Transcript - Facebook Marketing Success Summit Ads Presentation 2011

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  • 1. TRANSCRIPT Facebook Success Summit 2011 Succeeding with Facebook Advertising INSTRUCTOR: CHRIS TREADAWAY Sponsored by Copyright 2011, Social Media Examiner
  • 2. TranscriptIntroductionThis session is titled "Succeeding with Facebook Advertising," with ChrisTreadaway.Chris is co-author of Facebook Marketing: An Hour A Day. He foundedNotice Technologies, an advertising company for media companies, andis managing director for Ultrastart, a social media consulting company.In todays session, Chris will show you how to succeed with Facebookadvertising campaigns.PresentationThank you very much for having me and thank you all for being heretoday.Poll Question: How Much Experience Do You Have with Facebook Ads?I thought wed start out with a quick poll: how much experience do youhave with Facebook Ads? • A lot • A little • NoneThis is just so I can have an idea of all the people out there and what youknow about Facebook Ads so we can spend time on the things we need tospend time on.We have a lot of ground to cover today, so why dont we take a look atthat poll right now?There we go. "A little" and "None" take the day.Session Transcript SocialMediaExaminer.com Page 2 of 33 Copyright 2011, Social Media Examiner
  • 3. AgendaThanks again everybody for being here. Just a quick agenda, well gothrough:• Introduction• The business case for Facebook Ads• Facebook Ads basics• Some of the weaknesses of Facebook Ads• Some specifics on how to drive success and run campaigns• Things that weve learned in our business• Q&AAboutFirst, a little bit of context. Im the founder and CEO of a company calledNotice Technologies.Previously, I was at Microsoft for three and a half years, where my last jobthere was being responsible for web strategy for the company, which wasa very, very interesting role in the early, early days of Facebook. Just togive you all an idea, Facebook had about 25 million users as opposed to800 million+ now. They had 25 million users when I took that role atMicrosoft.This is my third start-up, and I got an MBA from the University of Texasin 2004.CompanyWe run a company that does a few different things. Probably the mostinteresting for this conversation is our managed Facebook Advertisingbusiness called Social Media Buy, where we run campaigns for small andmedium businesses and for bigger companies as well.Session Transcript SocialMediaExaminer.com Page 3 of 33 Copyright 2011, Social Media Examiner
  • 4. A lot of what were going to share with you today is based on ourexperiences of running hundreds and hundreds of campaigns fordifferent companies of all different types. Almost all of those campaignshave been run on Facebook, so youre going to get the shortcut into thecollective wisdom that weve gathered over the years in running thesecampaigns going back to 2009.Co-AuthorI co-authored Facebook Marketing: An Hour A Day with this lovely lady,Mari Smith, in 2010.Were actually working on the second edition of the book now that shouldbe released sometime in the spring of next year. So were pretty excitedabout that.Contributor/Technical EditorIn addition, Ive been a technical editor and occasional contributor to twobooks:• Facebook Marketing: Leverage Social Media to Grow Your Business – that was actually the first Facebook marketing book that was released in the marketplace in, I think, 2008.• Killer Facebook Ads by Marty Weintraub, which was released just a few months ago. I can tell you, guys, its really a spectacular, spectacular book. I have nothing but great things to say about it. Marty really captured a lot of the ins and outs in a lot more detail than what Ill go through today. So if theres one recommendation to take away from all this, its that Martys book is really, I think, a wonderful, wonderful work and a great companion, and something that people that want to dive into Facebook advertising themselves really should take advantage of and purchase because its really fantastic book that covers all the ins and outs of running campaigns.Session Transcript SocialMediaExaminer.com Page 4 of 33 Copyright 2011, Social Media Examiner
  • 5. What We Know About Facebook...First, lets cover what we know about Facebook at a high level here.Facebook Owns the Social AudienceFirst of all, well set the stage here for what we know about Facebookrelative to other properties.According to Citigroup, Facebook owns whats approaching about 20%market share in terms of web activity in the world. Its an unbelievablenumber.As you can in the chart, in particular dating back from 2007 when it hadlittle less than 2% share going all the way up to the present day, Facebookis really continuing to grow and thrive and do really, really well. Sodespite what skeptics and cynics may say, Facebook really does own thesocial audience.Facebook Ad Growth Is UnrealAd growth is really unbelievable.The data points here on the left side of the screen were some of thenumbers that I shared with those of you who were on the call last year.The estimates, according to AllFacebook, were that Facebook did about$600 million in ads, and that for 2010, they were supposed to have done$1.28 billion in revenue.But what actually happened – and I thought this was really prettyinteresting from eMarketer – youll see that in 2009, they actually did$740 million instead of $600 million. And in 2010, they did $1.86 billion,not $1.28 billion.So theyve done fantastically well with advertising as the core businessmodel of Facebook. Roughly 88% to 91% of Facebooks revenue comesfrom advertising.Session Transcript SocialMediaExaminer.com Page 5 of 33 Copyright 2011, Social Media Examiner
