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Succeeding with
Facebook Advertising


     Presented by
    Chris Treadaway




                                                             October 25, 2011
        Design ©2011 Social Media Examiner • Content Copyrighted by Presenter
Agenda

!     Intro
!     The business case for Facebook Ads
!     Facebook Ad basics
!     Facebook Ads weaknesses
!     Driving success with Facebook Ads
!     Sample campaigns
       !   Techniques
       !   A/B & multivariate testing
       !   Metrics & outcomes
!     Top 10 things we’ve learned
!     Q&A




                          ©2011 Social Media Examiner • Do NOT distribute   Page 2
About




!     Chris Treadaway
      !   Founder, CEO Notice Technologies
      !   31/2 years at Microsoft, Group Product Manager for Web
          Strategy
      !   3-time startup founder
      !   MBA – University of Texas




                        ©2011 Social Media Examiner • Do NOT distribute   Page 3
Company
Notice Technologies is a software & data-driven agency that focuses exclusively on social media
   to influence opinion and get people to act.



                                             Local business self-serve marketing and couponing



                                             Managed Facebook Advertising campaigns for SMBs
                                             and major brands



                                             Social data harvesting, mining, and analysis for major
                                             brands




                                     ©2011 Social Media Examiner • Do NOT distribute                  Page 4
Co-Author




    http://www.facebook.com/marketingbook




                              ©2011 Social Media Examiner • Do NOT distribute   Page 5
Contributor/Technical Editor




                 ©2011 Social Media Examiner • Do NOT distribute   Page 6
!     What we know about Facebook…




                    ©2011 Social Media Examiner • Do NOT distribute   Page 7
Facebook owns the social audience




                 ©2011 Social Media Examiner • Do NOT distribute   Page 8
Facebook Ad growth is unreal

!      2009 Estimates according to
       AllFacebook
        !   $350 million from CPC
            self-serve ads
        !   $225 million from CPM,
            corporate ads
!      eMarketer 2010 estimate -
       $1.28b in revenue in 2010
!      Roughly 88-91% Facebook
       revenue comes from advertising




                             ©2011 Social Media Examiner • Do NOT distribute   Page 9
Facebook dominates social media




                 ©2011 Social Media Examiner • Do NOT distribute   Page 10
The business case for Facebook Ads

!     Accessible for as little $1/day budget
!     Easy to get started, takes time & effort to master
!     Richest demographic targeting in the world
       !   800m + profiles
       !   Available to advertisers
!     Targeting combinations/permutations are endless *and* still
      relatively inexpensive
       !   Approximately $1.50-$2.00 CPC, $0.25-$0.30 CPM for most
           targeting options with more than 100,000 users.
       !   More expensive as targeting gets narrower




                            ©2011 Social Media Examiner • Do NOT distribute   Page 11
Social advertising alternatives

!     Google
       !   Mature auction model – over a decade old
       !   Many clickthroughs are now very expensive
!     LinkedIn
       !   DirectAds $3+ CPM (much higher than Facebook)
       !   Branding advertising $18+ CPM
       !   Not terribly effective, but improving
!     Twitter
       !   No rich profile targeting available
       !   Simple, Sponsored Tweets




                         ©2011 Social Media Examiner • Do NOT distribute   Page 12
Old media alternatives
    •  $3-6 CPM                   •  $10-12 CPM                         •  $10-$12 CPM
    •  Usually requires long      •  Sirius/XM-effect                   •  Tivo factor – many
       time commitment            •  Difficult to get responses            people don’t even see
    •  Doesn’t directly land a       to call to action while               commercials
       customer for the              people drive                       •  High production costs
       business

    Billboard                     Radio                                  Television
    •  $10-$15 CPM                •  $10-30 CPM                         •  $15-$25 CPM
    •  Many demographics          •  Not typically a good fit           •  Declining & aging
       don’t use YP in favor of      for local advertising                 customer base
       Internet – effective CPM   •  High creative &                    •  Too expensive for many
       rates are likely              production costs                      local businesses
       considerably higher

    Yellow                                                               Newspape
    Pages                         Magazine                               r




                                  ©2011 Social Media Examiner • Do NOT distribute                   Page 13
!     How Facebook Ads work…




                   ©2011 Social Media Examiner • Do NOT distribute   Page 14
What is a Facebook Ad?




