FACEBOOK MEASUREMENTRob Creekmore

Ecosystem MeasurementAugust 2013

US e-commerce sales are on the rise

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20170

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100

150

200

250

300

350

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450

$79B

$434B

Source: 2004 – 2008 data: eMarketer Ecommerce report, 2009. 2009 data: eMarketer Ecommerce report, 2010. 2010 data: eMarketer Ecommerce report, 2011. 2011 data: eMarketer Ecommerce report, 2012. 2012-2017 data: eMarketer Ecommerce report, 2013.

Shoes in the US (in millions, Q4-2012)

Mobile phones globally (in millions, Q4-2012)

115 Searches*

784 Purchased**

90 Searches*

472 Purchased***

Source: *Quarterly estimated based on monthly search query volume from Google Keyword Tool, April 16, 2013, ** (Q4 2012 estimate) – Nate Herman, Vice President, American Apparel & Footwear Association, *** Gartner, Feb 2013, “Gartner Says Worldwide Mobile Phone Sales Declined 1.7 percent in 2012”

Search represents a fraction of purchase intent

How do you capture time and attentionin addition to search?

More time spent on FB than anywhere else online

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Desktop Time Spent

Avera

ge D

aily M

inu

tes

Source: comScore Key Measure, US Desktop, April 2013

Facebook and Search working together

Source: Quantifying the Impact of Multi-touch Attributionacross hundreds of millions of clicks, Retail and FinServ verticalsKenshoo Research, August 2013

12% to 30%using Last Click

Facebook undervalued by

Last Ad measurement undervalued Facebook advertising by 12-30% relative to each of the five alternate attribution models.

A rich and natively visual canvas

How we can help

Reach your best customers

The men’s private-sale site uses Facebook Ads and targeting to acquire more than 1/5 of its members.

Using Custom Audiences

6xreturn on

advertisingspend

Source: Facebook case study

Reach your next customers

Using Facebook Lookalikes

Fab.com scaled its Facebook activity to Europe and achieved a 10-fold increase in people’s purchase intent. 14 million people use Fab’s website and mobile apps worldwide

Source: Facebook case study

Facebook pagepost ad

50%Greater LTV for

customers acquired using Lookalike

Audiences compared to standard targeting

Ensure loyalty

Using Facebook retargeting on FBX

Source: Quantifying the Impact of Multi-touch AttributionAcross 1 billion impressions on Facebook Exchange, Includes Retail, FinServ, and Lead-Gen VerticalsKenshoo Research, August 2013

8.1XReturn on advertising spend using FBX, 1.8X higher with dynamic

vs. static creative

How can you measure growth across the purchase funnel?

Measure the impact of Search + Facebook

Group A Group B Control

The test

FacebookMarketplace

Search

FBX

›

Determine the optimal media mix

Metrics:• Avg. return on ad spend• Avg. cost per acquisition• Avg. time to convert

Search No Search

Facebook

No Facebook

Measure in-store sales with retail MMM feed

1. Use Facebook’sMMM feed for retail

2. MMM vendor analysis

3. See in-store ROI by channel

Regress

Transform› ›

Next steps:

1. Scale Facebook media. Measure using MTA and MMM.

2. Leverage Facebook best practices (Custom Audiences, Lookalikes, FBX)

3. Join the Search + Facebook research we’re conducting right now!

Drive results

with Search + Facebook

THANK YOU