Your SlideShare is downloading. ×
Facebook Advertising Strategy
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Facebook Advertising Strategy

655
views

Published on

Millenium Consulting Services America has managed over 700 display ads in the last three years, and we work closely with a variety of data providers and ad exchanges to figure out the best targeting …

Millenium Consulting Services America has managed over 700 display ads in the last three years, and we work closely with a variety of data providers and ad exchanges to figure out the best targeting available to advertisers and agencies. When it comes to comparing the availability of the biggest sets of targeting data, age and gender, Facebook wins hands down.

Published in: Education, Business, Technology

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
655
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Facebook AdvertisingHow addressable are Facebook Audiences?Millenium Consulting Services America has managed over700 display ads in the last three years, and we work closelywith a variety of data providers and ad exchanges to figure outthe best targeting available to advertisers and agencies. Whenit comes to comparing the availability of the biggest sets oftargeting data, age and gender, Facebook wins hands down.Wilma Colon Ariza8/25/2011
  • 2. 2 Facebook Advertising Table of Contents How Addressable are Facebook Audiences ? .............................................................................................. 3 Here’s a chart that shows these figures graphically. ............................................................................... 5 Do “Likes” and “Interests” Targeting Improve Performance ...................................................................... 5 New Age of Critical Mass Marketing ........................................................................................................... 8 Here are a couple of examples of what these may look like: .................................................................. 9 Making Sponsored Stories More Engaging ............................................................................................... 12 CONTACT INFORMATION ......................................................................................................................... 132 2011 Millenium Consulting Services of America © All Rights Reserved
  • 3. 3 Facebook Advertising How Addressable are Facebook Audiences ? The circles above roughly represent the sizes of U.S. Facebook audiences addressable by the various targeting criteria available to advertisers. Working from the outside in, we have gender, age, relationship status, education, and workplace. As you can see, just about everyone on Facebook is reachable by gender and age criteria, while only very few people are reachable by workplace. More interesting than the absolute numbers, though, is why the circles above are roughly concentric. Information3 on Facebook is sticky; the more a user shares one thing, no matter what it is, the more likely that user is to share other things. 2011 Millenium Consulting Services of America © All Rights Reserved
  • 4. 4 Facebook Advertising For example, a user who shares information about their workplace on Facebook is 24% more likely to share a relationship status than an average Facebook user. More broadly, women have higher propensity to share information than men, and younger users have a higher propensity to share than older users. In fact, a 14 year-old is twice as likely as a 45 year-old to LIKE something on Facebook. Facebook Wins Time and Time Again in ‘Targetability’ Comparison with Traditional Display Advertising Millenium Consulting Services America has managed over 700 display ads in the last three years, and we work closely with a variety of data providers and ad exchanges to figure out the best targeting available to advertisers and agencies. When it comes to comparing the availability of the biggest sets of targeting data, age and gender, Facebook wins by a country mile. The US total internet audience is about 215 million people, according to comScore (July 2011 dataset). At best, via third-party data one can see age and gender estimates on 40% of that audience, or about 86 million Americans. Quoting comScore data, if you compare that range to Facebook’s 162.1 million users x 95% = 154.0 million users. Facebook wins by a staggering 79%! Please note that the accuracy of data provided by third parties like TargusINFO, BlueKai, eXelate and so on is probably weaker but certainly no better than that of Facebook’s.4 2011 Millenium Consulting Services of America © All Rights Reserved
  • 5. 5 Facebook Advertising Here’s a chart that shows these figures graphically. Do “Likes” and “Interests” Targeting Improve Performance Facebook advertisers have tremendous flexibility when it comes to targeting their ads. This can be tough to navigate for both newcomers and for seasoned Facebook buyers: with so many options, it is often difficult to make decisions. Facebook Likes & Interests targeting lets advertisers proactively target users who have expressed interest in certain objects, categories, products, pages, or brands. This leads to a very straightforward question: does targeting Likes & Interests on Facebook improve campaign performance? Looking at all Facebook campaigns that have been planned and executed through Millenium Consulting Services of America in the past year, we find that campaigns that include Likes & Interests targeting perform significantly better than campaigns that do not include Likes & Interests targeting. Specifically, the average click-through rates of interest-targeted campaigns were 45% higher than the average click-through rates of non-interest-targeted campaigns; and those clicks, on average,5 were 19% less expensive to the advertisers. 2011 Millenium Consulting Services of America © All Rights Reserved
