Performance Marketing on Facebook provides an overview of how Facebook can be used for e-commerce growth through performance marketing. It discusses how placement, ad format, targeting, and optimization are key drivers of direct response on Facebook. Case studies are presented showing how companies increased sales, conversions, and returns on ad spend through Facebook advertising. The document also covers trends around mobile, how Facebook is shifting to mobile, and how to drive mobile actions and app installs through Facebook ads.
9. People buying a product
Ecommerce
is growing
fast
People
searching
for a
product
15-20% of people
that bought a
product searched
for it
10. Search represents a fraction of purchase intent
Shoes in the US (in millions, Q4-2012)
115
Searches*
784 Purchased**
Mobile Phones Globally (in millions, Q4-2012)
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”
12. Performance Marketing on Facebook works!
JackThreads
Carphone Warehouse
Rosetta Stone
Customer acquisition
Targeting
Direct marketing
Drove sign-ups and sales through
Facebook
Drove online orders of its “pay
monthly” smartphone with targeted
ads in high-impact placements
Drove high conversion and
returns by running “back-toschool” Offers in news feed
6x
70%
return on
advertising spend
lower CPA than
any other media
3x
return on
advertising spend
14. Performance marketers care about…
cost per click
cost per impression
method of billing
size of ad unit
….
CPA (cost per sale, lead, registration, install)
vs.
Value per action (e.g. net profit, LTV, x-day payback)
i.e. ROI
16. Multiple ad placements to meet performance goals
Right-hand side
Mobile news feed
Desktop news feed
Log-out experience
17. News feed: Center of the Facebook experience
40%
of people’s time
on Facebook is
on news feed
18. The log-out experience: A high-impact place
to direct people to their next destination
40%
of US desktop daily
active users log out
every day
Source: Facebook analytics
20. 3.5x
Smoothening the path to purchase
Existing Page post link ad
New Page post link ad
larger image
than existing
Page post
link
Page post photo ad w/ URL
Clicks offsite
21. Page post ads in news feed increase conversions
A study by
Jackthread / AdParlor
45x
48% 14%
higher CTR
lower CPA
higher ROI
3x
Higher buyer
conversion rate from
news feed ads vs.
right-hand ads**
Photo Page post ads vs. right-hand side domain ads*
Photo Page post ads vs. right-hand side domain ads*
Source: “How Facebook Page Post Ads in the News Feed Drive Purchases & ROI” January 28, 2013 blog post, www.nanigans.com, Facebook case studies
22. What drives direct response on Facebook?
1. Placement
2. Ad Format
3. Targeting
23. Leverage identity and social signals to target
prospective customers
Standard Demographics
•
•
•
•
•
Age
Gender
City/state/zip
Direct market area
Birthday
Broad Category Targeting
•
•
•
•
•
•
Education
Workplace
Relationship status
Device and operating system
Likes and interests
Friend connections
Vertical Audiences
• Life stages
• Tech early adopters
• And many others...
