Lotame Defines Social Media Ad Metrics



by Les Luchter, Thursday, May 1, 2008 7:00 AM ET


 Keys to advertiser success in social media include increased frequency caps, targeting a user’s second and subsequent daily visits, and identifying, isolating and targeting influencers. Those are the metrics revealed in a new white paper from Lotame Solutions, known for its “Crowd Control Technology” designed to help advertisers effectively reach social media users.

Lotame found that advertisers need to generate 10 to 15 impressions to reach regular users of social media sites. Only 65% of visitors clicked an ad when they had seen it less than four times. But another 30% clicked after seeing the ad 15 times. “In other words, our partners would have been able to reach 95% of their audience had the frequency cap been set at 15 rather than four,” the company said.

Lotame also found that while people will log into social networks an average of two or three times a day, their first session is highly focused on such tasks as checking messages and providing updates–so ad response is “practically zero.” Ad responses increase in subsequent sessions, however, so Lotame suggests using engagement data from the first session of the day to “provide relevant ads that generate conversation.” Lotame noted that “traditional metrics have held that no one user should be exposed to the same creative more than seven times in any 24-hour window….Typically this cap is reached with the first session on social media and brands miss out on the opportunities offered at the next user log in….”

Rather than targeting users who simply view particular content, Lotame said advertisers need to isolate the people who drive “conversations” through such activities as commenting, blogging and uploading–and layer that with time spent on the social media site to “identify and target the most engaged users with pinpoint accuracy.”

Lotame’s research was based on 10 brand and performance advertisers campaigns it ran between March 4 and March 18 this year, delivering 63 million impressions and 25,000 clicks.


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