                 ©2011 Social Media Examiner • Do NOT distribute   Page 15
Basic Facebook Ad specs
                  Title: 25 character limit




                                                                   Exact dimension is based image’s aspect ratio




                                                                         Body:
                                                                   135 character limit




                 ©2011 Social Media Examiner • Do NOT distribute                                        Page 16
Where ads appear

!       Profile Pages
!       Facebook Pages
!       Game/App Pages
!       News Feed Page
         !   Sponsored position managed by Facebook
         !   Not available through self-serve ads
         !   Higher CPM & minimum monthly spend




                        ©2011 Social Media Examiner • Do NOT distribute   Page 17
What you can promote

!          Website
!          Facebook Page, Place
!          Facebook Event
!          Facebook Apps & Tabs

                                                                            Website


    Page
                                                                               Event




                          ©2011 Social Media Examiner • Do NOT distribute              Page 18
Types of Facebook Ads

!     Self-serve
      !   For as little as a $1/day budget
          ! CPM – when advertiser wants impressions
          ! CPC – when advertiser needs clicks
       !   Highly configurable
!     Sponsored
       !   Bigger budgets, large ad buys -> Sponsored ads
       !   ~ minimum $5,000/month, $5-7 CPM list price
       !   Administered by Facebook Ad sales



                        ©2011 Social Media Examiner • Do NOT distribute   Page 19
Types of self serve ads

Facebook Ads
 •  Target a demographic group or friends of people who like a page
    •  Standard Ads – target a URL
    •  Page Post Ad – promote a page Post
    •  Facebook Ads for Pages – get fans for a Page

Sponsored Stories
 •  Get more distribution for your content on a Page, Place, or App
    •  Page Like Story – when people like a Page, their friends see it in an ad
    •  Check-in Story (places only) – when people check-in to a Place, their friends
       see it in an ad
    •  Page Post Like Story – when people like a Page Post, their friends see it in an ad




                                 ©2011 Social Media Examiner • Do NOT distribute            Page 20
How to buy

!     Lifetime budget or monthly budget
!     Run ongoing or set start/stop for campaigns
!     You create the ad copy & upload ad imagery
!     Approval process
       !   Can sometimes take some time
       !   Not guaranteed; idiosyncratic
!     You select which Facebook users you want to target




                      ©2011 Social Media Examiner • Do NOT distribute   Page 21
Targeting options

!       Geography
!       Demographics (age, gender)
!       Education level
!       Interests
!       Workplaces
!       Sexual orientation
!       Relationship status
!       Languages
!       College attended
!       Birthday



                        ©2011 Social Media Examiner • Do NOT distribute   Page 22
Things you CAN’T target

!     People who attended “some college”
!     Race
!     Specific high schools
!     Zip Code (available but not “functional” yet in many zip
      codes)
!     People who do not enter relevant information in their
      Facebook profiles




                       ©2011 Social Media Examiner • Do NOT distribute   Page 23
!     What you can do with Facebook Ads…




                    ©2011 Social Media Examiner • Do NOT distribute   Page 24
Drive successful business outcomes

!     Direct incremental revenue
       !   Spend $5 in advertising
       !   Get $10 in revenues in return
!     Build customer lists, find leads
!     Viral marketing
       !   Propagation of online message through social
           channels
       !   Improve awareness, clicks, and other important
           metrics by buying traffic/attention




                       ©2011 Social Media Examiner • Do NOT distribute   Page 25
Lower your costs

!     Lower customer acquisition cost
!     Lower marketing costs
       !   Reduce cost/touch or cost/engagement
!     Lower customer service costs by driving customers to
      Facebook, social media, or other touchpoints
       !   Reduce customer service calls
       !   Inform customers of new programs designed to save
           money
       !   Lower cost/touch, easier to administer program, etc.




                       ©2011 Social Media Examiner • Do NOT distribute   Page 26
How? Iterate.

                               1- Create new ad
                               copy/targeting &                                             !     Set up in Ads &
                                   set budget
                                                                                                  Pages app in
                                                                                                  Facebook
    5 - Make changes                                      2 - Run ads for                   !     Run ads on 7
   to creative, landing                                  statistically valid
        pages, etc.                                        period of time                         day cycles
                                                                                                  before judging
                                                                                                  results
                                                                                            !     Scrutinize
                  4 - Retire                     3 - Assess                                       results & make
               underperforming
               ads, images, etc.
                                              outcomes, let the
                                               numbers do the                                     changes
                                                   talking
                                                                                            !     Rinse & repeat




                                          ©2011 Social Media Examiner • Do NOT distribute                    Page 27
Basics of iteration – the a/b test

!     A/B test – testing differences in ad performance based on a single
      variable, keeping all others alike or dissimilar




                      Eat at Joe’s!                    Eat at Joe’s!
                      CPM campaign                    CPM campaign
                      $2/ads per day                  $2/ads per day
                      Men Age 35-54                   Men Age 35-54


!     Campaign level example – run these ads at women (A) vs. men (B)




                              ©2011 Social Media Examiner • Do NOT distribute   Page 28
A/B test tale of the tape
                                                 !          CPM Campaign
                                                             !   Bid $0.40 in the target market
                                                             !   Actual CPM cost is $0.27
                                                             !   CPCs with same target criteria are $0.52




    Eat at Joe’s!    Eat at Joe’s!
    CPM campaign     CPM campaign
    $2/ads per day   $2/ads per day
    Men Age 35-54    Men Age 35-54




                            ©2011 Social Media Examiner • Do NOT distribute                       Page 29
Iteration makes you smarter

