Facebook Ecosystem Call 080712


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Facebook Ecosystem Call 080712

  1. 1. Over half of Facebook users (543million people worldwide) access thesite on Mobile102 million people accessedFacebook solely from mobile in June2012Facebook generates over $500,000per day on Mobile advertisingClick through rates on FacebookMobile Sponsored Stories outperformtraditional ads by 15-25x
  2. 2. Social Context Large FormatWhich of your Up to 100% offriends engaged available screenwith the content real estateHyper-RelevantContentCombine with Prominentprecise Age, Call to ActionGender, Locationand Interest-based targeting
  3. 3. Sponsored Story Page Post Ad Open Graph Sponsored StoryDistribution: Distribution: Fans/Users + their Friends Distribution:Friends of Fans/Users Friends of Users
  4. 4. Optimal analyzed over 20 billionUS Facebook (non-mobile)impressions in the first twoquarters of 2012. We found a 32%increase in cost per click fromQ1 to Q2, 2012, combined with a23% drop in clickthrough rate(due to more ads per page beingshown) which led to a small 1.6%increase in effective CPM.Optimal saw powerful mobile results in June 2012 with averageclickthrough rates over 1.9% and effective CPMs to Facebook of over$11.00 (a 32-fold premium over the average for non-mobile).
  5. 5. Your Mileage May Vary: Early testing shows large differences inperformance by device/platform as shown here. Android significantlyoutperformed iPhone (mostly iOS 5). New and better integrationsbetween Facebook and iPhone will mean better performance foradvertisers. Apple and Facebook relationship could be pivotal…
  6. 6. iPhone users are moreaffluent, slightly more femaleand tend to live in biggercities/DMAs.Android users text and speakon the phone more thaniPhone users who use theirdata plans more.
  7. 7. Only content eligible for “organic”distribution can be sponsored as MobileadsAdvertisers must own a Facebook Pageor Open Graph-enabled ApplicationMobile distribution is currently limited tothe Advertiser’s Page Fans/App Users andtheir FriendsOpen Graph Sponsored Stories (e.g.“Your Friend listened to X.”) must betimely and expire after 14 days.
  8. 8. The FacebookOpen Graph is amassive "web"of stories aboutusers performingspecific actions onFacebook orthrough an OpenGraph-enabledapplication
  9. 9. Open Graph-enabled applications will lead to the most engaging ad formats:Facebook’s Open Graph is going to deliver farmore relevant messages to consumers giventhe specificity of the actions embedded therein+ location means mobile becomes truly avaluable channel for marketers
  10. 10. June 2012 – Began targeting ads to Facebook users on 3rd partysites (Zynga.com), launched Facebook Exchange (FBX) toretarget visitors to 3rd party sites on Facebook desktop site543 million monthly active users on mobile, with 80% mobileuser penetration in the US (comScore) – with better data on Age,Gender, and location than any other sourceMobile publisher monetization is very weak currently as mobileusage increasesWith deeper integration into iOS, Facebook’s Open Graph actionframework may provide more accurate conversion tracking foradvertisers
  11. 11. Facebook has the most non-intent audience data today User-supplied location combined with user real-time location will be a powerful platform for coupons and offers Facebook’s Open Graph framework will generate a good deal of short- and long-term intent dataThe future of mobile user data is between Facebook vs. Google
  12. 12. Rank Largest TV Advertisers Q1 2012 TV Ad Spend Optimal Index Rank*1 Ford Motor Co Dlr Assn $ 91,419,000 3162 Toyota Motor Corp Dlr Assn $ 77,135,000 5113 Chrysler Group Llc $ 74,630,000 10064 Comcast Corp $ 73,419,000 --5 General Mills Inc $ 67,280,000 --6 Honda Motor Co Ltd $ 60,423,000 8497 McDonalds Corp $ 48,151,000 278 AT&T Inc $ 46,751,000 1329 Nissan Motor Co Ltd $ 44,142,000 56110 Time Warner Cable Inc $ 43,784,000 42511 Verizon Communications Inc $ 41,242,000 9212 Hyundai Corp Dlr Assn $ 38,062,000 32513 General Motors Corp $ 37,812,000 83414 General Motors Corp Dlr Assn $ 35,442,000 83415 Toyota Motor Corp Loc Dlr $ 31,328,000 511*The Optimal Index is a transparent and independent audience valuation tool used by consumers, marketers and agencies.Updated daily, the Index Rank considers fan counts, engagement ratios, and global fan distribution in determination of the relativevalue of each brands audience on Facebook.
  13. 13. Facebook applications and pages with deep existing penetrationprovide the linkage and start of an ad ecosystemIntegration and penetration of Facebook’s app on mobile devicesmean better data/ad opportunities – iOS6 native support is hugeBuilt-in developer base is going to create Open Graphapplications which are Facebook’s big hope for connectingactions across channels– but there is still much work to be doneMobile ad network would be a wildcard but certainly possilbe.Apps like Instagram are great places to start (owned or not!)