facebook advertising best practices

2

Keys to Success

3

Facebook has Lots of Ad Inventory

Source: Comscore May 2011

Facebook Yahoo! Microsoft -

50,000,000,000

100,000,000,000

150,000,000,000

200,000,000,000

250,000,000,000

300,000,000,000

350,000,000,000

400,000,000,000

Q1 2011 Impressions

4

The Click Conundrum

Source: Webtrends Feb 2011, Kenshoo Social July 2011

People on Facebook Are Busy Connecting, Not Clicking

Average Display CTR0.10 %

Average Facebook CTR0.05 %

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The Impression Issue

6

Monitor Social KPIs

Social Impressions

Likes

Fans

PurchasesRevenue

Shares

CTRCPC

Conv Rate

Cost

Clicks

Share of Voice

Connections

TweetsRetweets

Churn

Follows

AOV

Impressions

Revenue/Click Leads

Mentions

RSVPs

UniquesROI

CPL

CPF

CPA

CPM

Video ViewsDownloads

Reach

Social Reach

Engagements

7

Automate KPI Reporting

8

Keys to Success

Set an Attribution Model to Reflect the True Value of Each Engagement

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

9

Leverage automated advertising tracking systems to report and act on all consumer touchpoints prior to purchase

Set an Attribution Model to Reflect the True Value of Each Engagement

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

10

60%25%10%5% (Last Click)

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

Set an Attribution Model to Reflect the True Value of Each Engagement

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

11

40%10%10%40%

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

(Last Click)

Set an Attribution Model to Reflect the True Value of Each Engagement

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

12

25%25%25%25% (Last Click)

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

Set an Attribution Model to Reflect the True Value of Each Engagement

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

13

0%0%0%100% (Last Click)

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

14

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

15

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

16

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

17

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

18

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

19

Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution

Last Click Attribution Undervalues FB Performance

• First Only

• Prefer First

• Distribute Evenly

• U-Shaped

• Prefer Last

• Last Touch

20% 40% 60% 80% 100%

First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch

Mine Insights from Search and Social Interaction

Top 100 Internet Retailer running DR search and social campaigns, each with positive ROI 20% of all conversion paths showed ad clicks from more than one channel (search and social)– Over 1/3 had brand queries in the path to conversion– Consumers discover brand on FB and then search for it by name

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Keys to Success

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Targeting is Tantamount

23

Targeting is Tantamount

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Targeting is Tantamount

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Automatically Create Ad Groups

Creative

x

x

Target Ad Group

=

=

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Dynamically Generate Segments

Full Geographic Targeting and Language Settings

Dynamic Estimated

Reach

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Dynamically Generate Segments

Target by age, gender, relationship

status

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Dynamically Generate Segments

Relate to your audience through likes & interests, education & workplaces

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Dynamically Generate Segments

Reach Friends of Friends

Save Custom Target Settings

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Keys to Success

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age 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62

Source: Facebook API June 2011

Avg. CPC

Population Size

High Variable Cost Between Targets

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Testing Tactics

Segments

Images

Messaging

Scheduling

Bidding

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Save SegmentsSegments

Iterate Images

• Background colors• People vs. objects• Animals• Shock and awe

• Use buttons• Image frames• Celebrities• Think outside the box!

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Images

Messaging Messaging Matters

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Messaging Messaging Matters

Use a Call to ActionRefresh Copy OftenUse Promotional CodesDon’t Use Standard Search CopyPersonalize AdsShort and Concise is Best

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Track Timing

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Scheduling

38

Bid BetterBidding

Social

Search

Smaller Social CTR Variance Demands Tighter Bid Algorithms

# of Cam

paigns

CTR

• CPC• CPA

• ROI• Follow FB Suggested Bid

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Bid BetterBidding

Social

Search

Smaller Social CTR Variance Demands Tighter Bid Algorithms

# of Cam

paigns

CTR

Leverage custom Facebook bid algorithms to manage campaigns based on your goals• CPC• CPA

• ROI• Follow FB Suggested Bid

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Keys to Success