SOURCE: House Party, Inc.

House Party, Inc.

November 18, 2013 16:26 ET

House Party Proves Social Marketing's High ROI With Matched Panel Analyses

For Every Dollar Brands Spend They Get Back $2.30 in the First Three Months - Higher ROI for Larger Campaigns; Much Higher After Six Months

IRVINGTON, NY--(Marketwired - Nov 18, 2013) -  Experience-driven social marketing opens wallets. Leading social marketing company House Party (http://about.houseparty.com/) today announced that a series of a dozen matched panel analyses (MPAs) has found experience-driven social marketing to consistently deliver high sales lifts and ROI compared with other media. The MPAs -- conducted by third-party researchers such as Nielsen and by the brands themselves, some of the world's largest -- found sales lifts in test markets of 5% to 15%. In ROI terms, for every dollar brands spend on House Party campaigns, they get back $2.30 in revenue in the first three months.

And that's for House Party's smaller, 1000-party campaigns. The company's medium-sized, 5,000-party campaigns deliver ROI of $3.30 in the first three months, and the ROI of its large campaigns is even higher. Plus, early indications are that the sales lifts of these campaigns typically last at least six months, raising the ROI to $4.60 in the first six months for 1,000-party campaigns, $6.60 for 5,000-party campaigns. In contrast, brand managers of top CPG brands commonly keep a marketing tactic in the mix if it returns anything over $1.00 after a full year.

"These analyses debunk two myths: that the ROI of social marketing can't be measured, and that if it could be measured, it would be low," said Peter Storck, House Party's SVP of Research & Analytics. "The truth is that social marketing's ROI is among the most measureable and highest around. CMOs -- and CFOs -- will soon be demanding this level of accountability and performance from all media."

MPAs are known to be the best method for determining the true ROI of social marketing programs that drive brand advocacy both online and off. They enable brands to compare the ROI of their social marketing campaigns, apples-to-apples, with that of their other marketing and media efforts. And this series of analyses proves that social marketing can deliver more "bang for the buck" than just about anything else in the marketing mix.

See an example of one these analyses at: http://www.houseparty.com/link/5452569e

About House Party, Inc.
House Party is a social marketing platform that drives consumer recommendations to build brands and increase sales. Our in-home parties -- hosted by influential brand advocates and scaled through social media -- generate unmatched engagement, advocacy and lifts for the world's best loved brands.

House Party offers brands two advocacy marketing solutions -- House Party campaigns (for a shared group experience) and Chatterbox campaigns (for an individual brand experience). For clients who want to leverage the resulting earned-media content to create more effective paid digital media, House Party also offers "Reality Advertising."

House Party applies rigorous and comprehensive measurement methodologies that employ best practices as defined by the Word of Mouth Marketing Association (WOMMA). The company has been vetted by leading research firms and adopted by some of the world's biggest brands. Visit us at http://about.houseparty.com/. Follow us @HousePartyInc.

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