GfK study: Good marks for Facebook advertising
A GfK study shows: The Facebook video advertising format increases purchase intent just as strongly as TV ads - with a higher ROI.
It's one of the most important research questions in the young field of digital advertising: How do video spots work in the Facebook feed? Spots that start without sound and disappear from the screen with a flick of the thumb - can they be just as powerful as TV ads?
You can. A new GfK study on FMCG and retail campaigns shows: Facebook ads increase purchase intent by 25 percent, TV ads by 20 percent. At the same time, Facebook, with an ROI of 1.55, is more profitable by a factor of 4.4 than TV, with an ROI of just 0.35.
"Even when you factor in the discounts on list prices that are common among TV broadcasters, Facebook ads remain significantly more economical," says Jin Choi, FMCG and retail expert at Facebook Germany: "Only at a 77.4 percent discount on the usual rate-card price did TV ads draw level with Facebook video." And: Facebook added 13 percent incremental reach to TV campaigns.
"This shows how wrong media planners are when they set mobile video as low in media plans as is still common in Germany," says Choi. Another result of the GfK study also speaks for a convergence of budgets: "The campaigns are strongest when Facebook and TV are combined and contacts are 50 percent each via Facebook and TV." The short-term sales uplift rose to 65 percent and more when the target group was addressed equally on both channels.
"As rapidly as media usage is changing right now, marketers would have to be much more willing to experiment," Choi says. "They would need to constantly tweak to figure out how to stay relevant to their audiences over time."
