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Facebook Advertising Influence on Paid Search Success

Facebook Advertising Influence on Paid Search Success

In recent years, Facebook advertising has experienced growth not only in the sheer number of advertising options, but also in the amount of dollars that are spent on this platform. As it’s grown, many marketers have wondered – what’s the value of advertising on this site? We know that with the right data infrastructure in place, marketers can attribute a true ROI to this platform. On top of ROI resulting directly from Facebook, it also helps drive increased efficiencies for other channels, namely paid search, according to a recent study conducted by Kenshoo.

The Study

Kenshoo conducted a study to determine the influence of Facebook advertising on paid search advertising by analyzing paid search results for a leading retailer who has more than 2,500 stores in the U.S. The study was conducted among consumers who were exposed to both paid search and Facebook advertising (specifically Page post link and Page post photo ads) for the brand versus consumers who were only exposed to the brand’s paid search ads during August and September 2013.

In order to ensure that all channels that influenced the consumer were given appropriate credit, the study measured online conversion data using a click-based “Prefer Last” attribution methodology. This methodology distributed conversion value to multiple ads in the path to purchase versus solely attributing the entire weight to the last ad clicked. In addition to giving due credit to multiple channels, the study ensured consistency by utilizing the same group of paid search ad creative for both study groups (Search + Facebook and Search only) and directed both to the same landing pages.

The Results

There were many positive results from the study that demonstrate the value of Facebook advertising for marketers but the most impressive was the influence of Facebook on the revenue generated by the paid search campaign. Consumers who were exposed to both Facebook and paid search advertising were most likely to convert to a sale, with the paid search campaigns generating a 30 percent higher return on ad spend.

Kenshoo’s study also revealed that the Search + Facebook group drove an average order value that was 24 percent higher than that of consumers who were just exposed to paid search ads. This indicated that the social advertising messaging aided in driving home the brand’s value and benefits, creating a higher-value customer for the retailer.

Another notable result was that Facebook advertising positively influenced paid search click-through rate. The Search + Facebook group had a 7 percent higher click-through rate than the group that was comprised of consumers who were exposed to paid search only. This implies that consumers who were previously exposed to the brand via social advertising had an increased favorability and a more positive perception of the brand, therefore increasing their likelihood to click through to the website.

The Bottom Line

In an industry where multiple channels and attribution are still a little muddy, studies such as this provide great confidence to marketers in the ability of two channels – namely paid search and social – to work together to create a cohesive, consistent and cost-effective marketing strategy.

View the full Kenshoo study here.

[This post originally appeared on Asking Smarter Questions and is republished with permission.

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Digital Marketing Firm, Levelwing
We offer digital media, social + analytics services
Levelwing is a digital marketing firm offering media, social and analytics services to help businesses market with greater clarity and profitability.