Viewpoints facebook for marketers - March 2012
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The Neo@Ogilvy team offer insight on what to expect regarding the announcements during the Facebook Marketing Conference and more importantly, how to think about marketing on Facebook. (March 2012)

The Neo@Ogilvy team offer insight on what to expect regarding the announcements during the Facebook Marketing Conference and more importantly, how to think about marketing on Facebook. (March 2012)

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Viewpoints facebook for marketers - March 2012 Document Transcript

  • 1. ___________________________What Facebook’s New ProductOfferings Mean for MarketersMarch 2012 | VIEWPOINTS
  • 2. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    What Facebook’s New Product OfferingsMean for Marketers Daniel Jeydel Deepa Iyengar Mitch Bernstein Sacha Xavier Sean McCarthy 1
  • 3. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    Contents3 Introduction4 Details on New Features8 What This Means9 Conclusion9 Resources 2
  • 4. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    "Facebook was not originally created to be a company. It was built to accomplish a social mission— to make the world more open and connected. Simply put: we dont build services to make money;we make money to build better services."— Mark Zuckerberg, February 2012The purpose of Facebook’s Marketing Conference (fMC) was to introduce newproducts for both desktop and mobile channels. • Pages relaunched for brands: Mission control for your business on Facebook • Premium Ads: New ad opportunities including Offers and Log-Out • Reach Generator: Ensuring that fans see your stories • Real-time Analytics: New measurement opportunitiesIn this Neo@Ogilvy Viewpoint, we offer insight on what to expect regarding thesespecific updates and more importantly, how to think about marketing on Facebook.IntroductionFacebook has a commanding share of the display advertising market, serving more than 32% ofdisplay media in 2011 (eMarketer). With an eye to its forthcoming IPO, it makes sense that Facebookwould seek to capture the minds and marketing budgets of the advertisers driving its revenue growth.These new products will not replace, but will complement Facebook’s existing advertising portfolio.Looking across our client base, we see a significant portion of our clients actively engaged in socialchannels, including Facebook. There has been a clear trend towards an increased use of paid, ownedand earned vehicles to connect with customers, with clients testing multiple strategies and tactics, andincreasing budgets against successful campaigns. This growth has largely been driven by superiortargeting abilities and the ability to gather insights that inform, enhance, and supplement othermedia channels.This last point is crucial, as “Social” has evolved into a cross-channel medium, acting as a linkbetween TV, radio, OOH and all digital channels. Brands are including Facebook page URLs orTwitter hashtags into their overall marketing strategy because they want to build a presence in theplaces where customers discuss the things that matter in their lives.These latest announcements mark Facebook’s most ambitious attempt yet to help marketers getbeyond the framework of a traditional paid advertising unit. Facebook is betting that by encouragingbrands to shift from “ads” to quality content and branded storytelling, they will be able to generatemore consumer/marketer interactions. This, in turn, will create more value for all involved in theFacebook ecosystem, improving the user experience, stimulating more valuable conversations and, ofcourse, generating increasing revenue streams against one of the largest user bases ever assembled. 3
  • 5. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    Details on the New FeaturesPages: The new brand Pages are described as “mission control for your business on Facebook.”Here, a marketer can: • Announce a new product or news • Begin two-way communication with consumers • Host CRM • Manage and optimize postings and advertising content • View page analytics in real-timeIn an effort to streamline the cross-platform user experience and bring brands closer to their fans,Pages are now set up similarly to users’ Facebook Timelines. This change will minimize thecommercial aesthetic of brand pages and instead showcase brand stories.Anatomy of a new brand Page incorporating a Timeline: 4
  • 6. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    Premium Ads: New ad opportunitiesThese ad units are considered by Facebook to be its most impactful ad opportunities. Theseinclude placements in: • News Feed on the homepage and mobile • Right-hand side on the homepage • Log-Out screen 5
  • 7. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    • News Feed ads – placed within a user’s News Feed o Additional advertising placements on a user’s News Feed complement the existing right hand column unit and are impactful because the News Feed is the user’s primary touch point. These units are designed to assist brands to better integrate their content within the user’s organic experience. o According to Facebook internal studies conducted in August 2011, the current premium ads and featured stories on the right-hand side are typically 40% more engaging and 80% more likely to be remembered than all previous offerings.• Log-Out ads – message users as they log out of their Facebook account o The log-out page is a large impression generator that will create a new revenue stream for Facebook. Reaching an estimated 37 million users daily, Facebook will now utilize the log-out page to showcase ads to its user base. As proven by Yahoo Mail, the log-off screen provides another option to a user who is open to “surfing.”• Offer ads – message users with exclusive offers and deals o Much like Google Offers, Living Social and Groupon, Facebook now provides branded offers of discounts or specials. These offers can be presented as content on the page, as well as promoted through a variety of standard and premium ad campaigns. The social context of these units will make it more likely than completive offers to be shared. 6
