scientist
drag2share: Which Digital Channels are Most Effective at Customer Acquisition
E-commerce retail sites are acquiring just .18% of their online customers via Facebook and Twitter, according to a study released June 25 by Custora.
The study analyzed Google Analytics data linked to 72 million customers — an online visitor who purchased something — from 86 U.S. online retailers across 14 industries.
(E-commerce sites typically add tags to their links across the Web, in both paid and non-paid placements, in order to track the source of their leads and sales in Google Analytics.)
Organic search continues to grow as a channel, accounting for nearly 17.53% of customers acquired in the first half of 2013, according to the study, led by data scientist Aaron Goodman.
E-mail has more than quadrupled its share of customer acquisition volume over the last four years, making it the fastest-growing among all the channels tracked in the study.
Other search-related channels also performed well.
Social media ranked low as a customer-generation channel. That said, Facebook is showing some potential. In 2009, less than .01% of new online retail customers came from Facebook, compared to .17% so far this year.
Twitter has never accounted for more than .01% of new retail customers during the five-year study. Worse, a Twitter customer’s lifetime value was 23% less than the average across all customer sources.
There is more than one way to interpret Custora’s data.
One could conclude that social! media i s ineffective as an e-commerce customer acquisition tool. But another way to look at it is that online retail sites simply aren’t putting a lot of resources into marketing themselves on social media, and are favoring search and e-mail channels instead.
Also, even if social media still isn’t there yet as a reliable direct source of customers, there’s no way to tell how many customers were in fact influenced by content they saw on social media, and visited retailers’ sites later.
Download the chart and data in Excel.
IBM brings the fight to counterfeiters with nano-sized authentication methods (video)
Source: http://www.engadget.com/2012/12/04/ibm-brings-the-fight-to-counterfeiters-with-nano-sized-authentic/
As counterfeiters continue to up their game, technology’s quest for the ultimate method of proving authenticity goes on. We’ve seen ideas at the nano level before, but IBM thinks its latest research might be so difficult to reverse engineer, that it’s impossible for forgers to reproduce. IBM scientist Dr. Heiko Wolf explains that the basic principle involves using the surface tension of water to orient nanorods on a stamp, which can then be printed onto any surface. These nanorods are so small that gravity alone isn’t enough to place the particles into predetermined patterns, such as corporate logos. IBM’s researchers have also patented a related nano-patterning method that uses fluorescent spheres that can take the color red, blue or green. These then arrange themselves in a completely random order, which is mathematically so difficult to replicate it’s known as PUF (physically uncloanable function). Both methods can be applied to a broad selection of objects, making them ideal candidates for anti-counterfeit detection for everything from diamonds to passports — all that’s needed to verify authenticity is an optical microscope. Don’t get your Picasso out of the vault just yet though, as it’s estimated that it’ll be another five years or so before the technology will find its way to market.
Source: IBM Research
This MIT Startup Figured Out A Way To Code Facial Expressions
Source: http://www.businessinsider.com/this-mit-startup-figured-out-a-way-to-code-facial-expressions-2012-8
Marketers already know way to much about us thanks to online tracking, and now they have yet another powerful way to understand consumers.
MIT startup Affectiva has created a webcam that codes facial expressions and a sensor that measures changes in body temperature. Both could be a huge way for brands to steamline the market research process.
Liz Gannes over at All Things Digital reports that MIT professor Rosalind Picard and research scientist Rana el Kaliouby initially created the technology to “help children with autism understand facial expressions,” but now marketing research companies like WWP Millard Brown and IPG Media Lab primarily use the products. Affectiva just raised $12 million in Series C funding from Kleiner Perkins and Horizon Ventures.
Kaliouby told Gannes that “we have the largest repository of facial responses ever collected in the world,” which is part of its webcam product, the Affdex dashboard.
According to the company site, the “dashboard provides overall emotion scores and real-time, scene-by-scene playback of facial data.” It can also compare the difference ! in emoti onal and facial responses from men and women, and people of different races.
Affectiva’s other product is the Q Sensor, which measures skin conductance — or in other words, how body temperature and sweat glands change over time.
NOW READ: The Incredible Story Of How Target Exposed A Teen Girl’s Pregnancy With Sophisticated Market Research >
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Soda vs Pop Visualized
Source: http://gizmodo.com/5924371/soda-versus-pop-visualized
The route to answering the big questions these days—like, soda or pop?—is to grab a bunch of data from Twitter and analyze it. Which is exactly what Edwin Chen, a data scientist at Twitter, decided to do.
