Finally got around to reading this case study (which is really a PR piece) in the NY Times about how Reckitt Benckiser and Facebook worked together to launch an ad campaign. Here are the most interesting sentences:
The tension between Facebook and R.B. emerged when it came time to figure out how MegaRed should spend its money.
Mr. Rodrigues argued that MegaRed’s money would be best spent going after a narrow group of consumers.`
The Facebook folks countered that such specific targeting would be very expensive.
But how Facebook did on the most important measurements — the number of people who saw the ads and the effect on their purchases of MegaRed — would take several more months to assess, requiring Nielsen surveys of people who saw the ads and an analysis by Datalogix of MegaRed purchases by Facebook users in the supermarket.
On the most crucial measure — sales of krill oil — the campaign generated about twice as much revenue as R.B. spent on the ads, according to an analysis by Datalogix. That was better than R.B.’s historical return from TV ads, which the company measures once every year or two.
Still, television will continue to get most of the marketing budget, both for MegaRed and for other R.B. brands. “We’re never going to stop TV,” Mr. Faracci said. “It has a massive role to play. It is a primary source of entertainment. It has good economics.”