Facebook exchange overview - november 2012

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Overview of the Facebook Exchange (FBX) as of November, 2012

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  • This presentation assumes that the audience knows at least a little bit about: Real-Time Bidding and DSPsFacebook advertisingContact Brian Groth for questions about this presentation
  • It is also a natural extension to any campaign
  • A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
  • This usually happens upon my purchase intentExample:Set-Cookie: HSID=AYQEVn….DKrdst; Domain=.foo.com; Path=/; Expires=Wed, 13-Jan-2021 22:23:01 GMT; HttpOnly---A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
  • A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
  • A user visits a travel site that’s hired a DSP rigged up with Facebook ExchangeA cookie is dropped on that user’s computer, typically when they’ve shown purchase intentIf the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User IDThe advertiser pre-loads creative for ads that would target that userWhen the user visits Facebook it recognizes the cookie dropped by the DSPThe DSP is notified and allowed to make a real-time bid to show the user adsThe DSPs with the highest bids get their highly-targeted ads shown to the userIf the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
  • http://www.southwest.com/html/promotions/nationwide-sale.html?src=WBMD0A86FARSALNTLFACSOC121030&a=1
  • 4x higher Click-through ROAS (Post-Click Return-On-Ad-Spend)compared to retargeting on the traditional ad exchangesConversions on FBX is 2x as likely to happen in the first two days than retargeting on the traditional ad exchanges.FBX ad not only out-performs above-the-fold only ads, but they outperform them at 1/3 the cost.CTRs rose 3x higher than the industry average according to NBC Universal
  • 4x higher Click-through ROAS (Post-Click Return-On-Ad-Spend)compared to retargeting on the traditional ad exchangesConversions on FBX is 2x as likely to happen in the first two days than retargeting on the traditional ad exchanges.FBX ad not only out-performs above-the-fold only ads, but they outperform them at 1/3 the cost.CTRs rose 3x higher than the industry average according to NBC Universal
  • Only 4 by my count also use the Facebook Ad API to place social ads on FacebookThe following are listed on https://apps.facebook.com/pmddirectory/ for “Facebook Exchange through realtime bidding” Ad Management Tools: AdRollAppNexusCriteoDataXuMediaMathTellapartTheTradeDeskTriggitTurnXaxis (WPP)Full list of FBX PartnersAdRollAppNexusBrandscreenCriteoDataXuKenshooMediaMathNanigansOptimalRocket FuelTellapartTheTradeDeskTriggitTurnX+1. Xaxis (WPP)Plus Facebook is working to add partners in Europe, Latin America and Asia
  • Sources: http://www.facebook-studio.com/news/item/introducing-facebook-exchange and https://www.facebook-studio.com/fbassets/resource/66/FacebookExchange20120913Facebook goes on to say that “When brand goals like increasing awareness and favorability are the objective, Facebook’s native tools are usually a better fit because they work with all our social formats and placements in addition to fan targeting. ”The value prop does seem to be missing the proof or some reason to believe it.
  • http://www.insidefacebook.com/2012/10/25/facebook-exchange-what-it-is-and-who-to-work-with-to-get-started/http://www.adweek.com/news/technology/turn-builds-out-facebook-ad-capabilities-144979
  • Facebook exchange overview - november 2012

    1. 1. Overview of the Facebook Exchange (FBX) Brian Groth November 2012[I created this presentation from a variety of public sources as a way to learn more about the FBX. See the appendix for the list of those sources – Brian Groth]
    2. 2. Key Takeaways1. 3rd party data targeting for Facebook ads2. Desirable & massive RTB inventory3. Performance looks promising
    3. 3. What is it?
    4. 4. The FBX Ad URL, not Page  No Facebook user data Above the fold  Re-marketing & behaviorally targeted All Facebook web users  Advertiser & DSP provide data CPM  DSPs provide day-parting, etc. Served by Facebook  Working hours inventory Not in the Newsfeed  Over 25% of US inventory Not an IAB standard  Campaigns launch within one hour “…is not social advertising”
    5. 5. Examples
    6. 6. How does it work?
