Social Media and Facebook Advertising Insights - Kenshoo Social and Resolution Media Webinar

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Presentation from the October 23rd webinar based on recent research reports published by Resolution Media and Kenshoo Social, distilling insights and best practices for more effective social media campaigns and featuring Kenshoo CMO, Aaron Goldman and Viji Davis, VP of Marketing and Erica Barth, VP Products and Partnerships, both of Resolution Media.

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  • What? Looked at global data across multiple brandsWhy? Heard from many brands that they didn’t know if ‘Facebook’ and social was ‘working’ for their programsGoal: Wanted to provide the first benchmarks for Facebook ad performance and provide some actionable insightsThis report reflects aggregated global data across a wide range of brands whose Facebook ad campaigns are managed by ResolutionMedia using Kenshoo Social. Industry verticals represented include entertainment, finance, retail, and insurance, among others.Brands represented include HBO, Hewlett-Packard, Monster, ING, Visa and Activision among others. The dataset examined for thisreport spans nearly 65 billion Facebook ad impressions and 20 million Facebook ad clicks during the 12-month period beginningMarch 1st, 2011 and ending February 29th, 2012.
  • Build Campaigns Around Pages & Drive Interaction Within Facebook
  • Each Ad Type Plays a Role within your campaignsSponsored Stories and Post Ads boast roughly double the response rate of Social Ads and Web Ads, as measured by click-throughrate (CTR) in Figure 1. It’s apparent that an ad with social context resonates better based on the personal connection made with theindividual on Facebook viewing the ad. Post Ads had the highest CTR of any ad type, most likely because they often feature specialoffers and are larger than the other ad units.
  • Likes and Applications are truly social phenomena1. Ads that promote App Usage also act as a type of social endorsement becausethe ads show other users who are actively using the app. The act of using an app gives the app more validation among the socialnetwork as evidenced by a 60% conversion rate. This means that 6 out of every 10 people who click Sponsored Story ads promotingApp Usage actually install the application themselves. 2. Facebook has changed our definition of the word, “like.” In the context of Facebook, a Like is not simply a personal preference, it’san announcement to your entire social network of that preference. The odds are that you share many preferences with the peoplethat you are connected with on Facebook so that, if you like something, they are more inclined to like it as well. Figure 10 showsthe value of social endorsements as measured by conversion rate on Sponsored Story ads. Here we can see that nearly 80% of allpeople clicking on Sponsored Story ads promoting Page Likes convert to fans. Meanwhile, Post Like Sponsored Story ads carry a16% conversion rate.
  • 1. Develop a strong portfolio of owned assets upon which you can build your campaigns and drive interaction within Facebook. Pages have the highest share of clicks for Facebook ads and Like ads have the highest CTR. In order to capitalize in Social Ads and Sponsored Stories, you must have a scalable fan base.2. Consider the role that each ad type can play within your campaign. Post Ads and Sponsored Stories have the highest response rates and lowest CPCs but Web Ads and Social Ads are helpful for driving volume and off-Facebook activity. Meanwhile, App Usage thrives with social context and offers deep user data and lifetime value.
  • Pre-Engagement and Post-Engagement MetricsUnlike search marketing, social media — and Facebook advertising in particular — provides myriad targeting options and the abilityto serve customized graphical ads based on individual interests. Accordingly, the mere act of showing an ad and exposing a personto your brand has significant value in terms of driving brand awareness. However, simply measuring impressions does not give youa good understanding of the impact delivered by pre-engagement exposure. It’s important to look at what percent of your targetaudience has been exposed to your brand and how many times exposure has occurred. Based on our data, these metrics are highlycorrelated to campaign success. Additionally, when it comes to measuring likelihood to purchase, we must look at post-engagementmetrics beyond the click to include KPIs such as likes, shares, sales, and other conversion events as well as CTR and conversion rate.
