Measuring performance of facebook advertising based on media used: a case study on online shops in indonesia

According to TechinAsia report in 2015, more than 72 million Indonesians are listed as active internet users. About 18% and 11% conduct research on the web via desktop and mobile device respectively before buying online. As much as 80% from those who did research on the internet make a real purchase. This indicates that people who does online research tend to buy online afterward. Facebook has 14% share of those internet users and unsurprisingly online shop owners use it to advertise their products online. Unlike conventional platforms, advertising on Facebook has no flat rate, but it depends on engagement rate, which measures how much the ads are liked by its target audiences. More engagement will be granted with low advertising cost. The advertisers need to know how to create ads which have more engagement rate potential and lead to minimal cost and high conversion. This research investigated performance measurement of media types used on Facebook advertising platforms such as photos and videos. The study used three control variables: gender, age group, and product type as the interest group. The findings of this study showed that Indonesians have higher engagement rate for ads in which videos are used instead of images.