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Gordmans Facebook Ad Case Study

Gordmans Facebook Ad Case Study

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Published by: Social Fresh on Jun 19, 2012
Copyright:Attribution Non-commercial


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851 SW 6th Ave, 10th Floor, Portland, OR 97204 | 1.817.913.0780 | Fax: 1.866.883.0729 | www.Blitzlocal.comBlitzlocal_Case_Study_Gordmans.pdf 
Getting Facebook Fans for Cents :What Gordmans Learned in Facebook Advertising
Founded in 1915, Gordmans, the apparel and home fashionsretailer, operates 70 stores in 16 states. When this largeretail chain went looking for a partner to help them buildout their Facebook strategy to increase fan acquisition andengagement as well as drive customers to their brick andmortar stores, they looked to Webtrends. Veronica Stecker,the Social Media Manager at Gordmans shares what shelearned from marketing on Facebook.
“At the beginning of last month,Gordmans opened two new stores in Minneapolis. In addition to our traditional marketing efforts, we created several Facebook ad campaigns.We created two different types of campaigns: one advertising an event,and another advertising a tab. Both of these campaigns were targeted at the city level. Because our scope was so narrow, we tested adding the city name as part of the ad image itself. Overall though, these ads denitely helped in garnering more visitors.Obviously, we are pleased with these results. We have succeeded in increasing our overall fan count as well as the number of weekly active users.The sponsored stories/posts offers brands an effective and economical means of advertising on Facebook.While we expect the novelty of this ad- type to wear off, I believe these ads will continue to be top performers as they are inherently social.” - Veronica Stecker 
851 SW 6th Ave, 10th Floor, Portland, OR 97204 | 1.817.913.0780 | Fax: 1.866.883.0729 | www.Blitzlocal.com
Observation #1
Sponsored Stories Outperformed Regular Facebook Ads
There are two types of Sponsored Stories – a Sponsored Like, which targets friends of yourfans, and a Sponsored Post, which shows messages to existing fans. Gordmans ran ahighly targeted Sponsored Like ad against the regions where they have 68 retail locations, afemale demographic, and interest terms for bargain hunting.While most Facebook ads are lucky to get a 0.05% CTR, this campaign drove a 0.400%CTR on the rst day, which fell by 45% within 48 hours to 0.220%. Generally, anything at orabove 0.1% is highly optimized! Sponsored likes also decreased the CPC by 70% and CPFby 83% overall. That is like getting a 77% discount off from Facebook!In two days, this ad drove 515 clicks for $76 and gained 418new fans. That works out to 18 cents per fan and a click-to-conversion rate of 81%. Most brands out there are getting fansat between $2 and $10, the former via self-serve and the lattervia premium ads. $0.18 for a new fan, one that is giving yourbrand permission to talk to them, is a great cost of acquisition.Gordmans found the key to success with Facebook advertisingis leveraging the endorsement of their existing fans. People arefar more likely to click on events that are associated with whattheir friends are doing.
851 SW 6th Ave, 10th Floor, Portland, OR 97204 | 1.817.913.0780 | Fax: 1.866.883.0729 | www.Blitzlocal.comBlitzlocal_Case_Study_Gordmans.pdf 
Observation #2
Highly Engaged Content Equals Positive Fan Growth
The creative refresh demand of social requires you to be able to iterate much quicker,refresh your content and creative much quicker than what we have seen with the other typesof online marketing. Just standing out on a page is not enough; so Gordmans knew theyneeded to rotate ads to keep them fresh. Facebook Ads are typically served to the sameusers multiple times, often in the same day, so they quickly tune-out repeat ads.Gordmans also used Webtrends Apps platform to develop fresh and engaging appsrewarding customers for engaging with them through fans-only promotions. While appshave about a 10-14 day shelf life before people start to drop off in interaction, ads havearound 3-5 days before you see a dramatic drop off. Because their wall postings resonatedwell with the brand, only 5% of fans have unsubscribed from the page.

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