                               1- Create new ad
                               copy/targeting &                                         Over time, adherence
                                   set budget
                                                                                             to this process
                                                                                             will help you
    5 - Make changes                                      2 - Run ads for                    learn who
   to creative, landing                                  statistically valid
        pages, etc.                                        period of time                    responds best to
                                                                                             your ads and
                                                                                             what variables
                                                                                             impact your
                  4 - Retire                     3 - Assess                                  success.
                                              outcomes, let the
               underperforming                 numbers do the
               ads, images, etc.                   talking




                                          ©2011 Social Media Examiner • Do NOT distribute                 Page 30
Time trending analysis

!     Very important to track ad results over time. Why?
      !   Ads & ad campaigns fatigue over time
      !   Record success of retiring unsuccessful ad variations
          with new, improved ones
      !   Informs next steps, new ideas, and when you need a
          new trick/approach to improve your numbers




                       ©2011 Social Media Examiner • Do NOT distribute   Page 31
A real-life example




!     Spreadsheet of results from an actual campaign for a major brand
       !   Ad tweaks became less effective at Week 7 per CTR #s and
           Cost/Fan #s
       !   Tactics started in Week 1 got stale by Week 7




                           ©2011 Social Media Examiner • Do NOT distribute   Page 32
!     Facebook advertising gotchas…




                    ©2011 Social Media Examiner • Do NOT distribute   Page 33
Facebook advertising gotchas

1.     Relies upon user profile data in most cases
2.     Demographic targeting does not imply purchase intent
3.     Finicky ad copy regulations
4.     Advertisers cannot target a user’s status updates
5.     Currently no mobile advertising or targeting available
6.     Ads don’t appear in mobile, iPad versions
7.     Requires significant work to manage, administer, and optimize
8.     Deep a/b testing is a very manual process
9.     No help/assistance with landing pages
10.    Questions regarding effectiveness, direct & immediate ROI




                         ©2011 Social Media Examiner • Do NOT distribute   Page 34
!     Things we’ve learned…




                    ©2011 Social Media Examiner • Do NOT distribute   Page 35
Best practices

!       Make your ad as interesting as possible to the target markets. Don’t be
        boring.
!       Make your ad actionable and relevant for the target market.
!       Don’t run your ads exclusively at a small demographic group.
!       Include a specific call-to-action in your ad so customers know exactly what
        to do next.
!       Make sure you send customers to an interesting landing page that also very
        clearly communicates the next step.
!       Multiple combinations of ad copy, images, and landing pages work best.
!       Use eye catching images to accentuate your add to grab your customers’
        attention.
!       Usually, it requires 10 ad impressions per person in the target market before
        drawing conclusions.




                                ©2011 Social Media Examiner • Do NOT distribute    Page 36
Rules of thumb

!     More local = more expensive
         !   $0.30 CPM & $1.50 clicks are routine for local targeting
         !   Cheaper if you target additional areas
!       Make sure you can advertise to a market segment of at least 10,000
        people
!       Run ads for at least 7 days and with at least 10 impressions/person
!       Use targeting to your advantage, but don’t rely on it exclusively
!       Landing pages must be actionable for conversion to happen
!       Experimentation is necessary to know what will work
!       Measurement is KEY. Data and outcomes drive the best next steps




                             ©2011 Social Media Examiner • Do NOT distribute   Page 37
Success criteria

!     Good scenarios
       !   Enticing offer & eyecatching imagery
       !   Good demographic fit
       !   Understandable & easy call to action
!     Bad scenarios
       !   “Spray & pray”
       !   Bad landing pages
       !   Unclear ad copy




                       ©2011 Social Media Examiner • Do NOT distribute   Page 38
Tools necessary for big a/b tests

!     Tools such as AdParlor can help automate submitting
      campaigns with different a/b criteria
       !   Male vs. Female
       !   Age demographic a/b test
       !   Imagery
       !   Ad title, copy
!     Pay additional fee to help manage
!     Recommended for larger ad buys ($1,000/month +) &
      CPM campaign optimization




                      ©2011 Social Media Examiner • Do NOT distribute   Page 39
Spreadsheets critical to analyze data

                                                                                                                                                                                                                                                                                                                                                                                            eCPC                                                                                                                                                                             eCPM
                                                            Days	
                                                          Promised	
                                                                       Lifetime	
                         Lifetime	
                                         Lifetime	
                                                                                                                                                                           Lifetime	
                                                                                                                                                                      	
  L ifetime	
  
Start	
  Date   End	
  Date   Days                        Remaining                                                        Impressions                                                %                    Impressions                            Clicks                                              CTR           Oct	
  Wk1                            Oct	
  Wk2                    Oct	
  Wk3                      Oct	
  Wk4                          Oct	
  Ttl                    eCPC       Oct	
  Wk1                         Oct	
  Wk2                      Oct	
  Wk3                      Oct	
  Wk4                          Oct	
  Ttl                        eCPM	
  
 9/14/2011        Ongoing                                                                                              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  250,000   209.2% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  739,563
                                                                                                                                                                                                                                    	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  51
                                                                                                                                                                                                                                                                                            	
       0.007%       $	
  	
  	
  	
  	
  	
  	
  	
  1.31 $	
  	
  	
  	
  	
  	
  0.65
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  1.88   $	
  	
  	
  	
