Facebook Advertising Best Practices OMS Feb 2012

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This is the deck from Aaron Goldman's session at Online Media Summit 2012 on February 8, 2012, "Like it or Not: The Do's and Don'ts of Facebook Ads." Using proprietary data and case studies, the session covered 4 key areas of social advertising - KPI selection, attribution, targeting, and testing - for more successful Facebook ad campaigns.

Published in: Technology, Business

Facebook Advertising Best Practices OMS Feb 2012

  1. 1. Like it or Not: The Do's and Don'ts of Facebook Ads Aaron Goldman Chief Marketing Officer, Kenshoo @AaronGoldman
  2. 2. Like it or Not: The Do's and Don'ts of Facebook Ads Aaron Goldman Chief Marketing Officer, Kenshoo @AaronGoldman
  3. 3. The 3 Legs of Social Media <ul><li>Page </li></ul><ul><li>App </li></ul><ul><li>Likes/fans </li></ul><ul><li>Share </li></ul><ul><li>Post </li></ul><ul><li>Check-in </li></ul><ul><li>Web ads </li></ul><ul><li>Social Ads </li></ul><ul><li>Sponsored Stories </li></ul>
  4. 4. Strategy #1 (On FB): Build > Engage > Amplify Page or App Creation Fan Base with Like Ads Publish to Fans Targeting Fans of Friends Sponsored Stories $
  5. 5. Strategy #2 (Off FB): Target > Expand > Convert $ $ $ $
  6. 6. Keys to Success
  7. 7. Facebook has Lots of Ad Inventory Source: Comscore May 2011
  8. 8. The Click Conundrum Source: Webtrends Feb 2011, Kenshoo Social July 2011 People on Facebook Are Busy Connecting, Not Clicking <ul><li>Average Display CTR </li></ul>0.10 % <ul><li>Average Facebook CTR </li></ul>0.05 %
  9. 9. The Impression Issue
  10. 10. Monitor Social KPIs Social Impressions Likes Fans Shares Share of Voice Connections Tweets Retweets Churn Follows AOV Mentions RSVPs Uniques CPF Video Views Reach Social Reach Engagements Purchases Revenue CTR CPC Conv Rate Cost Clicks Impressions Revenue/Click Leads ROI CPL CPA CPM Downloads
  11. 11. Manage Social KPIs
  12. 12. Keys to Success
  13. 13. Set an Attribution Model to Reflect the True Value of Each Engagement Leverage automated advertising tracking systems to report and act on all consumer touchpoints prior to purchase Keyword 1 Green T-Shirt Great Prices T-shirt.com Blue T-Shirt Great Prices T-shirt.com Keyword 2 Red T-Shirt XL Size Available T-shirt.com Keyword 3
  14. 14. Set an Attribution Model to Reflect the True Value of Each Engagement 5% 10% 25% 60% Attribution Models Linear Ratio U Shaped Distribute Evenly Single Click Only (First or Last) Keyword 1 Green T-Shirt Great Prices T-shirt.com Blue T-Shirt Great Prices T-shirt.com Keyword 2 Red T-Shirt XL Size Available T-shirt.com Keyword 3
  15. 15. Set an Attribution Model to Reflect the True Value of Each Engagement 40% 40% 10% 10% Keyword 1 Green T-Shirt Great Prices T-shirt.com Blue T-Shirt Great Prices T-shirt.com Keyword 2 Red T-Shirt XL Size Available T-shirt.com Keyword 3 Attribution Models Linear Ratio U Shaped Distribute Evenly Single Click Only (First or Last)
  16. 16. Set an Attribution Model to Reflect the True Value of Each Engagement 25% 25% Keyword 1 Green T-Shirt Great Prices T-shirt.com Blue T-Shirt Great Prices T-shirt.com Keyword 2 Red T-Shirt XL Size Available T-shirt.com Keyword 3 Attribution Models Linear Ratio U Shaped Distribute Evenly Single Click Only (First or Last) 25% 25%
  17. 17. Set an Attribution Model to Reflect the True Value of Each Engagement 0% 0% Keyword 1 Green T-Shirt Great Prices T-shirt.com Blue T-Shirt Great Prices T-shirt.com Keyword 2 Red T-Shirt XL Size Available T-shirt.com Keyword 3 Attribution Models Linear Ratio U Shaped Distribute Evenly Single Click Only (First or Last) 100% 0%
