A recent Facebook ad campaign by Samsung resulted in a 1300% return on investment, company officials said. The three-week ad campaign for the Galaxy S3 smartphone reached over 105 million unique users, generating $129 million in sales – a 13-fold return on a $10 million ad purchase.
According to Carolyn Everson, head of global marketing for Facebook, Samsung’s results are not unique. “The biggest myth is that Facebook ads don’t work,” she said, speaking at the Business Insider Ignition conference in New York this week. Everson offered statistics from Datalogix, a market analytics firm that measures the efficacy of Facebook advertisements. The data showed that Facebook ads average a three-to-five time return on investment.
Everson explained that a shift to mobile devices factor into how the company will grow its advertising. “If you look at time spent on mobile devices, we have 600 million of a billion users,” she told the crowd, “from pure budget allocation, the money is going to shift.” Everson maintained that research based on the reach and frequency of advertisement indicates that Facebook competes effectively with television advertisements. She believes that mobile devices will eventually overtake TV as the dominant advertising platform.
Others on the panel with Everson believed she was being too generous. Shiv Singh, global head of digital marketing for PepsiCo Beverages, amended Everson’s statements: “There is no single Web or mobile platform that is the be all, end all of marketing.” Singh said the most effective advertising strategy is the use of different platforms and channels together.”Facebook doesn’t compete with Twitter or TV, they feed on each other.” The appeal of new platforms, according to Singh, is the ability to offer always-on, real-time marketing.