Case Studies

User Case Study; who is more efficient – Shopial or Facebook?

Shopial offers a powerful advertising optimization engine presenting businesses with the best option to reach consumers. Unlike other marketing apps, Shopial does more than just trace abandoned carts and retargeting. Just how does it work though? A magician never reveals his secrets (or code), but here are some ways Shopial allows you to maximize reach of targeted customers:

  • Algorithm takes into account the best time and day to post
  • Algorithm continuously improves its targeting off of the demographics, like gender and age, from prior clicks.

Receiving a certain number of clicks or impressions is cheaper with Shopial. Hence, for the same amount of money, Shopial will generate MORE clicks and impressions.

Still not sure what to think about Shopial? Don’t worry, here are some marketing statistics to make it clear:

  • CTR, or Click Through Rate, is the number of Clicks divided by number of impressions per ad. Considering the goal of marketing is to capture attention, a click on an advertisement is a positive indication. CTR is a common marketing statistic used to evaluate an advertisement’s success in receiving clicks.
  • CPC, or Cost per Click, is total cost divided by number of clicks per ad. Marketing can not be narrow mindedly evaluated just by click rate success; if someone is paying thousands of dollars, they better be getting a lot of clicks. Marketing campaigns are bound by cost, and evaluating their success requires an analysis of the cost efficiency.
  • CPM, or Cost per Impression, is the total cost divided by number of impressions per ad. CPM answers how much it costs to get an advertisement visible to consumers. Since impressions are usually a much larger number, the result from the total cost divided by number of impressions is multiplied by 1,000.

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There are available Facebook averages for CTR, CPC and CPM in e-commerce. With innovative technology and better marketing, these averages have been increasingly improving; CTR is rising while CPC and CPM have been dropping. Shopial campaign data will be compared against the most recent statistics from Q1 of 2016:

  • The CTR Facebook average in e-commerce is 1.32%
  • The CPC Facebook average in e-commerce is $.45
  • The CPM Facebook average in e-commerce is $5.93

 

Now, data found from only one campaign may not be indicative of Shopial’s performance. Perhaps the success was a one-time thing? To avoid any reservations, let us analyze an early 2016 Shopial consumer whose enthusiasm manifested itself in three advertisements campaigns for the same company.

The user’s Facebook Page is Scooter Center Egger with an eCommerce Shop at Xtreme Scooter.

Here are the results from the three ad campaigns:

Campaign Cost Impressions Clicks CTR CPC CPM
First $36.94 16,284 146 .8966% $.253 $2.2685
Second $63.99 51,904 2,069 3.986% $.0309 $1.232
Third $36.95 41,279 483 1.17% $.0765 $.8951

Using the data from Xtreme Scooter’s campaign, we can calculate based on the number of impressions or cost, how many clicks should be generated based on facebook averages. Similarly, judging off the number of clicks, we can calculate the theoretical costs of these Social campaigns.

For example, using the facebook average for CTR of 1.32% (meaning 1.32% of impressions result in a click), we can calculate how many clicks should be theoretically generated from the number of impressions a marketing campaign generates. Let’s use the second Shopial campaign, out of 51,904 impressions, the number of clicks will be 1.32% of 51,904 (about 685).

A comparison of Shopial data versus average facebook values is shown below.
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Albeit the Xtreme Scooter’s first and third campaigns are projected to have a higher number of clicks based on the Facebook CTR average, inferences from this data make this irrelevant.

  1. If the total number of clicks are added from all three campaigns, Shopial still has a higher total than either the sum of clicks from the Facebook CTR or CPC averages.
  2. Based on the number of clicks and impressions from the three Shopial campaigns, the theoretical costs from the Facebook CPM and CPC averages will ALL be higher than the cost of Shopial
  3. Shopial is clearly more cost-efficient.
  4. For the same number of clicks, Shopial is cheaper than the Facebook industry averages.
  5. For the same amount of money, Shopial will generate more clicks.

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Lot’s of Data, More Conclusions

A fundamental struggle with statistical analysis is determining a sample size. Are the data being analyzed sizable enough to provide accurate conclusions? Can three campaigns by a single user testify to a consistent theme — not necessarily.

How do Shopial campaigns rank collectively?

From January 20, 2015 through June 5, 2016, hundreds of Shopial campaigns targeted customers on Facebook. Let us evaluate all of the campaigns where the user spent at least $1; here is a quick refresher of relevant terminology.

    • CTR, or Click Through Rate, is the number of clicks divided by number of impressions per ad. Considering the goal of marketing is to capture attention, a click on an advertisement is a positive indication. CTR is a common marketing statistic used to evaluate an advertisement’s success in receiving clicks.
    • CPC, or Cost per Click, is total cost divided by number of clicks per ad. Marketing can not be narrow-mindedly evaluated just by click-rate success; if someone is paying thousands of dollars, they better be getting a lot of clicks. Marketing campaigns are bound by cost, and evaluating their success requires an analysis of the cost efficiency.
    • CPM, or Cost per Impression, is the total cost divided by number of impressions per ad. CPM answers how much it costs to get an advertisement visible to consumers. Since impressions are usually a much larger number, the result from the total cost divided by number of impressions is multiplied by 1,000.

ShopialCTRDistribution

What this means?

      • The average CTR for e-commerce on Facebook is 1.32%
      • 48.3% of Shopial Campaigns have a higher CTR than the mean
      • 51.7% of Shopial Campaigns have a CTR lower than the FB e-commerce average

 

Does this imply that Shopial campaigns perform at a worse rate than the Faceook average?

Hold on, we are not including the most important factor of advertising—COST!

Let’s analyze how CPC and CPM fare?

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What this means?

        • The FB average for CPC is $.45—a lower CPC is preferable because it is the cost per click
        • 65.79% of Shopial Campaigns have a lower CPC than industry average
        • Only 34.21% of Shopial campaigns have a higher cost per click rate than the average

 

It is important to also analyze the cost in relation to the number of impressions, or how much it costs to have a facebook ad viewable to consumers.

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What this means?

          • The FB Average in e-commerce for CPM is $5.92
          • 80.70% of Shopial Campaigns have a lower CPM than the FB average for e-commerce!
          • Only 19.3% of Shopial campaigns have a higher cost per impression than the FB average!

 

All these percentages are great, but what is the major takeaway?

            • Roughly, Shopial CTR is about the same as the industry average.
            • Yet, both CPC and CPM are SIGNIFICANTLY lower for Shopial

 

Receiving a certain number of clicks or impressions is cheaper with Shopial. Hence, for the same amount of money, Shopial will generate MORE clicks and impressions. Marketing is always dependent on cost; clicks and impressions result out of how much a customer pays. Therefore, Shopial clearly advertises more successfully than the facebook averages for e-commerce.