Succeeding withFacebook Advertising     Presented by    Chris Treadaway                                                   ...
Agenda!     Intro!     The business case for Facebook Ads!     Facebook Ad basics!     Facebook Ads weaknesses!     Drivin...
About!     Chris Treadaway      !   Founder, CEO Notice Technologies      !   31/2 years at Microsoft, Group Product Manag...
CompanyNotice Technologies is a software & data-driven agency that focuses exclusively on social media   to influence opin...
Co-Author    http://www.facebook.com/marketingbook                              ©2011 Social Media Examiner • Do NOT distr...
Contributor/Technical Editor                 ©2011 Social Media Examiner • Do NOT distribute   Page 6
!     What we know about Facebook…                    ©2011 Social Media Examiner • Do NOT distribute   Page 7
Facebook owns the social audience                 ©2011 Social Media Examiner • Do NOT distribute   Page 8
Facebook Ad growth is unreal!      2009 Estimates according to       AllFacebook        !   $350 million from CPC         ...
Facebook dominates social media                 ©2011 Social Media Examiner • Do NOT distribute   Page 10
The business case for Facebook Ads!     Accessible for as little $1/day budget!     Easy to get started, takes time & effo...
Social advertising alternatives!     Google       !   Mature auction model – over a decade old       !   Many clickthrough...
Old media alternatives    •  $3-6 CPM                   •  $10-12 CPM                         •  $10-$12 CPM    •  Usually...
!     How Facebook Ads work…                   ©2011 Social Media Examiner • Do NOT distribute   Page 14
What is a Facebook Ad?                 ©2011 Social Media Examiner • Do NOT distribute   Page 15
Basic Facebook Ad specs                  Title: 25 character limit                                                        ...
Where ads appear!       Profile Pages!       Facebook Pages!       Game/App Pages!       News Feed Page         !   Sponso...
What you can promote!          Website!          Facebook Page, Place!          Facebook Event!          Facebook Apps & T...
Types of Facebook Ads!     Self-serve      !   For as little as a $1/day budget          ! CPM – when advertiser wants imp...
Types of self serve adsFacebook Ads •  Target a demographic group or friends of people who like a page    •  Standard Ads ...
How to buy!     Lifetime budget or monthly budget!     Run ongoing or set start/stop for campaigns!     You create the ad ...
Targeting options!       Geography!       Demographics (age, gender)!       Education level!       Interests!       Workpl...
Things you CAN’T target!     People who attended “some college”!     Race!     Specific high schools!     Zip Code (availa...
!     What you can do with Facebook Ads…                    ©2011 Social Media Examiner • Do NOT distribute   Page 24
Drive successful business outcomes!     Direct incremental revenue       !   Spend $5 in advertising       !   Get $10 in ...
Lower your costs!     Lower customer acquisition cost!     Lower marketing costs       !   Reduce cost/touch or cost/engag...
How? Iterate.                               1- Create new ad                               copy/targeting &               ...
Basics of iteration – the a/b test!     A/B test – testing differences in ad performance based on a single      variable, ...
A/B test tale of the tape                                                 !          CPM Campaign                         ...
Iteration makes you smarter                               1- Create new ad                               copy/targeting & ...
Time trending analysis!     Very important to track ad results over time. Why?      !   Ads & ad campaigns fatigue over ti...
A real-life example!     Spreadsheet of results from an actual campaign for a major brand       !   Ad tweaks became less ...
!     Facebook advertising gotchas…                    ©2011 Social Media Examiner • Do NOT distribute   Page 33
Facebook advertising gotchas1.     Relies upon user profile data in most cases2.     Demographic targeting does not imply ...
!     Things we’ve learned…                    ©2011 Social Media Examiner • Do NOT distribute   Page 35
Best practices!       Make your ad as interesting as possible to the target markets. Don’t be        boring.!       Make y...
Rules of thumb!     More local = more expensive         !   $0.30 CPM & $1.50 clicks are routine for local targeting      ...
Success criteria!     Good scenarios       !   Enticing offer & eyecatching imagery       !   Good demographic fit       !...
Tools necessary for big a/b tests!     Tools such as AdParlor can help automate submitting      campaigns with different a...
Spreadsheets critical to analyze data                                                                                     ...
