In web marketing, multiple channels work together to boost return on investment. Digital marketing tech company Kenshoo wanted to find out how social advertising and paid search together might impact conversion.
In what Kenshoo called the first study of its kind, the company found that when a person was exposed to a brand's Facebook ads and paid search ads together, there was a 30 percent more return on ad spend than when a person was exposed to paid search ads alone.
“The fact that Facebook advertising on its own during this study was declared a successful initiative and had such a strong impact on paid search is indicative of the power of the platform,” Kenshoo said in its report.
“If marketers only had one Key Performance Indicator (KPI) to compare media channels, the metric of choice would be ROAS [return on ad spend], which is calculated as Revenue/Cost. For example, if an advertiser spent $20 and generated $100 in sales it had a 5x ROAS. Even media with different conversion goals can be easily evaluated based on how much it returned versus how much it spent.”
The study showed a positive lift in average order value as well when the two ad channels were paired together, with a 24 percent boost, said Kenshoo, suggesting that “consumers who were exposed to social advertising became higher value customers."
Kenshoo said click-through rate also improved, with paid search ads seeing a 7 percent increase in CTRs when a person was exposed to both Facebook ads and PPC ads, “indicating that social advertising was able to positively impact consumer awareness and perception of the brand,” Kenshoo reported.
And when paired together, search and social advertising resulted in 4.5 percent lower cost per acquisition, according to the research.
“On the surface, 4.5 percent may not seem significant when compared to some of the other high numbers reported in this study,” Kenshoo said, “yet ask any advertiser if they could lower their costs to bring in orders by this amount and they would all jump at the opportunity.”
For the full study, including information on the methodology and recommendations on how to pair search and social advertising, go here.