HOW MUCH SOCIAL MARKETING ISTOO MUCH – OR NOT ENOUGH?
AGENDA• Introductions & Methodology• Social Media Overview: Owned,Paid, and Earned Assets• Key Findings: Results and KPIs•...
SPEAKERSJeff CampbellManaging DirectorResolution Media@CJeffCampbellBrad WaltersDirector, Social Media andEmerging Platfor...
RESEARCH METHODOLOGY4GOALWHYWHATLooked at globaldata across multiplebrandsHeard from manybrands that theydidn’t know ifFac...
SOCIAL MEDIA OVERVIEWOwned, Paid, and Earned Assets
FACEBOOK BRAND ASSETS6Owned Media Paid Media Earned Media
OWNED MEDIA: FACEBOOK OBJECTS7Page PlaceAppEvent
PAID MEDIA: FACEBOOK ADS8Post AdSponsored StoryWeb AdSocial Ad
FACEBOOK PORTFOLIO APPROACH9Balance assets to amplifyyour brand and generateactivity on and off Facebook
KEY FINDINGSResults and Key Performance Indicators
Share of Clicks Driven toFacebook Objects by AdsPages Drive the Highest EngagementRate (Ad CTR) of all Facebook ObjectsSou...
High Click-Through Rate Correlates toLow Cost-per-Click on Facebook AdsLEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRAND...
Social Endorsements for Likes and App UsageDrive Highest Sponsored Story Conversion RatesAMPLIFY YOUR OWNED MEDIA WITH PAI...
Distribution of Facebook Ads by Exposure RateLEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCE14EXPOSURE RATE:Unique impress...
High Facebook Ad Exposure RatesCorrelate to High Click-Through RatesHigh Facebook Ad Exposure RatesCorrelate to High Conve...
Facebook Ads Average Conversion Rateis 75% Lower After the 6th ImpressionFacebook Ads Average CTR is 39%Lower After the 6t...
Bids Above the FacebookRecommended Maximum Bid Drive UpAverage Exposure Rate by 11.5%Bids Above the RecommendedFacebook Ma...
Sponsored Stories Most Effective Ad Typefor Unique Brand Reach with 36%Exposure RateSponsored Stories Were Delivered witht...
TESTING AND TARGETINGCountry and Gender Insights
WHO’S THE FAIREST OF THEM ALL?20Available MaleTarget AudienceOn FacebookAvailable FemaleTarget AudienceOn Facebook42%58%
MORE WOMEN ARE ON FACEBOOK, BUT…2153% 47%Budget Allocation for Facebook Ads53% MALE 47% FEMALE
MEN ARE SERVED MORE FACEBOOK ADS…22Impression Volume forFacebook AdsClick Volume forFacebook Ads58% 42%MALE FEMALE60% 40%M...
…AND MEN ARE CHEAP23Cost-Per-Thousand (CPM)Impressions for Facebook Ads$0.00$0.05$0.10$0.15$0.20$0.25Cost per Click (CPC) ...
AD DOLLARS GO FURTHER WHEN TARGETING MALES24Exposure Rate forFacebook Ads0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00...
AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTEN25Frequency forFacebook Ads0.002.004.006.008.0010.0012.00MALE FEMALE...
Average Cost-Per-Click (CPC) for Facebook AdsGLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS26Source: Global Socia...
AD TYPES AND FORMATS NEED TO BE ADJUSTED BY COUNTRY27MEXICOMobile Phone Penetration49.0%Facebook Users35.6 MillionPopulati...
28Average Frequency forDelivery of Facebook AdsMaximum Recommended Bidsfor Facebook AdsLOW MAX RECOMMENDED BID AMOUNTS = G...
Average Exposure Rate forDelivery of Facebook AdsAverage Click-Through Rate (CTR)for Facebook AdsHIGH EXPOSURE RATES AND C...
• Develop a strong core of owned assets and fans• Leverage paid ads to increase reach and scale your brand• Amplify your o...
