Facebook: Opportunities for Brand Advertisers <br />Daniel Slotwiner<br />Head of Measurement Solutions<br />
1Facebook research supports brand advertising objectives<br />2Capturing Value (measurement)<br />3The power of fans…     ...
Research & Measurement Objectives<br />Re-establish Brand Metrics as the primary outcome measures of interest<br />Use Bra...
A global information platform<br />Scale & speed<br /><ul><li>Reach750MM+ people worldwide
Statistically reliable and representative data samples collected within a matter of hours, not weeks</li></ul>Authentic & ...
More than 30 billion pieces of content (photo albums, web links, news stories, etc.) shared each month
Real demographics
On the site almost 6 hours per month
2x next closest site
50% of monthly active users log on each day </li></ul>Analyze results from innovative data sources<br /><ul><li>Attitudina...
55% of US users return daily<br />Source: Facebook Internal Data for the US, May 2011<br />
Nielsen Study Released on Monday<br />
Driving consumers towards four brand advertising goals<br />Grow product market potential<br />1<br />Drive brand resonanc...
Background<br />Nielsen NetEffect meta analysis: <br />“There is no correlation between CTR and ROI%”<br />
Data collection via research polls<br />Increased participation<br />100x higher response rates than CTRon ads recruiting ...
Do you approve or disapprove of the job that Barack Obama is doing as president?<br /><ul><li>Tracking since March 2009
Very strong agreement with Rasmussen (r = 0.91) and Gallup (r = 0.90)
Higher agreement with both than between Gallup and Rasmussen (r =  0.84)</li></ul>Facebook margin of error +/- 2% or small...
Comparing the Bid Laden boost<br />The measured “Bin Laden boost”<br /><ul><li>Facebook Polls:   +10% approval
NYT/Gallup:   +11% approval
Washington Post / Pew:   +9% approval</li></li></ul><li>External validity: Movie receipts<br />Weekend gross ($M)<br />Int...
Ad effectiveness<br />ROI proxy: Establishing correlation<br />Facebook users asked a week before release:“Are you plannin...
Advertising on Facebook moves metrics<br />+13%<br />+3%<br />+1%<br />Source: Nielsen 5/12/11, n=399<br />
Ad effectiveness<br />ROI proxy: Calculation of ROI<br /><ul><li>Predictive model for opening weekend box office gross est...
β1xi1+…+βpxipwhere:
β1  = purchase intent
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Facebook - iStrategy Atlanta

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  • Agenda – NEED TO UPDATE THE PICTURES IN EACH PANEL
  • Key point: We have a huge, representative set of users globally that allows us to do high quality research with unprecedented scale and speed
  • Taking a closer look at Facebook, we see Facebook as a BRAND advertising platform that is an ideal place for meeting the four primary brand advertising goals: creating a market, generating resonance with messages, building long-term equity and driving short-term sales. This clearly means that there are several components of brand advertising to measure and we’re building a system with the flexibility to measure each one.Facebook is an ideal place for marketers to be; trying to development msmt tools; start by talking about long –term changing perceptionsor launching product; worked well when talking to Chase
  • - NO PII, all based on what users share about themselves and their interests
  • Movie
  • No co-exposure of survey &amp; ads that artificially inflate resultsStandard and customized metrics available; standard metrics are usually Ad recall, message awareness, &amp; intent/consideration
  • Facebook - iStrategy Atlanta

    1. 1. Facebook: Opportunities for Brand Advertisers <br />Daniel Slotwiner<br />Head of Measurement Solutions<br />
    2. 2. 1Facebook research supports brand advertising objectives<br />2Capturing Value (measurement)<br />3The power of fans… and their friends<br />
    3. 3. Research & Measurement Objectives<br />Re-establish Brand Metrics as the primary outcome measures of interest<br />Use Brand Metrics to evaluate new ad and platform products<br />Demonstrate Facebook’s role in influencing Brand Metrics<br />Drive development, standardization and adoption of methodologies that capture brand value <br />
    4. 4. A global information platform<br />Scale & speed<br /><ul><li>Reach750MM+ people worldwide
    5. 5. Statistically reliable and representative data samples collected within a matter of hours, not weeks</li></ul>Authentic & active<br /><ul><li>Real-name culture and real-world sharing
    6. 6. More than 30 billion pieces of content (photo albums, web links, news stories, etc.) shared each month
    7. 7. Real demographics
    8. 8. On the site almost 6 hours per month
    9. 9. 2x next closest site
    10. 10. 50% of monthly active users log on each day </li></ul>Analyze results from innovative data sources<br /><ul><li>Attitudinal, chatter, structured</li></li></ul><li>160M Facebook users in the US<br />Source: Facebook Internal Data for the US, May 2011<br />
    11. 11. 55% of US users return daily<br />Source: Facebook Internal Data for the US, May 2011<br />
    12. 12. Nielsen Study Released on Monday<br />
    13. 13. Driving consumers towards four brand advertising goals<br />Grow product market potential<br />1<br />Drive brand resonance<br />Increase short term sales<br />2<br />4<br />Consideration<br />Recall<br />Brand / Product awareness<br />Purchase intent<br />Purchase(frequency, sales)<br />Message awareness & association<br />Promote long-term brand equity<br />3<br />Associations<br />Loyalty<br />Advocacy<br />Neither resonance nor equity measured in traditional MMM framework<br />
    14. 14. Background<br />Nielsen NetEffect meta analysis: <br />“There is no correlation between CTR and ROI%”<br />
    15. 15. Data collection via research polls<br />Increased participation<br />100x higher response rates than CTRon ads recruiting for offsite surveys<br />More timely, representative samples<br />1000 respondents with nationallyrepresentative demographics in 15minutes<br />
    16. 16. Do you approve or disapprove of the job that Barack Obama is doing as president?<br /><ul><li>Tracking since March 2009
    17. 17. Very strong agreement with Rasmussen (r = 0.91) and Gallup (r = 0.90)
    18. 18. Higher agreement with both than between Gallup and Rasmussen (r = 0.84)</li></ul>Facebook margin of error +/- 2% or smaller | Gallup margin of error +/- 3% | Rasmussen margin of error +/- 4%<br />External validity: Political opinions<br />
    19. 19. Comparing the Bid Laden boost<br />The measured “Bin Laden boost”<br /><ul><li>Facebook Polls: +10% approval
    20. 20. NYT/Gallup: +11% approval
    21. 21. Washington Post / Pew: +9% approval</li></li></ul><li>External validity: Movie receipts<br />Weekend gross ($M)<br />Intent<br />R = .79<br />Are you planning to go the movies this weekend?<br />Attendance<br />Did you go to the movies this weekend? <br />R = .89<br />
    22. 22. Ad effectiveness<br />ROI proxy: Establishing correlation<br />Facebook users asked a week before release:“Are you planning to see [film] in theaters?<br />R = .90<br />Intent question: Are you planning to see [movie] in theatres? Top 2 box of 5-point scale summarized; All samples 13+ and N>500<br />Question asked 11:00 am PT, 7 days prior to premiere (generally Friday)<br />
    23. 23. Advertising on Facebook moves metrics<br />+13%<br />+3%<br />+1%<br />Source: Nielsen 5/12/11, n=399<br />
    24. 24. Ad effectiveness<br />ROI proxy: Calculation of ROI<br /><ul><li>Predictive model for opening weekend box office gross established (R2 = .89)
    25. 25. β1xi1+…+βpxipwhere:
    26. 26. β1 = purchase intent
    27. 27. β2 = ln(purchase intent)
    28. 28. β3 = number theatres
    29. 29. +1% in purchase intent 1 week prior to opening ~$4M (+/- ~$1M) in additional opening weekend revenue
    30. 30. Estimated advertising cost to move intent 1%:  $600K
    31. 31. ROI for opening weekend alone  ~700%</li></ul>700% ROI<br />
    32. 32. Developing cross-platform measurement<br />Standard measurement<br />Reach<br />Resonance<br />Reaction<br />
    33. 33. Value of Nielsen OCR<br />Audience<br />True reach<br />Comparability<br />Understand the demographics of who you are actually reaching online, in a consistent way across multiple publishers<br /> identification<br /> & frequency<br />Measure online reach and frequency in a consistent way, across publishers and for your entire online media campaign<br />OCR reports include campaign, demographic segment, and placement-level GRP calculations that are comparable to other media, including TV<br />
    34. 34. Ad Effectiveness: Nielsen Brand Effect<br />1<br />Ad displayed to user<br />Control group created dynamically<br /><ul><li>Users randomly assigned to exposed & control groups while ads are served, yielding two groups that are perfectly matched on targeting and site usage</li></ul>2<br />Fast, representative results<br /><ul><li>Summary results with demographic cuts delivered within week following campaign
    35. 35. High response rates, 10-100x of other methods, ensure representative sample & not “professional survey takers”</li></ul>Polls next day in ad context<br />
    36. 36. Social context boosts effectiveness<br />Ad effectiveness<br />1.6X<br />lift in brand recall<br />2X lift in message awareness<br />4X<br />lift in purchase intent<br />Source: Nielsen<br />
    37. 37. comScore whitepaper<br />The right metrics for measuring earned media are reach and frequency, not just raw counts<br />Friends of fans are the biggest opportunity for marketers on Facebook and are largely untapped – 34x the size of the fan base<br />Fans are primarily consuming content from pages in the Newsfeed, not by visiting the page itself; brands should be optimizing for this context<br />
    38. 38. Facebook population<br />Friends of fans<br />My friend likes this brand<br />60M friends<br />Fan base<br />500K fans<br />Ads with friends<br />US Facebook data<br />Fans are more valuable when they impact their friends<br />
    39. 39. Facebook population<br />Friends of fans<br />527M friends<br />Starbucks<br />Fan base<br />19M fans<br />This is word of mouth at unprecedented scale<br />Global data<br />
    40. 40. Significant opportunity with Friends<br />Sales<br />8% higher spend11% more transactions<br />Brand Engagement<br />27% more searches by friends of fans<br />Web Traffic<br />2.6x more site visits by friends of fans <br />Source: The Power of the Like, comScore and Facebook, July 2011<br />* Numbers compared to average internet user<br />
    41. 41. Ad effectiveness<br />Reach + Impact  Value & ROI<br />PUSH<br />PULL<br />Sponsored Stories <br />& <br />Social Ads<br />Reach (Illustrative)<br />Passively from Friends<br />Direct from Friends<br />Friend-endorsed Brand Messages<br />Opt-in from Brands<br />Generic Brand Messages<br />Communication Types<br />Endorsed Brand Messages<br />
    42. 42. Thank You.<br />Daniel Slotwiner<br />slotwiner@fb.com<br />
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