  • 6. Its pretty phenomenal. As you can see, the growth projections for 2012and 2013 make Facebook just a massive, massive player in the adbusiness, which is something that people didnt necessarily foreseemaybe even as little as three years ago.Facebook Dominates Social MediaIn terms of the amount of time spent on social media, this from Nielsen,"State of the Media: Social Media Report 2011," Facebook owns adominant majority of time spent across the major Internet properties:Facebook, Google, YouTube, Blogger, Tumblr, Twitter.I thought it was interesting they didnt include the Microsoft properties inthis chart because they might have a little bit of a presence in this chart.But the point to make here is that Facebook is unbelievably strong interms of the amount of time people are spending.One thing we know from every type of media that exists out there is thatwhere people spend their time, ad dollars follow. Fortunately, I think, forthose of us that are still working in advertising and working in socialmedia, there is still plenty of opportunities for us to take advantage ofadvertising on Facebook.The Business Case for Facebook AdsLets run through a few pretty quick reasons why I think FacebookAdvertising makes a lot of sense:• First of all, its accessible to anyone that has $1 a day or more in terms of budget. It doesnt take very much money if youre going to run your own Facebook ads to actually try it out. It does take money to optimize and do well with Facebook Ads, but you can actually get your foot in the door for not very much money.• Its the richest demographic targeting opportunity that currently exists in the world for advertising when you consider that Facebook has 800 million+ profiles that it can read from. It can pull the demographicSession Transcript SocialMediaExaminer.com Page 6 of 33 Copyright 2011, Social Media Examiner
  • 7. data out of the profiles that people have made available on Facebook and make that available to advertisers as groups of people that you can advertise to.• The combinations and permutations of targeting are really unbelievable and still relatively inexpensive. If you target an audience of about 100,000 people or more and youre doing the self-serve advertising yourself, you can get the clicks for about $1.50 to $2 apiece, which ends up being a lot cheaper in most cases than Google click-throughs. And you can get the impressions for a CPM at about 25 to $0.30 apiece or less. So you can do really well. It does get more expensive as you do more aggressive targeting, but this is roughly what you can expect to spend if you end up running the campaigns yourself. I think that compares pretty well to other options that an advertiser may have.Social Advertising AlternativesIf you think about Google, LinkedIn, and Twitter as other social mediaadvertising alternatives, they have some limitations that Facebook doesnot have.Google, for example, has been around for a really long time, and so a lotof the click-throughs are very, very expensive. Its not uncommon to hearof clicks costing $5, $7, $10 apiece.LinkedIn has done a much better job, I think, over the last year improvingtheir ads offering. But even so, compared to what you spend onFacebook, its actually pretty expensive.Then if you look at Twitter, Twitters advertising is more or lesssponsored tweets at the moment. There are few advertising options. ButTwitter as a platform is much simpler and doesnt capture all thedemographic data that Facebook does, and so Twitter cannot in turnSession Transcript SocialMediaExaminer.com Page 7 of 33 Copyright 2011, Social Media Examiner
  • 8. make that available to advertisers as easily as Facebook can and doesalready.Old Media AlternativesThen think about for a moment old media alternatives. Lets say yourenot going to go the social media route – youre going to go the old mediaroute: billboards, radio, television, yellow pages, etc.In almost all these cases, theyre more expensive than what you can getfrom Facebook just from a CPM perspective. In a lot of these cases, youcant track what actually happens, or youre relying on third parties to tellyou how effective the advertising was or what demographic groups youmay have reached.There are just a lot of ways that I think Facebook is truly a disruptive sortof technology where an advertiser gets a lot more value and a lot bettervalue for less money. So I think that it makes a lot of sense for a lot ofadvertisers in a lot of areas. And I think some companies are beginning tofigure that out now.How Facebook Ads Work...Lets go through quickly how Facebook Ads work for those of you that arerelatively new. I think about 19% have no experience with Facebook Ads,so lets just go through the basics pretty quickly here.What Is a Facebook Ad?A Facebook ad is typically what shows up on the right-hand side of thescreen as you log in to Facebook and as you experience it in differentplaces inside Facebook. Its that area there inside the red box.Basic Facebook Ad SpecsIn terms of the ad specifications, because Facebook is trying to makeeverything sort of fit into this space here, Facebook is actually prettyrestrictive about what you can put into the title, the size of the image, theSession Transcript SocialMediaExaminer.com Page 8 of 33 Copyright 2011, Social Media Examiner
  • 9. body, what you can say inside the body. And all of it is contained inside a120 X 240 pixels box thats on the right-hand side of the screen.In that tight real estate thats sitting alongside the news feed on the leftor whatever it is that youre looking at inside Facebook, thats theopportunity that you have as a advertiser to get someones attention.Theres limited space and you have to economize and do a really goodjob of using whats given to you. But in so doing, you can make a lot ofthings happen that way.Where Ads AppearThese ads appear inside:• Profile pages you may be scanning• Facebook pages (business)• Games and applications pages (you may be playing a game down the left-hand side and the ads show up to the right of that)• News feed page that I showed you two slides ago. But thats a sponsored position managed by Facebook. Its a higher CPM and its not available through self-serve advertising at the moment.You may notice one other thing too. Inside the games, those ads willactually refresh after a certain period of time. You might be playing agame and you might notice an ad down the right-hand side. If you dontclick it, if you wait for a minute or two, those ads on the right-hand sidemay actually refresh.So one thing as a marketer we have to think about is if somebody isexperiencing these ads inside of game, they may actually go away. Theydont just sit on the screen for as long as somebody is playing Mafia Warsor Mafia Wars 2 or any of the social games that have gotten popular overthe years.What You Can PromoteSession Transcript SocialMediaExaminer.com Page 9 of 33 Copyright 2011, Social Media Examiner
