Facebook COO Sheryl Sandberg Uses 4Q Earnings Call To Tout Advertising Success Stories

By David Cohen 

Facebook Chief Operating Officer Sheryl Sandberg used some of her time during the social network’s fourth-quarter earnings call Wednesday to offer statistics and specific examples in support of the company’s advertising growth.

Sandberg said during the call that Facebook is now working with all of the Ad Age Global 100 advertisers, and she revealed the following numbers:

  • Nearly 42 million Facebook users have claimed offers, with the cost per redemption for marketers comparing favorably with those from other media, such as email, newspapers, paid search, and display media, according to the Direct Marketing Association.
  • Facebook Exchange became available to all brands in September, and by December, FBX served nearly 1 billion impressions and supported more than 1,300 advertisers on a daily basis.
  • Local businesses are thriving on the social network, with the number of local business pages advertising on Facebook nearly doubling since the beginning of 2012.
  • Nearly 500,000 pages have used promoted posts, with 30 percent of those representing new advertisers on the social network, and 70 percent becoming repeat advertisers.
  • A study of fourth-quarter marketing campaigns by Aggregate Knowledge found that 45 percent of people who saw the campaigns did so exclusively through Facebook, adding that the social network offered a 68 percent lower cost per acquisition and drove 24 percent more sales than other online channels.
  • 65 percent of Facebook’s advertisers are now running ads in the news feed, up from 50 percent at the end of the third quarter.

Sandberg also used specific campaigns by brands to illustrate the social network’s advertising progress:

  • Walmart: The retail giant delivered more than 50 million mobile ads via Facebook during Thanksgiving weekend.
  • Michael Kors: The company used the social network to promote its launch of a new line of sneakers, resulting in a 16-point jump in awareness of the product, or 5.8 million people who otherwise would not have been aware of the new release.
  • JackThreads: The men’s shopping site used Facebook’s custom audiences offering to target specific users in its database with ads for products that were most relevant to them, posting a cost per acquisition 30 percent lower than other platforms and achieving a return on ad spend of six times.
  • Cie Games: The developer used mobile application install ads to achieve a cost per installation for its new Car Town Streets game 40 percent lower than via its other advertising options.
  • PepsiCo: The “Do Us a Flavor” Facebook campaign for its Lay’s brand reached a five times return on ad spend.

Readers: Do you think Facebook will be able to continue its advertising momentum?