  • Exposure Rate is a new metric & a great social KPIWhat is Exposure Rate?3. Leverage our newly defined metric of Exposure Rate to benchmark the performance of your own programs. Our data shows that higher Exposure Rate leads to more efficient ad engagement. Overall, Sponsored Stories generate the highest Exposure Rate of any Facebook ad type.With Exposure Rate, we can determine what percentage of the entire desired target audience a brand is actually reaching andexposing to its message. Target audience is based on data Facebook provides for average monthly users because not all Facebookusers log in every day. Thus, the length of time that an ad runs live will affect its Exposure Rate. In other words, ads running for onlya few days will not be able to reach 100% exposure
  • The higher the Exposure Rate, the better the performanceWhen exposure rate is high, CTR and CVR are also high3. Leverage our newly defined metric of Exposure Rate to benchmark the performance of your own programs. Our data shows that higher Exposure Rate leads to more efficient ad engagement. Overall, Sponsored Stories generate the highest Exposure Rate of any Facebook ad type.With Exposure Rate, we can determine what percentage of the entire desired target audience a brand is actually reaching andexposing to its message. Target audience is based on data Facebook provides for average monthly users because not all Facebookusers log in every day. Thus, the length of time that an ad runs live will affect its Exposure Rate. In other words, ads running for onlya few days will not be able to reach 100% exposure
  • FREQUENCYTotal impressions divided by unique impressionsFrequency tells us how many times the average Facebook user has been exposed to your ad. While the optimal Frequency will vary for each adand each campaign, it’s important that this number not be so high that it oversaturates the target audience or so low that it doesn’t get noticed.To identify the impact of pre-engagement and post-engagement metrics on campaign success, we looked at how Exposure Rateand Frequency affect CTR and Conversion Rate.
  • The higher the Exposure Rate, the better the performanceWhen exposure rate is high, CTR and CVR are also high3. Leverage our newly defined metric of Exposure Rate to benchmark the performance of your own programs. Our data shows that higher Exposure Rate leads to more efficient ad engagement. Overall, Sponsored Stories generate the highest Exposure Rate of any Facebook ad type.With Exposure Rate, we can determine what percentage of the entire desired target audience a brand is actually reaching andexposing to its message. Target audience is based on data Facebook provides for average monthly users because not all Facebookusers log in every day. Thus, the length of time that an ad runs live will affect its Exposure Rate. In other words, ads running for onlya few days will not be able to reach 100% exposure
  • The higher the Exposure Rate, the better the performanceWhen exposure rate is high, CTR and CVR are also high3. Leverage our newly defined metric of Exposure Rate to benchmark the performance of your own programs. Our data shows that higher Exposure Rate leads to more efficient ad engagement. Overall, Sponsored Stories generate the highest Exposure Rate of any Facebook ad type.With Exposure Rate, we can determine what percentage of the entire desired target audience a brand is actually reaching andexposing to its message. Target audience is based on data Facebook provides for average monthly users because not all Facebookusers log in every day. Thus, the length of time that an ad runs live will affect its Exposure Rate. In other words, ads running for onlya few days will not be able to reach 100% exposure
  • 3. Leverage our newly defined metric of Exposure Rate to benchmark the performance of your own programs. Our data shows that higher Exposure Rate leads to more efficient ad engagement. Overall, Sponsored Stories generate the highest Exposure Rate of any Facebook ad type.4. Balance Exposure Rate with Frequency so as not to wear out your audience. Optimal ad frequency is under 7. After that point, performance on all key metrics begin to decline and brand value erodes.5. Bid higher than Facebook’s recommended max bid amount to reach your target audience (high exposure rate) who, in turn, will engage with your ads at a faster pace (low frequency).
  • If you’re launching facebook campaigns in expensive markets, audience research is a must – you’ll need to understand who your targets are, so you can be more efficient with your advertising dollarsTrack the exposure rate and frequency. If the frequency goes above a 6, scale backIf you’re launching a Facebook campaign in the US or UK, ensure you’ve researched your target audience. These markets have the highest CPMs and CPCs coupled with the lowest exposure rates. This indicates it is much more difficult to reach your desired audience in these markets, and when you do, you will pay more per impression or click. Simply setting up Facebook campaign targets isn’t enough. In addition to leveraging advanced audience targeting and research, you need to: Identify your targets Track exposure rate and frequency If frequency goes above a 6, scale back
  • 1. Think about how you’re creating ads in different markets. For Mexico and Turkey specifically, ensure you’re paying particular attention to how your ads are formatted for mobile devices as these countries have a higher penetration of mobile users.