  • 6. 6 Facebook Advertising Does this mean that every single advertiser should allocate huge swaths of their budget to Likes & Interests strategies on Facebook? Well, not necessarily. In order to get a clearer sense of how Likes & Interests targeting can affect Facebook Ads campaign performance for an individual advertiser, we filtered our data for advertisers who 1) ran both interest-targeted campaigns and non-interest- targeted campaigns through MCSA 2) delivered at least 100,000 impressions to each of these campaign types, and 3) saw no significant volume discrepancy between the interested-targeted campaigns and the non-interest-targeted campaigns. Among these advertisers, 52 percent saw better CTRs using Likes & Interests targeting; only 36 percent saw lower CPCs with Likes & Interests targeting. But in these middling numbers lies a very important insight: when Likes & Interests targeting does well, it does extremely well; when Likes & Interests targeting does not do well, it just barely underperforms non-interest-targeted campaigns.6 2011 Millenium Consulting Services of America © All Rights Reserved
  • 7. 7 Facebook Advertising On the chart below, we graphed the relative (log) CTR performance of interested- targeted campaigns to non-interest-targeted campaigns (x-axis), against the relative (log) CPC performance (Y-axis). Advertisers in the right half of the graph saw better CTRs in their interest-targeted campaigns; advertisers in the bottom half of the graph saw cheaper CPCs in their interest-targeted campaigns. First, note the general and expected correlation between CTR and CPC: the more likely a user to click your ad, the less you have to pay for that click. But more interestingly, note how much more dispersed the CTR outperformers (right half) are than the CTR underperformers (left half): successfully implementing Likes & Interests targeting makes it much more likely for your campaign to ride the wave of internal Facebook optimization to ten cent clicks.7 2011 Millenium Consulting Services of America © All Rights Reserved
  • 8. 8 Facebook Advertising New Age of Critical Mass Marketing I believe Facebook’s Sponsored Stories are a novel (and to be fair, perhaps not yet entirely polished as a product) new form of “critical-mass” based marketing where for the first time in modern marketing, sequential exposure to smaller audience groups may get the chance to trump simultaneous mass reach in terms of brand impact. I’ll explain what I mean, and I’ll begin by looking at television and online advertising. Online advertising has always struggled to deliver large buckets of reach to advertisers, with campaigns usually having to be split across a number of advertising networks or exchanges (aggregating thousands of smaller sites), large general interest sites/networks like AOL, Yahoo! and MSN and content sites like ESPN or Weather Channel. The number, size, and placement of ads on each of these sites varies considerably – few sites are able to deliver a single, consistent advertising experience for an online advertiser where they know the exact parameters of the creative execution. There are some exceptions, such as the front page of Yahoo!, MSN or YouTube, where prices start at $250k and up per day, but more importantly, due to their scarcity they are booked up to a year in advance. In contrast, television advertising delivers sizeable8 audiences weekly in well-accepted (and highly interruptive ~effective!) formats. A negative side effect of this “fractured reach” is the large administrative cost component that results for most broad online advertising campaigns. 2011 Millenium Consulting Services of America © All Rights Reserved
  • 9. 9 Facebook Advertising Despite its large audience, Facebook has a very broad range of targeting options available to advertisers leading to its own brand of highly fractured reach. If you are a user with a high-value “interest” (like “marketing” or “seo” or “kiteboarding”, it seems) you will see a LOT of the same kinds of ads. Recently, Facebook added 3 new types of Sponsored Stories for advertisers to use – Page post like story, App used & game played story, and Domain story. Each addition revolves around the main premise behind Sponsored Stories – to focus on creating engaging and sharable content. Sponsored Stories allow marketers a way to promote and heighten brand awareness around activities that happen throughout the News Feed. Companies can choose to take certain user actions such as Likes, Checkins, actions within custom Applications and Page posts, and feature them in the column on the right side of the News Feed. Sponsored Stories get best placement and appear above standard Facebook Ads. They are social by definition and thus drive higher engagement with users Here are a couple of examples of what these may look like: In the left-hand sponsored story case above, one of my friends played a game on Facebook. In the other case, three of them did. A sponsored story that has three friends doing something is much more effective at encouraging someone to check something out than one that sports just a single friend. According to psychologist and persuasion expert, Dr. Robert Cialdini, critical mass of social proof can occur at lower absolute levels on social networks like Facebook (meaning it takes fewer people showing a concentrated interest in something online vs. offline, to push us to pay attention or respond in kind): See full referenced interview at http://www.mischacoster.com/2010-10/psychology/interview-dr-robert- cialdini-on-social-media-influence-with-audio/9 2011 Millenium Consulting Services of America © All Rights Reserved
