Bluefield Daily Telegraph, Bluefield, WV

Slate

March 25, 2013

Slate: Facebook is making you buy things

(Continued)

PALO ALTO, Calif. —

This isn't conjecture. It's science. It's based on a remarkable set of in-depth studies that Facebook has conducted to show whether and how its users respond to ads on the site. The studies demonstrate that Facebook ads influence purchases and that clicks don't matter. They also shed light on Facebook's long-term business strategy.

The tech world is consumed by the war between Facebook and Google — two huge sites that are constantly battling one another for users, engineers and advertising clients. Yet Facebook's studies suggest that its advertising fortune won't necessarily come at the expense of Google. Instead, the findings show that people react to ads on Facebook in the same way they respond to ads on television. If Facebook's ad business takes off, it might be at the expense of the biggest ad-supported medium in the world.

Last year, Facebook partnered with Datalogix, a firm that records the purchasing patterns of more than 100 million American households. When you stop by the supermarket to buy Tide, Rice-A-Roni and Mountain Dew this evening, there's a good chance you'll hand the cashier a loyalty card to get a discount on your items. That card ties your identity to your purchases — it puts a name on your Tide, Rice-A-Roni and Mountain Dew. After you leave the store, your sales data is sent over to a server maintained by Datalogix, which has agreements with hundreds of major retailers to procure such data.

Over the past few months, Facebook and Datalogix figured out a way to match their data sets in a manner that maintains people's privacy. In other words, Facebook can now tie its users to the stuff they buy at supermarkets. Armed with this data, Facebook began running a series of analyses into the effects of advertising campaigns on its site. If, say, Procter & Gamble ran a Facebook ad for Tide, Facebook could look at Datalogix's data to see whether people who were exposed to the ad tended to purchase more Tide in the weeks after the campaign. (Tide is just an example here; Facebook has conducted more than 60 such studies for major advertisers, and while it was willing to give me general insights about its findings, it wouldn't discuss specific advertisers.)

Text Only
Slate
  • baby-generic.jpg For millennials, out-of-wedlock childbirth is the norm

    This month brings us yet another reminder that, for young Americans, having children outside of marriage is very much "the new normal," as The New York Times once put it.

    June 24, 2014 1 Photo

  • May 2014 was the hottest may in recorded history

    According to new data released this week, May 2014 is officially the warmest May in recorded history.
    Both NASA and the Japan Meteorological Agency have tentatively ranked May at the top of historical measurements, though NASA's numbers are preliminary because crucial information is still missing from China.

    June 20, 2014

  • GM recalls soar past 20 million. Why don't consumers care?

    In case you thought there couldn't possibly be another General Motors recall so soon, you're just not thinking big enough. This week, GM said it was recalling 3.36 million more cars. The cause: an ignition switch defect that could result in keys carrying extra weight (read: a keychain) to slip out of position and shut the vehicle off abruptly during "some jarring event."

    June 18, 2014

  • No one is against devoted dads

    Father's Day is Sunday, which means that it's time for pundits and politicians to scold the American public - with special ire reserved for black members of the American public - for our supposed indifference to the wonder and awe of fatherhood.

    June 12, 2014

  • 74129880-graduates.jpg The fate of the overeducated and underemployed

    According to the Federal Reserve Bank of New York, about 44 percent of young bachelor's degree holders lucky enough to be working are employed in positions that technically don't require their degree. While that number isn't far off from the historical norm — 22-year-olds have always needed a little time to find their professional footing — the fraction stuck scraping bottom in truly low-paying jobs has grown quite a bit since the recession.

    June 4, 2014 1 Photo

  • Skype's real-time language translator

    This week at Re/Code's Code Conference, Microsoft announced a real-time, multilingual translation beta called Skype Translate. The service can mediate between two video chatterers who speak different languages by providing text and audio translation after each person finishes speaking. Currently the service works for English and German, but Microsoft says it will support other languages soon. The beta will be released later this year.

    May 29, 2014

  • New Orleans does away with traditional public schools

    The second-graders paraded to the Dumpster in the rear parking lot, where they chucked boxes of old work sheets, notebooks and other detritus into the trash, emptying their school for good.

    May 29, 2014

  • Amazon sells steroids and stimulants banned in sports

    I have by no means executed a comprehensive search of wares sold by Amazon directly or through its third-party sellers, but I found other prescription drugs for sale without a prescription, including the antibiotic norfloxacin and the muscle relaxant methocarbamol. Both compounds, like clindamycin, warrant careful oversight to avoid complications or endangering public health, such as by breeding antibiotic resistance.

    May 29, 2014

  • 2010-Winter-Olympic-Games-001.jpg Nobody wants to host the Winter Olympics

    If we end up watching slopestyle from the Central Asia steppes in 2022, it will likely be because it's becoming clear that nobody in Europe wants to host these Olympics anymore. Publics may finally be getting wise to the fact that the long-term economic benefits of hosting mega-events like the Olympics or the World Cup are usually negligible at best.

    May 27, 2014 1 Photo

  • Woman sues a New York Hospital for forcing a C-section. Can doctors do that?

    Though Dray's doctor claims he did not force her to have a C-section, her hospital record included a note signed by the hospital's director of maternal and fetal medicine that said, "I have decided to override her refusal to have a C-section."

    May 21, 2014

AP Video
Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US
Business Marquee
College Sports
Pro Sports
Facebook