Digital Marketing Digital Media Buying Marketing Retail

Retail advertising on social networks: What are you forgetting?

Retailers often forget how affordable Facebook is for acquiring new customers.

I’ve just finished a customer acquisition campaign for a retailer and we had a little budget left over, so I decided to have another look at advertising on Facebook. The budget wasn’t huge so we started to get really specific about who we wanted to reach, so the total spend didn’t creep up too high.

So, I limited the campaign to a specific town and then limited it further to target by interests too.

Then finally, I set the maximum daily budget and limited the amount I was prepared to spend for each click. Then sat back and watched what happened.

I thought I’d share this tale because I was pleasantly surprised by the response. And everyone I know in marketing likes a good case study, so they can compare the results from their campaigns. It made me think that it would be worth taking Facebook advertising more seriously and building it into future marketing budgets.

Results:

  • Like’s, Comments and Shares 2%
  • Clicks 10.7%

I was fairly surprised by the clicks, but it gets more interesting when you look at the costs:

  • Cost per advert view (impressions): £0.005. I’ve included all the organic views in here too (12%), which we didn’t pay for.
  • Cost per click-through: £0.046
  • Cost per new customer: £1.02

Although this was on a smaller scale than the main campaign, the metrics were comparable.

Is this typical? I’d be interested in hearing from other retail marketers, especially in the luxury sector. It does make me think how relevant targeted advertising on Facebook might be for all sorts of businesses.

I’ll try to check back in again here with the results of the next campaign. I’m also going to try advertising on FourSquare too; I don’t think they have the volume to make a huge impact, but the metrics might add up for diverting that spare marketing budget, once again…

(Featured Photo by William Iven on Unsplash)

1 comment

  1. Johnny – nice summary. We have found good results by uploading ‘custom audience’ databases from our CRM system and then letting Facebook find similar people from their profile comparison. This means that people like your existing customers get targeted by ads.

    Having said that, we have an even better (FREE) non-advertising way to drive traffic onto our clients’ websites using a couple of mean FB plugins…. Here’s the first post we wrote about it so you can see the early results. http://creativeagencysecrets.com/driving-facebook-likes-and-follows-bni-new-business-tip-of-the-week/

    We have got a follow up e book coming – would you like to volunteer to trial the process and make a case study? Get in touch.

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