In an industry where the majority of ads go unclicked, even a small boost can make a big difference. One San Francisco advertising company, Rapleaf, carried out a friend-based campaign for a credit-card company that wanted to sell bank products to existing customers.
Tailoring offers based on friends’ responses helped lift the average click rate from 0.9% to 2.7%. Although 97.3% of the people surfed past the ads, the click rate still tripled.
Rapleaf, which has harvested data from blogs, online forums, and social networks, says it follows the network behavior of 480 million people. It furnishes friendship data to help customers fine-tune their promotions.
Its studies indicate borrowers are a better bet if their friends have higher credit ratings. This might mean a home buyer with a middling credit risk score of 550 should be treated as closer to 600 if most of his or her friends are in that range, says Rapleaf CEO Auren Hoffman.
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