  • 10. With Facebook Ads, you can promote:• Websites• Facebook Pages• Facebook Places• Facebook Events• Facebook Apps & TabsYou can promote a lot of different types of things, and its really sort ofup to the marketers imagination in terms of what you want to actuallyget people to do. When they read an ad, do you want them to go to awebsite? Do you want them to like a Facebook page or attend an eventthat is being promoted on Facebook, and so on and so forth?You can promote a lot of different things. A majority of them are thingsthat you can do inside Facebook, but you can also promote reallyanything with a distinct URL on the Internet.Types of Facebook AdsThere are two primary high-level types of Facebook Ads.Theres self-serve, so thats what you access when you click "Ads" on theleft-hand side of the screen when you first log in to Facebook.For that little as $1 a day budget, you can get impression-basedadvertising or CPM advertising, or you can get clicks. Those are the twooptions that you have right now. These things are highly, highlyconfigurable.The sponsored advertising, the bigger budgets, the large ad buys, theseare things, as I mentioned before, that show up on the news feed, andthe minimum budget is about $5,000 a month, with a $5 to $7 CPM. Soyou end up spending a lot more money on sponsored ads than you spendon self-serve ads.But I think what Facebook has recognized is that that ad inventory – thatspace available in the upper right-hand side of the screen on the newsSession Transcript SocialMediaExaminer.com Page 10 of 33 Copyright 2011, Social Media Examiner
  • 11. feed, which is what users see when they first log in – is really premiumspace. People might log in to their news feed and then not even comeback to Facebook for the rest of the day or not use any of the otherfeatures inside Facebook, so Facebook has really put a premium on thatreal estate on the news feed.It is administered by Facebook Ad sales directly, so you actually have totalk to an Ad sales rep and deal with them to get that. One of the plussides of this is that if you go this route and you have that kind of adbudget, you can get them to give you the reports and work with you oncreating your campaign.But at a $5 to $7 CPM compared to a $0.25 to $0.30 CPM if you did ityourself, or a little more if you used a maintenance service, its a big, bigdifference in terms of how much inventory you get, how many adimpressions you get for your money.The sponsored ads tend to be used a lot more by brands and biggercompanies, whereas the self-serve ads tend to be used a little more bysmaller companies.Types of Self-Serve AdsThere are two types of self-serve ads. Inside that, there are several typesof ads that you can choose from, and there is some nuance, I think, in thedifferent types of opportunities that are available.• Facebook AdsFor Facebook Ads – and this is all serviced inside the self-serve interface– you can run whats called a Facebook Ad, which is just a typical type ofdemographic targeting of people who like a page or whom you want toreach with a particular offer. Lets say you want to hit a particulardemographic group and send them to a website or send them to alanding page. You would do that using a Facebook Ad.Session Transcript SocialMediaExaminer.com Page 11 of 33 Copyright 2011, Social Media Examiner
  • 12. You may, though, instead want to run some ads that people will see like aPage Post Ad or a Facebook Ads for Pages that will end up promoting apage as opposed to a URL.So these are ways that you get people to pay attention to Facebookpages, and these are ways to attract more fans to a Facebook page.• Sponsored StoriesThe Sponsored Stories are a little bit different. This is something thatFacebook actually made available, I guess, about a year or maybe ninemonths ago where people can get help distributing content from a page,place, or application.For those of you that are familiar with EdgeRank or have seen some otherpresentations at this summit about EdgeRank, EdgeRank filters out a lotof content that people might actually be interested in seeing. WhatFacebook has done is sort of taken that dynamic of EdgeRank filteringout certain pieces of content and has given marketers an opportunity toactually make that content more visible and kind of circumvent problemsthey may have with EdgeRank where content isnt necessarily showing upregularly.So these are the kinds of ads that you would run where in that sponsoredsection in the upper right-hand side of the screen, as opposed to seeinga sponsored ad, you might see a sponsored story – the friends ofsomeone that liked a page, they might see that their friend liked aparticular page. Thats a tactic that we use pretty regularly to get the fancount increased for properties that we work with that are interested inincreasing their fan count.The Check-in Story will allow people to promote when Facebook userscheck in to a place.And then the Page Post Like Stories are going to be ads that demonstratethat people liked a page post that was made by a brand on Facebook.Session Transcript SocialMediaExaminer.com Page 12 of 33 Copyright 2011, Social Media Examiner
  • 13. Theres some nuance in all that. It can be a little bit confusing, but youactually have different types of ads to handle different types of situationsthat you may run into as a marketer on Facebook.How to BuyIn terms of buying these ads, you can set a lifetime budget or a monthlybudget, so its very configurable in that respect.You can run for an ongoing period of time, or you can set a stop date foryour campaign. Thats particularly handy if you want to run somethingfor, say, two weeks and then look at the outcomes and see whathappened.You can also create your own ad copy and upload your own ad imagery.The key to running good Facebook ads is making sure that you have anattractive or interesting title, interesting ads, and interesting imagery thatcan draw someones eye over to the right side of the screen becausethats something youll definitely want to do.The approval process can take a little time, and sometimes if its over aweekend, perhaps it might take a little longer than a few hours to getapproval for your ad. Sometimes youll actually get your ad disapprovedbecause you violated the ad guidelines that Facebook provides that aredesigned to make the ads appealing, interesting, and not fraudulent.You go through a purchase process as youre creating your targetingcriteria, and that helps you set up your advertising campaign.Targeting OptionsThere are a wide variety of targeting options that are useful to you andthat are available to you inside Facebook:• Geography• Demographics (age, gender)• Education level• InterestsSession Transcript SocialMediaExaminer.com Page 13 of 33 Copyright 2011, Social Media Examiner
