Dominos Pizza is bolstering its social activity by committing budget to Facebook’s Ad Exchange after a trial with the platform saw its Cost Per Sale (CPS) reduced by 75%.
Arena, a Havas-owned media-buying agency, ran a week-long trial using the same creative for each ad, finding it achieved a 75% reduction in CPS compared to standard real time bidding (RTB) ads for Dominos.
This was further accompanied by the campaign also outperforming search ads bidding on non-brand keywords, delivering a 62% lower CPS, according to Arena.
Dominos has committed further budget to the Facebok Ad Exchange since the trial, conducted in August, using MediaMath’s T1 platform.
The media agency was then able to use MediaMath’s targeting technology to source first-party data to more precisely evaluate the value of each bid.
Simon Wallis, Dominos Pizza’s sales and marketing director, said, “Facebook has always been an important part of our marketing mix. Facebook Ad Exchange is a significant innovation which will allow us to further develop Facebook as an acquisition channel, building on our social success.”
As a result of the success achieved with Dominos, Arena Media is also conducting similar trials with a range of other brands, including Blinkbox, and all its RTB clients, the agency has confirmed.
Although the Blinkbox trial is in its early stages, an Arena spokeswoman revealed to new media age that it had delivered new sign-ups at a 55% lower cost than standard RTB ads. This is also 94% lower than a crowded paid search marketplace, according to the source.
Tom Sainsbury, Blinkbox’s senior customer acquisition manager, said the early results were promising and that he’ll watch future developments. “We look to capitalise on our wealth of first party data,” he added.
Pedro Avery, Arena Media’s managing director, said, “The power of MediaMath’s T1 platform combined with the ubiquity of Facebook demonstrates great potential for brands to run cost efficient and highly targeted advertising.”
Other brands to work with Arena Media’s automated trading team include ESPN, Eurostar and Tesco Bank, although it is unclear if these clients are also conducting trials using the Facebook Ad Exchange.