Don’t overestimate targeting                 ©2011 Social Media Examiner • Do NOT distribute   Page 41
Thank you! Questions?                                                                            ASKING A LIVE            ...
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Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads

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Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads

  1. 1. Succeeding withFacebook Advertising Presented by Chris Treadaway October 25, 2011 Design ©2011 Social Media Examiner • Content Copyrighted by Presenter
  2. 2. Agenda!   Intro!   The business case for Facebook Ads!   Facebook Ad basics!   Facebook Ads weaknesses!   Driving success with Facebook Ads!   Sample campaigns !   Techniques !   A/B & multivariate testing !   Metrics & outcomes!   Top 10 things we’ve learned!   Q&A ©2011 Social Media Examiner • Do NOT distribute Page 2
  3. 3. About!   Chris Treadaway !   Founder, CEO Notice Technologies !   31/2 years at Microsoft, Group Product Manager for Web Strategy !   3-time startup founder !   MBA – University of Texas ©2011 Social Media Examiner • Do NOT distribute Page 3
  4. 4. CompanyNotice Technologies is a software & data-driven agency that focuses exclusively on social media to influence opinion and get people to act. Local business self-serve marketing and couponing Managed Facebook Advertising campaigns for SMBs and major brands Social data harvesting, mining, and analysis for major brands ©2011 Social Media Examiner • Do NOT distribute Page 4
  5. 5. Co-Author http://www.facebook.com/marketingbook ©2011 Social Media Examiner • Do NOT distribute Page 5
  6. 6. Contributor/Technical Editor ©2011 Social Media Examiner • Do NOT distribute Page 6
  7. 7. !   What we know about Facebook… ©2011 Social Media Examiner • Do NOT distribute Page 7
  8. 8. Facebook owns the social audience ©2011 Social Media Examiner • Do NOT distribute Page 8
  9. 9. Facebook Ad growth is unreal!   2009 Estimates according to AllFacebook !   $350 million from CPC self-serve ads !   $225 million from CPM, corporate ads!   eMarketer 2010 estimate - $1.28b in revenue in 2010!   Roughly 88-91% Facebook revenue comes from advertising ©2011 Social Media Examiner • Do NOT distribute Page 9
  10. 10. Facebook dominates social media ©2011 Social Media Examiner • Do NOT distribute Page 10
  11. 11. The business case for Facebook Ads!   Accessible for as little $1/day budget!   Easy to get started, takes time & effort to master!   Richest demographic targeting in the world !   800m + profiles !   Available to advertisers!   Targeting combinations/permutations are endless *and* still relatively inexpensive !   Approximately $1.50-$2.00 CPC, $0.25-$0.30 CPM for most targeting options with more than 100,000 users. !   More expensive as targeting gets narrower ©2011 Social Media Examiner • Do NOT distribute Page 11
  12. 12. Social advertising alternatives!   Google !   Mature auction model – over a decade old !   Many clickthroughs are now very expensive!   LinkedIn !   DirectAds $3+ CPM (much higher than Facebook) !   Branding advertising $18+ CPM !   Not terribly effective, but improving!   Twitter !   No rich profile targeting available !   Simple, Sponsored Tweets ©2011 Social Media Examiner • Do NOT distribute Page 12
  13. 13. Old media alternatives •  $3-6 CPM •  $10-12 CPM •  $10-$12 CPM •  Usually requires long •  Sirius/XM-effect •  Tivo factor – many time commitment •  Difficult to get responses people don’t even see •  Doesn’t directly land a to call to action while commercials customer for the people drive •  High production costs business Billboard Radio Television •  $10-$15 CPM •  $10-30 CPM •  $15-$25 CPM •  Many demographics •  Not typically a good fit •  Declining & aging don’t use YP in favor of for local advertising customer base Internet – effective CPM •  High creative & •  Too expensive for many rates are likely production costs local businesses considerably higher Yellow Newspape Pages Magazine r ©2011 Social Media Examiner • Do NOT distribute Page 13
  14. 14. !   How Facebook Ads work… ©2011 Social Media Examiner • Do NOT distribute Page 14
  15. 15. What is a Facebook Ad? ©2011 Social Media Examiner • Do NOT distribute Page 15
  16. 16. Basic Facebook Ad specs Title: 25 character limit Exact dimension is based image’s aspect ratio Body: 135 character limit ©2011 Social Media Examiner • Do NOT distribute Page 16