  • 14. • Workplaces• Sexual orientation• Relationship status• Languages• College attended• BirthdayAll of this, or a vast, vast majority of this outside of geography, comesfrom user-submitted data. Youre relying on the users to generatereliable profile data, which has not so far been a problem for Facebook.The geography, though, sometimes will use a combination of what theuser says and IP addresses to determine where the user actually is.Its been creepy for me, for instance, when Ive traveled, been in anothercity, and gotten an ad served to me on Facebook for that city. Its like,"How did they figure that out?" Facebook is using IP addresses in somecases to help figure out where users are.Things You CANT TargetNow, for all the things you can do on Facebook for targeting:• You cant target people who attended "some college" at some time or have "some education." When weve run some ad campaigns for people in secondary schools and community colleges and so on and so forth, theyve wanted to do that. You can target people that are in college or in high school, or college graduates, but not necessarily people that have "some college" experience.• You cannot target people based on race or ethnicity. Thats just something that you have to find other ways to reach people in those target markets.• You cannot target specific high schools.• We recommend the vast majority of people that come to us wanting zip code targeting to hold off just because Facebook did introduce it aSession Transcript SocialMediaExaminer.com Page 14 of 33 Copyright 2011, Social Media Examiner
  • 15. little while ago, but its not really functional in a lot of zip codes. We know of a lot of zip codes that have 40,000-50,000 people in them, but according to Facebook, they might only have 300 if youre trying to target that zip code. The zip code targeting is getting better, but its not necessarily reliable for all zip codes yet, so we just tell people to proceed cautiously with zip codes.• Then you cant target people that just dont enter certain types of profile information into Facebook. There are hidden demographics of people that just fill out one or two of the necessary lines of demographic information about themselves and maybe dont fill out age or dont fill out birthday, for instance. I think a lot of people rush to want to do the demographic targeting, but they dont realize that theyre leaving out a vast majority of people that are not necessarily filling out every piece of profile information that they could fill out. The targeting is useful for people that do opt in and do tell you what theyre interested in, what their birth date is, and so on and so forth, but its not exhaustive, and it doesnt apply to all Facebook users. So if you rely strictly just on targeting, you might be missing a vast majority of people in your target market.What You Can Do with Facebook Ads...Shifting gears for a moment, in terms of business outcomes where weveseen the most success for people is in a few areas.Drive Successful Business OutcomesFor instance, theres direct incremental revenue. In some cases, you cando a really good job to drive customers and drive leads to businesses byspending a certain amount of money on advertising and having them getmore in return.Session Transcript SocialMediaExaminer.com Page 15 of 33 Copyright 2011, Social Media Examiner
  • 16. It doesnt always work, but in some cases it does. You just have to kind oftry that out, but thats a potential business outcome that can work withFacebook Ads.Building customer lists and finding leads, weve done a really good jobwith those types of things. Where people are looking for email addressesor people are looking for customers for a particular product, its a reallygood way to do that and reach your target market effectively.Its good for testing hypotheses. This is something I dont have in theslides, but a lot of people that I know with a new business idea or newproduct concept will actually run targeted Facebook ads at particulardemographic groups to do research just to find out if there is a bigmarket for their product or service.Then, of course, you can kick off a viral marketing campaign by pointingpeople in the direction of a video or pointing people in the direction of aninteresting or funny piece of content.Those are some of the things where we think it works pretty well.Lower Your CostsTheres another element to all this as well in terms of lowering costs for abusiness.Customer acquisition cost can be really high for certain types ofbusinesses, but when you can run Facebook ads at a $0.40 CMP or a$0.45 CPM, it can be a lot more effective than, say, that 4X4advertisement in a newspaper.In terms of cost per touch or cost per engagement, we can reduce costsfor that. Weve seen that happen.Also, in the customer service arena, a lot of businesses were seeing,especially bigger companies, are moving to online and social mediasupport models. You have airlines listening, and you have people like Dellthat are listening to every piece of social media feedback that they maySession Transcript SocialMediaExaminer.com Page 16 of 33 Copyright 2011, Social Media Examiner
  • 17. get. You can address problems with messaging or customer serviceissues proactively by just listening to whats happening and respondingdirectly to customers as things progress.There are ways to make more money and save more money by usingFacebook Ads and Facebook ad campaigns to reach your customers moreeffectively.How? Iterate.How do you go about doing this? Well, one piece of advice I would give topeople that are looking to succeed with Facebook Ads is to set up aniterative process to help learn what happens by putting marketingmessages and so on in front of customers.Theres a process that we adhere to really in every Facebook advertisingcampaign that we run for ourselves or for other people where we:• Create ad copy• Run ads for a week or maybe 14 days• Look at whats happened and assess whats happened• Retire underperforming ads, imagery, messaging, and things that just dont seem to be working• Keep the ones that have gone well and put together new iterations based on the things that weve learnedThis cycle is very repetitive and can be a little boring for people that dontlove process. But the numbers – its really about iterating on theoutcomes of whats happening and then using the numbers to inform youas to what you should do next.Basics of Iteration – The A/B TestOne of the basics of iteration is called the A/B test.Session Transcript SocialMediaExaminer.com Page 17 of 33 Copyright 2011, Social Media Examiner
