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SOCIAL MEDIA ANDFACEBOOK ADVERTISING INSIGHTS        OCTOBER 23, 2012
• Erica Barth, VP Products and               Partnerships, Resolution MediaPRESENTERS   • Viji Davis, VP, Marketing, Resol...
• Listen via computer                 speakers or dial into                 conference call using                 numbers ...
• Methodology           • Understanding Social           • A Portfolio Approach:             Owned, Paid, and Earned Asset...
METHODOLOGY   WHAT WHY GOAL    Looked at global      Heard from many        Wanted to provide   data across multiple    br...
A PORTFOLIO APPROACHOwned, Paid, and Earned Assets
FACEBOOK BRAND ASSETS     Owned Media   Paid Media   Earned Media                                               6
OWNED MEDIA: FACEBOOK OBJECTS          Page                  Place                 App                                 Eve...
PAID MEDIA: FACEBOOK ADS                                   Web Ad       Post Ad                 Sponsored Story           ...
FACEBOOK PORTFOLIO APPROACH                        Balance assets to amplify                        your brand and generat...
DEVELOP A STRONG CORE OF OWNED ASSETS AND FANS        Share of Clicks Driven to                               Pages Drive ...
LEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRAND                  High Click-Through Rate Correlates to                ...
AMPLIFY YOUR OWNED MEDIA WITH PAID ADS          Social Endorsements for Likes and App Usage         Drive Highest Sponsore...
KEY INSIGHTS    • Develop a strong core of owned assets and fans    • Leverage paid ads to increase reach and scale your b...
BRAND AWARENESS METRICSMeasuring the Hidden Value of Facebook
METRICS THAT MATTER                       Pre-Engagement                                            Post-Engagement       ...
LEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCE          Distribution of Facebook Ads by Exposure Rate            10,000  ...
HIGHER EXPOSURE RATES = EFFICIENT AD ENGAGEMENT           High Facebook Ad Exposure Rates                                 ...
KEEP FREQUENCY AT 6 OR BELOW TO KEEP ADS FRESH    Facebook Ads Average Conversion Rate                                    ...
BID HIGHER FOR INCREASED ENGAGEMENT          Bids Above the Facebook                                               Bids Ab...
SPONSORED STORIES SHOW THE SUCCESS OF OUR METRICS     Sponsored Stories Most Effective Ad Type                            ...
KEY INSIGHTS    • Leverage exposure rate    • Balance exposure rate with frequency    • Bid higher than Facebook’s recomme...
CHOOSING YOUR AUDIENCECountry Insights
GLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS           Average Cost-Per-Click (CPC) for Facebook Ads           ...
AD TYPES AND FORMATS NEED TO BE ADJUSTED BY COUNTRY            MEXICO                                                  Mob...
LOW MAX RECOMMENDED BID AMOUNTS = GOOD TEST MARKETS         Average Frequency for                                      Max...
HIGH EXPOSURE RATES AND CTRS = HEAVY ENGAGEMENT       Average Exposure Rate for                                Average Cli...
KEY INSIGHTS    • For expensive markets, audience research is a must    • Consider ad formats based on device usage    • T...
CHOOSING YOUR AUDIENCEGender Insights
WHO’S THE FAIREST OF THEM ALL?                                 58%   42%    Available Male                                ...
MORE WOMEN ARE ON FACEBOOK, BUT…           Budget Allocation for Facebook Ads               53% MALE      47% FEMALE      ...
MEN ARE SERVED MORE FACEBOOK ADS…        Impression Volume for   Click Volume for           Facebook Ads          Facebook...
…AND MEN ARE CHEAP       Cost-Per-Thousand (CPM)      Cost per Click (CPC) for     Impressions for Facebook Ads       Face...
AD DOLLARS GO FURTHER WHEN TARGETING MALES                        Exposure Rate for                         Facebook Ads  ...
AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTEN                            Frequency for                           ...