  • Italy is a great Pan-European market to test out campaigns. It offers a high CTR, target frequency of 6 or below, and a low maximum recommended bid amount; all indicating a low cost to entry and high engagement with Facebook ads.
  • 1. India is also a great Asian market, with low CPCs, the highest CTRs, high exposure rates and low maximum recommended bid amounts. This means, Indian users engage with Facebook ads heavily and it is easy to target the right audiences in India, with a low cost to entry indicated by low CPCs.
  • For advanced and saturated markets (US and UK), advanced audience targeting is a mustConsider ad formats based on device usageMexico and Turkey are heavy in mobile usage for FacebookWhen the max recommended bid amounts are low, there is less competition and this is a good market to test in (Italy)When exposure rate is high coupled with a high CTR, users are heavily engaged (India)
  • Gender: Who’s the fairest of them all?Women, of course
  • There are more women than men on FacebookBut Marketers Spend More Money Targeting Men. Why?We don’t know why yet…could be because of advanced audience insights, males are deemed to be more desirable
  • b/c served more ads, they click on more adsCustom text/images – types of ads being served
  • It costs less to reach men than womenOne Could Also Say Men Are Cheap…We don’t know why yet…could be because of advanced audience insights, males are deemed to be more desireable
  • The higher exposure rate shows you can reach more of your unique audience when targeting males
  • They may just need reminding!
  • Smaller, highly targeted ad segments enable more relevant and cost effective facebook advertising, and then methodically expand out within the segments that workDifferent messages will get the attention of different gendersAlthough it may seem enticing, don’t spend all your money on males…watch how you spend, since they are so cheap to reach and will click on your adsIn our first study ‘metrics that matter’ we learned that the optimal frequency is 6…try to get your frequency to that point
  • Social Media and Facebook Advertising Insights - Kenshoo Social and Resolution Media Webinar

    1. 1. SOCIAL MEDIA ANDFACEBOOK ADVERTISING INSIGHTS OCTOBER 23, 2012
    2. 2. • Erica Barth, VP Products and Partnerships, Resolution MediaPRESENTERS • Viji Davis, VP, Marketing, Resolution Media • Aaron Goldman, CMO, Kenshoo 1
    3. 3. • Listen via computer speakers or dial into conference call using numbers listed in email from gotowebinar@citrixonline.comAUDIOINSTRUCTIONS • Still can’t hear the webinar? Tell us please! 2
    4. 4. • Methodology • Understanding Social • A Portfolio Approach: Owned, Paid, and Earned Assets • Brand Awareness Metrics: MeasuringCONTENTS the Hidden Value of Facebook • Pre and Post Engagement Metrics • Exposure Rate: A Newly Defined KPI • Choosing Your Audience • Countries • Gender 3
    5. 5. METHODOLOGY WHAT WHY GOAL Looked at global Heard from many Wanted to provide data across multiple brands that they the first benchmarks brands didn’t know if for Facebook ad Facebook and performance and social were provide some “working” for their actionable insights programs 4
    6. 6. A PORTFOLIO APPROACHOwned, Paid, and Earned Assets
    7. 7. FACEBOOK BRAND ASSETS Owned Media Paid Media Earned Media 6
    8. 8. OWNED MEDIA: FACEBOOK OBJECTS Page Place App Event 7
    9. 9. PAID MEDIA: FACEBOOK ADS Web Ad Post Ad Sponsored Story Social Ad 8
    10. 10. FACEBOOK PORTFOLIO APPROACH Balance assets to amplify your brand and generate activity on and off Facebook 9
    11. 11. DEVELOP A STRONG CORE OF OWNED ASSETS AND FANS Share of Clicks Driven to Pages Drive the Highest Engagement Facebook Objects by Ads Rate (Ad CTR) of all Facebook Objects 0.05% 0.04% CTR 0.04% 0.03% Page 80.79% 0.03% 0.02% 0.02% Event 0.02% ! App 0.01% Place 4.03% 4.60% 0.0% Pages have the Page Place App Event highest share of 10.58% clicks and engagement rate of all Facebook Objects Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 10