  17. 17. Where ads appear!   Profile Pages!   Facebook Pages!   Game/App Pages!   News Feed Page !   Sponsored position managed by Facebook !   Not available through self-serve ads !   Higher CPM & minimum monthly spend ©2011 Social Media Examiner • Do NOT distribute Page 17
  18. 18. What you can promote!   Website!   Facebook Page, Place!   Facebook Event!   Facebook Apps & Tabs Website Page Event ©2011 Social Media Examiner • Do NOT distribute Page 18
  19. 19. Types of Facebook Ads!   Self-serve !   For as little as a $1/day budget ! CPM – when advertiser wants impressions ! CPC – when advertiser needs clicks !   Highly configurable!   Sponsored !   Bigger budgets, large ad buys -> Sponsored ads !   ~ minimum $5,000/month, $5-7 CPM list price !   Administered by Facebook Ad sales ©2011 Social Media Examiner • Do NOT distribute Page 19
  20. 20. Types of self serve adsFacebook Ads •  Target a demographic group or friends of people who like a page •  Standard Ads – target a URL •  Page Post Ad – promote a page Post •  Facebook Ads for Pages – get fans for a PageSponsored Stories •  Get more distribution for your content on a Page, Place, or App •  Page Like Story – when people like a Page, their friends see it in an ad •  Check-in Story (places only) – when people check-in to a Place, their friends see it in an ad •  Page Post Like Story – when people like a Page Post, their friends see it in an ad ©2011 Social Media Examiner • Do NOT distribute Page 20
  21. 21. How to buy!   Lifetime budget or monthly budget!   Run ongoing or set start/stop for campaigns!   You create the ad copy & upload ad imagery!   Approval process !   Can sometimes take some time !   Not guaranteed; idiosyncratic!   You select which Facebook users you want to target ©2011 Social Media Examiner • Do NOT distribute Page 21
  22. 22. Targeting options!   Geography!   Demographics (age, gender)!   Education level!   Interests!   Workplaces!   Sexual orientation!   Relationship status!   Languages!   College attended!   Birthday ©2011 Social Media Examiner • Do NOT distribute Page 22
  23. 23. Things you CAN’T target!   People who attended “some college”!   Race!   Specific high schools!   Zip Code (available but not “functional” yet in many zip codes)!   People who do not enter relevant information in their Facebook profiles ©2011 Social Media Examiner • Do NOT distribute Page 23
  24. 24. !   What you can do with Facebook Ads… ©2011 Social Media Examiner • Do NOT distribute Page 24
  25. 25. Drive successful business outcomes!   Direct incremental revenue !   Spend $5 in advertising !   Get $10 in revenues in return!   Build customer lists, find leads!   Viral marketing !   Propagation of online message through social channels !   Improve awareness, clicks, and other important metrics by buying traffic/attention ©2011 Social Media Examiner • Do NOT distribute Page 25
  26. 26. Lower your costs!   Lower customer acquisition cost!   Lower marketing costs !   Reduce cost/touch or cost/engagement!   Lower customer service costs by driving customers to Facebook, social media, or other touchpoints !   Reduce customer service calls !   Inform customers of new programs designed to save money !   Lower cost/touch, easier to administer program, etc. ©2011 Social Media Examiner • Do NOT distribute Page 26
  27. 27. How? Iterate. 1- Create new ad copy/targeting & !   Set up in Ads & set budget Pages app in Facebook 5 - Make changes 2 - Run ads for !   Run ads on 7 to creative, landing statistically valid pages, etc. period of time day cycles before judging results !   Scrutinize 4 - Retire 3 - Assess results & make underperforming ads, images, etc. outcomes, let the numbers do the changes talking !   Rinse & repeat ©2011 Social Media Examiner • Do NOT distribute Page 27
  28. 28. Basics of iteration – the a/b test!   A/B test – testing differences in ad performance based on a single variable, keeping all others alike or dissimilar Eat at Joe’s! Eat at Joe’s! CPM campaign CPM campaign $2/ads per day $2/ads per day Men Age 35-54 Men Age 35-54!   Campaign level example – run these ads at women (A) vs. men (B) ©2011 Social Media Examiner • Do NOT distribute Page 28
  29. 29. A/B test tale of the tape !   CPM Campaign !   Bid $0.40 in the target market !   Actual CPM cost is $0.27 !   CPCs with same target criteria are $0.52 Eat at Joe’s! Eat at Joe’s! CPM campaign CPM campaign $2/ads per day $2/ads per day Men Age 35-54 Men Age 35-54 ©2011 Social Media Examiner • Do NOT distribute Page 29
