Measuring Success on Facebook

Measuring success on Facebook

Page 1 Facebook: Building Essential Connections

Measuring success on Facebook

Businesses will be better in a connected world and Facebook believes in demonstrating the value that

your business creates by measuring the results that matter.

Measurement standards for a connected world

As new media platforms emerge, the measurement standards that marketers rely on must also evolve.

TV advertising relies on GRPs to assess reach and frequency, and early online advertising was confined

to analyzing clickthrough rates. However, Nielsen released a paper in October 2011 demonstrating that

CTR is problematic for online marketers because it doesn't correlate to sales, nor to changes in ad

recall, message awareness or purchase intent.¹

Facebook is working to create measurement standards that enable businesses to measure meaningful

success and allow for cross-platform comparison.

We focus measurement on four areas: Reach, Brand Resonance, Reaction and Consumer Insights.

Reach

Users share their real identities on Facebook and brands can therefore understand the demographic

profiles of the audiences they reach on Facebook. Given this opportunity, Nielsen launched Nielsen

Online Campaign Ratings (OCR), with Facebook as one of their data providers. OCR makes it possible to:

* Assess the accuracy of online campaigns in delivering advertisements to the intended audience

* Provide a consistent set of metrics that allow marketers to measure audiences across online and television with a GRP comparable metric

* Measure reach for any size of campaign, running on any website, for any duration

1 Nielsen, "Beyond Clicks and Impressions: Examining the Relationship Between Online Advertising and

Brand Building", October 2011

Source: Nielsen Brand Effect, October 2011

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Source: Nielsen Brand Effect, October 2011

1Measuring success on Facebook

Page 2 Facebook: Building Essential Connections

According to a Nielsen OCR study, for narrow targeting Facebook reaches its intended audience 90% of

the time versus an online industry standard of 35% and an American Idol average of 11%. When using

broad targeting, Facebook reaches its intended audience 95% of the time versus an online industry

average of 72% of the time and an American Idol average of 55%.

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While OCR allows you to measure reach across media, our Page Insights product allows you to view

your reach on Facebook. Page Insights allows you to see:

* The breakdown of paid, organic and viral reach on your Page

* Engagement, measured by the number of people talking about your Page

* The relationship between reach, engagement and people talking about your content for each piece of

content you have posted

2 Nielsen, "Reaching the Right Audiences Online", October 2011

Sample report for brand awareness campaign on Facebook > Target: Female 25+

Source: Sample OCR report, October 2011Measuring success on Facebook

Page 3 Facebook: Building Essential Connections

Brand Resonance

Facebook also allows brands to assess whether they are moving desired brand perceptions. Common

brand resonance goals that businesses can measure on Facebook include:

* How awareness increased for a new product

* Whether a marketing message resonated with its target audience

* What brand perceptions your fan base holds

* How a desired perception has changed over time

The Nielsen Brand Effect product enables businesses to run opt-in polls to assess how advertising

campaigns performed at influencing metrics like brand recall, message awareness and purchase

consideration. Brand tracking polls allow you to measure desired attributes over time.

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Nielsen Brand Effect has shown that