  	
  	
  2.25   $	
  	
  	
  	
  	
  	
  1.10   $	
  	
  1.18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.08   $	
  	
  	
  	
  	
  	
  0.08   $	
  	
  	
  	
  	
  	
  0.07   $	
  	
  	
  	
  	
  	
  0.07   $	
  	
  	
  	
  	
  	
  0.08    $	
  	
  	
  0.08
 10/1/2011      10/26/2011          25 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1
                                                                                                           	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  900,000      95.7% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  861,159
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  44
                                                                                                                                                                                                                                                                                            	
       0.005%       $	
  	
  	
  	
  	
  	
  	
  	
  3.13 $	
  	
  	
  	
  	
  	
  2.19
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  2.92   $	
  	
  	
  	
  	
  	
  2.22   $	
  	
  	
  	
  	
  	
  2.62   $	
  	
  2.62
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.12   $	
  	
  	
  	
  	
  	
  0.14   $	
  	
  	
  	
  	
  	
  0.14   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.13    $	
  	
  	
  0.13
 9/16/2011      11/16/2011          61 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  22                  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  600,000      66.6% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  399,436
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  15
                                                                                                                                                                                                                                                                                            	
       0.004%                                             $	
  	
  	
  	
  	
  	
  1.98   $	
  	
  	
  	
  	
  	
  1.44   $	
  	
  	
  	
  	
  	
  2.25   $	
  	
  	
  	
  	
  	
  3.00   $	
  	
  3.18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.11   $	
  	
  	
  	
  	
  	
  0.11   $	
  	
  	
  	
  	
  	
  0.10   $	
  	
  	
  	
  	
  	
  0.10   $	
  	
  	
  	
  	
  	
  0.11    $	
  	
  	
  0.12
 9/20/2011       9/19/2012      365 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  330                            	
  	
  	
  	
  	
  	
  	
  	
  3,000,000                    10.9% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  328,304
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  20
                                                                                                                                                                                                                                                                                            	
       0.006%       $	
  	
  	
  	
  	
  	
  	
  	
  2.58 $	
  	
  	
  	
  	
  	
  2.43
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  1.11   $	
  	
  	
  	
  	
  	
  2.50   $	
  	
  	
  	
  	
  	
  1.80   $	
  	
  2.24
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.12   $	
  	
  	
  	
  	
  	
  0.15   $	
  	
  	
  	
  	
  	
  0.15   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.14    $	
  	
  	
  0.14
 9/28/2011      10/26/2011          28 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1
                                                                                                           	
          	
  	
  	
  	
  	
  	
  	
  	
  1,000,000                    96.0% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  960,229
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  38
                                                                                                                                                                                                                                                                                            	
       0.004%       $	
  	
  	
  	
  	
  	
  	
  	
  2.65 $	
  	
  	
  	
  	
  	
  3.54
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  3.36   $	
  	
  	
  	
  	
  	
  3.16   $	
  	
  	
  	
  	
  	
  3.11   $	
  	
  3.04
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.11   $	
  	
  	
  	
  	
  	
  0.11   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.12    $	
  	
  	
  0.12
 10/5/2011       10/8/2011                3                                                                            	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  305,000   109.6% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  334,399
                                                                                                                                                                                                                                    	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  29
                                                                                                                                                                                                                                                                                            	
       0.009%       $	
  	
  	
  	
  	
  	
  	
  	
  2.25 $	
  	
  	
  	
  	
  	
  1.55
                                                                                                                                                                                                                                                                                                                                                   	
                                                                                                   $	
  	
  	
  	
  	
  	
  1.98   $	
  	
  1.98
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.18   $	
  	
  	
  	
  	
  	
  0.16                                                                   $	
  	
  	
  	
  	
  	
  0.17    $	
  	
  	
  0.17
 10/5/2011       11/1/2011          27 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  7
                                                                                                           	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  575,000      73.0% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  419,669
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  43
                                                                                                                                                                                                                                                                                            	
       0.010%       $	
  	
  	
  	
  	
  	
  	
  	
  1.40 $	
  	
  	
  	
  	
  	
  1.50
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  1.17   $	
  	
  	
  	
  	
  	
  0.64   $	
  	
  	
  	
  	
  	
  1.19   $	
  	
  1.19
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.11   $	
  	
  	
  	
  	
  	
  0.12   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.12   $	
  	
  	
  	
  	
  	
  0.12    $	
  	
  	
  0.12
 10/7/2011       11/4/2011          28 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  10                  	
  	
  	
  	
  	
  	
  	
  	
  1,000,000                    60.1% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  601,033
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  43
                                                                                                                                                                                                                                                                                            	
       0.007%       $	
  	
  	
  	
  	
  	
  	
  	
  1.30 $	
  	
  	
  	
  	
  	
  1.84
                                                                                                                                                                                                                                                                                                                                                   	
                                   $	
  	
  	
  	
  	
  	
  3.80   $	
  	
  	
  	
  	
  	
  1.30   $	
  	
  	
  	
  	
  	
