The company they lusted after took time to attain altitude. Eric Roza, the CEO of Datalogix, started out by sweeping up sales data from catalogue companies. He says he assumed “that what people purchased in the past was an indicator of what they would purchase in the future.” He next went to grocery chains and their discount loyalty programs, collecting their data on what groceries their customers purchased. His big breakthrough came when Facebook contracted with Datalogix to learn whether ads on Facebook drove in-store sales. He induced Facebook to share what they would not with agencies—the names and e-mail addresses and information about its users—so he could match these individuals with those in the Datalogix database. “We could then say, these ten million people saw this ad and spent x dollars before the ad campaign and y dollars after the campaign. For the first time, the media impact on sales in terms of millions of people was done.” Facebook told advertisers they could prove what drove sales, and publicly praised Datalogix. The company, Roza says, demonstrated that what products people purchased before was a much more valuable predictor of future purchases than clicks, page views, time spent watching or reading an ad, or search data.
Frenemies excerpt The compan on 6/10/2019, 5:41:09 PM