Yes! Facebook sells! - The impact of Facebook paid media on reach and ROI @ AllFacebook Marketing Conference

Yes! Facebook sells!
The impact of Facebook paid media on reach and ROI
AllFacebook Marketing Conference, Berlin, November 6th, 2013
Florian Renz | Senior Marketing Consultant | GfK SE
Advanced Business Solutions (ABS) | Consumer Panels | Consumer Experiences
© GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013

1

The Challenge: An approach which can be a proof of the efficiency
of online channels like Facebook – comparable to TV and print


2

In spring 2013, the ARF jury awarded the GfK Media Efficiency
Panel as the winner of the global competition

In spring 2013:
“Thanks so much for your time and effort on the ARF /
Facebook measurement challenge. Our judges (…)
representatives from Facebook, the ARF, AOL and
ESPN, rated your proposal as one of the very best,
and they were particularly excited by the international
capabilities of the GfK solution.
After reviewing the additional information that you
provided, we're pleased to announce that we've
selected GfK as the winner of the challenge!”

3

The “MEP principle” is so simple: TV, Print, Online and Purchase
acts out of one source // Just single source!


4

With the MEP approach GfK can answer different use cases:
Owned, Earned and Paid Media. Today, let‘s talk about Paid Media!

1

4

2

PAID MEDIA
I.
II.

REACH
ROI

3

Source: Media Efficiency Panel (MEP)

5

Since 2008, GfK conducted more than 300 MEP studies for brands
from all verticals
> 300 MEP Studies

> 10 Facebook Studies

Source: Media Efficiency Panel (MEP)

6

I. REACH

Who do I reach with Facebook compared to traditional media?
At what costs? And what about new target groups via Mobile?


7

In terms of reach Facebook Paid Media rarely works alone…but
complements TV well – even for TV campaigns with high reach!

85%

43%

82%

7% exclusive reach

30%

6% exclusive reach
24% combined reach

36% combined reach
Source: Case study MEP Germany

8

Facebook paid media reach does not only mean high incremental
reach – it is a very cost efficient way to generate contacts

€653

€466
Based on gross
spendings: for TV
there can be
considerably high
discounts!

€10,819

€10,229

Shown is the Cost per GRP in € for TV and Facebook of two MEP case studies
Source: Case Studies MEP Germany

9

On top of Facebook via “fixed line”: App and Facebook mobile reach
show Facebook’s impressive role
61,1

Facebook App achieves second
largest reach of almost 60%

Google Maps

58,7

Facebook

54,8

Google Search

38,0

YouTube

35,9

GMail
20

With 260 minutes per user, Facebook
has by far the longest usage duration
among Top 5 Apps

261

Google Maps
Facebook

14
71
110

Google Search
YouTube
GMail

Source: GfK Mobile Web Value 6/2013

10

Duration (abs.)

Apart from “on top share”: The highest share of duration is attributable
to Facebook throughout the day
generate contacts at any time!

Mobile sage
throughout the day
Base: Smartphone User
Source: Media Efficiency Panel 6/2013

11

Facebook with the highest on top value (27% percent points)
amongst four top internet players
85
72

27
58

25
47

Reach in
%

71
66

47

19

50

21

fixed line and mobile

27
58
47
32

Base: Smartphone User
Source: Media Efficiency Panel 6/2013

fixed line only

50

47
23

21

19

25

mobile only

28

29

12

Summary Reach: Key results out of our ad effectiveness studies for
Facebook // Generate contacts with your target group much easier!

28%
incremental
reach vs. TV
created through
Facebook

Cost efficient
way to generate
contacts: cost per
GRP on average
much lower than
for TV

Facebook achieves
highest additional
reach via mobile
among top internet
players (27%)

Source: MEP Benchmark for Facebook Paid Media

13

II. ROI

What sales impact does Facebook have compared to TV? What
are the results in terms of effectiveness and efficiency?


14

Why do people buy our products? And how can GfK „model“ this?

Marketing Mix
Modeling
(Sales decomposition /
Regression analysis)

15

Combining ad contacts and purchase acts: 7% of the incremental
sales during campaign period are due to advertising.
7%
55%

28%
19%

37%

Shown is the sales decomposition on average based on MEP Benchmark data
Source: MEP Benchmark

16

A selection of FMCG cases show: Facebook sells FMCG efficiently
(ROI)
higher efficiency than for TV!

Brand 2
Brand 1

1.14

0.79

Brand 3

2.99

1.11

0.28

Shown is the Gross Return on Investement short term in Euro
The impact on Branding Effects can be evaluated additionally.

17

Goals

Maggi

Achieve reach and create
awareness among fans and
friends of fans of Maggi fix & frisch
Gemüse-Pfanne mit Hähnchen, a
seasoning mix for chicken and
vegetables.

Expand its customer base to
include a younger demographic,
especially young families and
mothers.

“Facebook was not only a
cost-effective way of
boosting our reach, it
delivered sales efficiently
and helped us reach new
buyers.”
Tina Beuchler, Head of Media
Communication, Nestlé Deutschland AG

18

2.5X
greater ROI through Facebook than
TV, with much lower cost per reach.

Facebook offers a positive
gross and net ROI:
19% of campaign-driven sales came from
Facebook, using only 8% of the total
campaign spend.

Expansive reach: Facebook Ads

Custom app

reached 30% of German online users
(~ 13 million).

Almost 2 million people were
reached exclusively on Facebook.

Strong synergistic effect of
cross-media exposure:
those who saw both Facebook and TV were
impacted 54% more greatly than the sum of
the individual impacts of either medium.

Page post ads
19

Summary ROI: Key results out of our ad effectiveness studies for
Facebook // Facebook sells very efficient!

+
Facebook
sells!
ROI much
higher than
TV

19% of additional
campaign driven
sales come from
Facebook

… although only
3.5% of the total
campaign
budget is spent
on Facebook


20

Let’s bring the main points together: Your success on Facebook!
Combine: Integrate Facebook into your crossmedia campaign due
to high efficiency. Get synergy effects from linked TV and Facebook
campaign
Create Awareness : Use Facebook to create your incremental
reach vs. traditional media in a very cost efficient way!

Go mobile: Advertise also on mobile to extend the reach
effects!


21

Thank you for your attention!

Florian Renz
Senior Marketing Consultant (ABS)
GfK Panel Services Germany
florian.renz@gfk.com

22

Yes! Facebook sells! - The impact of Facebook paid media on reach and ROI @ AllFacebook Marketing Conference

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