  2.04   $	
  	
  2.04
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
     $	
  	
  	
  	
  	
  	
  0.15   $	
  	
  	
  	
  	
  	
  0.14   $	
  	
  	
  	
  	
  	
  0.15   $	
  	
  	
  	
  	
  	
  0.14   $	
  	
  	
  	
  	
  	
  0.15    $	
  	
  	
  0.15
10/20/2011      10/22/2011                2                                                                            	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  555,555   100.3% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  557,480
                                                                                                                                                                                                                                    	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  136              0.024%                                                                             $	
  	
  	
  	
  	
  	
  0.70                                   $	
  	
  	
  	
  	
  	
  0.70   $	
  	
  0.70
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
                                                                     $	
  	
  	
  	
  	
  	
  0.17                                   $	
  	
  	
  	
  	
  	
  0.17    $	
  	
  	
  0.17
10/21/2011      11/11/2011          21 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  17                  	
  	
  	
  	
  	
  	
  	
  	
  1,230,000                    34.2% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  420,782
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  72
                                                                                                                                                                                                                                                                                            	
       0.017%                                                                             $	
  	
  	
  	
  	
  	
  1.30   $	
  	
  	
  	
  	
  	
  0.82   $	
  	
  	
  	
  	
  	
  1.00   $	
  	
  1.00
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
                                                                     $	
  	
  	
  	
  	
  	
  0.19   $	
  	
  	
  	
  	
  	
  0.16   $	
  	
  	
  	
  	
  	
  0.17    $	
  	
  	
  0.17
10/21/2011      12/31/2011          71 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  67                  	
  	
  	
  	
  	
  	
  	
  	
  1,700,000                    14.7% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  249,766
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  14
                                                                                                                                                                                                                                                                                            	
       0.006%                                                                             $	
  	
  	
  	
  	
  	
  3.68   $	
  	
  	
  	
  	
  	
  1.85   $	
  	
  	
  	
  	
  	
  2.50   $	
  	
  2.50
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
                                                                     $	
  	
  	
  	
  	
  	
  0.15   $	
  	
  	
  	
  	
  	
  0.13   $	
  	
  	
  	
  	
  	
  0.14    $	
  	
  	
  0.14
10/21/2011      10/26/2011                5 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1
                                                                                                                	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  416,000      74.2% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  308,755
                                                                                                                                                                                                                                      	
        	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  35
                                                                                                                                                                                                                                                                                            	
       0.011%                                                                             $	
  	
  	
  	
  	
  	
  1.44   $	
  	
  	
  	
  	
  	
  2.10   $	
  	
  	
  	
  	
  	
  1.76   $	
  	
  1.76
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 	
                                                                     $	
  	
  	
  	
  	
  	
  0.21   $	
  	
  	
  	
  	
  	
  0.19   $	
  	
  	
  	
  	
  	
  0.20    $	
  	
  	
  0.20




                !               Best way to watch health of campaigns, time trending
                                results for campaigns
                !               Manual effort but rewarding to understand outcomes




                                                                                                                                                                                                                                                       ©2011 Social Media Examiner • Do NOT distribute                                                                                                                                                                                                                                                                                                                                      Page 40
Don’t overestimate targeting




                 ©2011 Social Media Examiner • Do NOT distribute   Page 41
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                                                                            Outside US/Canada: Call +1
                                                                            (503) 295-8000, enter: (866)
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                                       ©2011 Social Media Examiner • Do NOT distribute                        Page 42

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Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads

  • 1. Succeeding with Facebook Advertising Presented by Chris Treadaway October 25, 2011 Design ©2011 Social Media Examiner • Content Copyrighted by Presenter
  • 2. Agenda !   Intro !   The business case for Facebook Ads !   Facebook Ad basics !   Facebook Ads weaknesses !   Driving success with Facebook Ads !   Sample campaigns !   Techniques !   A/B & multivariate testing !   Metrics & outcomes !   Top 10 things we’ve learned !   Q&A ©2011 Social Media Examiner • Do NOT distribute Page 2
  • 3. About !   Chris Treadaway !   Founder, CEO Notice Technologies !   31/2 years at Microsoft, Group Product Manager for Web Strategy !   3-time startup founder !   MBA – University of Texas ©2011 Social Media Examiner • Do NOT distribute Page 3
  • 4. Company Notice Technologies is a software & data-driven agency that focuses exclusively on social media to influence opinion and get people to act. Local business self-serve marketing and couponing Managed Facebook Advertising campaigns for SMBs and major brands Social data harvesting, mining, and analysis for major brands ©2011 Social Media Examiner • Do NOT distribute Page 4
  • 5. Co-Author http://www.facebook.com/marketingbook ©2011 Social Media Examiner • Do NOT distribute Page 5
  • 6. Contributor/Technical Editor ©2011 Social Media Examiner • Do NOT distribute Page 6
  • 7. !   What we know about Facebook… ©2011 Social Media Examiner • Do NOT distribute Page 7
  • 8. Facebook owns the social audience ©2011 Social Media Examiner • Do NOT distribute Page 8
  • 9. Facebook Ad growth is unreal !   2009 Estimates according to AllFacebook !   $350 million from CPC self-serve ads !   $225 million from CPM, corporate ads !   eMarketer 2010 estimate - $1.28b in revenue in 2010 !   Roughly 88-91% Facebook revenue comes from advertising ©2011 Social Media Examiner • Do NOT distribute Page 9
  • 10. Facebook dominates social media ©2011 Social Media Examiner • Do NOT distribute Page 10
  • 11. The business case for Facebook Ads !   Accessible for as little $1/day budget !   Easy to get started, takes time & effort to master !   Richest demographic targeting in the world !   800m + profiles !   Available to advertisers !   Targeting combinations/permutations are endless *and* still relatively inexpensive !   Approximately $1.50-$2.00 CPC, $0.25-$0.30 CPM for most targeting options with more than 100,000 users. !   More expensive as targeting gets narrower ©2011 Social Media Examiner • Do NOT distribute Page 11
  • 12. Social advertising alternatives !   Google !   Mature auction model – over a decade old !   Many clickthroughs are now very expensive !   LinkedIn !   DirectAds $3+ CPM (much higher than Facebook) !   Branding advertising $18+ CPM !   Not terribly effective, but improving !   Twitter !   No rich profile targeting available !   Simple, Sponsored Tweets ©2011 Social Media Examiner • Do NOT distribute Page 12
  • 13. Old media alternatives •  $3-6 CPM •  $10-12 CPM •  $10-$12 CPM •  Usually requires long •  Sirius/XM-effect •  Tivo factor – many time commitment •  Difficult to get responses people don’t even see •  Doesn’t directly land a to call to action while commercials customer for the people drive •  High production costs business Billboard Radio Television •  $10-$15 CPM •  $10-30 CPM •  $15-$25 CPM •  Many demographics •  Not typically a good fit •  Declining & aging don’t use YP in favor of for local advertising customer base Internet – effective CPM •  High creative & •  Too expensive for many rates are likely production costs local businesses considerably higher Yellow Newspape Pages Magazine r ©2011 Social Media Examiner • Do NOT distribute Page 13
  • 14. !   How Facebook Ads work… ©2011 Social Media Examiner • Do NOT distribute Page 14
  • 15. What is a Facebook Ad? ©2011 Social Media Examiner • Do NOT distribute Page 15
  • 16. Basic Facebook Ad specs Title: 25 character limit Exact dimension is based image’s aspect ratio Body: 135 character limit ©2011 Social Media Examiner • Do NOT distribute Page 16
  • 17. Where ads appear !   Profile Pages !   Facebook Pages !   Game/App Pages !   News Feed Page !   Sponsored position managed by Facebook !   Not available through self-serve ads !   Higher CPM & minimum monthly spend ©2011 Social Media Examiner • Do NOT distribute Page 17
  • 18. What you can promote !   Website !   Facebook Page, Place !   Facebook Event !   Facebook Apps & Tabs Website Page Event ©2011 Social Media Examiner • Do NOT distribute Page 18
  • 19. Types of Facebook Ads !   Self-serve !   For as little as a $1/day budget ! CPM – when advertiser wants impressions ! CPC – when advertiser needs clicks !   Highly configurable !   Sponsored !   Bigger budgets, large ad buys -> Sponsored ads !   ~ minimum $5,000/month, $5-7 CPM list price !   Administered by Facebook Ad sales ©2011 Social Media Examiner • Do NOT distribute Page 19
  • 20. Types of self serve ads Facebook Ads •  Target a demographic group or friends of people who like a page •  Standard Ads – target a URL •  Page Post Ad – promote a page Post •  Facebook Ads for Pages – get fans for a Page Sponsored Stories •  Get more distribution for your content on a Page, Place, or App •  Page Like Story – when people like a Page, their friends see it in an ad •  Check-in Story (places only) – when people check-in to a Place, their friends see it in an ad •  Page Post Like Story – when people like a Page Post, their friends see it in an ad ©2011 Social Media Examiner • Do NOT distribute Page 20
  • 21. How to buy !   Lifetime budget or monthly budget !   Run ongoing or set start/stop for campaigns !   You create the ad copy & upload ad imagery !   Approval process !   Can sometimes take some time !   Not guaranteed; idiosyncratic !   You select which Facebook users you want to target ©2011 Social Media Examiner • Do NOT distribute Page 21