    12. 12. LEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRAND High Click-Through Rate Correlates to Low Cost-per-Click on Facebook Ads $0.90 0.08% $0.80 0.07% $0.70 $0.60 CTR 0.06% $0.50 0.05% CPC $0.40 0.04% ! $0.30 0.03% $0.20 0.02% $0.10 0.01% $- Post Ads and 0.00% Sponsored Stories Post Ad Sponsored Web Ad Social Ad have the highest Story response rates and lowest CPCs Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 11
    13. 13. AMPLIFY YOUR OWNED MEDIA WITH PAID ADS Social Endorsements for Likes and App Usage Drive Highest Sponsored Story Conversion Rates 77.25% 80% 60.39% 60% Conversion Rates ! 40% 15.71% In order to 20% capitalize on Social 0.18% Ads and Sponsored Stories, you must 0% App Share App Used Like Post Like have a scalable fan base Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 12
    14. 14. KEY INSIGHTS • Develop a strong core of owned assets and fans • Leverage paid ads to increase reach and scale your brand • Amplify your owned media with paid ads 13
    15. 15. BRAND AWARENESS METRICSMeasuring the Hidden Value of Facebook
    16. 16. METRICS THAT MATTER Pre-Engagement Post-Engagement Metrics that measure consumer Metrics that measure consumer exposure to ads and brand prior to exposure to ads and brand following Definition click/interaction exposure Measuring audience exposure to Measuring audience interaction with brands as a proxy for awareness brands as a proxy for brand Purpose/Use engagement and purchase intent Case • Exposure Rate • Clicks • Frequency • Conversions (likes, shares, sales) Key Performance • Reach (Unique Visitors) • CTR Indicators (KPIs) • Impressions • Conversion Rate • Available Target Audience Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 15
    17. 17. LEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCE Distribution of Facebook Ads by Exposure Rate 10,000 8,000 Exposure Rate 6,000 4,000 2,000 EXPOSURE RATE: 0 Unique impressions Quartile 1 Quartile 2 Quartile 3 Quartile 4 divided by the (0-25%) (26-50%) (51-75%) (76-100%) target audience Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 16
    18. 18. HIGHER EXPOSURE RATES = EFFICIENT AD ENGAGEMENT High Facebook Ad Exposure Rates High Facebook Ad Exposure Rates Correlate to High Click-Through Rates Correlate to High Conversion Rates CTR CVR 0.036% 0.038% 31.92% 0.04% 0.031% 35.00% 28.57% 0.028% 30.00% 0.03% 25.00% 17.03% 20.00% 11.81% 0.02% 15.00% 0.01% 10.00% ! 5.00% 0.00% 0.00% Quartile 1 Quartile 2 Quartile 3 Quartile 4 Quartile 1 Quartile 2 Quartile 3 Quartile 4 (0-25%) (26-50%) (51-75%) (76-100%) (0-25%) (26-50%) (51-75%) (76-100%) When exposure rate is high, CTR and CVR are also high Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 17
    19. 19. KEEP FREQUENCY AT 6 OR BELOW TO KEEP ADS FRESH Facebook Ads Average Conversion Rate Facebook Ads Average CTR is 39% is 75% Lower After the 6th Impression Lower After the 6th Impression CVR CTR 57.17% 0.059% 60% 46.53% 0.06% 0.046% 50% 0.05% 0.035% 0.029% 40% 0.04% 30% 14.61% 11.95% 0.03% 20% 0.02% 10% 0.01% 0% 0.00% Frequency Frequency Frequency Frequency Frequency Frequency Frequency Frequency 1-3 4-6 7-9 Over 10 1-3 4-6 7-9 Over 10 FREQUENCY: Total impressions divided by unique impressions; Optimal frequency is 6 or below Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 18
    20. 20. BID HIGHER FOR INCREASED ENGAGEMENT Bids Above the Facebook Bids Above the Recommended Recommended Maximum Bid Drive Up Facebook Maximum Bid Decrease Average Exposure Rate by 11.5% Average Frequency by 1.7 Exposures Exposure Rate Frequency 20.23% 11.62 9.93 25% 13 20% 8.73% 11 ! 15% 9 10% 7 5% 5 CPC < Max Rec. Bid CPC > Max Rec. Bid CPC < Max Rec. Bid CPC > Max Rec. Bid Max recommended bid amounts correlate to increased engagement Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 19