  18. 18. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  19. 19. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  20. 20. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  21. 21. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  22. 22. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  23. 23. Last Click Attribution Undervalues FB Performance Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution <ul><li>First Only </li></ul><ul><li>Prefer First </li></ul><ul><li>Distribute Evenly </li></ul><ul><li>U-Shaped </li></ul><ul><li>Prefer Last </li></ul><ul><li>Last Touch </li></ul>20% 40% 60% 80% 100% First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
  24. 24. 1/5 of Facebook-Driven Sales Paths Have Multiple Facebook Ad Clicks
  25. 25. 22.5% of Facebook-Driven Sales Paths Have Facebook and Search Clicks <ul><li>For 1 retailer, over 1/3 had brand queries in the path to conversion </li></ul><ul><li>Consumers discover brand on FB and then search for it by name </li></ul>
  26. 26. Keys to Success
  27. 27. Targeting is Tantamount
  28. 28. Marketplace Ad Formats: On FB <ul><li>Web Ads </li></ul><ul><li>Social Ads </li></ul><ul><li>App Use or Share Story </li></ul><ul><li>Page Like Story </li></ul>
  29. 29. Marketplace Ad Formats: Off FB <ul><li>Web Ads </li></ul><ul><li>Social Ads </li></ul><ul><li>Sponsored Page Posts (with external link) </li></ul><ul><li>Domain Story </li></ul>
  30. 30. Automatically Create Ad Groups Creative Ad Group x x Target = =
  31. 31. Dynamically Generate Segments Full Geographic Targeting and Language Settings Dynamic Estimated Reach
  32. 32. Dynamically Generate Segments Target by age, gender, relationship status
  33. 33. Dynamically Generate Segments Relate to your audience through likes & interests, education & workplaces
  34. 34. Dynamically Generate Segments Reach Friends of Friends Save Custom Target Settings
  35. 35. Keys to Success
  36. 36. High Variable Cost Between Targets Avg. CPC Population Size
  37. 37. Testing Tactics Segments Images Messaging Scheduling Bidding
  38. 38. Save Segments Segments
  39. 39. Iterate Images Segments Images <ul><ul><ul><li>Background colors </li></ul></ul></ul><ul><ul><ul><li>People vs. objects </li></ul></ul></ul><ul><ul><ul><li>Animals </li></ul></ul></ul><ul><ul><ul><li>Shock and awe </li></ul></ul></ul><ul><ul><ul><li>Use buttons </li></ul></ul></ul><ul><ul><ul><li>Image frames </li></ul></ul></ul><ul><ul><ul><li>Celebrities </li></ul></ul></ul><ul><ul><ul><li>Think outside the box! </li></ul></ul></ul>
  40. 40. Iterate Images Segments Images <ul><ul><ul><li>Background colors </li></ul></ul></ul><ul><ul><ul><li>People vs. objects </li></ul></ul></ul><ul><ul><ul><li>Animals </li></ul></ul></ul><ul><ul><ul><li>Shock and awe </li></ul></ul></ul><ul><ul><ul><li>Use buttons </li></ul></ul></ul><ul><ul><ul><li>Image frames </li></ul></ul></ul><ul><ul><ul><li>Celebrities </li></ul></ul></ul><ul><ul><ul><li>Think outside the box! </li></ul></ul></ul>
  41. 41. Messaging Matters Messaging <ul><li>Use a Call to Action </li></ul><ul><li>Refresh Copy Often </li></ul><ul><li>Use Promotional Codes </li></ul><ul><li>Don’t Use Standard Search Copy </li></ul><ul><li>Personalize Ads </li></ul><ul><li>Short and Concise is Best </li></ul><ul><li>Or…. </li></ul>
  42. 42. Messaging Matters Messaging <ul><li>Let your fans do the talking for you! </li></ul><ul><li>Sponsored Stories drive 300% higher conversion rates for app installs </li></ul><ul><li>Source: Kenshoo Social </li></ul>
  43. 43. Track Timing Scheduling
  44. 44. Track Timing Scheduling
  45. 45. Track Timing Scheduling
  46. 46. Bid Better Bidding Social Search Smaller Social CTR Variance Demands Tighter Bid Algorithms # of Campaigns CTR
  47. 47. Bid Better Bidding Social Search Smaller Social CTR Variance Demands Tighter Bid Algorithms # of Campaigns CTR Leverage custom Facebook bid algorithms to manage campaigns based on your goals <ul><li>CPC </li></ul><ul><li>CPA </li></ul><ul><li>ROI </li></ul><ul><li>Follow FB Suggested Bid </li></ul>
  48. 48. Will the Circle be Unbroken?
  49. 51. Thank You San Diego, Good Night! Facebook.com/Kenshoo Twitter.com/Kenshoo LinkedIn.com/Company/Kenshoo Plus.Google.com/u/0/116913360207972147879 Mountain View, we have a problem!

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