Performance Marketing on Facebook
Agenda E-commerce Trends Warsaw

Why Facebook is a vital part of e-commerce growth
Performance Marketing on Facebook

Mobi...
All of the people who matter to you
Where they discover what
matters to them
Every day. Everywhere.
Law of Diminishing Returns
People buying a product

Ecommerce
is growing
fast

People
searching
for a
product

15-20% of people
that bought a
product...
Search represents a fraction of purchase intent
Shoes in the US (in millions, Q4-2012)

115

Searches*
784 Purchased**

Mo...
Facebook drives marketing results at every
level of the purchase funnel
Performance Marketing on Facebook works!
JackThreads

Carphone Warehouse

Rosetta Stone

Customer acquisition

Targeting

...
Złote Wyprzedaże
CPA 3,8 x lower
than in other
channels

30% increase
in monthly sale
Performance marketers care about…
cost per click
cost per impression
method of billing
size of ad unit
….
CPA (cost per sa...
What drives direct response on Facebook?
1. Placement
Multiple ad placements to meet performance goals

Right-hand side

Mobile news feed

Desktop news feed
Log-out experience
News feed: Center of the Facebook experience

40%
of people’s time
on Facebook is
on news feed
The log-out experience: A high-impact place
to direct people to their next destination

40%
of US desktop daily
active use...
What drives direct response on Facebook?
1. Placement

2. Ad Format
3.5x

Smoothening the path to purchase
Existing Page post link ad

New Page post link ad

larger image
than existing
Page ...
Page post ads in news feed increase conversions
A study by
Jackthread / AdParlor

45x

48% 14%

higher CTR

lower CPA

hig...
What drives direct response on Facebook?
1. Placement

2. Ad Format
3. Targeting
Leverage identity and social signals to target
prospective customers
Standard Demographics
•
•
•
•
•

Age
Gender
City/stat...
If you were to target

woman 18+ living in Poland who are

interested in #BeautyProducts

#Fashion

#ConsumerElectronic, F...
women living in Poland who are parents
Facebook delivers a reach of 620 k people
If you were to target
Target your audiences on Facebook
with Custom Audiences
Find people that look like your audiences
Proven lift with Custom Audiences & Lookalike
targeting

10x

Increase in purchase conversion
compared to standard targeti...
Facebook Exchange (FBX)
Use your own first and
third-party data
Use Facebook domain
ads with offsite links
Optimize with
a...
What drives direct response on Facebook?
1. Placement

2. Ad Format
3. Targeting
4. Optimization
Delivery optimization

Optimized for Conversion

Conversion pixel tracking

Efficiently deliver ads to users
most likely t...
Creative optimization
Sample ramp plan: Test, optimize, iterate, scale
KPI: ROAS
Target: 3X ROAS
Attribution model:
30 Day, last click; 48 Hr
la...
Use technology to help scale
We support industry-best
practices in measurement
Tracking | Attribution
Tracking
Industry standard:
- Click tags
- View tags
Facebook’s own conversion tags:
- Works cross-platform, cross-device
...
Attribution
Attribution model matters
A last-touch attribution model
attributes entire value of a conversion to
the last ad clicked or...
Facebook and Search working together

Facebook undervalued by

12% to 30%
using Last Click

Last Ad measurement
undervalue...
Trendyol

Custom Audiences

Channel Value

Using Custom Audiences

Multi-touch attribution showed that

generated +70-80% ...
Any you can’t forget
The Internet is shifting to mobile
Worldwide smart connected device shipments (M)*

2,000
1,800

Tablets

Smartphones

Pcs...
Facebook is at the center
of the shift to mobile

1

5
minutes
out of
every

54%
YOY mobile monthly
active user growth

So...
Drive sales or mobile actions
Page post link ad

Promote your post in
mobile news feed

Post on your Page
and insert a lin...
Drive mobile app installs
App install ad

Top performing
mobile app
install solution
We know it works
Askem

BillGuard

Category and interest targeting
delivered a CPI that was 30% lower
than other media

Hu...
Case Study: Vinted Polska

5 X lower
cost-per-install than other leading
mobile platforms
Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook
Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook
Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook
Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook
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Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook

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Performance marketing on facebook- your company's growth engine by Serhad Bolukcu @All Things Facebook

