Qoo10 sees success leveraging Facebook advertising

Qoo10 sees success leveraging Facebook advertising

Summary: Asian e-commerce player says its Singapore site achieved higher revenues and expanded its user base through a six-month digital campaign using Facebook's Offers and Pages.

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SINGAPORE--Shopping site Qoo10.sg, among other brands, says it has seen success conducting its advertising campaign through Facebook Offers and Pages, achieving greater revenue and customer base.

Doug Fraser, Facebook's Asia-Pacific pricing, yield management and measurement research, said Qoo10's Singapore site had leveraged Facebook Offers to promote its exclusive deals and expand its customer base.

Within six months, the Korea-based e-commerce player clocked an 89 percent increase in Facebook traffic, a 94 percent increase in customer leads and 66 percent in sales conversion, Fraser said at a media briefing here Thursday.

Before running its Offers campaign, Qoo10 had used page post advertisements for a week in September 2012, and acquired 10,000 new likes, he added. Two weeks later, it launched an Offer which ran for three days and received 15,000 claims, along with an 82 percent increase in member registration.

qoo10
Qoo10's Singapore site leveraged Facebook Offers and Pages to promote its exclusive deals and expand its customers base (Source: Facebook)

Other companies had benefitted from Facebook advertising, too, he noted. Citing figures from third-party methodologies such as panels, which analyzed over 60 digital campaigns running on Facebook, Fraser said 70 percent saw more than a three-fold increase in returns on advertising spend, while 49 percent saw over five-fold increase.

He said such success stems from an approach that returns to "advertising basics" and focuses on creating "reach, resonance, and reaction" among the brand's target audience. "Reach" refers to the number of times the brand reached its targeted audience, while "resonance" is about changing their minds about the brand. "Reaction" refers to action the audience took, he explained.

Of the three, he noted that Facebook places greater focus on "reaction" because it is the most tangible way of measuring the effectiveness of the advertising and whether it had an impact.

The social network also has been experimenting with mix-media model analysis to offer marketers insights on how Facebook adds value to their wider marketing campaigns, Fraser explained.

For instance, the company has been working with Datalogix since September 2012 to track whether people had bought a product in stores, after seeing it on Facebook, by matching their e-mail addresses or other identifying data associated with those brands against similar information used in their Facebook accounts, Fraser explained.

He also advised brands not to rely on click-through rates (CTR) as this was a "meaningless" measure of whether a campaign is successful. Citing internal figures, he said 99 percent of total sales came from people who did not interact with the advertisements, while consumers who clicked the advertisement accounted for 1 percent of total sales.

Topics: E-Commerce, Singapore

Ellyne Phneah

About Ellyne Phneah

Elly grew up on the adrenaline of crime fiction and it spurred her interest in cybercrime, privacy and the terror on the dark side of IT. At ZDNet Asia, she has made it her mission to warn readers of upcoming security threats, while also covering other tech issues.

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  • The death of Facebook

    This article highlights the problem with Facebook - its number 1 objective is to make lots of money to justify its share price and that means that all it wants to do is to be an advertising platform. It is trying to be the "internet within the internet" and ultimately, like Compuserve, it will go the way of the dodo.

    There will be some people who click through on ads on Facebook and some revenue will be generated but the problem is that the people who spend lots of time on Facebook are not the ones with the money to spend. The model of Google/Bing etc is hard to beat - it is based on "active interest" (i.e I am looking for a hotel) instead of "possible interest" (based on text analysis of postings) which is what Facebook is based on.
    PierreAgen