KEY INSIGHTS    • Create very targeted ad segments    • Use custom text and images for targeting men vs. women    • Adjust...
MARKETER TAKE-AWAYS   • Calibrate your portfolio   • Build a fan base for scaling targeted reach and ongoing engagement   ...
THANK YOU!RESOLUTIONMEDIA.COM/WHITE-PAPERS   KENSHOO.COM/RESOURCES
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Social Media and Facebook Advertising Insights - Kenshoo Social and Resolution Media Webinar

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Presentation from the October 23rd webinar based on recent research reports published by Resolution Media and Kenshoo Social, distilling insights and best practices for more effective social media campaigns and featuring Kenshoo CMO, Aaron Goldman and Viji Davis, VP of Marketing and Erica Barth, VP Products and Partnerships, both of Resolution Media.

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Social Media and Facebook Advertising Insights - Kenshoo Social and Resolution Media Webinar

  1. 1. SOCIAL MEDIA ANDFACEBOOK ADVERTISING INSIGHTS OCTOBER 23, 2012
  2. 2. • Erica Barth, VP Products and Partnerships, Resolution MediaPRESENTERS • Viji Davis, VP, Marketing, Resolution Media • Aaron Goldman, CMO, Kenshoo 1
  3. 3. • Listen via computer speakers or dial into conference call using numbers listed in email from gotowebinar@citrixonline.comAUDIOINSTRUCTIONS • Still can’t hear the webinar? Tell us please! 2
  4. 4. • Methodology • Understanding Social • A Portfolio Approach: Owned, Paid, and Earned Assets • Brand Awareness Metrics: MeasuringCONTENTS the Hidden Value of Facebook • Pre and Post Engagement Metrics • Exposure Rate: A Newly Defined KPI • Choosing Your Audience • Countries • Gender 3
  5. 5. METHODOLOGY WHAT WHY GOAL Looked at global Heard from many Wanted to provide data across multiple brands that they the first benchmarks brands didn’t know if for Facebook ad Facebook and performance and social were provide some “working” for their actionable insights programs 4
  6. 6. A PORTFOLIO APPROACHOwned, Paid, and Earned Assets
  7. 7. FACEBOOK BRAND ASSETS Owned Media Paid Media Earned Media 6
  8. 8. OWNED MEDIA: FACEBOOK OBJECTS Page Place App Event 7
  9. 9. PAID MEDIA: FACEBOOK ADS Web Ad Post Ad Sponsored Story Social Ad 8
  10. 10. FACEBOOK PORTFOLIO APPROACH Balance assets to amplify your brand and generate activity on and off Facebook 9
  11. 11. DEVELOP A STRONG CORE OF OWNED ASSETS AND FANS Share of Clicks Driven to Pages Drive the Highest Engagement Facebook Objects by Ads Rate (Ad CTR) of all Facebook Objects 0.05% 0.04% CTR 0.04% 0.03% Page 80.79% 0.03% 0.02% 0.02% Event 0.02% ! App 0.01% Place 4.03% 4.60% 0.0% Pages have the Page Place App Event highest share of 10.58% clicks and engagement rate of all Facebook Objects Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 10
  12. 12. LEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRAND High Click-Through Rate Correlates to Low Cost-per-Click on Facebook Ads $0.90 0.08% $0.80 0.07% $0.70 $0.60 CTR 0.06% $0.50 0.05% CPC $0.40 0.04% ! $0.30 0.03% $0.20 0.02% $0.10 0.01% $- Post Ads and 0.00% Sponsored Stories Post Ad Sponsored Web Ad Social Ad have the highest Story response rates and lowest CPCs Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 11