  • 22. Targeting options !   Geography !   Demographics (age, gender) !   Education level !   Interests !   Workplaces !   Sexual orientation !   Relationship status !   Languages !   College attended !   Birthday ©2011 Social Media Examiner • Do NOT distribute Page 22
  • 23. Things you CAN’T target !   People who attended “some college” !   Race !   Specific high schools !   Zip Code (available but not “functional” yet in many zip codes) !   People who do not enter relevant information in their Facebook profiles ©2011 Social Media Examiner • Do NOT distribute Page 23
  • 24. !   What you can do with Facebook Ads… ©2011 Social Media Examiner • Do NOT distribute Page 24
  • 25. Drive successful business outcomes !   Direct incremental revenue !   Spend $5 in advertising !   Get $10 in revenues in return !   Build customer lists, find leads !   Viral marketing !   Propagation of online message through social channels !   Improve awareness, clicks, and other important metrics by buying traffic/attention ©2011 Social Media Examiner • Do NOT distribute Page 25
  • 26. Lower your costs !   Lower customer acquisition cost !   Lower marketing costs !   Reduce cost/touch or cost/engagement !   Lower customer service costs by driving customers to Facebook, social media, or other touchpoints !   Reduce customer service calls !   Inform customers of new programs designed to save money !   Lower cost/touch, easier to administer program, etc. ©2011 Social Media Examiner • Do NOT distribute Page 26
  • 27. How? Iterate. 1- Create new ad copy/targeting & !   Set up in Ads & set budget Pages app in Facebook 5 - Make changes 2 - Run ads for !   Run ads on 7 to creative, landing statistically valid pages, etc. period of time day cycles before judging results !   Scrutinize 4 - Retire 3 - Assess results & make underperforming ads, images, etc. outcomes, let the numbers do the changes talking !   Rinse & repeat ©2011 Social Media Examiner • Do NOT distribute Page 27
  • 28. Basics of iteration – the a/b test !   A/B test – testing differences in ad performance based on a single variable, keeping all others alike or dissimilar Eat at Joe’s! Eat at Joe’s! CPM campaign CPM campaign $2/ads per day $2/ads per day Men Age 35-54 Men Age 35-54 !   Campaign level example – run these ads at women (A) vs. men (B) ©2011 Social Media Examiner • Do NOT distribute Page 28
  • 29. A/B test tale of the tape !   CPM Campaign !   Bid $0.40 in the target market !   Actual CPM cost is $0.27 !   CPCs with same target criteria are $0.52 Eat at Joe’s! Eat at Joe’s! CPM campaign CPM campaign $2/ads per day $2/ads per day Men Age 35-54 Men Age 35-54 ©2011 Social Media Examiner • Do NOT distribute Page 29
  • 30. Iteration makes you smarter 1- Create new ad copy/targeting & Over time, adherence set budget to this process will help you 5 - Make changes 2 - Run ads for learn who to creative, landing statistically valid pages, etc. period of time responds best to your ads and what variables impact your 4 - Retire 3 - Assess success. outcomes, let the underperforming numbers do the ads, images, etc. talking ©2011 Social Media Examiner • Do NOT distribute Page 30
  • 31. Time trending analysis !   Very important to track ad results over time. Why? !   Ads & ad campaigns fatigue over time !   Record success of retiring unsuccessful ad variations with new, improved ones !   Informs next steps, new ideas, and when you need a new trick/approach to improve your numbers ©2011 Social Media Examiner • Do NOT distribute Page 31
  • 32. A real-life example !   Spreadsheet of results from an actual campaign for a major brand !   Ad tweaks became less effective at Week 7 per CTR #s and Cost/Fan #s !   Tactics started in Week 1 got stale by Week 7 ©2011 Social Media Examiner • Do NOT distribute Page 32
  • 33. !   Facebook advertising gotchas… ©2011 Social Media Examiner • Do NOT distribute Page 33
  • 34. Facebook advertising gotchas 1.  Relies upon user profile data in most cases 2.  Demographic targeting does not imply purchase intent 3.  Finicky ad copy regulations 4.  Advertisers cannot target a user’s status updates 5.  Currently no mobile advertising or targeting available 6.  Ads don’t appear in mobile, iPad versions 7.  Requires significant work to manage, administer, and optimize 8.  Deep a/b testing is a very manual process 9.  No help/assistance with landing pages 10.  Questions regarding effectiveness, direct & immediate ROI ©2011 Social Media Examiner • Do NOT distribute Page 34
  • 35. !   Things we’ve learned… ©2011 Social Media Examiner • Do NOT distribute Page 35
  • 36. Best practices !   Make your ad as interesting as possible to the target markets. Don’t be boring. !   Make your ad actionable and relevant for the target market. !   Don’t run your ads exclusively at a small demographic group. !   Include a specific call-to-action in your ad so customers know exactly what to do next. !   Make sure you send customers to an interesting landing page that also very clearly communicates the next step. !   Multiple combinations of ad copy, images, and landing pages work best. !   Use eye catching images to accentuate your add to grab your customers’ attention. !   Usually, it requires 10 ad impressions per person in the target market before drawing conclusions. ©2011 Social Media Examiner • Do NOT distribute Page 36
  • 37. Rules of thumb !   More local = more expensive !   $0.30 CPM & $1.50 clicks are routine for local targeting !   Cheaper if you target additional areas !   Make sure you can advertise to a market segment of at least 10,000 people !   Run ads for at least 7 days and with at least 10 impressions/person !   Use targeting to your advantage, but don’t rely on it exclusively !   Landing pages must be actionable for conversion to happen !   Experimentation is necessary to know what will work !   Measurement is KEY. Data and outcomes drive the best next steps ©2011 Social Media Examiner • Do NOT distribute Page 37
