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
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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
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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
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5. Co-Author
http://www.facebook.com/marketingbook
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6. Contributor/Technical Editor
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7. ! What we know about Facebook…
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8. Facebook owns the social audience
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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
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10. Facebook dominates social media
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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
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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
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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
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14. ! How Facebook Ads work…
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15. What is a Facebook Ad?
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16. Basic Facebook Ad specs
Title: 25 character limit
Exact dimension is based image’s aspect ratio
Body:
135 character limit
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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
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18. What you can promote
! Website
! Facebook Page, Place
! Facebook Event
! Facebook Apps & Tabs
Website
Page
Event
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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
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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
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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
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22. Targeting options
! Geography
! Demographics (age, gender)
! Education level
! Interests
! Workplaces
! Sexual orientation
! Relationship status
! Languages
! College attended
! Birthday
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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
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24. ! What you can do with Facebook Ads…
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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
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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.
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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
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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)
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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
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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
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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
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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
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33. ! Facebook advertising gotchas…
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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
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35. ! Things we’ve learned…
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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.
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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
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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
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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
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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
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41. Don’t overestimate targeting
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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
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