  30. 30. Iteration makes you smarter 1- Create new ad copy/targeting & Over time, adherence set budget to this process will help you 5 - Make changes 2 - Run ads for learn who to creative, landing statistically valid pages, etc. period of time responds best to your ads and what variables impact your 4 - Retire 3 - Assess success. outcomes, let the underperforming numbers do the ads, images, etc. talking ©2011 Social Media Examiner • Do NOT distribute Page 30
  31. 31. Time trending analysis!   Very important to track ad results over time. Why? !   Ads & ad campaigns fatigue over time !   Record success of retiring unsuccessful ad variations with new, improved ones !   Informs next steps, new ideas, and when you need a new trick/approach to improve your numbers ©2011 Social Media Examiner • Do NOT distribute Page 31
  32. 32. A real-life example!   Spreadsheet of results from an actual campaign for a major brand !   Ad tweaks became less effective at Week 7 per CTR #s and Cost/Fan #s !   Tactics started in Week 1 got stale by Week 7 ©2011 Social Media Examiner • Do NOT distribute Page 32
  33. 33. !   Facebook advertising gotchas… ©2011 Social Media Examiner • Do NOT distribute Page 33
  34. 34. Facebook advertising gotchas1.  Relies upon user profile data in most cases2.  Demographic targeting does not imply purchase intent3.  Finicky ad copy regulations4.  Advertisers cannot target a user’s status updates5.  Currently no mobile advertising or targeting available6.  Ads don’t appear in mobile, iPad versions7.  Requires significant work to manage, administer, and optimize8.  Deep a/b testing is a very manual process9.  No help/assistance with landing pages10.  Questions regarding effectiveness, direct & immediate ROI ©2011 Social Media Examiner • Do NOT distribute Page 34
  35. 35. !   Things we’ve learned… ©2011 Social Media Examiner • Do NOT distribute Page 35
  36. 36. Best practices!   Make your ad as interesting as possible to the target markets. Don’t be boring.!   Make your ad actionable and relevant for the target market.!   Don’t run your ads exclusively at a small demographic group.!   Include a specific call-to-action in your ad so customers know exactly what to do next.!   Make sure you send customers to an interesting landing page that also very clearly communicates the next step.!   Multiple combinations of ad copy, images, and landing pages work best.!   Use eye catching images to accentuate your add to grab your customers’ attention.!   Usually, it requires 10 ad impressions per person in the target market before drawing conclusions. ©2011 Social Media Examiner • Do NOT distribute Page 36
  37. 37. Rules of thumb!   More local = more expensive !   $0.30 CPM & $1.50 clicks are routine for local targeting !   Cheaper if you target additional areas!   Make sure you can advertise to a market segment of at least 10,000 people!   Run ads for at least 7 days and with at least 10 impressions/person!   Use targeting to your advantage, but don’t rely on it exclusively!   Landing pages must be actionable for conversion to happen!   Experimentation is necessary to know what will work!   Measurement is KEY. Data and outcomes drive the best next steps ©2011 Social Media Examiner • Do NOT distribute Page 37
  38. 38. Success criteria!   Good scenarios !   Enticing offer & eyecatching imagery !   Good demographic fit !   Understandable & easy call to action!   Bad scenarios !   “Spray & pray” !   Bad landing pages !   Unclear ad copy ©2011 Social Media Examiner • Do NOT distribute Page 38
  39. 39. Tools necessary for big a/b tests!   Tools such as AdParlor can help automate submitting campaigns with different a/b criteria !   Male vs. Female !   Age demographic a/b test !   Imagery !   Ad title, copy!   Pay additional fee to help manage!   Recommended for larger ad buys ($1,000/month +) & CPM campaign optimization ©2011 Social Media Examiner • Do NOT distribute Page 39
