Just finished reviewing a new digital marketing technology report (thank you Kenshoo) that further cements the notion that marketers need to stop thinking in silos. Certainly not new news, but raises the question, are you as integrated as you could be to drive results?
The research suggests that Facebook advertising has a direct, positive effect on paid search marketing performance. The research analyzed recent paid search results for a big-box retailer with more than 2,500 stores in the United States. Certain segments of the target audience were exposed to both paid search and Facebook advertising, while others were exposed to paid search alone.
The study found that the paid search audience segments exposed to Facebook advertising generated 30 percent more ROI. These segments also had higher average order value (24 percent higher), better click-through rates (7 percent), and a lower cost-per acquisition (4.5 percent lower).
“The main takeaway is that having ads in market on Facebook can help you get the most bang out of your buck on search marketing campaigns,” Aaron Goldman, CMO of Kenshoo, told CMO.com. “We all know that an interplay between channels exists, and we track it in different ways. Facebook ads in partnership with search go beyond just standard attribution.”
People click on ad on Facebook and then move on to search for the products in those ads on Google, Goldman added. Google seals the deal, getting the person to transact.
Marketers have been lamenting social’s lack of ROI for a while. But now, marketers can show that social is having a direct impact on other channels–channels that are driving actual sales.
“Marketers need to track the cross-channel effect,” Goldman said. “Not just channel performance in silos. Also, think about how to apply the insights of one channel to the other. For example, a retailer can see that certain products are selling really well via search. Search is a demand signal. So if you take these products to Facebook, you get better performance.”
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