First-of-its-kind study demonstrates how Facebook advertising improves paid search performance
San Francisco (November 21, 2013) – Kenshoo, the leader in premium digital marketing technology, today released new research findings in the white paper, “Added Value: Facebook Advertising Boosts Paid Search Performance.” The study demonstrates for the first time the direct, positive impact of Facebook advertising on paid search marketing performance.
Skai analyzed recent paid search results for аa leading retailer with more than 2,500 stores in the United States in which certain segments of the target audience were exposed to both paid search and Facebook advertising (“Search + FB”) while others were exposed to paid search alone (“Search Only”).
Notable findings from the study include:
30 percent higher paid search Return on Ad Spend (ROAS). The data show that the Search + FB audience segments generated 30 percent more ROAS than the Search Only group during the period of analysis, providing strong evidence that Facebook advertising delivers additional benefit as a performance-driver when run alongside paid search.
24 percent higher paid search average order value (AOV). Based on campaign analysis, Search + FB drove a 24 percent higher AOV which means that consumers who were exposed to social advertising became higher-value customers for this retailer.
7 percent higher paid search click-through rate (CTR). The Search + FB group generated a 7 percent higher CTR than the Search Only group, implying that social advertising was able to positively impact consumer awareness and perception of the brand.
4.5 percent lower paid search cost-per-acquisition (CPA). The Search + FB group generated a 4.5 percent lower paid search CPA, demonstrating that Facebook advertising reduced the cost to acquire those sales through paid search.
“Skai’s strong track record in search and leadership position in social led us to pioneer this research with Facebook. The findings can help advertisers better capitalize on what have become the two most important digital marketing channels by discovering their best customers through search intent and continuing the conversation through social interaction,” said Josh Dreller, director of marketing research at Skai. “This study is just the tip of the iceberg in terms of actionable insights we can provide marketers to optimize performance across channels and we look forward to partnering with Facebook on future research.”
“This research shows how Facebook acts as a discovery platform to increase performance on paid search metrics,” said Rob Creekmore, attribution measurement manager at Facebook. “A thirty percent increase in return on ad spend is something marketers will find exciting. It’s clear from this research that pairing Facebook marketing with paid search marketing leads to customers who are primed to open up their wallets and spend more.”
Methodology
This research reflects an analysis of live campaign performance data from a leading retailer with more than 2,500 stores in the United States during August and September 2013. For the purposes of this study, only online conversion data from the advertiser’s ecommerce site was tracked to determine the impact of Facebook advertising on paid search performance. Although the campaign ran for three weeks, the performance data was analyzed four weeks after the end of the campaign; so latent conversion activity could be included.
Research Note
The data in the study does not aggregate paid search and Facebook advertising metrics but rather is a pure analysis of paid search performance during the study period. The Facebook advertising run during this time generated significant, direct return and was considered by the advertiser as a very successful advertising campaign independent of its cross-channel impact. The goal of this research was to quantify the impact that Facebook advertising has on paid search performance.
About Skai
Skai is a digital marketing technology company that engineers premium solutions for search marketing, social media and online advertising. Brands, agencies and developers use Skai Search™, Skai Social™, Skai Local™ and Skai SmartPath™ to direct more than $25 billion
in annual client sales revenue. Skai is a Facebook strategic Preferred Marketing Developer with native API solutions for Facebook advertising and Facebook Exchange (FBX), as well as Twitter, Google, and Bing Ads. The Skai platform delivers Infinite Optimization™ through closed-loop targeting, universal integration, dynamic attribution, and predictive analytics. Skai’s adaptive technology, proven algorithms, and unmatched scale power campaigns in more than 190 countries for nearly half of the Fortune 50 and all 10 top global ad agency networks. Skai clients include CareerBuilder, Expedia, KAYAK, iREP, John Lewis, Resolution Media, Tesco, Travelocity, Walgreens, and Zappos. Skai has 18 international locations and is backed by Sequoia Capital, Arts Alliance and Tenaya Capital. Please visit www.Kenshoo.com for more information.
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