31KEY TAKEAWAYS FOR RETAILERSLowe’s POV
LOWE’S BEST PRACTICES32• Establish your Social Media Objective• Jot it down and pin it up• Do you believe in it? Would you...
LOWE’S BEST PRACTICES33• “No Post Left Behind®”• Social Media is a conversation, not a one way street• Create a value-exch...
VINE34
PINTEREST35
FACEBOOK36
37SCALE TO SIGNIFICANCE: THE END RESULTFans and followers aren’tunderstoodContent isn’t maximized for theappropriate audie...
QUESTIONS?38
How much social marketing is too much – or not enough?
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How much social marketing is too much – or not enough?

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Social media marketing is so new, few marketers really know what is effective and what isn’t. Should you post every day? Every week? Offer discounts? Focus on branding? This session will report the results of a year-long analysis of 65 billion Facebook impressions and 20 million clicks that provide insight into the optimal use of Facebook. Among the results: showing an ad more than seven times to one user suppresses engagement; the combination of high exposure and low frequency increases conversion rates; and more.

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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.
  • 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
  • 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 desireable
  • b/c served more ads, they click on more adsCustom text/images – types of ads being served
  • Men: Targeted more, click more, less expensiveIt 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 malesLess waste with male targetingCheaper = more exposure of adsMarketers were more successful in hitting their target audience when serving males ads.
  • They may just need reminding! Men are being exposed to ads more often
  • 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.
  • How much social marketing is too much – or not enough?

    1. 1. HOW MUCH SOCIAL MARKETING ISTOO MUCH – OR NOT ENOUGH?
    2. 2. AGENDA• Introductions & Methodology• Social Media Overview: Owned,Paid, and Earned Assets• Key Findings: Results and KPIs• Testing and Targeting: Country andGender Insights• Key Takeaways for Retailers: Lowe’sPOV2
    3. 3. SPEAKERSJeff CampbellManaging DirectorResolution Media@CJeffCampbellBrad WaltersDirector, Social Media andEmerging PlatformsLowe’s@BradJWaltersAaron GoldmanCMOKenshoo@AaronGoldman
    4. 4. RESEARCH METHODOLOGY4GOALWHYWHATLooked at globaldata across multiplebrandsHeard from manybrands that theydidn’t know ifFacebook andsocial were“working” for theirprogramsWanted to providethe first benchmarksfor Facebook adperformance andprovide someactionable insights
    5. 5. SOCIAL MEDIA OVERVIEWOwned, Paid, and Earned Assets
    6. 6. FACEBOOK BRAND ASSETS6Owned Media Paid Media Earned Media
    7. 7. OWNED MEDIA: FACEBOOK OBJECTS7Page PlaceAppEvent
    8. 8. PAID MEDIA: FACEBOOK ADS8Post AdSponsored StoryWeb AdSocial Ad
    9. 9. FACEBOOK PORTFOLIO APPROACH9Balance assets to amplifyyour brand and generateactivity on and off Facebook
    10. 10. KEY FINDINGSResults and Key Performance Indicators
    11. 11. Share of Clicks Driven toFacebook Objects by AdsPages Drive the Highest EngagementRate (Ad CTR) of all Facebook ObjectsSource: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution MediaDEVELOP A STRONG CORE OF OWNED ASSETS AND FANS11!Pages have thehighest share ofclicks andengagement rateof all FacebookObjectsCTRPage Place App Event0.0%0.02%0.04%0.01%0.03%0.05%0.02%0.04%0.03%0.02%PagePlaceAppEvent80.79%10.58%4.03%4.60%
