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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What Facebook’s New Product
Offerings Mean for Marketers
March 2012
| VIEWPOINTS

2. Neo@Ogilvy
Viewpoints
|
What
Facebook’s
New
Product
Offerings
Mean
for
Marketers
What Facebook’s New Product Offerings
Mean for Marketers
Daniel Jeydel
Deepa Iyengar
Mitch Bernstein
Sacha Xavier
Sean McCarthy
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3. Neo@Ogilvy
Viewpoints
|
What
Facebook’s
New
Product
Offerings
Mean
for
Marketers
Contents
3 Introduction
4 Details on New Features
8 What This Means
9 Conclusion
9 Resources
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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 don't build services to make money;
we make money to build better services."
— Mark Zuckerberg, February 2012
The purpose of Facebook’s Marketing Conference (fMC) was to introduce new
products 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 opportunities
In this Neo@Ogilvy Viewpoint, we offer insight on what to expect regarding these
specific updates and more importantly, how to think about marketing on Facebook.
Introduction
Facebook has a commanding share of the display advertising market, serving more than 32% of
display media in 2011 (eMarketer). With an eye to its forthcoming IPO, it makes sense that Facebook
would 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 social
channels, including Facebook. There has been a clear trend towards an increased use of paid, owned
and earned vehicles to connect with customers, with clients testing multiple strategies and tactics, and
increasing budgets against successful campaigns. This growth has largely been driven by superior
targeting abilities and the ability to gather insights that inform, enhance, and supplement other
media channels.
This last point is crucial, as “Social” has evolved into a cross-channel medium, acting as a link
between TV, radio, OOH and all digital channels. Brands are including Facebook page URLs or
Twitter hashtags into their overall marketing strategy because they want to build a presence in the
places where customers discuss the things that matter in their lives.
These latest announcements mark Facebook’s most ambitious attempt yet to help marketers get
beyond the framework of a traditional paid advertising unit. Facebook is betting that by encouraging
brands to shift from “ads” to quality content and branded storytelling, they will be able to generate
more consumer/marketer interactions. This, in turn, will create more value for all involved in the
Facebook ecosystem, improving the user experience, stimulating more valuable conversations and, of
course, generating increasing revenue streams against one of the largest user bases ever assembled.
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5. Neo@Ogilvy
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What
Facebook’s
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Product
Offerings
Mean
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Details on the New Features
Pages: 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-time
In 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 the
commercial aesthetic of brand pages and instead showcase brand stories.
Anatomy of a new brand Page incorporating a Timeline:
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What
Facebook’s
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Offerings
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Premium Ads: New ad opportunities
These ad units are considered by Facebook to be its most impactful ad opportunities. These
include placements in:
• News Feed on the homepage and mobile
• Right-hand side on the homepage
• Log-Out screen
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7. Neo@Ogilvy
Viewpoints
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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.
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What
Facebook’s
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• 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 opportunities
Many marketers, including Neo, have been lobbying Facebook to improve its analytics
offering. Platform measurement will now include real-time statistics on impressions, feedback and
reach, while user demographics will be updated every fifteen minutes, allowing marketers to move
with more agility and precision. We’ll have to wait and see whether this data is portable beyond the
Facebook environment, but there will be plenty of new ways to analyze and optimize the impact of
ongoing activity. For the curious, Facebook has already launched a tutorial including ways that you
can use this new tool.
This link points to http://www.learnpageinsights.com/
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What
Facebook’s
New
Product
Offerings
Mean
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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 are
better.” This makes content more important than ever, with Featured Stories designed to personify
brands and Timelines created to curate the content.
Marketers will need to start with engaging content, rather than the traditional headline/image/copy
ads that dominate existing Marketplace offerings. Just as consumers can “like” brands, marketers will
be able to respond with more customized messaging. This means drawing a connection to existing
CRM programs, so that increased Facebook activity contributes to a more complete customer
understanding.
For many of our clients, this will accelerate the need for multiple functions or departments to work
closely together. In many cases the person responsible for creating a story is different from the person
responsible for maximizing distribution. Similarly, the different agencies and partners (whether that’s
creative, media, PR, search or ad operations) will need to be on the same page to get the most out of
granular content.
One of the ways that Neo is already addressing these changes is through active participation in the
recently launched social@Ogilvy practice, which brings social experts from a variety of disciplines
into cross functional teams. For more information on this approach, visit
https://social.ogilvy.com/expertise/what-is-socialogilvy.
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10. Neo@Ogilvy
Viewpoints
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What
Facebook’s
New
Product
Offerings
Mean
for
Marketers
The changes that were announced at fMC will have implications far beyond the specific products
that were mentioned above. Companies with products based on the Facebook API are already
repositioning existing offerings and placing bets on new ways to reach consumers. Buddy Media just
announced the acquisition of Brighter Option to help manage owned and paid campaigns. Social
marketing software company GraphEffect is already promoting a page ranking tool called
StoryBoost to optimize “owned” posts for Featured Stories. According to GraphEffect Marketing
Director Alex Press, “Facebook’s new features further allow marketers to leverage earned and owned
amplification from their paid efforts. We expect that higher levels of transparency will draw the
curtain back on arbitrage models. This will certainly favor marketers and agencies that are
comfortable managing self service, versus managed service campaigns.”
Conclusion
At the end of the day, Facebook is trying to encourage advertisers to connect with customers in
similar ways that users connect with one another. By centering new ad products around storytelling
and giving marketers more powerful tools to curate and distribute compelling content, these new
products 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 new
publisher or technology. Experiment ways to embed compelling calls to action within content that
isn’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 your
fans!
Resources
Facebook Marketing Conference, www.facebook.com/business/fmc, February 2012
eMarketer, “Revenue Gains Push Facebook to Top of US Display Ad Market” February 2012
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11. Neo@Ogilvy
Viewpoints
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What
Facebook’s
New
Product
Offerings
Mean
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Marketers
_________________________________________________________
What Facebook’s New Product Offerings Mean for Marketers
Written by Daniel Jeydel, Deepa Iyengar, Mitch Bernstein, Sacha Xavier, Sean McCarthy
Published by Neo@Ogilvy
For the latest industry news, trends and happenings, follow us on Twitter at @neo_Ogilvy.
For more information, please contact:
Rachel Serton
rachel.serton@ogilvy.com
212-259-5289
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