  • 8. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers     • Mobile ads – For years, Facebook has developed rich apps for the major operating systems, and recently released a long awaited iPad app, but mobile advertising was not introduced until fMC. Facebook’s new paid mobile offerings include News Feed and Offer placements. Facebook’s mobile ad serving piggybacks on the News Feed advertising rolled out into the display environment as well as the log-out page. Mobile advertising efforts show Facebook’s increasing desire to integrate advertising in the network with user content while keeping the user’s experience top of mind, much like what Apple did for mobile operating systems.Reach Generator: Ensuring that fans see your stories • Facebook’s Reach generator guarantees to reach 75% of a brand’s fans each month and an estimated 50% of fans via exposure to the sponsored story on the homepage across desktop and mobile. • Reach Generator, however, does not take into account frequency of visits by user, brand spend, share of voice, eye cognition research or several other factors included in media analytics. This feature is not available at all levels of spend and the minimum has not been highlighted.Sample Reach Generator tactic:Real-Time Analytics: New measurement opportunitiesMany marketers, including Neo, have been lobbying Facebook to improve its analyticsoffering. Platform measurement will now include real-time statistics on impressions, feedback andreach, while user demographics will be updated every fifteen minutes, allowing marketers to movewith more agility and precision. We’ll have to wait and see whether this data is portable beyond theFacebook environment, but there will be plenty of new ways to analyze and optimize the impact ofongoing activity. For the curious, Facebook has already launched a tutorial including ways that youcan use this new tool.This link points to http://www.learnpageinsights.com/ 7
  • 9. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    What this means:As we consider the implications of these changes, the principle takeaway is the blurring of paid,owned and earned media. Several presenters repeated the mantra that “ads are good, stories arebetter.” This makes content more important than ever, with Featured Stories designed to personifybrands and Timelines created to curate the content.Marketers will need to start with engaging content, rather than the traditional headline/image/copyads that dominate existing Marketplace offerings. Just as consumers can “like” brands, marketers willbe able to respond with more customized messaging. This means drawing a connection to existingCRM programs, so that increased Facebook activity contributes to a more complete customerunderstanding.For many of our clients, this will accelerate the need for multiple functions or departments to workclosely together. In many cases the person responsible for creating a story is different from the personresponsible for maximizing distribution. Similarly, the different agencies and partners (whether that’screative, media, PR, search or ad operations) will need to be on the same page to get the most out ofgranular content.One of the ways that Neo is already addressing these changes is through active participation in therecently launched social@Ogilvy practice, which brings social experts from a variety of disciplinesinto cross functional teams. For more information on this approach, visithttps://social.ogilvy.com/expertise/what-is-socialogilvy. 8
  • 10. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    The changes that were announced at fMC will have implications far beyond the specific productsthat were mentioned above. Companies with products based on the Facebook API are alreadyrepositioning existing offerings and placing bets on new ways to reach consumers. Buddy Media justannounced the acquisition of Brighter Option to help manage owned and paid campaigns. Socialmarketing software company GraphEffect is already promoting a page ranking tool calledStoryBoost to optimize “owned” posts for Featured Stories. According to GraphEffect MarketingDirector Alex Press, “Facebook’s new features further allow marketers to leverage earned and ownedamplification from their paid efforts. We expect that higher levels of transparency will draw thecurtain back on arbitrage models. This will certainly favor marketers and agencies that arecomfortable managing self service, versus managed service campaigns.”ConclusionAt the end of the day, Facebook is trying to encourage advertisers to connect with customers insimilar ways that users connect with one another. By centering new ad products around storytellingand giving marketers more powerful tools to curate and distribute compelling content, these newproducts will blur the lines between paid, earned and owned media.We encourage our clients to actively test these new products, just as they would test any newpublisher or technology. Experiment ways to embed compelling calls to action within content thatisn’t single-mindedly sales-oriented. Develop multiple creative iterations that can generate learnings.Measure which types of stories generate first and second generation shares. And don’t spam yourfans!ResourcesFacebook Marketing Conference, www.facebook.com/business/fmc, February 2012eMarketer, “Revenue Gains Push Facebook to Top of US Display Ad Market” February 2012 9
  • 11. Neo@Ogilvy  Viewpoints  |  What  Facebook’s  New  Product  Offerings  Mean  for  Marketers    _________________________________________________________What Facebook’s New Product Offerings Mean for MarketersWritten by Daniel Jeydel, Deepa Iyengar, Mitch Bernstein, Sacha Xavier, Sean McCarthyPublished by Neo@OgilvyFor the latest industry news, trends and happenings, follow us on Twitter at @neo_Ogilvy.For more information, please contact:Rachel Sertonrachel.serton@ogilvy.com212-259-5289 10