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See the best of Reuters photography. See more | Photo caption China's self-made man Sun Jifa lost his forearms in a dynamite fishing accident and couldn't afford to buy prosthesis, so he and his nephews built their own new arms. Slideshow Photos of the week Our top photos from the past week. Slideshow Facebook's new pitch to brand advertisers: forget about clicks Tweet Share this Email Print Related News Middle East telcos mull alliance in Facebook fight Wed, Sep 26 2012 Exclusive: Facebook to charge merchants to run offers Thu, Sep 20 2012 Why are 5 million kids on Facebook if it doesn't want them? Wed, Sep 19 2012 Tweet, blog, stream and flog fashion on social media catwalk Tue, Sep 18 2012 Benetton's new ads seek "unemployees of the year" Tue, Sep 18 2012 Analysis & Opinion Why doesn’t Mitt Romney contribute to his own campaign? Ad equating jihad with savagery debuts in New York City subway Related Topics Tech » Small Business » Media » Facebook » Related Video Facebook founder's first trip to Russia 10:47am EDT 1 of 2. In this photo illustration, a Facebook logo on a computer screen is seen through glasses held by a woman in Bern in this photo taken May 19, 2012. Facebook Inc., stung by doubts that advertising on the social network delivers enough bang for the buck, is preparing to unveil data to counter its critics and show that ''clicks,'' the current metric of choice, tell only half the story. Credit: Reuters/Thomas Hodel/Files By Alexei Oreskovic SAN FRANCISCO | Mon Oct 1, 2012 12:12pm EDT SAN FRANCISCO (Reuters) - Facebook Inc, stung by doubts that advertising on the social network delivers enough bang for the buck, is preparing to unveil data to counter its critics and show that "clicks," the current metric of choice, tell only half the story. The world's No. 1 social network, embarrassed just days before its IPO when General Motors declared it was pulling the plug on all paid advertising on its network, will argue that big-brand marketers should abandon the industry's obsession with numbers of clicks and focus on more effective advertising techniques. Fewer than 1 percent of in-store sales tied to brand advertising campaigns on Facebook come from people who clicked on an ad, according to a new study that Facebook has conducted through a partnership with Datalogix, a data mining firm that tracks real world retail sales. "We ended up in this world where the click is king," said Brad Smallwood, Facebook's head of measurement and insights, who will present some of Facebook's findings at one of the advertising industry's biggest conferences in New York on Monday. While designing online ads to garner clicks makes sense for certain type of companies - such as e-commerce firms trying to ring-up immediate online sales - clicks are not relevant to brand marketers, Smallwood said. Through its partnership with Datalogix, Facebook says it can now give brand marketers data on the actual in-store sales that their ad campaigns on Facebook have generated - a more useful piece of feedback than total clicks. Datalogix tracks the relationship between ads on Facebook and real-world spending by compiling consumer purchasing information from retail stores and matching it with data about Facebook ad impressions. Facebook's push to provide marketers with more feedback comes as the company's revenue growth slows and the effectiveness of its ads remains a hotly debated topic. Facebook, whose stock by the end of the third quarter was down 43 percent since its May initial public offering, has unveiled a variety of new advertising capabilities in recent months, including its first ads designed to be viewed on smartpthones. "Advertisers have been increasingly vocal about concerns regarding effectiveness of Facebook," said Pivotal Research Group analyst Brian Wieser. Clicks became a metric of choice in part because they had become directly tied to Google Inc's performance. The world's No. 1 Web search engine offers an effective and easy-to-measure form of advertising because it lets marketers reach consumers at the moment they are searching for a particular product. If a consumer clicks on the search ad, the job is done. But Facebook argues that for brand advertisers, fine-tuning the number of times a particular consumer sees an ad as well as ensuring that the ad has reached all of its target audience are far more effective techniques. According to Smallwood, marketers can increase the return on investment from their ads by 40 percent by focusing on an ad's so-called frequency - instead of one Facebook user seeing an ad 100 times and another user seeing the ad only twice, for example, Facebook says it will soon offer advertisers' insight on the ideal number of ad impressions for a particular campaign. "Using the Datalogix tool, we'll able to understand what that sweetspot is," Smallwood said, adding that Facebook will then control how often each user sees the ad. Many large brand advertising campaigns are not even hitting half of their target audience, according to Smallwood. But ad campaigns that focus on getting the optimal reach are 88 percent more effective at improving their return on investment, Facebook says its studies have shown. Getting online advertisers to break their long-running focus on clicks will not be easy, but Facebook says the techniques it is advocating are standard in the television advertising world. As Facebook strives to convince marketers to think differently, the company also has to assuage privacy concerns. Facebook's partnership with Datalogix has raised complaints from some privacy advocates, who say the social networking company could be violating the terms of a privacy settlement with the U.S. Federal Trade Commission by not obtaining the express consent from users to share their personal information. Smallwood said that the only information given to Datalogix is that people were exposed to certain marketing messages, adding that Facebook is not receiving any personal consumer information from Datalogix. (Reporting By Alexei Oreskovic) Tech Small Business Media Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (5) reality-again wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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