  13. 13. AMPLIFY YOUR OWNED MEDIA WITH PAID ADS Social Endorsements for Likes and App Usage Drive Highest Sponsored Story Conversion Rates 77.25% 80% 60.39% 60% Conversion Rates ! 40% 15.71% In order to 20% capitalize on Social 0.18% Ads and Sponsored Stories, you must 0% App Share App Used Like Post Like have a scalable fan base Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 12
  14. 14. KEY INSIGHTS • 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 13
  15. 15. BRAND AWARENESS METRICSMeasuring the Hidden Value of Facebook
  16. 16. METRICS THAT MATTER Pre-Engagement Post-Engagement Metrics that measure consumer Metrics that measure consumer exposure to ads and brand prior to exposure to ads and brand following Definition click/interaction exposure Measuring audience exposure to Measuring audience interaction with brands as a proxy for awareness brands as a proxy for brand Purpose/Use engagement and purchase intent Case • Exposure Rate • Clicks • Frequency • Conversions (likes, shares, sales) Key Performance • Reach (Unique Visitors) • CTR Indicators (KPIs) • Impressions • Conversion Rate • Available Target Audience Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 15
  17. 17. LEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCE Distribution of Facebook Ads by Exposure Rate 10,000 8,000 Exposure Rate 6,000 4,000 2,000 EXPOSURE RATE: 0 Unique impressions Quartile 1 Quartile 2 Quartile 3 Quartile 4 divided by the (0-25%) (26-50%) (51-75%) (76-100%) target audience Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 16
  18. 18. HIGHER EXPOSURE RATES = EFFICIENT AD ENGAGEMENT High Facebook Ad Exposure Rates High Facebook Ad Exposure Rates Correlate to High Click-Through Rates Correlate to High Conversion Rates CTR CVR 0.036% 0.038% 31.92% 0.04% 0.031% 35.00% 28.57% 0.028% 30.00% 0.03% 25.00% 17.03% 20.00% 11.81% 0.02% 15.00% 0.01% 10.00% ! 5.00% 0.00% 0.00% Quartile 1 Quartile 2 Quartile 3 Quartile 4 Quartile 1 Quartile 2 Quartile 3 Quartile 4 (0-25%) (26-50%) (51-75%) (76-100%) (0-25%) (26-50%) (51-75%) (76-100%) When exposure rate is high, CTR and CVR are also high Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 17
  19. 19. KEEP FREQUENCY AT 6 OR BELOW TO KEEP ADS FRESH Facebook Ads Average Conversion Rate Facebook Ads Average CTR is 39% is 75% Lower After the 6th Impression Lower After the 6th Impression CVR CTR 57.17% 0.059% 60% 46.53% 0.06% 0.046% 50% 0.05% 0.035% 0.029% 40% 0.04% 30% 14.61% 11.95% 0.03% 20% 0.02% 10% 0.01% 0% 0.00% Frequency Frequency Frequency Frequency Frequency Frequency Frequency Frequency 1-3 4-6 7-9 Over 10 1-3 4-6 7-9 Over 10 FREQUENCY: Total impressions divided by unique impressions; Optimal frequency is 6 or below Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 18
  20. 20. BID HIGHER FOR INCREASED ENGAGEMENT Bids Above the Facebook Bids Above the Recommended Recommended Maximum Bid Drive Up Facebook Maximum Bid Decrease Average Exposure Rate by 11.5% Average Frequency by 1.7 Exposures Exposure Rate Frequency 20.23% 11.62 9.93 25% 13 20% 8.73% 11 ! 15% 9 10% 7 5% 5 CPC < Max Rec. Bid CPC > Max Rec. Bid CPC < Max Rec. Bid CPC > Max Rec. Bid Max recommended bid amounts correlate to increased engagement Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 19
  21. 21. SPONSORED STORIES SHOW THE SUCCESS OF OUR METRICS Sponsored Stories Most Effective Ad Type Sponsored Stories Were Delivered with for Unique Brand Reach with 36% the Lowest Frequency, Driving Up Exposure Rate Unique Users Reached Exposure Rate Frequency 35.99% 40% 12.49 30% 15 6.55 6.83 5.83 20% 10 ! 10% .46% 1.23% 1.39% 5 0% 0 Post Ad Social Ad Sponsored Web Ad Post Ad Social Ad Sponsored Web Ad Story Story Sponsored Stories deliver the highest exposure rate and lowest frequency Source: Social Media Insights Part 1 – Metrics That Matter | © 2012, Kenshoo, Inc. and Resolution Media 20
