June 4, 2020
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Facebook Ads Plus SEM Earn 30% ROI

Facebook ads logoMenlo Park, California–Facebook ads really pay off, when coupled with search engine marketing. This conclusion is part of one of the first studies of its kind, looking at combing search marketing with paid social media ads.

In digital marketing, companies routinely use multiple channels to get their brand noticed and to make it familiar. However, up until now, how those channels are coupled together and the message each sends hasn’t been researched. After putting a search marketing campaign together with Facebook, digital marketing firm, Kenshoo found that brands doing so recorded a 30 percent increase on investment.

The trick for marketers is, developing a campaign which incorporates both mediums, as users only seeing a paid search ad with social media marketing exposure did not click-through as much as those who encountered both.

Facebook Ads Prove Powerful

Left alone, Facebook ads showed a good ROI, which demonstrates that the social media site’s users aren’t ignoring paid content in their streams. Search marketing has long been a mainstay of digital advertising, though it’s now clear just adding multiple channels doesn’t deliver results. Campaigns must be based on known quantities.

Facebook ads and SEM improve ROI
Credit: Kenshoo

“If marketers only had one Key Performance Indicator (KPI) to compare media channels, the metric of choice would be ROAS [return on ad spend], which is calculated as Revenue/Cost. For example, if an advertiser spent $20 and generated $100 in sales it had a 5x ROAS. Even media with different conversion goals can be easily evaluated based on how much it returned versus how much it spent,” Kenshoo noted in its report.

Consumer Reception to Paired Marketing Channels

Average orders increased among consumers by 24 percent when just two ad channels were run simultaneously. A 7 percent increase in click-through rates occurred when paid search ads from consumers exposed to both Facebook ads and PPC ads.

Such strategies also lowered the cost of advertising, decreasing click-through expenses by 4.5 percent.

Carolyn Moritz

Carolyn Moritz is a news journalist for Xanjero and a blogger. She is a freelance travel and digital news writer living and working in St. Petersburg, Florida.

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