Despite nearly 80 percent of the U.S. population being online, 94 percent of retail activity still happens in the physical world. This isn’t exactly a problem, but when you’re spending thousands and possibly even millions of dollars on online advertising campaigns, you want to be sure that those efforts are driving consumers in stores.
That’s exactly what Twitter is trying to do through its new partnership with Datalogix, a company that specializes in measuring the offline impact of online ads. Through this partnership, Twitter announced a new capability called “offline sales impact,” which allows it to quantify the impact of Promoted and organic tweets on offline sales for consumer packaged goods (CPG) brands.
Similar to a deal with Facebook, Datalogix and Twitter will find the correlation between tweets and purchases by matching email addresses that have been scrambled to ensure consumers’ anonymity. Twitter members provide an email address during sign-up, and Datalogix collects emails through loyalty programs. Theoretically, this will enable marketers to see the successes and failures of their online marketing efforts through Twitter.
Datalogix recently studied 35 Twitter campaigns from major CPG brands and found that Promoted Tweets boosted offline sales by as much as 12 percent. This means that consumers engaged — retweeted, favorited, clicked, and so on — with the ad. Those who didn’t engage but were exposed to the Promoted Tweet averaged a two percent lift in sales.
Additionally, people exposed to a brand’s organic tweets bought more from that company than those who were not, which produced an eight percent sales lift. This increase was three times greater among consumers who saw five or more organic tweets during the measurement period. As a result, it’s fair to say that brands that actively building a follower base and regularly interact can see an increase in offline sales.
And finally, the early study found that followers who are exposed to Promoted Tweets purchased 29 percent more from that brand that followers reached by organic tweets alone. This statistic alone might be enough to convince advertisers currently on the fence about Twitter’s Promoted Products to give the ad unit a try.
Currently available to select brands, Twitter plans to roll out this capability for other businesses — including different verticals and geographies — in the future. If you’re currently a CPG advertiser in the U.S. and are interested in learning more about an offline sales impact study, contact your account representative.
[Image credit: Miquel C.]