  1. 1. Performance Marketing on Facebook
  2. 2. Agenda E-commerce Trends Warsaw Why Facebook is a vital part of e-commerce growth Performance Marketing on Facebook Mobile
  3. 3. All of the people who matter to you
  4. 4. Where they discover what matters to them
  5. 5. Every day. Everywhere.
  6. 6. Law of Diminishing Returns
  7. 7. People buying a product Ecommerce is growing fast People searching for a product 15-20% of people that bought a product searched for it
  8. 8. Search represents a fraction of purchase intent Shoes in the US (in millions, Q4-2012) 115 Searches* 784 Purchased** Mobile Phones Globally (in millions, Q4-2012) 90 Searches* 472 Purchased*** Source: *Quarterly estimated based on monthly search query volume from Google Keyword Tool, April 16, 2013, ** (Q4 2012 estimate) – Nate Herman, Vice President, American Apparel & Footwear Association, *** Gartner, Feb 2013, “Gartner Says Worldwide Mobile Phone Sales Declined 1.7 percent in 2012”
  9. 9. Facebook drives marketing results at every level of the purchase funnel
  10. 10. Performance Marketing on Facebook works! JackThreads Carphone Warehouse Rosetta Stone Customer acquisition Targeting Direct marketing Drove sign-ups and sales through Facebook Drove online orders of its “pay monthly” smartphone with targeted ads in high-impact placements Drove high conversion and returns by running “back-toschool” Offers in news feed 6x 70% return on advertising spend lower CPA than any other media 3x return on advertising spend
  11. 11. Złote Wyprzedaże CPA 3,8 x lower than in other channels 30% increase in monthly sale
  12. 12. Performance marketers care about… cost per click cost per impression method of billing size of ad unit …. CPA (cost per sale, lead, registration, install) vs. Value per action (e.g. net profit, LTV, x-day payback) i.e. ROI
  13. 13. What drives direct response on Facebook? 1. Placement
  14. 14. Multiple ad placements to meet performance goals Right-hand side Mobile news feed Desktop news feed Log-out experience
  15. 15. News feed: Center of the Facebook experience 40% of people’s time on Facebook is on news feed
  16. 16. The log-out experience: A high-impact place to direct people to their next destination 40% of US desktop daily active users log out every day Source: Facebook analytics
  17. 17. What drives direct response on Facebook? 1. Placement 2. Ad Format
  18. 18. 3.5x Smoothening the path to purchase Existing Page post link ad New Page post link ad larger image than existing Page post link Page post photo ad w/ URL Clicks offsite
  19. 19. Page post ads in news feed increase conversions A study by Jackthread / AdParlor 45x 48% 14% higher CTR lower CPA higher ROI 3x Higher buyer conversion rate from news feed ads vs. right-hand ads** Photo Page post ads vs. right-hand side domain ads* Photo Page post ads vs. right-hand side domain ads* Source: “How Facebook Page Post Ads in the News Feed Drive Purchases & ROI” January 28, 2013 blog post, www.nanigans.com, Facebook case studies
  20. 20. What drives direct response on Facebook? 1. Placement 2. Ad Format 3. Targeting
  21. 21. Leverage identity and social signals to target prospective customers Standard Demographics • • • • • Age Gender City/state/zip Direct market area Birthday Broad Category Targeting • • • • • • Education Workplace Relationship status Device and operating system Likes and interests Friend connections Vertical Audiences • Life stages • Tech early adopters • And many others...
  22. 22. If you were to target woman 18+ living in Poland who are interested in #BeautyProducts #Fashion #ConsumerElectronic, Facebook delivers a reach of 1.6M people
  23. 23. women living in Poland who are parents Facebook delivers a reach of 620 k people If you were to target
  24. 24. Target your audiences on Facebook with Custom Audiences
  25. 25. Find people that look like your audiences
  26. 26. Proven lift with Custom Audiences & Lookalike targeting 10x Increase in purchase conversion compared to standard targeting Source: Facebook case studies 75 % Increase in subscribers and a 50% decrease in CPA
  27. 27. Facebook Exchange (FBX) Use your own first and third-party data Use Facebook domain ads with offsite links Optimize with approved DSPs Global insurance provider 1/6 CPA when prospecting on Facebook Exchange compared with non-FBX media
  28. 28. What drives direct response on Facebook? 1. Placement 2. Ad Format 3. Targeting 4. Optimization
