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Where’s my
Facebook
ROI?

Matt Owen @AllThingsFacebook2013
@Econsultancy
@Lexx2099
Facebook.com/Econsultancy
Econsultancy.com
Is Facebook
failing
marketers?
In October 2013 the
Forrester Company
released research which
ranked how satisfied senior
marketers were with
various digi...
The figures prompted Forrester to pen an open letter to Mark Zuckerberg
expressing these concerns:

“[Facebook] focuses to...
Are marketers
failing
Facebook?
What does
Facebook offer
marketers?
*Figures for end 2012. Current figure approx 4.4M
http://www.socialbakers.com/facebook-statistics/greece
1 in every 3 Greeks is on Facebook, so it can connect us with a diverse range of users
How much
bigger can
Facebook
get?
Much bigger!
*2012-2013. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24461213
Developing markets account for approx 67% of growth. Territories such as India have already
seen mobile traffic outstrip d...
http://econsultancy.com/uk/blog/63603-facebook-ads-roi-and-conversions-increase-in-q3
Leaving…
Or just logged out?

https://medium.com/i-m-h-o/53ea514c9ec0
How is your / your clients’ social advertising budget split between the following properties?

http://econsultancy.com/uk/...
Which types of social advertising do you (or your clients) invest in?
http://www.wordstream.com/blog/ws/2013/11/05/twitter-versus-facebook-ad-performance
Ad performance varies widely by sector.

=

45% Higher CPC

=

30% higher CTR
40% Lower CPC
• Gaming ads require users to
complete a social, in-platform
action
• Alcohol ads require an offplatform action, are of li...
http://econsultancy.com/uk/reports/marketing-budgets
Are marketers
(and their ad
models) failing
Facebook?
https://www.facebook.com/Econsultancy
Shows clicks sources of Bit.ly links posted on Econsultancy Facebook page – social links
move around as people share them,...
We’re thinking
about social the
wrong way
What does

‘good’

look like?
https://www.facebook.com/corporatebollocks
Why does this work? Because everybody likes free things. But it’s no guarantee of
engagement or brand loyalty.
Advertising
tactics:
1: Like our page. Which is fine, but again,
that just means you’ve got a bunch of
people who are will...
Advertising
tactics:
2: Buy something.
Well, I might do, assuming I like what
you sell. But then what happens if I
see tha...
Facebook is cluttered. Users look at the news feed. Sidebar ads
have to contend with genuinely interesting content from fr...
Which ads
work...
and why?
Facebook doesn’t ‘hide’ your ads, but users are distracted – no one sees everything posted.
Facebook’s design focuses on news feed content. Focus ad efforts here. Sidebar ads
are for continual brand exposure. NOT f...
Test campaign showing difference in results from sidebar and news feed ads.
News feed ads connect to deeper content and carry more interesting, relevant messages.
Why do Google
ads work?
Google ads rely on need. Facebook ads rely on interest.
Building engaging
content,
attributing results
Measuring Facebook ads
across multiple
touchpoints shows a

higher return than
last-click alone.
How much are we
undervaluing ads?
• First Only (first click receives all credit):
Facebook was undervalued 30%.
• Prefer F...
Last-click measurement
Attributed measurement reveals 13X higher returns for period.
Think about:
• Content and storytelling
• Multichannel impact and
measurement
• Agile optimization
Thank you!
Econsultancy.com
Where's My Facebook ROI?
Where's My Facebook ROI?
Where's My Facebook ROI?
Where's My Facebook ROI?
Where's My Facebook ROI?
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Where's My Facebook ROI?

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Slides from All Things Facebook, Athens 2013.

Are Facebook ads failing marketers, or are marketers using the wrong goals and measurements to define ROI?

For more details see http://econsultancy.com/uk/reports/facebook-marketing-trends-briefing

Published in: Technology, Business
  • @NunoMartins28 Thanks Nuno - it's definitely difficult to measure, I'm of the opinion that we never really know all of the exact figures, however hard we try, but that doesn't mean we can't use the data we do have to make useful decisions.
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  • Thanks, Matt, I can imagine this to have been a really interesting presentation to attend. I'm with you on the importance of correct attribution, and sometimes/often we fail to understand it properly.
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Where's My Facebook ROI?