  • 18. This is just a really simple example here. Youre trying to test differencesin ad performance based on a single variable, keeping everything elsealike. In this particular case, you see these two arrows pointing to ahamburger and pointing to a logo for sunshine. Weve kept everythingelse the same. "Eat at Joes!" is the same. We actually have ad copyunderneath thats the same.All were trying to do is say, "What works better – a picture of an ad with ahamburger or a picture of an ad with sunshine?" Thats our A/B test:hamburger versus sunshine.Then well do these things at a higher level. Well run women in one groupand men in another group. For instance, in this particular example, therewill be four different ads that well run:• Women with the hamburger• Women with the sunshine• Men with the hamburger• Men with the sunshineWell just watch those ads run for two weeks, see what happens, and thencheck the outcomes.A/B Test Tale of the TapeIn this particular case, we tried to run the same CPM bid, we tried to runthe same amount of budget, and we tried to run the same impressioncount. Were trying to keep as many things as similar as possible.But an A/B test is really about changing one variable and having twoexamples of that that we can actually test to see what happens.In this particular case, we actually got far more clicks on the sunshinefrom women and far more clicks on the hamburger from men, and oureffective cost per click for this campaign was actually really good in thosetwo instances.Session Transcript SocialMediaExaminer.com Page 18 of 33 Copyright 2011, Social Media Examiner
  • 19. So we would retire the women/hamburger ad, and we would probablyretire the men/sunshine ad and continue a better data optimized for thebest click results that we can get.Thats really what were after with all of this – to just run numbers, keepthings the same, and make sure that we can tell based on the numberswhats succeeding and whats not succeeding.Iteration Makes You SmarterThe process of doing these kinds of things repeatedly for your campaignswill help make you a lot smarter.That was a pretty simplistic example. For a lot of campaigns, we may berunning 10 A/B tests simultaneously. For bigger customers, we may berunning 20-30 permutations of ad copy, imagery, and title text just tosee what combinations do best for advertisers that we work with.Its a best practice that we highly recommend for everyone who has thetime to do it.Time Trending AnalysisThe other thing that is important to all of this in succeeding withFacebook Ads is the time trending analysis.How can we tell over time how a series of ads or a campaign may do? Wedo this because we know for a fact that ads and ad campaigns fatigueover time.Lets say you have a target market of 200,000 people. If you run fiveimpressions at them, a vast majority of those people may not havenoticed your advertisement. If you run 50 impressions at them, you canprobably conclude that a lot of people have seen the ad and have eitherchosen to click it or have been uninterested in it.As you have a higher number of impressions per person, you start to seeapathy either because people ignore the ad, or maybe people havealready acted upon the ad and theyve already become a customer, soSession Transcript SocialMediaExaminer.com Page 19 of 33 Copyright 2011, Social Media Examiner
  • 20. running new ads at them is not actually going to matter – its not going togive you a new customer.We always track how things are performing over time just to make surewe can tell how things are performing, how things are fatiguing, and if weneed to make some changes to ad copy, imagery, or targeting criteria toreach new customers.A Real-life ExampleIll give you guys a real-life example. This is something weve done quitea bit. We actually run ads to see how the click-through rates start tochange over time.We did some ad tweaks, we got the ads improved to these levels here,and then we started seeing the numbers fall off here at Week 7. It peakshere at Week 6 in terms of the click-through rate, the click-through ratebeing the percentage of time people will click something based on thenumber of impressions that they see.We look pretty aggressively for click-through rate changes and cost-per-fan changes where we see a peak here in Week 6, and then we can beginto project as the numbers get a little worse that the ads are starting tounderperform. Were really obsessive over watching things sometimes byday, sometimes by week, sometimes by month – it really depends onwhat the advertiser is interested in.Were watching very, very closely to see how the ads perform, how theads succeed in sales, and over time how they fatigue, and determinewhen we need to make some changes.Time trending data, taking the time to actually record whats happeningweek by week, will give us a really good sense as to whats happening –should we retire things, should we continue, or should we move on?Facebook Advertising Gotchas...Session Transcript SocialMediaExaminer.com Page 20 of 33 Copyright 2011, Social Media Examiner
  • 21. We have about 10 minutes left, so well get into some "gotchas" and wellget into some things that weve learned from Facebook Ad campaigns,and then Ill take questions here for about 15 minutes or so.In terms of the gotchas, Ive talked about all the different things that Ithink make sense about Facebook Advertising. But there are someweaknesses to it as well, and I think these are important things toconsider as you get into a Facebook Ad campaign.1. First of all, a vast majority of the Facebook targeting criteria are determined by user-submitted data. If the user doesnt submit data, Facebook doesnt know to target that user. You may still have a Boston Red Sox fan, but if they dont say so in their Facebook profile, then youre reliant on other things that theyve entered in their profile for you to actually reach that customer.2. The demographic targeting does not imply purchase intent. Its a little different than Google, for instance, with AdWords. One of the things about AdWords that weve discovered is that if somebody enters a search term, theyre pretty likely to have some sort of purchase intent or interest intent. Whereas demographic targeting, if you say, "Im from Boston, Massachusetts," it doesnt necessarily mean youre a Red Sox fan. Youd probably be in the minority, but it doesnt necessarily mean that. So there are some things about the demographic targeting that dont necessarily equate to purchase intent. For instance, we had a campaign where we were trying to target engaged women who would be ordering a wedding cake and would be purchasing wedding planning services. It was actually a pretty small demographic target because even in a town of a million people, if youre targeting women between the age of, say, 30 and 35 who are engaged, youre down to maybe a thousand people in that target demographic who have entered that data into Facebook and who are available to you as a marketer. One thing that was really interesting about that particular campaign was that the advertiser insisted on running ads at that individual demographic. But we were missing the moms and the fathers and theSession Transcript SocialMediaExaminer.com Page 21 of 33 Copyright 2011, Social Media Examiner
