CMOs guide to Facebook Advertising


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Quick guide to Facebook advertising, with detailed information on ad units and tracking metrics.

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CMOs guide to Facebook Advertising

  1. 1. CMOs Guide toFacebook AdvertisingMaking Sense of your Facebook Campaigns
  2. 2. 1CMO’s GUIDE TO FACEBOOK ADVERTISING02 WHY FACEBOOK ADVERTISINGWith more than 1.11 billion people on Facebook everymonth and with a 23% growth from 2012, Facebookprovides marketers the unique opportunity to increasetheir brand reach and drive user engagement04 FACEBOOK AD UNIT TYPESFacebook offers several advertising options that canbe leveraged depending on the brand and business.Learn more about what they are and what the right fitfor your business is.06 GETTING STARTEDFacebook lets you create ads that help you get yourcustomers to your fan page or website. Whilefacebook ads are still in their nascent stage you canget started on this by learning more about the differentad units that facebook offer.08 KPI’S METRICS AND BENCHMARKSWhat are the key metrics to measure the success ofyour facebook campaign and how do you know if youare spending money in the right place and if Facebookis working for you. Learn more about the metrics andindustry benchmarks that exist for Facebookadvertising.08 IMPORTANT TERMINOLOGIESLike any new platform, Facebook comes with its ownset of words and terminologies. Some of these areborrowed from traditional paid campaigns while othersare very specific to Facebook.
  3. 3. 2CMO’s GUIDE TO FACEBOOK ADVERTISINGWHY FACEBOOK ADVERTISINGMore than 1.11 billion people use Facebook each month, slightly more than the 1.06 billionreported three months earlier. It represents a 23 percent growth from a year earlier.Facebook has over 665 million active users each day on average, and 751 million usingFacebook from a mobile device each month.The Facebook audience reach and growth is in line with most business strategies for the year amix of social, local and mobile.TITLE: MONTHLY ACTIVE USERS (MAU’S) ON FACEBOOKSOURCE: ZEDNETFacebook Ads are a great way to increase the exposure of your brand, increase engagement,and drive traffic to your Facebook Page or an external website or sales page.
  4. 4. 3CMO’s GUIDE TO FACEBOOK ADVERTISINGYou can use Facebook Ads to:◌ To increase your fan base◌ Get Brand exposure◌ Increase Sales/Conversions◌ Demand Generation◌ Promote online or offline events◌ Advertise local businesses◌ To sell a product, program, or service with an external website or sales page◌ Lead generationMarketers across industries are leveraging the paid social medium to identify and discover buyerbehaviour and intent.TITLE: 2013 MARKETING BUDGET ALLOCATIONSource: Forrester
  5. 5. 4CMO’s GUIDE TO FACEBOOK ADVERTISINGFACEBOOK AD UNIT TYPESFacebook offers several ad units to for business to reach their target audience:Standard AdA standard ad is the traditional Facebook adyou find on the right hand side across the siteon dedicated ad placements on Facebook.Page post adPage post ads are page posts that aresponsored in order to increase their reachSponsored ResultsSponsored results are sponsored searchresults, and appear in the type ahead at thetop of the Facebook interface.Promoted PostsPromoted Posts allow you promote anythingyou can create through the sharing tool:status updates, photos, videos, offers, andquestions.Page Like AdsLike Ads, are similar to Standard Ads, but aredesigned to drive traffic to a Facebook Page,App, or Event.
  6. 6. 5CMO’s GUIDE TO FACEBOOK ADVERTISINGGETTING STARTED: CREATING FACEBOOK ADSFacebook lets you create ads to your fan page or to your website. It provides anintuitive interface for quick ad generation and deployment. Facebook ads are stillin a nascent stage, hence there are no established Ad platforms and all ads needto create through the Facebook interface.STEP 1: SELECTING THE AD UNITSTEP 2: SELECT INTERESTS AND CATEGORIES
  8. 8. 7CMO’s GUIDE TO FACEBOOK ADVERTISINGKPIs AND METRICSFrequencyHow many times has your ad been delivered to the average Facebook users in your targetaudience?Exposure RateThe percentage of the entire target audience your brand is actually reaching and exposing toyour message.Click through RateThe percentage of people clicking on the ad to the total number of impressions.Conversion RateThe percentage of the entire audience that undertakes the action as defined bythe business.
  9. 9. 8CMO’s GUIDE TO FACEBOOK ADVERTISINGINDUSTRY BENCHMARKSSocial Fresh’s survey found that respondents who work for an agency reported the highest clickthrough rates at 0.049 percent, while vendors and brand employees had average click throughrates of 0.041 & 0.038 percent respectivelyFor advertisers driving traffic to Facebook pages and apps, average CPC was $0.70. Adsleading off-Facebook averaged $1.08 CPC.
  10. 10. 9CMO’s GUIDE TO FACEBOOK ADVERTISINGIMPORTANT TERMINOLOGIESImpressions : Ad impressions, or "Imp." are counted each time an ad or Sponsored Story isshown to a user, regardless of whether the user clicks or takes any other action on the ad.Clicks: Clicks are counted each time a user clicks through your ad to your landing page.CPC: CPC stands for Cost Per Click. If your ads are bid on a CPC basis, you will be chargedwhen users click on your ads and visit your website.CPM: Stands for Cost Per Mille or Cost per thousand Impressions. If your ads are bid on a CPMbasis, you will be charged when users view your ads, regardless of whether or not they click onthem.CTR: Click Through Rate - is the number of clicks your ad receives divided by the number oftimes your ad is shown on the site (impressions) in the same time periodFrequency: Frequency tells you, on average, how many times each person saw your ads orSponsored StoriesReach: Reach is the number of individual people who saw this ad during the dates selected.This is different than impressions, which includes people seeing your ad multiple times.Target Audience: is the number of people your targeting can reach, like the estimate you see inthe self-serve ad creation flow.Social Impressions: The number of times your ad was shown with social context (i.e. withinformation about a viewers friend(s) who connected with your Page, Place, Event, or App).Social reach: tells you how many people saw your ad or Sponsored Story with the names oftheir friends who had already liked your Page, RSVPed to your event, or used your app.
  11. 11. 10CMO’s GUIDE TO FACEBOOK ADVERTISINGsABOUT REGALIXRegalix is a Palo Alto based digital marketing company. For more than a decade, we have provided full marketingservices – Search, Social, Mobile, Content, Multi-channel Campaigns, Technology Development, and Analytics – tocompanies such as CA Technologies (NimSoft, Arcserve, ERwin), Citi, Apple, eBay, Google, Cisco, VMWare, NetApp,Cypress, LSI, Keynote, and MetricStream.Write to Us: