71–80 of 80 posts
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Return on investment for advertising is very simple: net present average customer lifetime value acquired per unit of advertising cost If it's over unity, you're making money with advertising, if it's not, you're wasting money on advertising or need to increase your CLTV or decrease your discount rate.
How do you measure this? Please be specific.
How Facebook determines ad placement in news feeds: > Millions of auctions take place every minute as users across Facebook load their feeds. ... The algorithm is constantly learning, using past results to inform how it weighs bids in the next auction. The intent, Facebook says, is to maximize value for everybody: to pair the advertiser with its likeliest customers, and to show ads that users want to see . And, of co…
I wonder where we'd be today if all this effort was focused on something like automatic cars. Instead of spam.
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I wonder where we'd be today if all this effort was focused on something like automatic cars. Instead of spam.
"The best minds of my generation are thinking about how to make people click ads" - original FB data scientist
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"The best minds of my generation are thinking about how to make people click ads" - original FB data scientist
Because it is one of the few sectors where you can be a little creative and not obey the rules set by corrupted bureaucrats decades ago
How Facebook determines ad placement in news feeds: > Millions of auctions take place every minute as users across Facebook load their feeds. ... The algorithm is constantly learning, using past results to inform how it weighs bids in the next auction. The intent, Facebook says, is to maximize value for everybody: to pair the advertiser with its likeliest customers, and to show ads that users want to see . And, of co…
I wonder where we'd be today if all this effort was focused on something like automatic cars. Instead of spam.
I still wish I were doing something that actually bettered the world, but I have bills to pay.
Then again, maybe ensuring people graduate in debt is a great way to ensure we as a society do what folks with cash want us to instead of what we feel we ought to be doing.
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Return on investment for advertising is very simple: net present average customer lifetime value acquired per unit of advertising cost If it's over unity, you're making money with advertising, if it's not, you're wasting money on advertising or need to increase your CLTV or decrease your discount rate.
How do you measure this? Please be specific.
You put a cookie on their machine when they hit your website, tracking where they came from, and exactly how much you paid for that visit (because FB will give you which cohort they came from).
Then you track that to a sale, and you can determine how much you made from them.
If it is a single sale, then that's basically it (obviously you track return visitors and amortize the cost of them against that too).
If it is a SAAS, then customer value calculation is a little more complicated (you record how long people stay with you etc).
Most ecommerce platforms or marketing platforms have this setup with a click of a button. Here's a link to KissMetric's page on this: https://blog.kissmetrics.com/customer-acquisition-cost/
A16Z included this on their metrics post: https://a16z.com/2015/08/21/16-metrics/
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OK, so how is the success of that funnel measured vis-a-vis other promotional channels? And are you able to demonstrate definitively that a visitor from FB concluded a sale? If so, how?
OK, so how is the success of that funnel measured vis-a-vis other promotional channels? It's trivial easy to add a tracking id to this (in-fact I think it is on by default) And are you able to demonstrate definitively that a visitor from FB concluded a sale? If so, how? I think people are a little confused about if you are trolling or you genuinely don't know. Anyway, https://developers.facebook.com/docs/facebook-pix…
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And yet, advertisers still have no meaningful ROI, because it's never in the platform's interest to overachieve on this count. And, users are still very much annoyed by distracting, irrelevant, or overly-targeted ads.
> And, users are still very much annoyed by distracting, irrelevant, or overly-targeted ads. How would you know, if only users who are actually annoyed are vocal about this? I, for once, mostly see ads from the companies which I am already a happy and enthusiast customer of, for new versions of products that I enjoy. I even follow the industry news to know about new versions of these products and their reviews - and…
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How do you measure this? Please be specific.
Not the OP, but... You put a cookie on their machine when they hit your website, tracking where they came from, and exactly how much you paid for that visit (because FB will give you which cohort they came from). Then you track that to a sale, and you can determine how much you made from them. If it is a single sale, then that's basically it (obviously you track return visitors and amortize the cost of them against t…
Earlier quoted context omitted.
OK, so how is the success of that funnel measured vis-a-vis other promotional channels? It's trivial easy to add a tracking id to this (in-fact I think it is on by default) And are you able to demonstrate definitively that a visitor from FB concluded a sale? If so, how? I think people are a little confused about if you are trolling or you genuinely don't know. Anyway, https://developers.facebook.com/docs/facebook-pix…
FWIW, I am not trolling. FB domains are deliberately blocked via my hosts file, and my business has nothing to do with consumer ads. I am just a skeptic of intertuption advertising effectiveness in general, and curious to see how rigorous the defense of FB advertising will be. I am still not convinced that click tracking is effective, but I’m willing to be wrong.