Opportunity

Paid search non-brand text was proving to be a very cost-efficient driver of quality offsite traffic to Facebook Marketplace. The Ovative and Facebook team saw this as an opportunity to validate the incremental value of this channel and ability to scale effectively. Test results could be used to inform the budgeting and media mix decisions for the upcoming year.

Impact

22 %
Incremental cost per conversion was 22% below goal target
1.7 M
Ability to scale investments to drive incremental 1.7M annual conversions while hitting cost per targets
Approach
1
It was critically important to test and quantify the incremental impact of SEM media at a 95% significance level in order to confidently report and socialize the test results across the Facebook organization. Ovative and the Facebook team partnered with Google and leveraged their GeoX testing tool which offers a Time Based Regression modeling approach. This methodology is highly precise, allowing us to successfully measure the impact of non-brand search on conversions despite Facebook’s large and volatile conversion base.
2
In addition to the hold-out test geo, we introduced a heavy-up test geo, where we scaled investment 6x in non-brand search. The intention was to better understand the incremental marginal return of the additional funding. The geo also gave a second opportunity to get an incrementality read on non-brand text and hit the level of statistical significance we were hoping for.
3
Test results indicated that non-brand text is driving statistically significant incremental conversions to Facebook Marketplace at baseline levels. The test also quantified the opportunity to scale profitably based on the marginal incremental cost-per-conversion in the heavy-up test geo. The Marketplace team used these test results to more confidently determine their marketing budget and media mix for the upcoming year.
The successful results helped us realize what a critical partner we have in the Ovative Group. When we needed stability in our performance, they delivered a plan and brought it. When we’ve needed thought partners to work through the big visions we have for our account, they’ve helped us understand what was possible both now and in the future. Most importantly, when we needed to deliver against one of our most important goals, the team stepped up to the challenge and helped us meet it head on.
Deryck Boulanger
Manager, Decision Science at Facebook
I was extremely impressed with Ovative's ability to adopt and execute GeoX so quickly and flawlessly. Key to success was project ownership by Ovative and a deep understanding of FB Marketplace's business, leading to a customized proper set-up and progress tracking.
Liza Rtishchev
Senior Analytical Consultant at Google
Enterprise Marketing Return
(EMR)
Hover over incrementality to learn more.
E-COMMERCE
IN-STORE
CUSTOMER FUTURE VALUE
INCREMENTALITY

INCREMENTALITY

CLICK HERE

Facebook had attempted incrementality tests in the past for offsite marketing but struggled to get a statistically significant read on the big base of conversions. The partnership between Ovative, Google, and Facebook resulted in a test design that helped Facebook quantify the true causal impact of non-brand paid search as well as the incremental marginal return with increased spend.

MARGIN