  • 38. Success criteria !   Good scenarios !   Enticing offer & eyecatching imagery !   Good demographic fit !   Understandable & easy call to action !   Bad scenarios !   “Spray & pray” !   Bad landing pages !   Unclear ad copy ©2011 Social Media Examiner • Do NOT distribute Page 38
  • 39. Tools necessary for big a/b tests !   Tools such as AdParlor can help automate submitting campaigns with different a/b criteria !   Male vs. Female !   Age demographic a/b test !   Imagery !   Ad title, copy !   Pay additional fee to help manage !   Recommended for larger ad buys ($1,000/month +) & CPM campaign optimization ©2011 Social Media Examiner • Do NOT distribute Page 39
  • 40. Spreadsheets critical to analyze data eCPC eCPM Days   Promised   Lifetime   Lifetime   Lifetime   Lifetime    L ifetime   Start  Date End  Date Days Remaining Impressions % Impressions Clicks CTR Oct  Wk1 Oct  Wk2 Oct  Wk3 Oct  Wk4 Oct  Ttl eCPC Oct  Wk1 Oct  Wk2 Oct  Wk3 Oct  Wk4 Oct  Ttl eCPM   9/14/2011 Ongoing                        250,000 209.2%                      739,563                        51   0.007% $                1.31 $            0.65   $            1.88 $            2.25 $            1.10 $    1.18   $            0.08 $            0.08 $            0.07 $            0.07 $            0.08 $      0.08 10/1/2011 10/26/2011 25                                  1                          900,000 95.7%                      861,159                        44   0.005% $                3.13 $            2.19   $            2.92 $            2.22 $            2.62 $    2.62   $            0.12 $            0.14 $            0.14 $            0.13 $            0.13 $      0.13 9/16/2011 11/16/2011 61                              22                        600,000 66.6%                      399,436                        15   0.004% $            1.98 $            1.44 $            2.25 $            3.00 $    3.18   $            0.11 $            0.11 $            0.10 $            0.10 $            0.11 $      0.12 9/20/2011 9/19/2012 365                          330                3,000,000 10.9%                      328,304                        20   0.006% $                2.58 $            2.43   $            1.11 $            2.50 $            1.80 $    2.24   $            0.12 $            0.15 $            0.15 $            0.13 $            0.14 $      0.14 9/28/2011 10/26/2011 28                                  1                  1,000,000 96.0%                      960,229                        38   0.004% $                2.65 $            3.54   $            3.36 $            3.16 $            3.11 $    3.04   $            0.11 $            0.11 $            0.13 $            0.13 $            0.12 $      0.12 10/5/2011 10/8/2011 3                        305,000 109.6%                      334,399                        29   0.009% $                2.25 $            1.55   $            1.98 $    1.98   $            0.18 $            0.16 $            0.17 $      0.17 10/5/2011 11/1/2011 27                                  7                          575,000 73.0%                      419,669                        43   0.010% $                1.40 $            1.50   $            1.17 $            0.64 $            1.19 $    1.19   $            0.11 $            0.12 $            0.13 $            0.12 $            0.12 $      0.12 10/7/2011 11/4/2011 28                              10                1,000,000 60.1%                      601,033                        43   0.007% $                1.30 $            1.84   $            3.80 $            1.30 $            2.04 $    2.04   $            0.15 $            0.14 $            0.15 $            0.14 $            0.15 $      0.15 10/20/2011 10/22/2011 2                        555,555 100.3%                      557,480                    136 0.024% $            0.70 $            0.70 $    0.70   $            0.17 $            0.17 $      0.17 10/21/2011 11/11/2011 21                              17                1,230,000 34.2%                      420,782                        72   0.017% $            1.30 $            0.82 $            1.00 $    1.00   $            0.19 $            0.16 $            0.17 $      0.17 10/21/2011 12/31/2011 71                              67                1,700,000 14.7%                      249,766                        14   0.006% $            3.68 $            1.85 $            2.50 $    2.50   $            0.15 $            0.13 $            0.14 $      0.14 10/21/2011 10/26/2011 5                                  1                          416,000 74.2%                      308,755                        35   0.011% $            1.44 $            2.10 $            1.76 $    1.76   $            0.21 $            0.19 $            0.20 $      0.20 !   Best way to watch health of campaigns, time trending results for campaigns !   Manual effort but rewarding to understand outcomes ©2011 Social Media Examiner • Do NOT distribute Page 40
  • 41. Don’t overestimate targeting ©2011 Social Media Examiner • Do NOT distribute Page 41
  • 42. Thank you! Questions? ASKING A LIVE QUESTION: Already on the phone: (*) (8) on your telephone to get in queue. Listening online: Call 866-630-3507, pin 9206; then !   Chris Treadaway press (*) (8) Outside US/Canada: Call +1 (503) 295-8000, enter: (866) 630-3507 (do not dial '1'), pin 9206. Press (*) (8) Managed social advertising campaigns for SMBs and major brands ©2011 Social Media Examiner • Do NOT distribute Page 42