Domino’s switches to using Facebook as acquisition channel

Domino’s Pizza is among the first UK brands to explore how it can use Facebook as an customer acquisition channel, as well as an engagement one, following the roll out of the social network’s ad exchange (FBX).

DominosPizzaLogo-Logo-2013

The enhancement of its social media strategy comes after it achieved its lowest ever cost-per-sale for a display ad campaign using real-time bidding (RTB) technology after buying highly-targeted Facebook ads via FBX.

Simon Wallis, Dominos Pizza UK’s sales and marketing director, says: “FBX is a significant development which will allow us to further develop Facebook as an acquisition channel, building on our social success.”

Domino’s earlier Facebook strategy had centred on using the social network as an engagement channel but since the FBX launch – which lets brands purchase relevant inventory via their media agency’s trading desks – it is now considering it in the same vein as more orthodox online ad platforms.

This development comes as Facebook announced it is trialling News Feed ad spots via FBX in March – it has sold right hand side ads via FBX since last year.

Paul Silton, Facebook client partner, UK, reports that Facebook News Feed ads sold via FBX deliver eight times better engagement than ad inventory on the righthand side of a Facebook page, adding FBX inventory is purely about driving traffic to advertisers’ own websites.

Last week, Marketing Week revealed members of the John Lewis Partnership, including Waitrose and its financial services arm, were to pool their collective data points to more intelligently retarget web users using RTB.

Key points on how FBX works

  • The launch of FBX represents the first time the social network has let third-party advertisers use cookie-based targeting to serve Facebook users with more highly targeted ads.
  • The process is made possible when a Facebook user visits a website which uses an agency trading desk that is connected to FBX and a cookie is then dropped on their device.
  • If a user fails to make a purchase, the agency’s trading desk can then contact FBX and request to retarget the user – using an anonymous user ID.
  • Once the user returns to Facebook, the agency trading desk is notified and the advertiser can bid on that user’s particular impression (this process is all anonymised).
  • If an advertiser wins, their ‘highly-targeted ad’ is then served to the relevant user(s).
  • Facebook users are always free to opt out of being shown ads in this way.

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