  • 10. 10 Facebook Advertising Actually, I think Social Media requires a lower breaking point than offline media, because they incorporate the concept of similarity in ways that offline media often do not. In Social Media we know that the people in our network share our interests, share our background. That’s how we selected them to be in our networks (and how they selected us to follow). And that similarity feature allows smaller numbers of individuals to still be a breaking point because “There are a lot of people like me who are doing this”. They don’t have to be as many people as dissimilar others. So actually, I think Social Media provides a lower breakpoint. Another way to think about CRITICAL MASS might be: if I had only $1,000 to spend on a guerilla marketing promotion and wanted to get as much buzz as possible nationwide, would it make more sense for me to spend 1/100th of that money ($10!) in 100 different cities, or to spend all of it in one city, perhaps in one well-trafficked neighborhood with the idea that I could call a few reporters and then do enough that the buzz created would spread nationally via newspapers, blogs and other influencers? Coming back to Sponsored Stories once more, with the right analysis under our belt, we might decide that the “Avocado Eaters” group would be a great place to start, and then move from there to the union of our friends of fans (or posters, or game players) group and NASCAR enthusiasts, building critical mass in these overlapping markets which would get larger and larger.10 2011 Millenium Consulting Services of America © All Rights Reserved
  • 11. 11 Facebook Advertising There are three important factors to consider here:  first, the likelihood of multiple-likes per friend of a fan in that subgroup;  second. the overlap of that subgroup with the next subgroup;  and finally, the share of the fan overlap as a percentage of the overall group. A successful critical-mass builder needs to have high percentages in all of these. This is why, assuming a lot of Avocado Eaters are in my fan group, even though the raw overlap size of 18-24 year olds and NASCAR enthusiasts is similar, NASCAR is a better target for the next campaign than the 18-24 year olds, because it would be far more difficult to get critical mass (namely an average number of friends per sponsored story approaching 3 instead of just 1) within such a large group: To summarize, if we buy that building critical mass in smaller audience subgroups under constrained budgets (which, let’s face it, is most marketing budgets!) may trump simultaneous mass reach as a way of maximizing brand impact, the critical factor is optimally identifying the nature of, and order of addressing, these audience subgroups to maximize the likelihood of sequential spread. Where do you start, and how do you move from one group to the next? For finding Critical Mass, order matters more than size.11 2011 Millenium Consulting Services of America © All Rights Reserved
  • 12. 12 Facebook Advertising Making Sponsored Stories More Engaging You can use associated social actions to promote your Page, Place, App, Game or Domain in a number of Sponsored Story types: Page like story: When people like your Page, their friends see a story about it. Page post story: When you post an update to your Page, your fans see a story about it. Page post like story: When people like your Page post, their friends see a story about it. Check-in story: When people check-in to your business using Facebook Places, their friends see a story about it. App used & game played story: When people have recently used your App or played your game, their friends see a story about it. App share story: When people share from your App, their friends see a story about it. Domain story: When people like or share information about your Domain, their friends see a story about it. To maximize the performance of these new ad units, it is important to note that unlike most Facebook Marketplace Ads, Sponsored Story Ads utilize the default images of your Apps or Pages. Making changes to this creative element and testing a variety of images over time can refresh the look/feel and help improve performance, as we’ve seen thus far in early Facebook Marketing campaign tests. Not all marketers can easily make a similar creative change, due to branding considerations, but it should be considered in the makeup of your Page given that it will be shown to a lot of the same people multiple times. Adding some variation can make a lot of sense and in many cases will increase performance in the same way that we help our clients optimize performance in the standard Facebook Ads process Facebook Sponsored Stories Marketing Campaigns are fast becoming Millenium Consulting Services of America expertise and can easily be created according to your specified daily, weekly or monthly marketing budget.12 2011 Millenium Consulting Services of America © All Rights Reserved
  • 13. 13 Facebook Advertising CONTACT INFORMATION Wilma Ariza, Principal Millenium Consulting Services of America Mobile Direct: 407.234.1744 Message Center: 973.553.2788 Email: mcsa.principal@gmail.com Visit Our Blog: http://MilleniumConsulingServicesAmerica.blogspot.com Find MilleniumWilma On LinkedIn http://www.linkedin.com/in/wilmacolonariza Follow MilleniumWilma on Twitter http://www.twitter.com/milleniumwilma13 2011 Millenium Consulting Services of America © All Rights Reserved