O2 has become the first brand to measure the effectiveness of Facebook ad impressions with its agency partner Havas.
Results found converter rates improved by between 16% and 123% when Facebook Custom Audience ad placements were used in combination with other digital channels.
O2 also saw a 52% improvement in cost efficiency for new customer acquisition.
This was part of a pilot programme run in conjunction with Facebook and its marketing intelligence provider, Visual IQ.
O2 and. Visual IQ integrated previously untracked Facebook advertising impressions enabling O2 to measure the value of their Facebook investments relative to other digital channels, publishers and placements for the very first time.
Visual IQ announced its partnership with Facebook in September 2016 to help brands understand the performance of Facebook in combination with other advertising investments. Using Visual IQ’s multi-touch attribution capabilities, O2 was able to track consumer exposure to Facebook ads, including its Custom Audience ad placements, to understand the full effect of their Facebook ad spend on sales, how their Facebook ads impacted their other media, and how relevant their ads were to their target customers.
The Facebook pilot revealed remarkable results, enabling O2 to become the first brand to gain insight into how they should value Facebook relative to other marketing investments. In particular, the O2 and Havas teams saw the converter rate improve by 16% to as high as 123% when Facebook Custom Audience ad placements were used in combination with other digital channels such as affiliates, paid social and paid search. Additionally, the pilot revealed the importance of people-based marketing and the efficiency gains driven by Facebook. When Custom Audience impressions were included in the broader tactical mix, O2 saw a 52% improvement in cost efficiency for new customer acquisition, and a 38% improvement for existing customers.
“As a business, we understand the reach, targeting and engagement value of Facebook, but were previously unable to track and measure its effectiveness to the same degree as our other digital efforts,” explained Nick Adams, Head of Digital Excellence, Marketing Communications, O2. “As the first company to realise results from the pilot programme, it’s exciting to see exactly how our advertising investments in the social network impact sales. This insight will enable us to make more informed planning and optimisation decisions across our entire marketing mix going forwards, and ensure our ads are even more relevant to our prospects’ and customers’ needs.”
Havas has worked with Visual IQ to measure the impact of O2’s digital marketing efforts on sales and other desired business outcomes since 2015. Through the pilot, the agency was able to prove that investments in Facebook alongside other digital channels and tactics contribute to O2’s sales goals in a significant and cost-efficient way.
James Olney, Senior Business Analyst, Havas Media Group commented: “The inability to track our full media investments on Facebook made it difficult to demonstrate the actual value of the channel. Visual IQ’s partnership with Facebook was key to proving the platform’s true value, and how it can complement other channels and tactics to drive sales and other desired business outcomes.”
“Social networks are a vital component of brands’ people-based marketing efforts, but previous limitations in measuring Facebook media has been a barrier to understanding the true impact of this channel,” explained Manu Mathew, CEO and Co-founder, Visual IQ. “We’re thrilled this pilot has enabled O2 and Havas to understand the effectiveness of Facebook ads in a way that was never before possible. This knowledge will have a massive impact on brands and agencies who, until now, have been investing valuable funds into the channel with no clear way of knowing its true value.”
Visual IQ’s partnership with Facebook further enhances the company’s ability to provide audience insight and marketing performance within a single marketing platform. For the first time, Visual IQ clients can now understand the true impact of their Facebook spend across any Facebook properties and placements, including Facebook, Instagram, Audience Network and Custom Audience buys. In addition to O2, three other Visual IQ clients are also currently participating in the Facebook pilot programme.