  40. 40. Spreadsheets critical to analyze data eCPC eCPM Days   Promised   Lifetime   Lifetime   Lifetime   Lifetime    L ifetime  Start  Date End  Date Days Remaining Impressions % Impressions Clicks CTR Oct  Wk1 Oct  Wk2 Oct  Wk3 Oct  Wk4 Oct  Ttl eCPC Oct  Wk1 Oct  Wk2 Oct  Wk3 Oct  Wk4 Oct  Ttl eCPM   9/14/2011 Ongoing                        250,000 209.2%                      739,563                        51   0.007% $                1.31 $            0.65   $            1.88 $            2.25 $            1.10 $    1.18   $            0.08 $            0.08 $            0.07 $            0.07 $            0.08 $      0.08 10/1/2011 10/26/2011 25                                  1                          900,000 95.7%                      861,159                        44   0.005% $                3.13 $            2.19   $            2.92 $            2.22 $            2.62 $    2.62   $            0.12 $            0.14 $            0.14 $            0.13 $            0.13 $      0.13 9/16/2011 11/16/2011 61                              22                        600,000 66.6%                      399,436                        15   0.004% $            1.98 $            1.44 $            2.25 $            3.00 $    3.18   $            0.11 $            0.11 $            0.10 $            0.10 $            0.11 $      0.12 9/20/2011 9/19/2012 365                          330                3,000,000 10.9%                      328,304                        20   0.006% $                2.58 $            2.43   $            1.11 $            2.50 $            1.80 $    2.24   $            0.12 $            0.15 $            0.15 $            0.13 $            0.14 $      0.14 9/28/2011 10/26/2011 28                                  1                  1,000,000 96.0%                      960,229                        38   0.004% $                2.65 $            3.54   $            3.36 $            3.16 $            3.11 $    3.04   $            0.11 $            0.11 $            0.13 $            0.13 $            0.12 $      0.12 10/5/2011 10/8/2011 3                        305,000 109.6%                      334,399                        29   0.009% $                2.25 $            1.55   $            1.98 $    1.98   $            0.18 $            0.16 $            0.17 $      0.17 10/5/2011 11/1/2011 27                                  7                          575,000 73.0%                      419,669                        43   0.010% $                1.40 $            1.50   $            1.17 $            0.64 $            1.19 $    1.19   $            0.11 $            0.12 $            0.13 $            0.12 $            0.12 $      0.12 10/7/2011 11/4/2011 28                              10                1,000,000 60.1%                      601,033                        43   0.007% $                1.30 $            1.84   $            3.80 $            1.30 $            2.04 $    2.04   $            0.15 $            0.14 $            0.15 $            0.14 $            0.15 $      0.1510/20/2011 10/22/2011 2                        555,555 100.3%                      557,480                    136 0.024% $            0.70 $            0.70 $    0.70   $            0.17 $            0.17 $      0.1710/21/2011 11/11/2011 21                              17                1,230,000 34.2%                      420,782                        72   0.017% $            1.30 $            0.82 $            1.00 $    1.00   $            0.19 $            0.16 $            0.17 $      0.1710/21/2011 12/31/2011 71                              67                1,700,000 14.7%                      249,766                        14   0.006% $            3.68 $            1.85 $            2.50 $    2.50   $            0.15 $            0.13 $            0.14 $      0.1410/21/2011 10/26/2011 5                                  1                          416,000 74.2%                      308,755                        35   0.011% $            1.44 $            2.10 $            1.76 $    1.76   $            0.21 $            0.19 $            0.20 $      0.20 !   Best way to watch health of campaigns, time trending results for campaigns !   Manual effort but rewarding to understand outcomes ©2011 Social Media Examiner • Do NOT distribute Page 40
  41. 41. Don’t overestimate targeting ©2011 Social Media Examiner • Do NOT distribute Page 41
  42. 42. Thank you! Questions? ASKING A LIVE QUESTION: Already on the phone: (*) (8) on your telephone to get in queue. Listening online: Call 866-630-3507, pin 9206; then!   Chris Treadaway press (*) (8) Outside US/Canada: Call +1 (503) 295-8000, enter: (866) 630-3507 (do not dial 1), pin 9206. Press (*) (8) Managed social advertising campaigns for SMBs and major brands ©2011 Social Media Examiner • Do NOT distribute Page 42

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