24. If you were to target
woman 18+ living in Poland who are
interested in #BeautyProducts
#Fashion
#ConsumerElectronic, Facebook delivers a reach of 1.6M people
25. women living in Poland who are parents
Facebook delivers a reach of 620 k people
If you were to target
28. Proven lift with Custom Audiences & Lookalike
targeting
10x
Increase in purchase conversion
compared to standard targeting
Source: Facebook case studies
75
%
Increase in subscribers and a
50% decrease in CPA
29. Facebook Exchange (FBX)
Use your own first and
third-party data
Use Facebook domain
ads with offsite links
Optimize with
approved DSPs
Global insurance provider
1/6 CPA
when prospecting on Facebook Exchange
compared with non-FBX media
30. What drives direct response on Facebook?
1. Placement
2. Ad Format
3. Targeting
4. Optimization
31. Delivery optimization
Optimized for Conversion
Conversion pixel tracking
Efficiently deliver ads to users
most likely to convert
Tags placed on conversion
pages track ROI
40%
lower cost per conversion on average in beta tests
compared to bidded CPC ads using the same budget
Source: Internal Facebook study based on average CPA across six eCommerce clients
33. Sample ramp plan: Test, optimize, iterate, scale
KPI: ROAS
Target: 3X ROAS
Attribution model:
30 Day, last click; 48 Hr
last view @ 20%
Measurement:
Click Tags (Omniture)
View Tags (DFA)
FB Conversion Pixel
Test and Scale Schedule
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Phase 1 - Test News Feed Photo vs Link
Type
Test
Test
Scale
Scale
Scale
Scale
Ad Format
Photo vs Link
Photo vs Link
Winner of test
Winner of test
Winner of test
Winner of test
Placement
Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed
Female (18 - 35), Female (18 - 35),
Targeting
Female (18 - 50)
Female (18 - 50)
Female (18 - 50)
Female (18 - 50)
excl CA
excl CA
Bidding
oCPM
oCPM
oCPM
oCPM
oCPM
oCPM
Budget
$5,000
$5,000
$10,000
$10,000
$10,000
$10,000
Phase 2 - Custom Audience and Lookalike
Type
Test
Test
Test
Scale
Ad Format
Winner of test
Winner of test
Winner of test
Winner of test
Placement
Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed
Targeting
CA + LA (3 Clusters) CA + LA (3 Clusters) CA + LA (6 Clusters) CA + LA (6 Clusters)
Bidding
oCPM
oCPM
oCPM
oCPM
Budget
$2,000
$2,000
$8,000
$15,000
Phase 3 - Advanced bidding methods
Type
Test
Test
Ad Format
Winner of test
Winner of test
Placement
Desktop Newsfeed Desktop Newsfeed
Targeting
Female 35-55
Female 35-55
Bidding
oCPM vs other
oCPM vs other
Budget
$2,000
$2,000
Total Budget
$5,000
$5,000
$12,000
$12,000
$20,000
$27,000
37. Tracking
Industry standard:
- Click tags
- View tags
Facebook’s own conversion tags:
- Works cross-platform, cross-device
- Support different attribution methods
- Can optimize delivery and targeting
39. Attribution model matters
A last-touch attribution model
attributes entire value of a conversion to
the last ad clicked or seen
✖ Miscalculates ROI by
assuming the consumer doesn’t
see or click any other ads along
the way
A multi-touch attribution model
attributes value to observed touch point
along the path to conversion
✔
Provides a more realistic
assessment of ROI by
capturing a holistic picture of the
customer journey across
channels
40. Facebook and Search working together
Facebook undervalued by
12% to 30%
using Last Click
Last Ad measurement
undervalued Facebook advertising
by 12-30% relative to each of the
five alternate attribution models.
Source: Quantifying the Impact of Multi-touch Attribution
across hundreds of millions of clicks, Retail and FinServ verticals
Kenshoo Research, August 2013
41. Trendyol
Custom Audiences
Channel Value
Using Custom Audiences
Multi-touch attribution showed that
generated +70-80% conversions
versus other campaigns
Facebook is 2.5x more valuable
as a channel
43. The Internet is shifting to mobile
Worldwide smart connected device shipments (M)*
2,000
1,800
Tablets
Smartphones
Pcs
1,600
1,400
1,200
1,000
800
600
400
200
2010
2011
Source: *IDC, **IC4D 2012 Maximizing Mobile, World Bank, July 2012
2012
2013
2014
2015
2016
44. Facebook is at the center
of the shift to mobile
1
5
minutes
out of
every
54%
YOY mobile monthly
active user growth
Source: Facebook Q1 2013 Earnings
45. Drive sales or mobile actions
Page post link ad
Promote your post in
mobile news feed
Post on your Page
and insert a link to
your app (in the app
store) within your post
Avail of our
mobile
targeting
options
46. Drive mobile app installs
App install ad
Top performing
mobile app
install solution
47. We know it works
Askem
BillGuard
Category and interest targeting
delivered a CPI that was 30% lower
than other media
Huge inventory among their target
audience led to this partner shifting
90% of their iPhone app budget to
Facebook
30% lower
90% to
FB
Everything.me
Their mobile app install efforts on FB
have been up to 50% more efficient
when compared to other media
50%
less
48. Case Study: Vinted Polska
5 X lower
cost-per-install than other leading
mobile platforms