Sign up to receive 5 free days of our daily summary for tech news.

Facebook, Google Try Again to Prove Ads Help Stores

Facebook and Google are trying to keep their mobile ads businesses humming by executing what they’ve largely failed to do so far: prove to brick-and-mortar retailers that their ads drive customers into stores.

Both companies say this will be a big investment year toward solving the problem. They’re marshalling data scientists and engineers, as well as building hardware like beacons or investing in mapping data, to make precise estimates about store visits. Both want to expand the measurement services to midsized and smaller businesses, which make up a bulk of their ad dollars. Convincing retailers, consumer brands and small businesses that mobile ads work is critical for them and other mobile ad businesses like Snap’s because more than 90% of commerce still happens offline, analysts say.

No subscription? You're missing out.

Join the high-powered community of tech and business leaders who rely on The Information's original news and in-depth reporting.

“Facebook has an incredible mousetrap and incredible scale and I don’t know if they’re getting enough credit for foot traffic they’re driving to places,” Mr. Rosenblatt said. “The world is obviously going mobile, and location is the atomic unit of mobile.”

5 total comments
David Cooperstein, Eric Jardine and 2 others commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
“There’s a lot of suspicion when someone says they can drive traffic to stores."