In the map above (click for a larger image) blue is soda, green pop and red coke. Chen explains how he went about the task:
To make this map, I sampled geo-tagged tweets containing the words “soda”, “pop”, or “coke”, performed some state-of-the-art NLP technology to ensure the tweets were soft drink related (e.g., the tweets had to contain “drink soda” or “drink a pop”), and filtered out coke tweets that were specifically about the Coke brand (e.g., Coke Zero).
Perhaps unsurprisingly, the word “soda” is dominant on the coasts, “pop” in the midwest, and “coke” in the southeast. What’s interesting around the world map, however, is seeing that outside the US—particularly in Europe—the word “coke” has penetrated culture in a way that the words “pop” and “soda” haven’t. While that not only shows consumerism is alive and well, it’s also a nice little reminder of the power of Twitter data to not only provide hard numbers, but cultural insight, too. [Edwin Chen via Flowing Data]
Source: http://gizmodo.com/5887555/google-street-view-is-coming-to-the-great-barrier-reef
Australia’s Great Barrier Reef is the largest natural coral formation on Earth and you’ll soon be able to see it in all its glory—from your desk.
The Catlin Seaview Survey, a collaboration between Google, the University of Queensland, and the Caitlin Group, will perform a diagnostic on the reef system’s health via a panoramic underwater photographic and video survey. The program has already taken some preliminary surveys, though the group plans to undertake the projects main component—three surveys begin at 20 points around the reef—in September.
Images will be captured by a 360-degree camera (actually four conveniently positioned fish-eye lens SLR’s) affixed to the front end of an Diver Propulsion Vehicle (DPV) for shallow surveys, and robotic subs for surveys between 30 and 100 meters. The group hopes to also study how and if the migratory behavior of tiger sharks, green turtles and manta rays has been affected by global warming.
Starting today Internet users should be able to access these images via Google Street View and will also be able to watch video of each study section on YouTube. [University of Queensland via New Scientist]
Image: Caitlin Seaview Survey
Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise
Source: http://www.engadget.com/2011/12/09/watson-now-hunting-down-patent-trolls-plans-ken-jennings-elabo/
The Watson supercomputer used its speech recognition, natural language processing, machine learning and data mining abilities to crush puny human Ken Jennings’ dreams of winning at “Jeopardy!”, but now Big Blue has it chasing down medical patent trolls for fun. Incorporating the Strategic IP Insight Platform, IBM has now programmed Watson to scan millions of pharmaceutical patents and biomedical journals to discover, analyze, and record any info pertaining to drug discovery. SIIP can then look for the names of chemical compounds, related diagrams, the company and scientist who invented and works with the compounds and related words to determine a patent’s rightful owner. The SIIP function can also highlight which patents could be targeted for acquisition by trolls looking to control a property via a lawsuit or licensing agreement. Click past the break for a video outlining the project, along with Watson’s announcement of its engagement to “Skynet“.
Continue reading Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise
Watson now hunting down patent trolls, plans Ken Jennings’ elaborate demise originally appeared on Engadget on Fri, 09 Dec 2011 05:20:00 EDT. Please see our terms for use of feeds.
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Stop paying Kim Kardashian $10,000 per tweet – She’s NOT Influential if no one re-tweets
Source: AdAge.com
| Yahoo Scientist Questions ROI of Kardashian’s Sponsored TweetsDuncan Watts Explains His Model for Predicting Value of Influencers on Twitter |
Ad Age Digital Conference
NEW YORK (AdAge.com) — Stop paying Kim Kardashian $10,000 per tweet. That’s the recommendation based on the work of Yahoo’s principal research scientist Duncan Watts, who presented his findings at Advertising Age’s DigitalConference.
“If you recruit enough people who, on average, influence just one other person, you could get a much better return on investment if you aggregated them and altogether paid them a tenth of what Kardashian gets.”
But in looking at influencers, Mr. Watts found that it’s incredibly hard to predict who will be a major factor on Twitter, a conclusion that runs counter to the prevailing wisdom of social epidemics popularized by the book “The Tipping Point.” While he acknowledges there are certain personalities such as Kim Kardashian who can potentially trigger a larger cascade of re-tweets given her large amount of “followers” (“Tipping Point” enthusiasts call her a connector), close studies of social platforms reveal that influence is spread more efficiently and more reliably when done through many-to-many connections, rather than through a few highly connected individuals.
“Most of them will send tweets, and no one else re-tweets,” Mr. Watts said. “A lot of times, not that many people are listening on Twitter.”