  1. 1. Where’s my Facebook ROI? Matt Owen @AllThingsFacebook2013
  2. 2. @Econsultancy @Lexx2099 Facebook.com/Econsultancy Econsultancy.com
  3. 3. Is Facebook failing marketers?
  4. 4. In October 2013 the Forrester Company released research which ranked how satisfied senior marketers were with various digital advertising channels. These figures showed that many senior marketers were unsatisfied with the value Facebook ads provided.
  5. 5. The figures prompted Forrester to pen an open letter to Mark Zuckerberg expressing these concerns: “[Facebook] focuses too little on the thing marketers want most: driving genuine engagement between companies and their customers. Your sales materials tease marketers with the promise that you’ll help them create such connections. But in reality, you rarely do. Everyone who clicks the like button on a brand’s Facebook page volunteers to receive that brand’s messages — but on average, you only show each brand’s posts to 16% of its fans” While I respect these concerns, I think the problem lies elsewhere... See http://blogs.forrester.com/nate_elliott/13-10-28-an_open_letter_to_mark_zuckerberg for full details.
  6. 6. Are marketers failing Facebook?
  7. 7. What does Facebook offer marketers?
  8. 8. *Figures for end 2012. Current figure approx 4.4M http://www.socialbakers.com/facebook-statistics/greece
  9. 9. 1 in every 3 Greeks is on Facebook, so it can connect us with a diverse range of users
  10. 10. How much bigger can Facebook get?
  11. 11. Much bigger!
  12. 12. *2012-2013. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24461213
  13. 13. Developing markets account for approx 67% of growth. Territories such as India have already seen mobile traffic outstrip desktop and trend continues globally. See http://econsultancy.com/uk/reports/reducing-customer-struggle for more.
  14. 14. http://econsultancy.com/uk/blog/63603-facebook-ads-roi-and-conversions-increase-in-q3
  15. 15. Leaving… Or just logged out? https://medium.com/i-m-h-o/53ea514c9ec0
  16. 16. How is your / your clients’ social advertising budget split between the following properties? http://econsultancy.com/uk/reports/quarterly-digital-intelligence-briefing-managing-and-measuring-social
  17. 17. Which types of social advertising do you (or your clients) invest in?
  18. 18. http://www.wordstream.com/blog/ws/2013/11/05/twitter-versus-facebook-ad-performance
  19. 19. Ad performance varies widely by sector. = 45% Higher CPC = 30% higher CTR 40% Lower CPC
  20. 20. • Gaming ads require users to complete a social, in-platform action • Alcohol ads require an offplatform action, are of limited interest. • No story attached to the ad, just a purchase.
  21. 21. http://econsultancy.com/uk/reports/marketing-budgets
  22. 22. Are marketers (and their ad models) failing Facebook?
  23. 23. https://www.facebook.com/Econsultancy
  24. 24. Shows clicks sources of Bit.ly links posted on Econsultancy Facebook page – social links move around as people share them, making accurate tracking difficult.
  25. 25. We’re thinking about social the wrong way
  26. 26. What does ‘good’ look like?
  27. 27. https://www.facebook.com/corporatebollocks
  28. 28. Why does this work? Because everybody likes free things. But it’s no guarantee of engagement or brand loyalty.
  29. 29. Advertising tactics: 1: Like our page. Which is fine, but again, that just means you’ve got a bunch of people who are willing to say ‘yes, I like my toaster, and free things’ occasionally. It doesn’t follow that they’re willing to give you money.
  30. 30. Advertising tactics: 2: Buy something. Well, I might do, assuming I like what you sell. But then what happens if I see that ad while I’m at work, and I’m more interested in the ad for a social media management system that is above it? Or my sister just got married and posted a hundred pictures I want to see?
  31. 31. Facebook is cluttered. Users look at the news feed. Sidebar ads have to contend with genuinely interesting content from friends and family
  32. 32. Which ads work... and why?
  33. 33. Facebook doesn’t ‘hide’ your ads, but users are distracted – no one sees everything posted.
  34. 34. Facebook’s design focuses on news feed content. Focus ad efforts here. Sidebar ads are for continual brand exposure. NOT for direct responses.
  35. 35. Test campaign showing difference in results from sidebar and news feed ads.
  36. 36. News feed ads connect to deeper content and carry more interesting, relevant messages.
  37. 37. Why do Google ads work?
  38. 38. Google ads rely on need. Facebook ads rely on interest.
  39. 39. Building engaging content, attributing results
  40. 40. Measuring Facebook ads across multiple touchpoints shows a higher return than last-click alone.
  41. 41. How much are we undervaluing ads? • First Only (first click receives all credit): Facebook was undervalued 30%. • Prefer First (first click gets most credit, subsequent click get decreasing credit): Facebook undervalued 20%. • Divide Equally (credit is shared equally across all clicks): Facebook undervalued 16%. • Prefer Last (credit given increases from first to last – last click gets most credit): Facebook undervalued 12% • U-Shaped (first and last clicks get majority weighting with middle clicks getting less): Facebook undervalued 15%
  42. 42. Last-click measurement
  43. 43. Attributed measurement reveals 13X higher returns for period.
  44. 44. Think about: • Content and storytelling • Multichannel impact and measurement • Agile optimization
  45. 45. Thank you! Econsultancy.com

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