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New data on the effectiveness of Facebook Advertising Research Foundation Conference June 12, 2012

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New data on the effectiveness of FacebookAdvertising Research Foundation Conference

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Page 1: Facebook Advertising Research Conference

New data on the effectiveness of Facebook Advertising Research Foundation Conference

June 12, 2012

Page 2: Facebook Advertising Research Conference

Top highlights Facebook drives efficiency, effectiveness and ROI

•  Seeing earned brand messages increases purchase behavior

•  Showing ads to fans and their friends drives in-store purchases

Across 63 campaigns: •  3X ROI or better in 70% of campaigns •  5X ROI or better in 49% of campaigns

Page 3: Facebook Advertising Research Conference

comScore Power of a Like

Page 4: Facebook Advertising Research Conference

Power of a Like I July 2011

Takeaway

Fans and friends of fans are your most valuable customers

Page 5: Facebook Advertising Research Conference

Fans are your best customers

Fans spend 8% more and transact 11% more frequently

Web traffic

Source: The Power of the Like, comScore and Facebook, July 2011 * Numbers compared to average internet user

Brand engagement

Fans conduct 68% more searches

Fans visit the site 5x more

Sales

Page 6: Facebook Advertising Research Conference

Source: The Power of the Like, comScore and Facebook, July 2011 * Numbers compared to average internet user

Friends of fans are top customers as well

Sales Brand engagement

Web traffic

8% higher spending by friends of fans

2.5x more site visits by friends of fans

27% more searches by friends of fans

Page 7: Facebook Advertising Research Conference

Power of a Like II June 2012

Takeaways

•  Fans are still your most valuable customers

•  Seeing brand messages increases purchase behavior

•  Showing ads to fans and their friends drives in-store purchases

Page 8: Facebook Advertising Research Conference

Fans are still your best customers

Source:: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to average internet user

Fans spend 131% more and friends of fans spend 104% more

Fans spend 97% more and friends of fans spend 51% more

Fans spend 60% more

Fans spend 109% more

Page 9: Facebook Advertising Research Conference

Fans and friends of fans purchase more when exposed to earned brand messages

Source: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to unexposed fans and friends of fans

Fans and friends of fans bought 21% more frequently

Fans and friends of fans bought 38% more frequently

Page 10: Facebook Advertising Research Conference

Fans and friends of fans also purchase more when exposed to paid media

Source: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to unexposed fans and friends of fans

Fans and their friends overall bought 16% more frequently in store and bought 56% more frequently online from this retailer.

Major offline retailer

Page 11: Facebook Advertising Research Conference

Facebook ads effectively drive offline sales across many ROI studies

Page 12: Facebook Advertising Research Conference

Across 63 campaigns 3X ROI or better in 70% of campaigns 5X ROI or better in 49% of campaigns

Source: Variety of 3rd party methodologies like panels and mix media models, all client initiated

Facebook ads drive offline sales

Page 13: Facebook Advertising Research Conference

Return on Investment Sales return by £ invested – by channel

Facebook over delivering on incremental sales

Facebook

Other Media

Source: Millward Brown case study 2011

Total campaign

Facebook display TV

Online display

For every £1 spent on Facebook display media on this campaign, the client saw a directly attributable sales return of £1.34

£1.16

£1.02

£1.11

£1.34

Sale

s re

turn

by

£1 in

vest

ed

Facebook 9% of media spend

Facebook 11% of incremental sales

Spend

Sales

Facebook is most cost effective driving sales in a cross media CPG campaign Over delivering in terms of sales and efficiency

Page 14: Facebook Advertising Research Conference

3X ROI

Premium Target blocks

Page 15: Facebook Advertising Research Conference

15% of sales resulting from the media campaign are attributable to Facebook

3.8m people saw the campaign on Facebook who did not see it on TV