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The History of Facebook Advertising
 

The History of Facebook Advertising

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How well do you know Facebook? Lots of marketers use the platform to promote their content and drive new business, but how good is your knowledge, really? Is Facebook advertising proving successful ...

How well do you know Facebook? Lots of marketers use the platform to promote their content and drive new business, but how good is your knowledge, really? Is Facebook advertising proving successful for you or your clients business? Facebook have made an incredible amount of changes to their advertising platform since 2004, creating a host of different options to target customers including – Lookalike audiences, Dark Posts and Retargeting ads.

As Facebook continues to evolve the advertising platform presents marketers with a huge amount of opportunity to provide contextual advertising for dream segments of their customers. In this slideshare we set out to chart the evolution of Facebook as an advertising giant and what the future may hold for it.

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    The History of Facebook Advertising The History of Facebook Advertising Presentation Transcript

    • FACEBOOKTHE GROWTH OF AN ADVERTISING GIANT
    • SO, YOU’RE A MARKETER… Works at HubSpot About
    • You know Facebook, right?
    • We thought so too. Until we realised just how much we DIDN’T KNOW about their advertising strategies over the last few years.
    • I mean, did you know that the first way to advertise on Facebook was through ‘Flyers’ and they have a ‘Marketplace’ where you can buy and sell your stuff?
    • WE DIDN’T! So we decided to share their story with you because as marketers we need to closely watch the trends in advertising, and with Facebook being such a big player, we can’t afford to miss a trick!
    • SO LET’S START AT THE BEGINNING
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • Mark Zuckerberg launches ‘Thefacebook’ at Harvard University. It quickly starts to spread like wild fire.
    • Imagesource:Mashable Itlookslikethis
    • The majority of revenue comes from ‘Flyers’ which are mostly purchased by students or small local businesses for $10-$40 per day who want to target an ad to a specific college campus. Source: Quora.com
    • Flyers are advertisements displayed along the side of the Facebook homepage and are controlled by Facebook.
    • They are mostly used by Facebook members to advertise parties or other social events on campus.
    • Theylooklikethis Image source: College Web Editor
    • Andmakeup mostofFacebook’s revenue for thatyear Image source: College Web Editor Theylooklikethis
    • Facebooklaterchangesitto anauction-basedCPCmodel, calledFlyers Pro. Advertiserscansetamaxprice forwhatthey’rewillingtospend andcantargetbasedongender, age,location,politicalviews, relationshipstatus,education status,andworkplace.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤400,000 $382,000
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • Itlookslike thisnow
    • THEFACEBOOK CHANGES ITS NAME TO FACEBOOK
    • Theyhaveonefulltimead salesman,KevinColleran. Hisfirstbigaddealcomes fromPartyPoker.
    • TheybuyadsonaCPA (Costperacquisition)basis, aflatfeeof$300foreach newsubscriberwhosigns upandputsatleast$50 intoagamblingaccount. Source: The Facebook Effect
    • ItisaHUGEdealfor Facebook’srevenueand bringsin$60,000each monthjustforthe200 membersonaverage whosignup! Source: The Facebook Effect
    • Itswiftlycomestoanend though,whenayearorso latergamblingisoutlawed intheUnitedStates,and FacebookdropsPartyPoker.
    • SURPRISINGLY, SOME MAJOR COMPANIES ARE ALREADY JOINING IN THE FACEBOOK ADVERTISING PARTY.
    • Appleisoneofthebiggest revenuegeneratingadvertisers in2005forFacebook. TheysponsoranApple‘Group’, whichpaysFacebook$1per month,permember.AstheApple groupgrows,Facebookbegins tomakehundredsofthousands ofdollarspermonth.
    • Anotherbigplayerinthe sponsoredgroupgame isVictoria’sSecret. Facebookrequiresthemto makeaminimummonthly paymentof$25,000. Source: The Facebook Effect
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤5 million $9 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • Imagesource:Mashable Itlookslike thisnow
    • Facebookallows everyoneover thirteen years old tobecome amember.
    • Theoffersfor partnershipsandbuy outsstarttofloodin.
    • MICROSOFT GETS LUCKY!
    • Andbecomesthe exclusive provider ofbanneradsand sponsoredlinks onthesite. Source: Microsoft.com
    • COMPANIES THAT TRY TO BUY FACEBOOK Viacom $1.5billion Yahoo 1billion MySpace Microsoft $15billion NewsCorp Unnamed NewYork Financier $10million NBC Friendster Google (twice)
    • COMPANIES THAT TRY TO BUY FACEBOOK Viacom $1.5billion Yahoo 1billion MySpace Microsoft $15billion 1.6%stakesold NewsCorp Unnamed NewYork Financier $10million NBC Friendster Google (twice) Declined Declined Declined Declined Declined Declined Declined Declined Declined
    • ZUCKERBERG HOLDS FIRM.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤12 million $48 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • Itlookslike thisnow
    • FACEBOOK LAUNCHES MARKETPLACE, AN APP FOR CLASSIFIED LISTINGS.
    • Itisusedtolistwhatyou haveandwhatyouwant withinyournetworks. Randomfact: Thisideawascatalyzedby amock-upbuiltentirelyin ExcelbyJoshPritchard.
    • WAIT, WHAT? FacebookhadaBuy andSellMarketplace? Isitstillgoing?
    • YUP!
