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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

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  • 1. Performance Marketing on Facebook
  • 2. Agenda E-commerce Trends Warsaw Why Facebook is a vital part of e-commerce growth Performance Marketing on Facebook Mobile
  • 3. All of the people who matter to you
  • 4. Where they discover what matters to them
  • 5. Every day. Everywhere.
  • 6. Law of Diminishing Returns
  • 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. 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. Facebook drives marketing results at every level of the purchase funnel
  • 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. Złote Wyprzedaże CPA 3,8 x lower than in other channels 30% increase in monthly sale
  • 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. What drives direct response on Facebook? 1. Placement
  • 14. Multiple ad placements to meet performance goals Right-hand side Mobile news feed Desktop news feed Log-out experience
  • 15. News feed: Center of the Facebook experience 40% of people’s time on Facebook is on news feed
  • 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. What drives direct response on Facebook? 1. Placement 2. Ad Format
  • 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. 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. What drives direct response on Facebook? 1. Placement 2. Ad Format 3. Targeting
  • 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. 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. women living in Poland who are parents Facebook delivers a reach of 620 k people If you were to target
  • 24. Target your audiences on Facebook with Custom Audiences
  • 25. Find people that look like your audiences
  • 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. 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. What drives direct response on Facebook? 1. Placement 2. Ad Format 3. Targeting 4. Optimization
  • 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. Creative optimization
  • 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. Use technology to help scale
  • 33. We support industry-best practices in measurement Tracking | Attribution
  • 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. Attribution
  • 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. 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. 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. Any you can’t forget
  • 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. 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. 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. Drive mobile app installs App install ad Top performing mobile app install solution
  • 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. Case Study: Vinted Polska 5 X lower cost-per-install than other leading mobile platforms