    7. 7. techmeme.comA cookiegetscreatedon myPC
    8. 8. Meanwhile the advertiserand DSP create an ad tobe displayed on Facebook
    9. 9. The cookie isused toanonymouslyidentify meand a bid ismade in real-time to showme an ad
    10. 10. I click onthe ad andam takenback to theadvertiser’ssite
    11. 11. Is It Working?
    12. 12. FBX Performance“Our performance so far in the(Facebook) Exchange is doingbetter than the Google Exchange”Carolyn EversonVP Global Marketing Solutions, Facebook
    13. 13. FBX Versus Other Ad Exchanges Ad Inventory Throughout The Day US Display Inventory Morning Facebo ok Afternoon All Others Evening FBX Traditional RTB
    14. 14. FBX PartnersKey Differentiators per the 16 FBX Partners:  Cost: $0-$30k  Service: 5 minutes – 6 weeks  Value Add: Facebook Ad API
    15. 15. Any Questions?
    16. 16. APPENDIX
    17. 17. Frequently Asked Questions1. Q: Will Facebook open all their ad inventory to the exchange? A: Unlikely since that would mean admitting that Facebook is just another web publisher and Facebook wants to be seen as changing the world and doing new and different things2. Q: Are these small Facebook ads really better than a standard 250x300 banner ad? A: Arguably, a single user checks Facebook multiple times a day, not just in the morning or evening like many web sites. This is because it’s a communications tool, not a place to search and move on or a place to read an article.3. Q: Is this an extension of the Facebook Ads API? A: No, the Ad APIs are for building ad creation and management solutions for social ads on Facebook.
    18. 18. What is the Facebook Exchange(FBX)?With the Facebook Exchange, advertisers and agencies Segmentcan drive direct response goals Promisethrough Demand-Side Platforms or Agency Trading Desksto reach their audience on Facebook with user intent Differentiateddata from outside of Facebookfor remarketing and behavioral targeted audience buys Purpose
    19. 19. ResultsSource / Partner InsightsTellApart Customers who do click on the Facebook ads end up spending $159 per average order, compared to $163 for Google.Triggit one-fifth the cost per acquisition of non-Facebook RTB ad campaigns 4x the return-on-ad-spend; 2.2x higher than traditional RTB, and conversion lift has been 18 to 30% higher than a control group of users who did not see FBX adsXaxis (WPP) fast-food restaurant, which used FBX to drive new orders while lowering cost-per-order by 22 percent compared with similar campaigns that didn’t run on the exchange.AdRoll Average ROI of 16xThe Trading Desk One client is achieving conversions at half the CPA of other sources of inventory.AppNexus (for trading desk platform Reduced advertisers’ CPAs by as much as 25%Accordant) 30% increase in audience reach while maintaining key metrics such as impression to conversion rates.Bizo 300% “better” cost-per-leads, at prices 66 to 80% less than “an equivalent high-quality display impression.”TellApart 10-20x ROI
    20. 20. Comparing Facebook Cost Customer Service Value AddExchange Partners Minimum spend Time to get started +FB Ads APIAdRoll $0 < 1 dayCriteo Bidded cost-per-click model with clicks beginning at 15 cents. 4 – 6 weeks This list of API partners is probably not 100% completeDataXu $20,000-$25,000 48 hours+Kenshoo $10,000 a month total social media spend 48 hours+MediaMath $25,000 1 – 2 daysNanigans $30,000 monthly Facebook ad spend minimum (not limited to FBX “depends” Yes buys)Optimal $10,000 spend a month across all ad types 5 minutes YesPerfect Audience Free for two weeks, then $25/week minimum budget 7 minutesRocket Fuel $20,000 per campaign 3 days YesTellApart Retailers pay when a shopper clicks a TellApart served ad and buys. “very rapid”TheTradeDesk $0 1 day+Triggit $10,000 minimum spend for advertisers that see about 500,000 1 week UV/monthTurn $0 48 hours YesXaxis “case by case basis” 24 hoursX+1 About $25,000 per month 1 week
