Today, Nanigans, the company whose platform automatically measures, predicts, and optimizes ad spend for lifetime value on Facebook, delivered a report that encourages retail marketers to increase their advertising budgets for the social media site heading into the holiday season.
The "benchmark" report, based on analysis from over 150 billion Facebook impressions and a hundred retailers, cites strong engagement and return for marketing campaigns that have had 3.75 times higher click-through rates and are averaging a 152% return-on-investment (ROI) than a year ago.
What do these numbers mean? Basically, that Facebook advertising, the "golden goose" that the social media company is hoping will validate its monster valuation and provide a pipeline for increased revenue, is working. With Twitter generating a lot of buzz for its IPO, these numbers substantiate the idea that Facebook is the go-to source for retail advertisers who have a choice of two major social media outlets, Twitter or Facebook, to choose to spend the lions share of their advertising budgets on. As Nanigans' Cheryl Morris explained, the data confirms that Facebook shouldn't be looked at as a secondary "social marketing" channel, but is looking to be the future of "performance marketing."
As Michael Randall, the global head of Facebook’s Preferred Marketing Developer program explained, “This report is incredibly timely as marketers finalize their goals and campaigns for the holiday shopping season.”
He added, “Facebook is the place for proven reach and ROI; Nanigans’ data shows how moving beyond proxy metrics and toward lifetime value and ROI helps retailers find continued and more efficient success on Facebook.”
Nanigans is laser-focused on empowering marketers to get the most out of their social media advertising budgets. Their Software-as-a-Service for social and mobile performance marketing aims to help retailers who are advertising on Facebook acquire and re-market to high-value, lifelong customers. Nanigans is a "Facebook Strategic Preferred Marketing Developer," which allows the company to access both the native Facebook Ads API and Facebook Exchange.
For Nanigans, this report confirms two beliefs that many folks have had about the Boston-based company for a while. First, that Nanigans understands Facebook advertising better than anyone else, giving the company the inside track on creating engagement and getting a great ROI from Facebook ad campaigns. Second, the report is a clear indication that Nanigans is creating usable data built on its analytics platform that makes it THE source for understanding the performance marketing opportunity presented by Facebook advertising.
Marc Grabowski, Nanigans' COO said of the report, "Incremental sales have become core to retailer Facebook advertising goals, and measuring the true ROI of these efforts is being increasingly demanded."
“While every retailer has a unique customer base and their results and strategies vary, we’re excited to offer a benchmark report specific to the sector with meaningful metrics and actionable strategy recommendations.”
As the holiday season approaches, it should be interesting to watch the battle for the marketing hearts and minds of retailers between Facebook and Twitter play out. It will also to be increasingly interesting to watch what happens with Nanigans, a company many see as primed to be acquired by Facebook in the near future.
The full report can be found here: Nanigans Marketing Resources.
Dennis Keohane is a staff writer for VentureFizz. You can follow Dennis on Twitter (@DBKeohane) by clicking here.