    12. 12. High Click-Through Rate Correlates toLow Cost-per-Click on Facebook AdsLEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRAND12!Post Ads andSponsored Storieshave the highestresponse rates andlowest CPCs0.08%0.00%0.02%0.04%0.06%0.07%CTRPost Ad SponsoredStoryWeb Ad Social Ad0.01%0.03%0.05%$0.90$-$0.20$0.40$0.60$0.70$0.10$0.30$0.50$0.80CPCSource: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    13. 13. Social Endorsements for Likes and App UsageDrive Highest Sponsored Story Conversion RatesAMPLIFY YOUR OWNED MEDIA WITH PAID ADS13!In order tocapitalize on SocialAds and SponsoredStories, you musthave a scalablefan baseConversion RatesApp Share App Used Like Post Like80%0%40%60%20%0.18%60.39%77.25%15.71%Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    14. 14. Distribution of Facebook Ads by Exposure RateLEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCE14EXPOSURE RATE:Unique impressionsdivided by thetarget audience10,00002,0004,0006,0008,000Quartile 1(0-25%)Quartile 2(26-50%)Quartile 3(51-75%)Quartile 4(76-100%)Exposure RateSource: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    15. 15. High Facebook Ad Exposure RatesCorrelate to High Click-Through RatesHigh Facebook Ad Exposure RatesCorrelate to High Conversion RatesHIGHER EXPOSURE RATES = EFFICIENT AD ENGAGEMENT15CTRQuartile 1(0-25%)Quartile 2(26-50%)Quartile 3(51-75%)Quartile 4(76-100%)CVR0.00%0.02%0.04%0.01%0.03%0.00%15.00%35.00%5.00%25.00%0.028%0.031%0.036% 0.038%Quartile 1(0-25%)Quartile 2(26-50%)Quartile 3(51-75%)Quartile 4(76-100%)20.00%10.00%30.00%11.81%17.03%28.57%31.92%!When exposurerate is high, CTRand CVR are alsohighSource: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    16. 16. Facebook Ads Average Conversion Rateis 75% Lower After the 6th ImpressionFacebook Ads Average CTR is 39%Lower After the 6th ImpressionKEEP FREQUENCY AT 6 OR BELOW TO KEEP ADS FRESH16CVRFrequency1-3Frequency4-6Frequency7-9FrequencyOver 10CTR0%20%60%10%40%0.00%0.03%0.01%0.05%57.17%46.53%14.61% 11.95%Frequency1-3Frequency4-6Frequency7-9FrequencyOver 100.04%0.02%0.06%0.059%0.046%0.035%0.029%FREQUENCY:Total impressionsdivided by uniqueimpressions;Optimal frequencyis 6 or below50%30%Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    17. 17. Bids Above the FacebookRecommended Maximum Bid Drive UpAverage Exposure Rate by 11.5%Bids Above the RecommendedFacebook Maximum Bid DecreaseAverage Frequency by 1.7 ExposuresBID HIGHER FOR INCREASED ENGAGEMENT17Exposure RateCPC < Max Rec. Bid CPC > Max Rec. BidFrequency5%15%10%25%5117138.73%20.23%CPC < Max Rec. Bid CPC > Max Rec. Bid911.629.9320%!Maxrecommended bidamounts correlateto increasedengagementSource: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    18. 18. Sponsored Stories Most Effective Ad Typefor Unique Brand Reach with 36%Exposure RateSponsored Stories Were Delivered withthe Lowest Frequency, Driving UpUnique Users ReachedSPONSORED STORIES SHOW THE SUCCESS OF OUR METRICS18Exposure Rate Frequency0%20%10%40%0515.46%35.99%Web Ad106.5512.4930%!Sponsored Storiesdeliver the highestexposure rate andlowest frequencyPost Ad Social Ad SponsoredStoryWeb AdPost Ad Social Ad SponsoredStory6.835.831.23% 1.39%Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media
    19. 19. TESTING AND TARGETINGCountry and Gender Insights
    20. 20. WHO’S THE FAIREST OF THEM ALL?20Available MaleTarget AudienceOn FacebookAvailable FemaleTarget AudienceOn Facebook42%58%
    21. 21. MORE WOMEN ARE ON FACEBOOK, BUT…2153% 47%Budget Allocation for Facebook Ads53% MALE 47% FEMALE
    22. 22. MEN ARE SERVED MORE FACEBOOK ADS…22Impression Volume forFacebook AdsClick Volume forFacebook Ads58% 42%MALE FEMALE60% 40%MALE FEMALE