    • InMarch2009,Facebook approachesOodle,anonline classifiedadsservicecompany totakeovertheMarketplace. Source: Facebook
    • Theybuildanentirely new marketplace focusedon givingpeopleaplacetobuy, sell,orgivethingsawayto thepeopletheyknow.
    • Itstillcontinuestoday andlookslikethis
    • FACEBOOK LAUNCHES THE MOBILE VERSION OF ITS WEBSITE
    • Facebook’smobilewebsite letsuserssurfFacebookon awebsiteoptimised for small screens.Theycan uploadphotosandnotes,send andreceivemessages,wall posts,andpokesusingSMS.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤50 million $153 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • Whiletherestoftheworldfalls intoarecession,Zuckerberg steps up theadvertisinggame atFacebook.
    • Anycommercialentitycan nowcreatea‘Page’forfree
    • Theintentionisthatthose Pageownerswillfind waystospend money throughadvertisingtheir FacebookPage.
    • Facebookinvests moreintheirmobile strategyandnow allowsmembersto commentonFriends’ statusupdates.
    • Theserviceissopopular thatnearlya million mobilecommentsare postedinthefirst24hours aftertheupdate’srelease. Source: Mashable
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤150 million $272 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • FACEBOOK BEGINS TO REALISE THEIR POTENTIAL FOR ONLINE AD DOMINATION.
    • Andstarttoprovide moreadvanced ad targeting options totheiradvertisers.
    • Theyintroduce language and geographical based ad targeting toenticemore advertisers
    • Pageowners canset up and manage theirown adsforthefirsttime.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤350 million $777 million 65 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • FACEBOOK RELEASES THE FIRST MOBILE APP FOR FACEBOOK
    • Andintroduces the‘Like’ button forexternalsites
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤600 million $1.8 billion 100 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • FACEBOOK INTRODUCES SPONSORED STORIES FOR DESKTOP
    • Userswho ‘Like’ Ben&Jerry’s willseeupdateslikethisonein theirNewsFeed. Imagesource:TheNextWeb
    • Advertisers canchoose tohighlight particularuser actionssothatwe seetheiractivity inournewsfeed.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤845 million $3.71 billion 350 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • INTRODUCES MOBILE ADS FOR THE FIRST TIME
    • Theyappear withinourNews Feed soasnot tointerruptour Facebookuser experience.
    • FACEBOOK INTRODUCES THE SOCIAL GRAPH
    • Whenauserfriendsanotheruser, Likesapage,commentsonaphoto, listenstomusic,orplaysagame, a connection is written to the Social Graph,whichisthen providedasdataforadvertisers.
    • Allofthesestoriesandthe subsequentconnections createvaluableandcompelling marketing opportunities forbusinessesonFacebook.
    • FACEBOOK INTRODUCES THE FACEBOOK EXCHANGE
    • It’sanewwayofpurchasing Facebookadsthrough real-time bidding. Advertisersandagenciesare abletousecookie-based targetingtoreachtheiraudience onFacebookwithmoretimely andrelevantmessages. Source: Facebook
    • FacebookExchangeadvertisers usefirst-partyandthird-partydata todecidewhotoserveadsto.First- partydatareferstothecookies thatsitesandadnetworksputon usersbrowsers,andthirdpartydata isinformationcollectedbyresearch firmsanddatabrokers.
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤1.06 billion $5.85 billion 543 million
    • RecentRecent 2013 2012 2011 2010 2004 2005 2006 2009 2008 2007 Founded
    • FACEBOOK INTRODUCES LOOKALIKE AUDIENCES
    • Whichhelp advertisersreach potential customers whosharesimilar characteristicswiththeir currentones.
    • Advertisersareabletoupload theircustomerprofiles, referencedbyemailsorphone numbers,andthenFacebook targets asimilarprofileof Facebookusersfortheadvertiser. Thepersonalinformationof thelookalikeisnevergivenout.
    • Re-targetedadsnowappear intheNewsFeed.
    • TheymimicthelookofSponsored Stories,butareaimedatusers basedontheirbrowsing history outsideofFacebook.
    • IttakesdatafromtheFacebook Exchange Program (external sites)andplacesadsintheNews Feedinsteadofjusttherightside bar. 
    • Advertiserscannowcreate Unpublished Posts orDark Posts thatintentionallydonot appeartoallfansoftheirpage. 
    • Itmeansadvertiserscanpostanad totheirFacebookPageandchoose WHO fromtheirfanbasetoshow itto,basedonalltheusualtargeting criteriaASWELLasinterests.
    • Mobilehasclimbedsteadily upwardasapercentageof Facebook’stotaladrevenue. Itgrewfrom14% to23% to 30% andnowmadethebiggest quarteroverquarterjumpto41%. Source: AdAge Digital
    • “AsofJune30th,thereare 819millionmobilemonthly activeusersonFacebook, up51%overtheprevious year.” AdAgeDigital
    • 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤1.15 billion $1.18 billion 819 million
    • SO WHAT’S NEXT?
    • Facebookhasstarted toreleaseregional data for thefirsttimetohelpadvertisers understandhowpeopleuse thenetwork.
    • Itisalsopartofalargerpush togoafterdollarsearmarked forTV commercials, thetop choiceamongadvertiserswhen theylaunchcampaigns. Source: yahoo news
    • “Theaveragetimespent dailywithdigitalmediais expectedtosurpassTV viewingforthefirsttime thisyear,according toeMarketer.”
    • AndFacebook’sad revenueisestimatedto reach$7.64B by 2014.
    • SO IT’S TIME TO START THINKING ABOUT YOUR ONLINE ADVERTISING STRATEGY, PEOPLE!
    • Areyoutakingfull advantageofallof Facebook’sadvertising features? WecompiledthebesttipsfromfourtopEuropean expertsonthesubject,soyoucanbecomeaFacebook AdvertisingMaster! Downloadyourcopyhere http://bit.ly/1aEtMCH