  • 22. friends of the bride, all the other people who actually had influence over the purchasing decision in some way. The demographic targeting options, as great as they are inside Facebook, there are some gaps in terms of if you hold to it strictly, youre going to miss some of the people that might have a direct influence over a purchase decision. So you have to think, I think, a little expansively. One of the things that weve seen is that if people think expansively about their target market and creatively about their target market, they tend to do a lot better than people that are strict about hitting a very, very small micro-targeted audience. A really big key to all this is that the targeting is great, but you shouldnt necessarily rely on it alone to drive decisions in your campaign.3. Facebook has some pretty finicky ad copy regulations. If you misspell a word accidentally, it probably wont get through Facebook ad approval. If you capitalize words unnecessarily or use unnecessary punctuation, it will probably not get through ad approval. So you just have to manage these things and find out as you go. If you submit a few pieces of ad copy that dont get through, you might be a day or two late in submitting an ad, so you have to watch out for the ad copy regulations.4. Advertisers still cannot target a users status updates inside Facebook, although Im convinced this will change. But as of now, you cannot do that, so that may be better for ultimately doing some sort of purchase intent targeting down the road.5. Theres no mobile advertising or targeting available, still.6. Ads dont appear in mobile iPad versions as of yet. We think that will change. It hasnt changed yet, so you cant actually target mobile users inside Facebook yet.Session Transcript SocialMediaExaminer.com Page 22 of 33 Copyright 2011, Social Media Examiner
  • 23. 7. It does require significant work to manage, administer, and optimize ad campaigns. 8. Deep A/B testing is a very manual process. Every little individual ad that you run, lets say in that example where theres a hamburger and sunshine, you would actually have to submit that ad twice to Facebook and get them both approved individually. So if youre trying to do male versus female, age demographic targeting, interest targeting, and trying to run different types of ad copy and pictures, as you can tell, all those permutations would get way out of hand very, very quickly. All of that is a very manual process using Facebook Ads tool today. 9. Facebook doesnt offer a lot of help or assistance with landing pages or conversions, so if youre businesses and youre interested in converting customers or selling and doing e-commerce and all that, you have to go through third-party systems to take advantage of those things.10. There are questions on Facebook Ads regarding effectiveness and direct and immediate return on investment just because its not quite as transactional, I think, as Google AdWords. I think a lot of people are making a lot of sense of it and taking advantage of it and doing a good job with it, but theres no sort of ROI calculator built in to the Facebook Ads interface as of yet.Things Weve LearnedLets wrap up with a few things that weve learned as a business that hasmanaged hundreds and hundreds and hundreds of Facebook Adcampaigns, if not thousands, for different customers along the way.Best PracticesI put this presentation together for all of you to take away as somethingyou could download and use as a resource if you do dive into FacebookAdvertising yourself.Session Transcript SocialMediaExaminer.com Page 23 of 33 Copyright 2011, Social Media Examiner
  • 24. These best practices are pretty consistent: Make ads interesting to the target market. Do not be boring, do not be dull, and do not be afraid to be funny, humorous, or even a little bit controversial. I would say for those of you that are consultants that are out there working with customers and clients, obviously be very, very careful. Make the ads actionable for the target market. The demographic targeting I was telling you about before to be cautious about that. Dont just rely on the demographic targeting because as great as it is, youre missing the influencers that will not fall into the same demographic groups. Make sure theres a call to action. Thats a critical, critical component here. Weve seen it happen far too many times that someone will see an ad, but it wont get clicks because it doesnt actually have a call to action. Theres nothing compelling about the ad that makes someone want to take the next step. Eye-catching images are really important. As more things happen inside games, and as more things happen in the news feed, peoples eyes are sort of trained to go left on the screen and not right towards the ads. Eye-catching imagery will help you drive up your click- through rates and performance of Facebook Ads, no question about it. We recommend at least 10 ad impressions per person in the target market before drawing conclusions. I actually typically run ad campaigns with 30-40 impressions per person before I really feel like those things begin to fatigue. Were putting together more and more data as time goes on just to try to measure: when does fatigue take place? Thats, at least in the beginning, how those numbers are beginning to shake out.Rules of ThumbSession Transcript SocialMediaExaminer.com Page 24 of 33 Copyright 2011, Social Media Examiner