  22. 22. KEY INSIGHTS • Leverage exposure rate • Balance exposure rate with frequency • Bid higher than Facebook’s recommended max bid 21
  23. 23. CHOOSING YOUR AUDIENCECountry Insights
  24. 24. GLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS Average Cost-Per-Click (CPC) for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! It is imperative to research and leverage advanced audience targeting 23
  25. 25. AD TYPES AND FORMATS NEED TO BE ADJUSTED BY COUNTRY MEXICO Mobile Phone Penetration Facebook Users 49.0% 35.6 Million Population Online Ad Spending % of Internet Users on Facebook 112 Million $159,000,000 103% Internet User Penetration GDP per Capita (USD) 31.0% $15,610 TURKEY Mobile Phone Penetration Facebook Users 84.9% 31.1 Million Population Online Ad Spending % of Internet Users on Facebook ! 77.8 Million $264,000,000 100% Internet User Penetration GDP per Capita (USD) 39.8% $14,517 Consider ad formats based on device usage Source: Global Social Media Insights © 2012, Resolution Media 24
  26. 26. LOW MAX RECOMMENDED BID AMOUNTS = GOOD TEST MARKETS Average Frequency for Maximum Recommended Bids Delivery of Facebook Ads for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! When the max recommended bid amounts are low, there is less competition 25
  27. 27. HIGH EXPOSURE RATES AND CTRS = HEAVY ENGAGEMENT Average Exposure Rate for Average Click-Through Rate (CTR) Delivery of Facebook Ads for Facebook Ads Source: Global Social Media Insights © 2012, Resolution Media ! When exposure and click-through rates are high, users are heavily engaged 26
  28. 28. KEY INSIGHTS • For expensive markets, audience research is a must • Consider ad formats based on device usage • Test in markets where max recommended bids are low • Users are heavily engaged when exposure and click-through rates are high 27
  29. 29. CHOOSING YOUR AUDIENCEGender Insights
  30. 30. WHO’S THE FAIREST OF THEM ALL? 58% 42% Available Male Available Female Target Audience On Facebook Target Audience On Facebook 29
  31. 31. MORE WOMEN ARE ON FACEBOOK, BUT… Budget Allocation for Facebook Ads 53% MALE 47% FEMALE 30
  32. 32. MEN ARE SERVED MORE FACEBOOK ADS… Impression Volume for Click Volume for Facebook Ads Facebook Ads MALE MALE 58% 60% FEMALE FEMALE 42% 40% 31
  33. 33. …AND MEN ARE CHEAP Cost-Per-Thousand (CPM) Cost per Click (CPC) for Impressions for Facebook Ads Facebook Ads $0.20 $0.68 $0.16 $0.51 FEMALE MALE FEMALE MALE 32
  34. 34. AD DOLLARS GO FURTHER WHEN TARGETING MALES Exposure Rate for Facebook Ads 7.88% 4.94% FEMALE MALE 33
  35. 35. AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTEN Frequency for Facebook Ads 11.95 9.74 Threshold for optimal frequency FEMALE MALE 34
  36. 36. KEY INSIGHTS • Create very targeted ad segments • Use custom text and images for targeting men vs. women • Adjust bidding strategies based on segment gender • Monitor frequency 35
  37. 37. MARKETER TAKE-AWAYS • Calibrate your portfolio • Build a fan base for scaling targeted reach and ongoing engagement • Keep exposure rates high and frequency 6 or below • Testing is important • Focus on metrics that matter • Leverage audience targeting 36
  38. 38. THANK YOU!RESOLUTIONMEDIA.COM/WHITE-PAPERS KENSHOO.COM/RESOURCES

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