More supporting details here: http://www.marketingcharts.com/direct/celeb-twitter-followers-have-low-authority-13297
Celeb Twitter Followers Have Low Authority
While celebrities have high numbers of Twitter followers, those followers usually have minimal reach and influence, according to social media consulting firm Sysomos.
Celebrity Followers Offer More Quantity than Quality
Celebrities seem to have large amounts of followers with low Twitter authority levels (see “About the Data” for more information on how authority levels are determined). Of five celebrities examined, the average follower of President Barack Obama had the highest authority rating on a scale of 0 to 10, 2.4. The most common authority score among Obama’s roughly 4.2 million followers is 1, held by 20%.
Interestingly, the celebrity whose fans had the second-highest authority score of 2.1, pop singer Lady Gaga, had the second-lowest following of about 4.5 million. The most common authority score of followers of all celebrities except Obama was 0.
Actor Ashton Kutcher had the highest number of followers (about 5.1 million), and the third-highest average authority score (1.8). Pop singer Britney Spears had the lowest average follower authority score (1.3) and second-highest number of followers (about 4.8 million).
Celebrities seem to have large amounts of followers with low Twitter authority levels. This could be because they attract everyone from all walks of life. Some people may only be on Twitter to see what their favorite stars have to tweet about. In addition, most celebrity followers tracked by Sysomos had few followers themselves, pushing down their authority scores.
Social Media Heavyweight Followers Have Most Authority
Social media heavyweights, private citizens who have made a name for themselves on Twitter, had the fewest followers but the highest average authority scores for their followers. Following the pattern seen with celebrity tweeters, the social media heavyweight with the fewest followers, Jason Falls (27,195), had the highest average follower authority score (4.8).
Conversely, the two social media heavyweights with the most followers, Chris Brogan (139,693) and Jeremiah Owyang (64,775), tied for the lowest average follower authority score of 4. The most common authority score for all social media heavyweight followers was either 4 or 5.
Online Media Beats Traditional Media
On the whole, the five news/media sources tracked by Sysomos show more variety among their scores than the celebrities or social media heavyweights. However, online media sources attracted fewer followers with higher average authority scores than traditional media sources.
Online media source Read Write Web, with about 1 million followers, had an average follower authority score of 3, which was also its most common follower authority score (19%). This tied online media source Mashable in average authority score, most common authority score and percentage of followers with the most common authority score. Mashable has more followers with about 2 million.
Online media source Tech Crunch ties traditional media source Time.com with an average follower authority of 2.4 and most common follower authority score of 2, at virtually the same percentage. However, Time.com has significantly more total followers (2.1 million) than Tech Crunch (1.4 million).
Traditional media source New York Times has the highest total number of followers (about 2.5 million) and lowest average authority score (2.2). It also has by far the lowest most common authority score of 0 (22%). Not surprisingly, sources that specialize in social media attract users that are more active on Twitter.
Facebook Fans More Valuable Customers
While there is variation in the value of different types of Twitter followers, on the whole Facebook fans of a brand provide more value as customers than non-fans, according to a new study from digital consulting firm Syncapse Corp.
The average value a Facebook fan provides a brand is $136.38, but it can swing to $270.77 in the best case or go down to $0 in the worst. This value is based on Syncapse analysis of five factors per fan: product spending, brand loyalty, propensity to recommend, brand affinity and earned media value.
On average, a Facebook fan participates with a brand 10 times a year and will make one recommendation. Value can differ significantly by individual brand. For example, in the case of Coca- Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In the worse case scenario, a fan is worth $0.
About the Data: Using its social media monitoring and analytics platform, Sysomos looked at the authority rankings of five celebrities, five social media heavyweights and five media organizations. Rankings were based on the kind of Twitter users following these celebrities, social media heavyweights and media organizations. Each Twitter user is assigned an authority ranking between 0 to 10 – with 10 signifying someone with very high reach and influence. This authority ranking is based on the number of followers, following, updates, retweets and several similar measures used by Sysomos.
Another day, another story about some cheap, plastic Wii motion control accessory finding an application outside of gaming. In this case, it’s the balance board, and not only is this device helping stroke victims recover, it’s saving them money, too.
In fact, doctors at the University of Melbourne found that the balance board, normally used for pseudo Yoga or navigating Mii’s down a virtual ski slope, was so sensitive it could very well replace traditional laboratory-grade “force platforms” doctors use to assess a patient’s balance.
