Greater ROI on Facebook than TV

A marketing campaign offered Maggi, a Nestle owned culinary brand, 2.5 times more ROI on Facebook than on TV. Quite clearly this news has industry experts sitting up and taking notice. Television has for decades been considered an important means for mass communication. The budget that businesses set away for their television advertising and marketing is rather large. While one cannot negate the impact that this medium has on viewers, it is quickly becoming clear that brands have to run marketing campaigns with all the mediums at their behest.

Maggi Facebook Campaign, Germany

Maggi is a well-known and accepted brand in Germany. When the brand was ready to launch and promotes its new chicken and vegetable recipe mix, it chose to use all the channels available. Maggi has been synonymous with convenient cooking. This time around the brand wanted to focus on families cooking together. To this end the marketing campaign focused on children cooking together at the Maggi Kochstudio. A cross media approach was adopted for this campaign and the brand used Facebook pages to get across its message.

On the social media site the brand used the tab, Willkommen in der Maggi Gemüseküche, to promote fresh cooking for families. Over a period of seven weeks Maggi offered its customers, tips, recipes and ideas that would make cooking fun and easy, and also help meal times focus on the family as a unit. The business focused its Facebook efforts on the user age group of 21-49. It also concentrated on customers showed an interest in cooking.  Maggi held daily meetings to ensure that the Facebook ads were optimized to create the greatest impact possible. Some of the key insights from the Facebook campaign are as follows:

  • 19% of the total sales generated by the campaign came from Facebook. Do take note of the fact that this channel only accounted for 8% of the total spending in this marketing operation.
  • The brand received a 2.5X more ROI with Facebook than it did from TV.
  • Facebook Ads helped it reach out to 1.9 million customers who neither saw the campaign on television nor in print. In other words, the Facebook campaign expanded the reach of the brand in a manner that traditional channels of marketing could not.
  • 23% of sales were generated by media induced interest after the campaign ended.
  • 30% of German internet users, or 13 million customers, were reached out to by the Facebook ads.

Why Social Commerce Plays Such an Important Role

One of the biggest advantages that Facebook marketing offers brands is the fact is that they can reach out to customers across the world, at a time that is perfect for them. Whether a Facebook user is logged on in the middle of the night, at noon, or in the early hours of the dawn, Facebook ads make a huge impact. By its very nature, this platform is social, so when a customer sees something that is useful and valuable, they are likely to pass the news to their friends. This circle of influence is constantly increasing and this is what businesses what to capitalize on.

A sense of community can be instilled with a Facebook page. This makes customers feel welcome when they visit the page time and again. Also well developed and designed content can make the brand an integral part of its customers lives. This is also what Maggi tries to do with its Facebook presence. The brand posts culinary pictures, recipes and ideas that are likely to motivate and encourage viewers to participate. This kind of engagement is what every brand hopes to achieve with its marketing strategy.

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In recent times Maggi has run into some problems in India and was taken off the shelves. Customers chose to express themselves on the brand’s Facebook page and in turn the company also used this medium to respond to customer queries about food safety and other issues. In response to the overwhelming support it received from its customers the brand launched the #WeMissYouToo to stay connected with them.

Some other brands that have received greater ROI on Facebook than TV include the Cocoa Cola polar bear campaign of 2013. Here is something to think about:

  • For every Euro that the company spent on Facebook marketing, it received a return of 74€.
  • It accomplished a 3.6X higher ROI than TV.
  • While Facebook marketing received only 2% of the brand’s total marketing budget it generated 27% increase in sales.
  • Research indicates that if one were to assume identical household reach then Facebook is capable of driving 2.3 times more sales than TV.

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