How Diageo achieved 3X ROI through Facebook Marketing?

Read this case study to know how Diageo achieved 3 times higher ROI through Facebook Marketing.

A Quick Glance:

Brand: Diageo

Industry: Food & Beverage

Tool Employed: Facebook Marketing

Outcome: 3 X ROI

Business Type: B2C

The Brand

With an assortment of over 200 spirit and beer brands, Diageo is a global leader in alcoholic beverages. Diageo beverages are sold in more than 180 countries around the world. With a collection of global and local, large and small, old and new brands, the beverages by Diageo are available in every category and at almost every price point.

The alcohol beverage company sells its products online through its retail partner Dan Murphy’s, an Australian liquor supermarket chain that has over 215 stores across the country.

The Story

The global alcohol beverage company wanted to increase its sales coming from its online retail partner Dan Murphy’s website. The company also wanted to optimize its audience targeting on the basis of customer behavior on the website to increase return on ad spend, for which it collaborated with an agency Spark. The team took help of Facebook advertising and employed 5 Facebook products that were Collaborative Ads, Dynamic Ads, Custom Audiences, Lookalike Audiences and Facebook pixel to achieve the target. The Facebook ads campaign that was run between December–March 2018 shown amazing results for the company leading to a 3X return on ad spend.

The Goals – leveraging the stats to augment sales

Diageo wanted to increase the sales coming from Dan Murphy’s website through Facebook ads. The company also wanted to increase return on ad spend by optimizing its audience targeting on the basis of the customer activities on the website and their purchase behavior.

The Solution – Collaboration as the principal

It was for the first time that Facebook’s new Collaborative Ads was being used by any company in Australia. Through this new offering by Facebook, Diageo could better understand the behavior of the visitors on Dan Murphy’s website by using information provided by Facebook pixel on the website. This helped the team in delivering the most relevant ads to its target audience.

A series of dynamic ads were run by Diageo and its agency partner Spark featuring Diageo brands from the Dan Murphy’s website product catalogue that included live pricing.  The insights provided by Dan Murphy’s allowed Spark to optimize the campaign better based on the behavior of the visitors who came to the website by clicking on the ads.

Custom Audiences for retargeting was used by the team in the first half for reaching the visitors who though browsed the Dan Murphy’s website but didn’t make any purchase. Through Custom Audiences, Diageo could also reach those consumers who had made purchases but not in the recent past.

Broadening its reach, the beverage brand employed lookalike audiences in the second half of the campaign for connecting with a part of its audience that had similar interests & demographics as its current customer base.

Products Used:

  • Collaborative Ads – for maximizing retail and brand partnerships to reach and convert more shoppers
  • Dynamic Ads – for personalizing your ads without any manual work
  • Custom Audiences – for reaching the customers & contacts on Facebook page
  • Lookalike Audiences – for finding consumers who are similar to the customers & contacts on facebook page
  • Facebook pixel – for measuring the activity and conversions for the ads

The Outcome – Achieving the Targets

By analyzing the customer behavior on Dan Murphy’s website and optimizing the ads campaign according to that, the team could not only triple its sales during the campaign period but could also reach new and existing customers more accurately.

The Campaign Highlights that run between December–March 2018:

  • 3X return on ad spend

Words by Sarah Sorrenson, Head of Media & Digital, Diageo

“Facebook’s Collaborative Ads allowed us to work more closely and collaboratively with our retail partner than ever before. Both parties realised the benefits of using information from the Facebook pixel to drive sales early on, creating a dialogue about how we can work better together in the future to use insights and deliver on both business’ priorities. We are delighted with the results.”

Source: Facebook