When doctors disassembled the board, they found the accelerometers and strain gauges to be of “excellent” quality. “I was shocked given the price: it was an extremely impressive strain gauge set-up,” said lead researcher Ross Clark, in an interview with New Scientist.
Even better, Clark’s team has already published a paper that verifies the Wii balance board is “clinically comparable” to the nearly $18,000 lab force platform. That’s great news for many smaller physio clinics that would otherwise be unable to afford the traditional rig. [New Scientist]
Facebook advertising metrics and benchmarks
Update Jan 2014
Summary
Facebook click-through rates of 0.01 – 0.05% (Facebook CTRs)
Facebook effective CPMs turned out to be $0.01 – $0.19 (Facebook eCPMs)
Facebook average CPCs ranged from $0.05 – $0.25 (Facebook CPCs)
Other social media benchmarks from my experiments (Adwords, StumbleUpon, PayPerPost / Izea) can be found here.
Comparison of click-through rates for search ads versus display ads
As a scientist, I like to run experiments. And I like to make stuff. So my team and I made a few Facebook apps that solved needs that we had (a few samples listed below) and shared them publicly on Facebook to see if they were also useful to other people too.
I beta tested some apps with a few friends by inviting them directly. Then to get it out to a larger number of people, we decided to try Facebook advertising, the much-hyped, holy grail of display advertising on one of the largest and most active social networks.
http://apps.facebook.com/netflixr/
- visual discovery, share, and queue management interface for Netflix
http://apps.facebook.com/musicsamplr/
- visual discovery and sampling interface for music (Amazon backend)
http://apps.facebook.com/phreetings/
- create and send photo or video e-cards by drag and drop (Flickr and YouTube backend)
http://apps.facebook.com/visualfriends/
- visual display of your friends (closest ones have the most recent status updates)
http://apps.facebook.com/myfavethings/
- social commerce – I’ll buy what he bought; things I have, things I want
But what I found was eye-opening to say the least. Despite the potential of social ads where the social actions of your circle of friends could make the ads more targeted, none of the anticipated positive effects were observed. Despite the promise of mass reach, there was not the corresponding attention or clicks. And despite the use of demographics-based targeting, there was no statistically significant difference between different targets nor the control sample, running during the same time period.
What we saw were click-through rates of 0.01 – 0.05% — and the 0.01% often seemed like rounding because they did not report more than 2 decimal places. As a result of these click rates the effective CPMs turned out to be $0.01 – $0.19 and average CPCs ranged from $0.05 – $0.25. I’ve been running these Facebook ads for more than 12 months; and millions of impresisons later, there is no observable improvements to CTRs and thus CPMs and CPCs. But since I set up the campaigns to only pay when there is a click (CPC basis), I can let these run indefinitely because I am getting so few clicks, it’s not even making a dent on my credit card (which I use to pay for the ads).
detail of low click through rates of facebook display ads
Ideas for Facebook
In the spirit of openness, as an advertiser who wants to continue using Facebook advertising, perhaps there are a few things they can do to improve the effectiveness of Facebook display ads.
1. reduce the number of ads per page to 1 – displaying multiple ads artificially depresses click-through rates because users can only click on 1 thing at a time, even if they liked more than one of them. Displaying 3 on a page simply increases the denominator while the numerator does not increase — in the click-through rate equation: clicks / impressions.
2. make ads sharable – in the rare instance a user views an ad, it may or may not be relevant to her, but she may know that it is relevant and timely for a friend. By making ads sharable, she can click and send to a friend, who is very likely to find it useful and valuable, especially having been sent by a friend.
3. let users opt-in to ads in specific topic categories - when users are in the market for specific things, they are more likely to subscribe to pertinent news feeds, offers, etc. related to that topic or category. By giving users more power over what they want to see, it will also give advertisers more targeted and engaged prospects to target.
4. expand search-based advertising – when users search they are looking for something and are open to discovering something they didn’t know to ask for. So ads served up in response to a search is usually a lot more effective than ads served up simply when a page is loaded (display advertising). Facebook can serve display ads based on pertinent search queries.
Earth to Facebook… anyone listening?
By Dr. Augustine Fou. Dr. Fou is Group Chief Digital Officer at Healthcare Consultancy Group a group of agencies within the Omnicom family specializing in pharma and healthcare. He helps clients develop digital marketing programs or improve the efficiency and cost-effectiveness existing campaigns via advanced analytics, social marketing, and digital strategy. You can read more of his writing on digital marketing on this blog and follow him on twitter @acfou.