    23. 23. …AND MEN ARE CHEAP23Cost-Per-Thousand (CPM)Impressions for Facebook Ads$0.00$0.05$0.10$0.15$0.20$0.25Cost per Click (CPC) forFacebook Ads$0.00$0.20$0.40$0.60$0.80MALE FEMALE MALE FEMALE$0.51$0.68$0.16$0.20
    24. 24. AD DOLLARS GO FURTHER WHEN TARGETING MALES24Exposure Rate forFacebook Ads0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%MALE FEMALE7.88%4.94%
    25. 25. AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTEN25Frequency forFacebook Ads0.002.004.006.008.0010.0012.00MALE FEMALE11.959.74Threshold foroptimal frequency
    26. 26. Average Cost-Per-Click (CPC) for Facebook AdsGLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS26Source: Global Social Media Insights © 2012, Resolution Media!It is imperative toresearch andleverageadvancedaudience targeting
    27. 27. AD TYPES AND FORMATS NEED TO BE ADJUSTED BY COUNTRY27MEXICOMobile Phone Penetration49.0%Facebook Users35.6 MillionPopulation112 MillionOnline Ad Spending$159,000,000% of Internet Users on Facebook103%Internet User Penetration31.0%GDP per Capita (USD)$15,610TURKEYMobile Phone Penetration84.9%Facebook Users31.1 MillionPopulation77.8 MillionOnline Ad Spending$264,000,000% of Internet Users on Facebook100%Internet User Penetration39.8%GDP per Capita (USD)$14,517!Consider adformats based ondevice usageSource: Global Social Media Insights © 2012, Resolution Media
    28. 28. 28Average Frequency forDelivery of Facebook AdsMaximum Recommended Bidsfor Facebook AdsLOW MAX RECOMMENDED BID AMOUNTS = GOOD TEST MARKETS!When the maxrecommended bidamounts arelow, there is lesscompetitionSource: Global Social Media Insights © 2012, Resolution Media
    29. 29. Average Exposure Rate forDelivery of Facebook AdsAverage Click-Through Rate (CTR)for Facebook AdsHIGH EXPOSURE RATES AND CTRS = HEAVY ENGAGEMENT29!When exposureand click-throughrates arehigh, users areheavily engagedSource: Global Social Media Insights © 2012, Resolution Media
    30. 30. • 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• Balance exposure rate with frequency• Bid higher than Facebook’s recommended max bid• For expensive markets, audience research is a must• Create very targeted ad segments and tailor ads accordingly• Consider ad formats based on device usage• Test everything!• Download the reports:• Kenshoo.com/White-Papers• ResolutionMedia.com/White-PapersSUMMARY
    31. 31. 31KEY TAKEAWAYS FOR RETAILERSLowe’s POV
    32. 32. LOWE’S BEST PRACTICES32• Establish your Social Media Objective• Jot it down and pin it up• Do you believe in it? Would your customers?• Remember, it’s not just about fans/followers• Content is key• Provide your audience relevant and useful content –Sarcastic/grumpy cats are not content foundations• Day parts and cadence are crucial, maximize your contentefforts by targeting the best time of day for your brand
    33. 33. LOWE’S BEST PRACTICES33• “No Post Left Behind®”• Social Media is a conversation, not a one way street• Create a value-exchange between you and your customers –Conversate!• Every social platform has a purpose and a unique audience• Understand the complexion of your audience• Be true to each platform
    34. 34. VINE34
    35. 35. PINTEREST35
    36. 36. FACEBOOK36
    37. 37. 37SCALE TO SIGNIFICANCE: THE END RESULTFans and followers aren’tunderstoodContent isn’t maximized for theappropriate audienceHard to evaluate the effectivenessof social campaignsAudience data and profiles are definedThe customer is providedrelevant, valuable, and actionablecontent Influencing perception of thebrandWith a defined social objective, we canclearly start to measure the campaignsBEFORE AFTER
    38. 38. QUESTIONS?38

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