Yes! Facebook sells!
The impact of Facebook paid media on reach and ROI
AllFacebook Marketing Conference, Berlin, November...
The Challenge: An approach which can be a proof of the efficiency
of online channels like Facebook – comparable to TV and ...
In spring 2013, the ARF jury awarded the GfK Media Efficiency
Panel as the winner of the global competition

In spring 201...
The “MEP principle” is so simple: TV, Print, Online and Purchase
acts out of one source // Just single source!

© GfK 2013...
With the MEP approach GfK can answer different use cases:
Owned, Earned and Paid Media. Today, let‘s talk about Paid Media...
Since 2008, GfK conducted more than 300 MEP studies for brands
from all verticals
> 300 MEP Studies

> 10 Facebook Studies...
I. REACH

Who do I reach with Facebook compared to traditional media?
At what costs? And what about new target groups via ...
In terms of reach Facebook Paid Media rarely works alone…but
complements TV well – even for TV campaigns with high reach!
...
Facebook paid media reach does not only mean high incremental
reach – it is a very cost efficient way to generate contacts...
On top of Facebook via “fixed line”: App and Facebook mobile reach
show Facebook’s impressive role
61,1

Facebook App achi...
Duration (abs.)

Apart from “on top share”: The highest share of duration is attributable
to Facebook throughout the day
g...
Facebook with the highest on top value (27% percent points)
amongst four top internet players
85
72

27
58

25
47

Reach i...
Summary Reach: Key results out of our ad effectiveness studies for
Facebook // Generate contacts with your target group mu...
II. ROI

What sales impact does Facebook have compared to TV? What
are the results in terms of effectiveness and efficienc...
Why do people buy our products? And how can GfK „model“ this?

Marketing Mix
Modeling
(Sales decomposition /
Regression an...
Combining ad contacts and purchase acts: 7% of the incremental
sales during campaign period are due to advertising.
7%
55%...
A selection of FMCG cases show: Facebook sells FMCG efficiently
(ROI)
higher efficiency than for TV!

Brand 2
Brand 1

1.1...
Goals

Maggi

Achieve reach and create
awareness among fans and
friends of fans of Maggi fix & frisch
Gemüse-Pfanne mit Hä...
2.5X
greater ROI through Facebook than
TV, with much lower cost per reach.

Facebook offers a positive
gross and net ROI:
...
Summary ROI: Key results out of our ad effectiveness studies for
Facebook // Facebook sells very efficient!

+
Facebook
se...
Let’s bring the main points together: Your success on Facebook!
Combine: Integrate Facebook into your crossmedia campaign ...
Thank you for your attention!
© GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013

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

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Vortrag "Yes! Facebook sells! - The impact of Facebook paid media on reach and ROI" von Florian Renz auf der AllFacebook Marketing Conference 2013 in Berlin.

Details zum Slot und zur Konferenz:
http://conference.allfacebook.de/marcon/berlin2013/programm/#2

Weitere Informationen könnt ihr direkt von Florian Renz erhalten:
https://www.xing.com/profiles/Florian_Renz

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

  1. 1. 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
  2. 2. The Challenge: An approach which can be a proof of the efficiency of online channels like Facebook – comparable to TV and print © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 2
  3. 3. 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!” © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 3
  4. 4. The “MEP principle” is so simple: TV, Print, Online and Purchase acts out of one source // Just single source! © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 4
  5. 5. 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) © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 5
  6. 6. 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) © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 6
  7. 7. I. REACH Who do I reach with Facebook compared to traditional media? At what costs? And what about new target groups via Mobile? © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 7
  8. 8. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 8
  9. 9. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 9
  10. 10. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 10
  11. 11. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 11
  12. 12. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 fixed line only 50 47 23 21 19 25 mobile only 28 29 12
  13. 13. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 13
  14. 14. II. ROI What sales impact does Facebook have compared to TV? What are the results in terms of effectiveness and efficiency? © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 14
  15. 15. Why do people buy our products? And how can GfK „model“ this? Marketing Mix Modeling (Sales decomposition / Regression analysis) © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 15
  16. 16. 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 © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 16
  17. 17. 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. Source: MEP Benchmark for Facebook Paid Media © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 17
  18. 18. 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. © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 “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
  19. 19. 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. © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 Page post ads 19
  20. 20. 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 Source: MEP Benchmark for Facebook Paid Media © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 20
  21. 21. 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! © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 21
  22. 22. Thank you for your attention! © GfK 2013 | AllFacebook Marketing Conference Berlin | Florian Renz | November 6th, 2013 Florian Renz Senior Marketing Consultant (ABS) GfK Panel Services Germany florian.renz@gfk.com 22

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