  29. 29. Delivery optimization Optimized for Conversion Conversion pixel tracking Efficiently deliver ads to users most likely to convert Tags placed on conversion pages track ROI 40% lower cost per conversion on average in beta tests compared to bidded CPC ads using the same budget Source: Internal Facebook study based on average CPA across six eCommerce clients
  30. 30. Creative optimization
  31. 31. Sample ramp plan: Test, optimize, iterate, scale KPI: ROAS Target: 3X ROAS Attribution model: 30 Day, last click; 48 Hr last view @ 20% Measurement: Click Tags (Omniture) View Tags (DFA) FB Conversion Pixel Test and Scale Schedule Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Phase 1 - Test News Feed Photo vs Link Type Test Test Scale Scale Scale Scale Ad Format Photo vs Link Photo vs Link Winner of test Winner of test Winner of test Winner of test Placement Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Female (18 - 35), Female (18 - 35), Targeting Female (18 - 50) Female (18 - 50) Female (18 - 50) Female (18 - 50) excl CA excl CA Bidding oCPM oCPM oCPM oCPM oCPM oCPM Budget $5,000 $5,000 $10,000 $10,000 $10,000 $10,000 Phase 2 - Custom Audience and Lookalike Type Test Test Test Scale Ad Format Winner of test Winner of test Winner of test Winner of test Placement Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Desktop Newsfeed Targeting CA + LA (3 Clusters) CA + LA (3 Clusters) CA + LA (6 Clusters) CA + LA (6 Clusters) Bidding oCPM oCPM oCPM oCPM Budget $2,000 $2,000 $8,000 $15,000 Phase 3 - Advanced bidding methods Type Test Test Ad Format Winner of test Winner of test Placement Desktop Newsfeed Desktop Newsfeed Targeting Female 35-55 Female 35-55 Bidding oCPM vs other oCPM vs other Budget $2,000 $2,000 Total Budget $5,000 $5,000 $12,000 $12,000 $20,000 $27,000
  32. 32. Use technology to help scale
  33. 33. We support industry-best practices in measurement Tracking | Attribution
  34. 34. Tracking Industry standard: - Click tags - View tags Facebook’s own conversion tags: - Works cross-platform, cross-device - Support different attribution methods - Can optimize delivery and targeting
  35. 35. Attribution
  36. 36. Attribution model matters A last-touch attribution model attributes entire value of a conversion to the last ad clicked or seen ✖ Miscalculates ROI by assuming the consumer doesn’t see or click any other ads along the way A multi-touch attribution model attributes value to observed touch point along the path to conversion ✔ Provides a more realistic assessment of ROI by capturing a holistic picture of the customer journey across channels
  37. 37. Facebook and Search working together Facebook undervalued by 12% to 30% using Last Click Last Ad measurement undervalued Facebook advertising by 12-30% relative to each of the five alternate attribution models. Source: Quantifying the Impact of Multi-touch Attribution across hundreds of millions of clicks, Retail and FinServ verticals Kenshoo Research, August 2013
  38. 38. Trendyol Custom Audiences Channel Value Using Custom Audiences Multi-touch attribution showed that generated +70-80% conversions versus other campaigns Facebook is 2.5x more valuable as a channel
  39. 39. Any you can’t forget
  40. 40. The Internet is shifting to mobile Worldwide smart connected device shipments (M)* 2,000 1,800 Tablets Smartphones Pcs 1,600 1,400 1,200 1,000 800 600 400 200 2010 2011 Source: *IDC, **IC4D 2012 Maximizing Mobile, World Bank, July 2012 2012 2013 2014 2015 2016
  41. 41. Facebook is at the center of the shift to mobile 1 5 minutes out of every 54% YOY mobile monthly active user growth Source: Facebook Q1 2013 Earnings
  42. 42. Drive sales or mobile actions Page post link ad Promote your post in mobile news feed Post on your Page and insert a link to your app (in the app store) within your post Avail of our mobile targeting options
  43. 43. Drive mobile app installs App install ad Top performing mobile app install solution
  44. 44. We know it works Askem BillGuard Category and interest targeting delivered a CPI that was 30% lower than other media Huge inventory among their target audience led to this partner shifting 90% of their iPhone app budget to Facebook 30% lower 90% to FB Everything.me Their mobile app install efforts on FB have been up to 50% more efficient when compared to other media 50% less
  45. 45. Case Study: Vinted Polska 5 X lower cost-per-install than other leading mobile platforms

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