    21. 21. SPONSORED STORIES SHOW THE SUCCESS OF OUR METRICS Sponsored Stories Most Effective Ad Type Sponsored Stories Were Delivered with for Unique Brand Reach with 36% the Lowest Frequency, Driving Up Exposure Rate Unique Users Reached Exposure Rate Frequency 35.99% 40% 12.49 30% 15 6.55 6.83 5.83 20% 10 ! 10% .46% 1.23% 1.39% 5 0% 0 Post Ad Social Ad Sponsored Web Ad Post Ad Social Ad Sponsored Web Ad Story Story Sponsored Stories deliver the highest exposure rate and lowest frequency Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 20
    22. 22. KEY INSIGHTS • Leverage exposure rate • Balance exposure rate with frequency • Bid higher than Facebook’s recommended max bid 21
    23. 23. CHOOSING YOUR AUDIENCECountry Insights
    24. 24. GLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS Average Cost-Per-Click (CPC) for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! It is imperative to research and leverage advanced audience targeting 23
    25. 25. AD TYPES AND FORMATS NEED TO BE ADJUSTED BY COUNTRY MEXICO Mobile Phone Penetration Facebook Users 49.0% 35.6 Million Population Online Ad Spending % of Internet Users on Facebook 112 Million $159,000,000 103% Internet User Penetration GDP per Capita (USD) 31.0% $15,610 TURKEY Mobile Phone Penetration Facebook Users 84.9% 31.1 Million Population Online Ad Spending % of Internet Users on Facebook ! 77.8 Million $264,000,000 100% Internet User Penetration GDP per Capita (USD) 39.8% $14,517 Consider ad formats based on device usage Source: Global Social Media Insights © 2012, Resolution Media 24
    26. 26. LOW MAX RECOMMENDED BID AMOUNTS = GOOD TEST MARKETS Average Frequency for Maximum Recommended Bids Delivery of Facebook Ads for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! When the max recommended bid amounts are low, there is less competition 25
    27. 27. HIGH EXPOSURE RATES AND CTRS = HEAVY ENGAGEMENT Average Exposure Rate for Average Click-Through Rate (CTR) Delivery of Facebook Ads for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! When exposure and click-through rates are high, users are heavily engaged 26
    28. 28. KEY INSIGHTS • For expensive markets, audience research is a must • Consider ad formats based on device usage • Test in markets where max recommended bids are low • Users are heavily engaged when exposure and click-through rates are high 27
    29. 29. CHOOSING YOUR AUDIENCEGender Insights
    30. 30. WHO’S THE FAIREST OF THEM ALL? 58% 42% Available Male Available Female Target Audience On Facebook Target Audience On Facebook 29
    31. 31. MORE WOMEN ARE ON FACEBOOK, BUT… Budget Allocation for Facebook Ads 53% MALE 47% FEMALE 30
    32. 32. MEN ARE SERVED MORE FACEBOOK ADS… Impression Volume for Click Volume for Facebook Ads Facebook Ads MALE MALE 58% 60% FEMALE FEMALE 42% 40% 31
    33. 33. …AND MEN ARE CHEAP Cost-Per-Thousand (CPM) Cost per Click (CPC) for Impressions for Facebook Ads Facebook Ads $0.20 $0.68 $0.16 $0.51 FEMALE MALE FEMALE MALE 32
    34. 34. AD DOLLARS GO FURTHER WHEN TARGETING MALES Exposure Rate for Facebook Ads 7.88% 4.94% FEMALE MALE 33
    35. 35. AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTEN Frequency for Facebook Ads 11.95 9.74 Threshold for optimal frequency FEMALE MALE 34
    36. 36. KEY INSIGHTS • Create very targeted ad segments • Use custom text and images for targeting men vs. women • Adjust bidding strategies based on segment gender • Monitor frequency 35
    37. 37. MARKETER TAKE-AWAYS • Calibrate your portfolio • Build a fan base for scaling targeted reach and ongoing engagement • Keep exposure rates high and frequency 6 or below • Testing is important • Focus on metrics that matter • Leverage audience targeting 36
    38. 38. THANK YOU!RESOLUTIONMEDIA.COM/WHITE-PAPERS KENSHOO.COM/RESOURCES

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