Revision 6/30/2009: Facebook Click Fraud
Excerpt from TechCrunch: “Click fraud is serious business on the big search engine advertising networks because the bad guys can make serious money. Sign up for an Adsense account and put those ads on parked domain names or wherever. Then all you have to do is start clicking those ads like crazy, using bots or cheap labor.” On Facebook, “advertisers are clicking on competitor ads to drive up their costs and drive down their ROI.”
“So the bad guys just create thousands of fake Facebook accounts with a wide variety of demographic information. This sounds like a lot of work, but it’s highly automated. the going rate was just $10 per 100 accounts if you supply the unique email accounts. Once the accounts are created, they use software to fill out the varied demographic information, and that software also manages all these accounts. The fraudster then logs in to Facebook via these accounts and views the ads that are displayed. The right competitive ads come up and Bingo, the software then clicks them. Facebook rules allow an account to click any advertisement up to six times in a 24 hour period, and all those clicks are charged. All you need is a few accounts to view the ads and then click to the max.”
http://www.techcrunch.com/2009/06/26/facebook-click-fraud-101/
http://www.techcrunch.com/2009/06/21/facebook-admit-click-fraud-problem-says-fix-coming-today/
Despite click fraud, the click through rates are still incredibly low. So if you subtract all the click fraud, is ANY advertiser making ANY money from facebook advertising?
Others have found similarly dismal click through rates from Facebook advertising
Source: http://www.friendswithbenefitsbook.com/2008/04/07/facebook-ad-click-through-rates-are-really-pitiful/
Facebook Ad Click-Through Rates Are Really Pitiful
April 7, 2008 – 5:03 pm
Quite by coincidence, I’ve encountered a few statistics on Facebook’s advertising platform. I thought I’d post links to the results I’ve uncovered, in case anybody is wondering about average CTR rates for Facebook.
First up, Rod Boothby got a click-through rate of 0.01%:
This week, I ran $105 worth of Facebook Fliers. That bought me 52,500 impressions. It looks like the flier bought me about an extra 500 site visits. That’s about $0.21 per hit.
Michael Ferguson ran a bunch of Facebook ads for Kinzin:
Click-through rates are abysmal. I was running the identical ad in about 15 different regions (you need to run them as separate ads to get the stats broken out), getting just over 10M views. Our average clickthrough rate was 0.06% (that’s 1 in 1513, for those counting at home). The best we did anywhere was 0.14%.
He later reports that the conversion rate was “at a pretty reasonable clip” at about 5%. By ‘conversion’, I think he’s meaning people who actually signed up for Kinzin’s free service. All of this stuff is contextual, but if visitors had to lay down money, the conversion rate would be considerably lower.
The folks at Valleywag report similarly dismal numbers:
Media buyers — the agency people who book campaigns — report that the college social network is a truly terrible target. They’re mainly students, with low disposable income, of course; but, beyond that, the users appear to be too busy leaving messages for eachother to show much interest in advertising. Facebook’s members appear indifferent even to movie advertising aimed at their demographic. Clickthrough rates, the percentage of time users click on an ad, average 0.04% — just 400 clicks in every 1m views — according to one report seen by Valleywag.
From AllFacebook:
Fred Wilson has been updating the world about his venture in Facebook advertising over the past week. Today, Fred posted and updated screenshot of his ad campaign’s performance and it doesn’t appear to be too stellar. For one of his campaigns, out of 10,080 impressions there were only 8 clicks. The average cost-per-click for Fred was $0.08 and the average CPM was $0.06. This is a less than stellar performance. This is nothing new though.
And lastly, from a digital student marketing blog in the UK. This would seem like a natural fit for Facebook’s audience:
Our most recent campaign saw 1.4 million page impressions delivered at specific universities – and only a 0.04% clickthrough rate. Ouch.
Click-through rates seem to sit around 0.04%, which is profoundly lame if you ask me. I’m no online advertising expert–it’s not really our thing–but I’ve run a bunch of Google AdWords and other contextual advertising campaigns. We regularly get click-through rates of 3%, and I gather that’s nothing special.
Here’s my theory on Facebook: it’s a silo. People visit the Fun House of Facebook, and conceptually treat it slightly different than the rest of the web. They’re in Facebook, interacting with friends, playing games, sending messages and now chatting on IM. As such, they’re really unmotivated to leave. Who wants to leave the Fun House?
We’ve seen similar results across Facebook. It’s really difficult to drive visitors out of the app and to your own website.
Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
http://twitter.com/acfou
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Published Articles by Dr. Augustine Fou
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- 2013 New Year's Digital Marketing Resolutions
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