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How in the world does this satisfy the advertisers? They send the personal identifying details of each customer to Google/FB, and then Google/FB tells them "oh

How in the world does this satisfy the advertisers? They send the personal identifying details of each customer to Google/FB, and then Google/FB tells them "oh yeah, that guy totally saw an ad"? The ad giants would never lie about such a thing... they will just fix all of the bugs that under report and just not have the time to get to all of those pesky over-reporting bugs.

marketingtech 5y ago
It doesn't. For the ad platforms, this lets them optimize their ads for better performance when they know which user profiles converted. For advertisers, it's used for directional guidance on the platform, e.g. ad campaign A converts at 3x the rate of ad campaign B. The famous quote in the industry is "Half the money I spend on advertising is wasted; the trouble is I don't know which half." This method gives you a better idea of which money is wasted, at least compared to something like a TV or a print ad. It gets more complex when you're advertising on multiple channels. For instance, if you see an ad on FB, Google the product, then buy it, both will take credit for a conversion even though your business only had one sale. There are more scientific methods for modeling advertising results from multiple channels [1], that leverage control groups (say you run a Google ad in New York and a TV ad in California and monitor which market sees a bigger spike in sales). [1] https://en.wikipedia.org/wiki/Marketing_mix_modeling https://en.wikipedia.org/wiki/Marketing_mix_modeling
marcinzm 5y ago
An advertiser knows exactly how many clicks and revenue they get from facebook or google campaigns (the click url includes that as query params). Down to the campaign level. That's not what this is about. This is about Facebook and Google being able to give even more detailed information on that revenue (ie: predicted view attribution, revenue by product shown, revenue by search term, etc.) and do even better automated targeting on those campaigns.

marketingtech 5y ago

It doesn't. For the ad platforms, this lets them optimize their ads for better performance when they know which user profiles converted. For advertisers, it's used for directional guidance on the platform, e.g. ad campaign A converts at 3x the rate of ad campaign B. The famous quote in the industry is "Half the money I spend on advertising is wasted; the trouble is I don't know which half." This method gives you a better idea of which money is wasted, at least compared to something like a TV or a print ad. It gets more complex when you're advertising on multiple channels. For instance, if you see an ad on FB, Google the product, then buy it, both will take credit for a conversion even though your business only had one sale. There are more scientific methods for modeling advertising results from multiple channels [1], that leverage control groups (say you run a Google ad in New York and a TV ad in California and monitor which market sees a bigger spike in sales). [1] https://en.wikipedia.org/wiki/Marketing_mix_modeling https://en.wikipedia.org/wiki/Marketing_mix_modeling

marcinzm 5y ago

An advertiser knows exactly how many clicks and revenue they get from facebook or google campaigns (the click url includes that as query params). Down to the campaign level. That's not what this is about. This is about Facebook and Google being able to give even more detailed information on that revenue (ie: predicted view attribution, revenue by product shown, revenue by search term, etc.) and do even better automated targeting on those campaigns.