Study: Spending More On Facebook Ads Helps Paid Search Performance

Chris CrumMarketing & Advertising

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Kenshoo, which recently launched a solution that matches paid search clicks to Facebook audiences in real time, has a new study out looking at how Facebook ads affect paid search conversions.

Obviously, it's a bit self-serving, but interesting nevertheless, particularly as Facebook is all but forcing brands to advertise these days. In fact, the study was actually commissioned by Facebook.

It presents what Kenshoo calls "quantifiable evidence that paid search conversion activity increases as advertisers spend more on Facebook."

For three groups of people exposed to both paid search and Facebook ads, total conversions increased 19%.

The report says, "The average conversion rate of the exposed groups increased by 11%. By setting the value of the additional conversions generated by this difference against the cost of the Facebook ads, individual marketers can assess whether the additional conversion volume is worthwhile. For example, if every 10,000 clicks yielded an additoinal 73 conversions, each with a value of $100, an additional $7,300 would be generated by running Facebook ads alongside paid search. With slightly less than a 90% statistical confidence level, we understand this difference to be directional."

It also found cost per acquisition to be down 10% on average and conversion contribution up 8% on average.

The level of spend on Facebook advertising correlates to the effect on paid search performance, the study finds, but that the data suggests there is a minimum and maximum spend ratio. Here's a look at the "sweet spot," as presented:

You can find the whole report here.

Image via Kenshoo

Chris Crum
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.