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New data on the
effectiveness of Facebook
Advertising Research Foundation Conference

   June 12, 2012
Top highlights
Facebook drives efficiency, effectiveness and ROI

             •  Seeing earned brand messages
                increases purchase behavior
             •  Showing ads to fans and their friends
                drives in-store purchases


             Across 63 campaigns:
             •  3X ROI or better in 70% of campaigns
             •  5X ROI or better in 49% of campaigns
comScore Power of a Like
Power of a Like I
July 2011


Takeaway
Fans and friends of fans are
your most valuable customers
Fans are your best customers

 Sales
                                                    Brand engagement
           Fans spend 8% more
           and transact 11%
           more frequently                                  Fans conduct 68%
                                                            more searches




         Web traffic

                         Fans visit the
                         site 5x more


                                          Source: The Power of the Like, comScore and Facebook, July 2011
                                                           * Numbers compared to average internet user
Friends of fans are top customers as well

 Sales
                                                      Brand engagement
           8% higher spending
           by friends of fans                                   27% more
                                                                searches by
                                                                friends of fans




         Web traffic
                         2.5x more site
                         visits by friends
                         of fans


                                             Source: The Power of the Like, comScore and Facebook, July 2011
                                                              * Numbers compared to average internet user
Power of a Like II
June 2012

Takeaways
•  Fans are still your most
   valuable customers
•  Seeing brand messages
   increases purchase behavior
•  Showing ads to fans and their
   friends drives in-store
   purchases
Fans are still your best customers

          Fans spend 131%
          more and friends of                    Fans spend
          fans spend 104%                        97% more and
          more                                   friends of fans
                                                 spend 51% more




         Fans spend
         109% more
                                               Fans spend
                                               60% more



                                 Source:: The Power of the Like II, comScore and Facebook, June 2012
                                                      * Numbers compared to average internet user
Fans and friends of fans purchase more when
exposed to earned brand messages

       Fans and friends of
       fans bought 38%
       more frequently




                                                  Fans and friends of
                                                  fans bought 21%
                                                  more frequently




                               Source: The Power of the Like II, comScore and Facebook, June 2012
                                      * Numbers compared to unexposed fans and friends of fans
Fans and friends of fans also purchase more
when exposed to paid media




                               Fans and their friends overall
                     Major     bought 16% more frequently
                    offline     in store and bought 56%
                    retailer
                               more frequently online from
                               this retailer.




                                           Source: The Power of the Like II, comScore and Facebook, June 2012
                                                  * Numbers compared to unexposed fans and friends of fans
Facebook ads effectively drive offline
sales across many ROI studies
Facebook ads drive offline sales

                                       Across 63 campaigns
                3X ROI or better in 70% of campaigns
                5X ROI or better in 49% of campaigns




Source: Variety of 3rd party methodologies like
panels and mix media models, all client initiated
Facebook is most cost effective driving
     sales in a cross media CPG campaign
     Over delivering in terms of sales and efficiency

     Facebook over delivering                                                                       Return on Investment
     on incremental sales                                                                           Sales return by £ invested – by channel

                                                                                                                                                      £1.34




                                                                             Sales return by £1 invested
                                         Facebook 11% of incremental sales

                                         Facebook 9% of media spend
                                                                                                               £1.16
                                                                                                                                         £1.11

                                                                                                                            £1.02
                      Spend               Facebook
                                                                                                           For every £1 spent on Facebook display media on this
                                          Other Media                                                      campaign, the client saw a directly attributable sales
                       Sales                                                                               return of £1.34


                                                                                                             Total campaign           Online display
                                                                                                             TV                       Facebook display
Source: Millward Brown case study 2011
3X
ROI

Premium
Target blocks
15%
of sales resulting from
the media campaign
are attributable to
Facebook



3.8m
people saw the
campaign on Facebook
who did not see it on TV

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Facebook Advertising Research Conference

  • 1. New data on the effectiveness of Facebook Advertising Research Foundation Conference June 12, 2012
  • 2. Top highlights Facebook drives efficiency, effectiveness and ROI •  Seeing earned brand messages increases purchase behavior •  Showing ads to fans and their friends drives in-store purchases Across 63 campaigns: •  3X ROI or better in 70% of campaigns •  5X ROI or better in 49% of campaigns
  • 4. Power of a Like I July 2011 Takeaway Fans and friends of fans are your most valuable customers
  • 5. Fans are your best customers Sales Brand engagement Fans spend 8% more and transact 11% more frequently Fans conduct 68% more searches Web traffic Fans visit the site 5x more Source: The Power of the Like, comScore and Facebook, July 2011 * Numbers compared to average internet user
  • 6. Friends of fans are top customers as well Sales Brand engagement 8% higher spending by friends of fans 27% more searches by friends of fans Web traffic 2.5x more site visits by friends of fans Source: The Power of the Like, comScore and Facebook, July 2011 * Numbers compared to average internet user
  • 7. Power of a Like II June 2012 Takeaways •  Fans are still your most valuable customers •  Seeing brand messages increases purchase behavior •  Showing ads to fans and their friends drives in-store purchases
  • 8. Fans are still your best customers Fans spend 131% more and friends of Fans spend fans spend 104% 97% more and more friends of fans spend 51% more Fans spend 109% more Fans spend 60% more Source:: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to average internet user
  • 9. Fans and friends of fans purchase more when exposed to earned brand messages Fans and friends of fans bought 38% more frequently Fans and friends of fans bought 21% more frequently Source: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to unexposed fans and friends of fans
  • 10. Fans and friends of fans also purchase more when exposed to paid media Fans and their friends overall Major bought 16% more frequently offline in store and bought 56% retailer more frequently online from this retailer. Source: The Power of the Like II, comScore and Facebook, June 2012 * Numbers compared to unexposed fans and friends of fans
  • 11. Facebook ads effectively drive offline sales across many ROI studies
  • 12. Facebook ads drive offline sales Across 63 campaigns 3X ROI or better in 70% of campaigns 5X ROI or better in 49% of campaigns Source: Variety of 3rd party methodologies like panels and mix media models, all client initiated
  • 13. Facebook is most cost effective driving sales in a cross media CPG campaign Over delivering in terms of sales and efficiency Facebook over delivering Return on Investment on incremental sales Sales return by £ invested – by channel £1.34 Sales return by £1 invested Facebook 11% of incremental sales Facebook 9% of media spend £1.16 £1.11 £1.02 Spend Facebook For every £1 spent on Facebook display media on this Other Media campaign, the client saw a directly attributable sales Sales return of £1.34 Total campaign Online display TV Facebook display Source: Millward Brown case study 2011
  • 15. 15% of sales resulting from the media campaign are attributable to Facebook 3.8m people saw the campaign on Facebook who did not see it on TV