    21. 21. Steps to how the FBX works1. A user visits a travel site that’s hired a DSP rigged up with Facebook Exchange2. A cookie is dropped on that user’s computer, typically when they’ve shown purchase intent3. If the user fails to make a purchase, or the advertiser wants to market to them more, the DSP contacts Facebook and gives them the user they wish to target’s anonymous User ID4. The advertiser pre-loads creative for ads that would target that user5. When the user visits Facebook it recognizes the cookie dropped by the DSP6. The DSP is notified and allowed to make a real-time bid to show the user ads7. The DSPs with the highest bids get their highly-targeted ads shown to the user8. If the user disapproves of being shown the ad and ‘X’s it out, they’re shown a link to the DSP where they can opt out of future Facebook Exchange ads
    22. 22. • February 2012: http://www.comscore.com/Insights/Presentations_and_Whitepapers/2012/2012_US_Digital_Future_in_Focus and http://www.poynter.org/latest- news/mediawire/162949/facebook-delivers-1-of-every-4-online-display-ads/• June 13, 2012: Initial announcement of FBX • http://techcrunch.com/2012/06/13/facebook-exchange/ Resource • http://allthingsd.com/20120613/whats-a-facebook-ad-exchange-a-partial-explainer/• • http://www.bloomberg.com/news/2012-06-13/facebook-to-debut-real-time-bidding-for-advertising.html June 20, 2012: http://www.businessinsider.com/facebooks-new-rtb-ad-exchange-is-about-data-not-effectiveness-2012-6 s for this•• September 11, 2012: http://www.digiday.com/platforms/how-facebook-just-became-critical-for-b2b/ September 13, 2012: FBX exited the beta phase • http://www.facebook-studio.com/news/item/introducing-facebook-exchange presentati • https://www.facebook-studio.com/fbassets/resource/66/FacebookExchange20120913 • http://allfacebook.com/facebook-exchange-officially-out-of-beta_b99565 • http://allthingsd.com/20120913/facebook-throws-a-coming-out-party-for-its-ad-exchange/ on • http://www.adexchanger.com/ad-exchange-news/fbx-ftw-partners-share-results-as-facebook-exchange-exits-beta/ • http://blog.appnexus.com/2012/the-world-of-display-advertising-just-got-a-lot-bigger-2/ • http://blog.triggit.com/facebook-exchange/ and http://triggit.com/fbx-insights-around-speed • http://tellapart.com/early-results-from-facebook-exchange-show-strong-roi • http://www.adweek.com/news/technology/buyers-bullish-facebook-exchange-143658• September 27, 2012: http://adage.com/article/digitalnext/viewable-impressions-digital-s-future-ready/237439/• October 5, 2012: http://allthingsd.com/20121005/why-the-ad-tech-guys-are-going-nuts-about-facebook-exchange-and-why-that-matters/• October 15, 2012: http://www.mediapost.com/publications/article/185176/facebook-exchange-adopts-ad-verification-intent-r.html• October 23, 2012: http://www.forbes.com/sites/afontevecchia/2012/10/23/facebook-exchange-two-birds-with-one-stone-challenge-google-drive-revenues/• October 25, 2012: • http://www.insidefacebook.com/2012/10/25/facebook-exchange-what-it-is-and-who-to-work-with-to-get-started/ • http://www.valuewalk.com/2012/10/facebook-inc-fb-ad-exchange-fbx-step-by-step-analysis/• November 5, 2012: AdWeek and Triggit articles with FBX results • http://www.adweek.com/news/technology/sitdown-144982 • http://finance.yahoo.com/news/facebooks-ad-exchange-quadrupled-market-134300969.html • http://blog.triggit.com/why-the-facebook-exchange-ends-the-viewability-debate/ • http://www.adweek.com/news/technology/turn-builds-out-facebook-ad-capabilities-144979 • http://www.webpronews.com/facebook-facebook-exchange-is-doing-better-than-google-exchange-2012-11• Facebook Resources: https://apps.facebook.com/pmddirectory/ and https://fbcdn-dragon-a.akamaihd.net/cfs-ak-snc6/85001/143/446672752021203- /Marketing_API_Guide_US.pdf

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