  • 25. The more local and the more targeted you get, the more expensive theads get. So just be careful with that because you can have expensiveFacebook ads if you get too obsessive about targeting.We typically recommend at least a target market segment of 10,000people. That tends to work well. When you get less than that, results startto get pretty unpredictable and not necessarily statistically valid.Experimentation and measurement, those are really the two keys if youredoing these things on your own.Success CriteriaFinally, in terms of success criteria, good offers, eye-catching imagery,good demographic fit, good call to action, good landing page – thosethings throughout the entire cycle tend to work really well with Facebookads.Bad scenarios are when youre guessing or when your target market isreally difficult to reach and you havent quite found the equation. Thosescenarios are tough.If you have a bad landing page or unclear ad copy, or if youre askingsomebody to make a really expensive purchase that theyre notnecessarily ready to make and youre tracking conversions on the end,those things can be really tough for Facebook Ad users. For people whoare responding to those ads, it can be really tough for those people tomake that leap. So you just have to proceed cautiously in those kinds ofscenarios.Tools Necessary for Big A/B TestsI dont know if any of you have used AdParlor, but its a great tool forauto-submitting campaigns of different A/B criteria.Im a big fan of AdParlor. You pay a little bit extra – up to about 10% inaddition to what you pay for Facebook Ads – to optimize those thingsusing a tool like AdParlor.Session Transcript SocialMediaExaminer.com Page 25 of 33 Copyright 2011, Social Media Examiner
  • 26. But for people that have bigger ad spends, it can be a tool that will saveyou a lot of time and give you a lot of insight for not a lot of incrementalmoney.Im a big, big fan of AdParlor. There are a few other providers of thatservice out there, but thats just the one that weve worked well with. Ithink Social Ads Tool is a European one that works really well that Ivelooked at. There are several out there that will help automate the processof submitting individual ads for the sake of running A/B tests andmultivariate tests.Spreadsheets Critical to Analyze DataThen we put all the data that we get for these different campaigns intovery, very detailed spreadsheets that have rows and rows and columnsand columns.This is just a snapshot of some things that are going on right now. Weretracking weekly cost per click and weekly impression cost and what wepromised to different customers along the way. We use Excel to reallyhelp us automate watching the health of campaigns more so thanFacebooks own tools. That way, we can cut the data, we can take a lookat how things are performing, and we can make changes that we see fit.Dont Overestimate TargetingThen in terms of the over-targeting, Ill give you a final point here aboutthat.We actually have not seen the effective cost per clicks drop significantlyfor targeted ads, so for most of the people that we deal with who havedone highly targeted Facebook Ad campaigns, weve not seen the click-through cost do significantly better.Then in terms of actual conversions, we havent seen that do much bettereither.Session Transcript SocialMediaExaminer.com Page 26 of 33 Copyright 2011, Social Media Examiner
  • 27. So I think it just sort of lends more credence to the concept that there area lot of influencers around a person that are just as valuable in terms oftargeting as going directly to that market segment yourself. So just becareful with overestimating the value of Facebook targeting.Ive blown through a ton of stuff. I hope you have some questionsbecause weve got some time for it. Thank you again for being here, andId love to hear any questions or comments you guys have.Chris Treadaway• Social Media Buy www.socialmediabuy.comQuestions and AnswersMike Stelzner: Hey, Chris, great job. Thank you so much. Ive got two quick questions. First of all, whats your take on using Facebook Ads to grow your fan page base? Is there more value for bringing fans in via ads versus organic growth? Im just curious what your take is on this.Chris: Weve helped folks with and without ads for that. There are new Facebook Ad options – I forget what theyre calling them because they change the names on these things it seems all the time. But theres a type of Facebook ad that I covered in one of the earlier slides about trying to reach friends of people who have liked a particular property. Think for a moment about a property that a mom might be interested in. Take Chef Boyardee, for instance, which is a ConAgra property. They have a community site called Club Mum that theyve done a really good job of marketing. One of the things that might make sense for them is to run the ads where friends of people who haveSession Transcript SocialMediaExaminer.com Page 27 of 33 Copyright 2011, Social Media Examiner
  • 28. "liked" that property would just see a little Sponsored Story in the upper right-hand corner saying, "Hey, Julie likes Chef Boyardee Club Mum." Thats a really easy way to pop something into the view of a friend who may very well be a mom if you consider moms probably are friends with a lot of other moms. Im a really big proponent of that. We had a campaign that we ran for a major publication recently around its professional sports team. We ran that kind of ad, and we ran it compared to just a regular Facebook ad where we were promoting a page. And that ad performed about 330% better. Thats a new ad type that Facebook has made available. Its highly targeted, and friends of people that like that particular sports team may not have liked the property, and so we help bring those two things together using that ad type. So Im a big fan of using Facebook Ads to drive up fan count. I dont know if those of you who pay attention or read a lot of the tech and social blogs saw Gary Vees comments the other day about social ROI being "a marathon, not a sprint." If you think that Facebook pages are here to stay and you can acquire fans for a few bucks apiece, do you think the lifetime value of a fan is more than, say, three or four dollars? For most people that I deal with who think in terms of lifetime value, they think that fans may be worth $30, $40, or $50 apiece or more, depending on the type of company theyre in. So if you can go and acquire those fans today at a few bucks apiece running optimized ad campaigns, that could be a really inexpensive way for you to get your foot in the door on Facebook.Session Transcript SocialMediaExaminer.com Page 28 of 33 Copyright 2011, Social Media Examiner
