Facebook Advertising Drives 30% Increase In Paid Search Return On Ad Spend

Digital marketing firm Kenshoo has released new findings from its research that shows the impact of Facebook advertising on the performance of paid search marketing. 

Titled Added Value: Facebook Advertising Boosts Paid Search Performance, Kenshoo’s white paper looked at the latest results in paid search marketing for a major U.S. retailer with more than 2,500 stores in the country, wherein sections of the target audience saw paid search and Facebook advertising while other segments were exposed only to paid search.

Josh Dreller, director of marketing research at Kenshoo, said the findings of the study may help marketers and advertisers take advantage of the two key digital marketing channels by finding the best customers through search intent and social interaction.

Rob Creekmore, attribution measurement manager at Facebook, said Kenshoo’s research corroborates how Facebook is not only a social discovery platform, but also a tool to boost performance on paid search metrics, with a 30 percent increase in return on ad spend.

The research confirms that paid search marketing and Facebook marketing can work together so that marketers reach target audiences who are ready to spend more on certain products or services.

Kenshoo’s analysis of live campaign performance data was conducted from August to September 2013, and it only used online conversion data from the retailer’s ecommerce website to figure out the effect of Facebook advertising on paid search marketing.

Kenshoo said the data in the study does not sum up Facebook advertising and paid search metrics, but is pure analysis of paid search performance.

The firm added that the Facebook advertising campaign during the period gained substantial, direct return and is regarded by the advertiser as a highly effective advertising campaign that is free from cross-channel impact.

Facebook advertising

(Flickr / Allison Bucchere)

Notable Findings

 

1. Paid search Return on Ad Spend (ROAS) was higher at 30 percent.

The findings of the study reveal that the “paid search plus Facebook advertising” audience segments produced 30 percent more ROAS than the “paid search only” segments during the analysis period, a strong indication that Facebook advertising is an added advantage in driving performance when used together with a paid search run.

 

2. Paid search average order value (AOV) was higher at 24 percent.

Kenshoo’s campaign analysis found that paid search and Facebook advertising were the drivers of a 24 percent increase in AOV, converting consumers exposed to social advertising into more valuable customers for the retailer.

 

3. Paid search click-through rate (CTR) was higher at 7 percent.

The paid search and Facebook advertising segment drove a 7 percent increase in CTR than the paid search only segment, hinting that social advertising positively impacted consumer awareness of the brand.

 

4. Paid search cost-per-acquisition (CPA) was lower at 4.5 percent.

The paid search and Facebook advertising segment accounted for a 4.5 percent drop in paid search CPA, showing how Facebook advertising helped lower the cost to generate sales through paid search.

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Francis Rey Balolong

A coffee junkie who spends most of his time writing about the latest news on social media and mobile technology. I would definitely consider myself a nerd (in the coolest most hipster way possible). That being said, I love technology, music, writing, and all things mobile.
Tags: paid search marketing, facebook advertising, return on ad spend

Francis Rey Balolong the author

A coffee junkie who spends most of his time writing about the latest news on social media and mobile technology. I would definitely consider myself a nerd (in the coolest most hipster way possible). That being said, I love technology, music, writing, and all things mobile.
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