A new study commissioned by Facebook and conducted by the digital marketing firm Kenshoo, shows how running Facebook advertisements with paid search campaigns positively affect paid search performance. When Facebook ads were added to Experian’s paid search campaigns for two weeks, it showed 19% increase in total conversions and a 10% drop in cost per acquisition.
Here are the key findings of the study:
- Facebook advertising directly and positively affects the performance of paid search. There was an increase of 19% in total conversions for those who were exposed to Facebook advertising over the others who saw only the paid search ads. Also, there was a drop of 10% in the average Cost Per Acquisition (CPA).
- Total conversion increases with the increase in investment on Facebook ads. Paid search conversions also increase by 8-12% as more consumers were exposed to higher levels of Facebook advertising.
- There is a minimum and maximum spend ratio, the sweet spot, where businesses can determine how to get the best performance by spending the least.
With respect to these findings, the report suggests marketers to:
- Find the Facebook advertising to paid search sweet spot spend ratio.
- Start testing which Facebook advertising elements work best to improve the performance of paid search campaigns.
- Execute cross channel measurement models to find out combining which marketing channels you can drive the highest performance.
