Social marketers need to follow search marketing's lead more closely and tailor the ads to the person's intent.
An infographic released Thursday by Kenshoo makes it clear that the closer the content in the social ad comes to signals collected in searches, the better it performs. The research focuses on Facebook Exchange (FBX).
Analysis across campaigns looked at the performance of static ad creative vs. real-time dynamic ad creative, such as generic ads vs. ads created on-the-fly using technology to customize the image, copy and call-to-action based on the person's activity off-Facebook.
"The results are quite on par with paid search," said Aaron Goldman, CMO at Kenshoo. "For dynamic ads, we're seeing ROI of more than $8."
Not surprisingly, dynamic ads did better than static on all key metrics. The performance of dynamic ads has a 1.9 times higher click-through rate, 2.0-times higher conversion rate, 16% lower cost per click, 52% lower cost per acquisition, and 1.8 times higher return on investment -- all when compared with static ads.
The average return on investment for static ads in the study came to $4.50 on average vs. $8.10 for dynamic.
Tying Kenshoo's platform into the brand's inventory and promotion systems can automatically create product-level ads. Then through FBX, Kenshoo targets people with custom ads based on the specific products or pages they were looking at on a brand's Web site.