditation from the Media Rating Council for its Online Campaign Ratings system, which uses Facebook data to determine audience ages and gender. The accreditation provides a third-party seal of approval for the system, which aims to help advertisers measure online ad audiences the same way they measure TV ads – using Gross Rating Points, and reach and frequency. The new audience measurement system, unveiled last month, employs Facebook data to determine the age and gender of up to 50 percent of the people seeing web ads, according to a Nielsen representative who spoke with ClickZ News in August.