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Of course there's ROI on Facebook if you know what you're doing.
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Of course there's ROI on Facebook if you know what you're doing.

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Case study from a client's activation on Facebook, L' Artigiano.

Case study from a client's activation on Facebook, L' Artigiano.

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  • Today, I’m going to talk to you about my two most favorite subjects:One, obviously, is pizza.The other is making friends on the Internet.
  • However, since you probably do not want to hear me blabbing about my favorite subjects alone, I am going to talk to you about something you might be interested to hear: “Do social media hve ROI?”And to make it more specificdoes your marketing euro pay for itself or is it wasted?Let me start by saying that I’m an all-Internet guy myself, having been online since 1993. And I don’t know why these questions are asked so often in online marketing but not in traditional media communication which costs way more.However, let’s get back to our pizza.
  • L’ Artigiano had about 30 shops when we started.None of them has in-dining facilities, they only have take-away.They see their product offering as being above average in terms of ingredients.Their competition are pretty strong brands:Pizza Hut and Domino’s Pizza are international brandsLocal player Pizza Fan has a huge market share by being the value-for-money option
  • When we started their Facebook page, we decided not to go large.We identified occasions in which most people are likely to order a pizza at home.Then we used Facebook’s advanced targeting tool how many people it has that have listed these interests:Video gamesSportsMoviesTable gamesTo make the audience worthwhile we used expanded keywords. So for video games we used Playstation, Xbox, Nintendo Wii, Super Mario, Pro Evolution Soccer, Grand Theft Auto, etc. For movies we used a list of top movies and so on.Facebook identified a little more than 1 million users (there are overlaps between the groups shown) so we targeted them instead of going for 3.5 million users.
  • We decided to organize contests for these users.Most of the time, the prize was pizza: Easy for the client to offer, wanted by many. At some point, Coca-Cola was also involved in providing free drinks as L’ Artigiano’s supplier.The page started going wonderfully, it soon became the top page in its market sector.
  • So, since we talked about ROI we need to see how much this cost the client.This is a very low price to pay if you consider it includes the cost of getting the fan, having him bring friends to vote his answers in the quiz of the month and getting answers about how he is worth to you.What we would see as a possible next step?Creating ad campaigns that target existing users of the page (Facebook allows you to do that) in order to get them to order either online or by phone. That wasy engagement is not about likes and comments but about increasing consumption.
  • To prove ROI, we needed something more.So, with each contest we asked the newcomers how often they order from L’ Artigiano. They could answer anything from “every day” to “once a year” or even “never” (and why).By having the frequency of their orders, and knowing the average value of each order, we could establish how much each fan is worth to us.In the end, we came up with a figure that amazed us.More than €50,000 worth of orders were coming from users within their Facebook page every month.And since each ad campaign targeted different occasions of use, we also have the information about which of these four target groups makes more orders per capita. But I am not going to share this information with you today, I’m afraid.
  • So, since we talked about ROI we need to see how much this cost the client.This is a very low price to pay if you consider it includes the cost of getting the fan, having him bring friends to vote his answers in the quiz of the month and getting answers about how he is worth to you.What we would see as a possible next step?Creating ad campaigns that target existing users of the page (Facebook allows you to do that) in order to get them to order either online or by phone. That wasy engagement is not about likes and comments but about increasing consumption.

Of course there's ROI on Facebook if you know what you're doing. Of course there's ROI on Facebook if you know what you're doing. Presentation Transcript

  • Of  course  there  is               on  Facebook   ...  if  you  know  what  you’re  doing  George  Anagnostopoulos,  socialab  AllThingsFacebook  –    14  Dec  2011  
  • 30  
  • Occasions  of  consump<on    350,000  users    470,000  users    590,000  users    33,000  users  
  • 6,300  new  fans  (not  bad  for  2011)  
  • Fan  Acquisi+on  Costs:  6  ad  campaigns:    €1,200  6  contests:      €3,000  Total:        €4,200  Total  cost  per  new  &  qualified  fan:  €0.66    
  • “How  oMen  do  you  order  from  L’  Ar<giano?”  Total  fan  value:  €56,810  per  month  Facebook  ROI:  Every  €1  spent  (one-­‐off)    controls  €13.50  every  month  
  • Next  step:                Adver<se  to  the  exis+ng  fans.  Get  them  to  order  by  phone  or  online.  
  • Ques+ons?    Contact:   socialab   George  Anagnostopoulos   george@socialab.gr   www.socialab.gr   www.suit.gr