Study: Facebook Ad Boosts Paid Search Return on Ad Spend by 30%

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First-of-its-kind study demonstrates how Facebook advertising improves paid search performance – new research findings in a recently released white paper demonstrates for the first time, the direct, positive impact of Facebook advertising on paid search marketing performance.

The study analyzed recent paid search results for a leading retailer with more than 2,500 stores in the United States in which certain segments of the target audience were exposed to both paid search and Facebook advertising (“Search + FB”) while others were exposed to paid search alone (“Search Only”).

Notable findings from the study include:

30 percent higher paid search Return on Ad Spend (ROAS). The data show that the Search + FB audience segments generated 30 percent more ROAS than the Search Only group during the period of analysis, providing strong evidence that Facebook advertising delivers additional benefit as a performance-driver when run alongside paid search.

24 percent higher paid search average order value (AOV). Based on campaign analysis, Search + FB drove a 24 percent higher AOV which means that consumers who were exposed to social advertising became higher-value customers for this retailer.

7 percent higher paid search click-through rate (CTR). The Search + FB group generated a 7 percent higher CTR than the Search Only group, implying that social advertising was able to positively impact consumer awareness and perception of the brand.

4.5 percent lower paid search cost-per-acquisition (CPA). The Search + FB group generated a 4.5 percent lower paid search CPA, demonstrating that Facebook advertising reduced the cost to acquire those sales through paid search.

 

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