  • 29. Mike Stelzner: Video ads, can they happen or no?Chris: They can. Its been more, though, through the Facebook Ads sales force than actually doing those things yourself. Now, you can technically promote a YouTube URL in a Facebook Ad.Mike Stelzner: That will display the video in the ad?Chris: No, it will just send people to that destination. If you want a video inside, you have to deal with Facebook directly.Participant: Actually, Im glad that Mike mentioned something about video ads. If you have video ads, thats something that you have to do inside Facebook? Huggies, I dont know how they did it, but theyre running an ad here in Puerto Rico, and theyre the only ones Ive seen that actually have a clickable video. You click on it, and it pops up on your Facebook wall and you can actually see this video ad that theyre promoting. I said, "I cant believe we already have video ads," and I went back to the back part of Facebook where you configure ads, and theres nowhere that you can configure a video ad.Chris: Right, you cant do that self-serve. Thats something in all likelihood – and Im speculating here – but Huggies probably had a big ad buy. They probably threw Facebook a pretty big check and Facebook surfaced some video ads for them.Participant: I believe this probably depends on how big the budget is you can spend, but do you recommend CPM or CPC? I run all my ads cost per click for now. Do you have a preference?Session Transcript SocialMediaExaminer.com Page 29 of 33 Copyright 2011, Social Media Examiner
  • 30. Chris: Its a very common question and its really going to depend situation by situation. Weve run some really effective impression-based ads just because weve seen the ad copy was right, the targeting was right, and the demographic group was right. Ill give you a prime example. There was a group that was marketing clinical trials on acne medication for teens. Think about that kind of thing. Its an embarrassing problem for some teens. They might not want to deal with people directly or in person about the issue, but if they can fill out a form and get contacted, show up somewhere, and participate, it might be a really good way to handle that. We ran an impression-based campaign for that. It had an extraordinarily high click-through rate and were basically generating sign-ups for this group at something like $1 apiece in a local market. It was an unbelievable campaign. But it was because everything fit. Then there are other times where it doesnt look like itll be a good fit from an impression perspective. Those are cases where we end up opting for clicks.Participant: Can you target people who "like" a page or a group that you are not the admin of, and if yes, how do you do that?Chris: Its "Interests" inside the self-serve interface, so thats pretty much how you would go about doing that. It kind of works. Its another one of those things – I hate to say this, but a lot of these things are really on a case-by-case basis.Session Transcript SocialMediaExaminer.com Page 30 of 33 Copyright 2011, Social Media Examiner
  • 31. There are a few tricks and things that I shared with you guys today, but in a lot of cases as well, you have to run these things, see what happens, and then adjust. Its experimentation youve got to get familiar with and comfortable with and get your colleagues comfortable with it if youre in a corporate purchasing situation or something like that because youre not going to go into it knowing all the answers. We typically dont, but we know how to adjust rapidly, and thats where we tend to come in.Participant: If you are unable to target a zip code, what are the geography parameters: city, state, and region?Chris: You can go city, state, region of the country. You can go nation by nation. This zip code, Facebook released it and I think there were kind of two things going on there. First of all, there are a lot of people not revealing their address, and thats kind of necessary for zip code targeting. Theres a zip code here in Austin, Texas, so we know there are about 50,000 people living in it, but if we try to target it, Facebook says there are 300 people in that zip code. Its just unbelievable. Its just flat out wrong and we know it. But its in all likelihood because the address is not entered and the IP targeting is not good enough to know within a block of where you are. So thats why we say, "Zip code targeting – hey, great concept. We would love to be able to do it," but its not really real yet. Its close and it will get there, but for now, we tend to talk people off a ledge when they insist on zip code targeting. Its not because we dont want toSession Transcript SocialMediaExaminer.com Page 31 of 33 Copyright 2011, Social Media Examiner
  • 32. provide it – its just that we dont want to disappoint them.Participant: How do you know how many times youve hit the target audience? Wheres the stat found?Chris: In your ad reports, you will see "Frequency," the number of times that youve hit each individual person in the target demographic on average. Thats an average number, so youre not going to have a chart with: "I hit this person three times and this person 100." You wont have something like that. Youll have a rolled up number – its called Frequency – and its in the ad report on Facebook. Itll give you a sense of the number of times that youve hit them. We tend to go to about a max of 45-50 impressions per person to really make sure weve hit them with the message, and then we change ad copy to make some changes. But thats really about the max that we typically go.Participant: Can you talk a little more about the Facebook bidding system? Specifically, do you recommend matching the bid price and then adjusting the price as the bid lowers?Chris: I think you can spend some time doing that. I havent seen a lot of value in making regular changes to the bidding. Facebook will only charge you basically up to what that spot is worth or those places on the right-hand side are worth. Its not like Google AdWords where you get a lot of value out of moving your cost per click up and down. Its a little different than that, and its certainly different than Overture used to be where you could actually see the top five ad bids for cost per click.Session Transcript SocialMediaExaminer.com Page 32 of 33 Copyright 2011, Social Media Examiner
  • 33. Facebook sort of manages all of that themselves behind the scenes. You might be able to save a few pennies on CPM or a few pennies on a click-through basis now and then, but Im not really sure its worth the effort. At least, it hasnt been for us. We havent really seen ways to shave massive amounts of money off what were paying for ads that way.ConclusionIf your questions were not addressed, please feel free to post them in ourLinkedIn group.You can access the group via your event login page at:http://www.whitepapersource.com/facebook2011/Session Transcript SocialMediaExaminer.com Page 33 of 33 Copyright 2011, Social Media Examiner