Socialize: Monetizing Social Media - Matt Esslinger

771 views

Published on

Using Multivariate Techniques to Increase ROI in Social Media Campaigns

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
771
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Socialize: Monetizing Social Media - Matt Esslinger

  1. 1. Using Multivariate Techniques To Increase ROI In Social Media Campaigns Matt Esslinger, XA.net COO CONFIDENTIALConfidential
  2. 2. The Market Facebook Accelerating User Base, Ad Revenues 10% 8.8% 80% 70% 7.7% 70% 8% 60% 6% 50% 40% 4.7% 40% 4% 30% 2% 20% 10% 10% 0% 0% Facebook%of US onlineadspend Sm businesses usingsocial m all edia Unique visitors ‘000 2010 2011 2012 2009 2010 2011 250,000 211,860 205,709 183,619 190,650 200,000 153,886 150,000 111,888 100,000 54,552 50,000 34,658 Facebook Internet 0 Jun-2007 Dec-2007 Jun-2008 Dec-2008 Jun-2009 Dec-2009 Jun-2010 Dec-2010 Sources: eMarketer (11/10), The American Express OPEN Small Business Monitor (10/10), comScore US-only (01/11), MerchantCircle (2/2011)Confidential
  3. 3. The Market Facebook Surpassing Yahoo! In Key Metrics Percent of US Internet user minutes 16% 13.2% 14% 12.3% 11.5% 12% 10.5% 10% 9.1% 7.2% 8% 6% 4% 2.8% 1.9% Yahoo! Facebook 2% 0% Jun-2007 D ec-2007 Jun-2008 Dec-2008 Jun-2009 Dec-2009 Jun-2010 Dec-2010 Percent of US Internet pages 16% 13.6% 14% 12% 10% 7.8% 8.3% 8% 7.1% 6.3% 6% 3.7% 7.0% 4% 2.8% Yahoo! Facebook 2% 0% Jun-2007 D ec-2007 Jun-2008 Dec-2008 Jun-2009 Dec-2009 Jun-2010 Dec-2010 Sources: comScore US-only (01/11)Confidential
  4. 4. The Market Local Businesses Adopting Facebook En Masse • Facebook has now surpassed Google as the most widely used marketing method amongst local merchants, and is almost tied with Google search as one of their top three most effective marketing methods (social, search, email) 100% 100% 80% 70.0% 80% 66.0% 60% 60% 37.0% 40.0% 40% 40% 20% 20% 0% 0% Sm businesses using all M effectivesource ost Facebook Google Facebook Google Source: MerchantCircle 2/15/2011 survey (n=8500 small businesses)Confidential
  5. 5. The Market Countries with Over 500K New Facebook Users in Q1 • Facebook audiences continue to grow globally, providing large opportunities in less mature markets • First quarter 2011 growth shows Brazil leading with 66% growth Sources: optim.al API March 2011Confidential
  6. 6. The Market Highest CPC’s By Country of 100K Users or More • Range reflects the level of demand in each respective market and also the degree to which advertisers are leveraging the right tools to maximize CTR • One of many examples of the rich data that we can harness via the API Sources: optim.al API March 2011 6Confidential
  7. 7. Social Media Advertising Automating Audience Planning and Creation !With the ability to query Facebook’s targeting Top 20 Workplaces in US on Facebook system directly, we can automate sophisticated analysis and audience sizing !The creation of horizontal segments like “workplaces of 200-400 employees” for targeting is possible at scale, for example Highest “Suggested” Bids* *US companies of 20+ users 7Confidential
  8. 8. Social Media Advertising Optim.al: Automating Audience Planning and Creation • Creating ads on Facebook is a time-intensive process • Campaign results don’t tell why the ad was successful or not • So how can you scale your Facebook campaigns without knowing the details? 8Confidential
  9. 9. Social Media Advertising Optim.al: Multivariate Testing !Multivariate testing creates variations of your ad 72 Text/image variations components and automatically finds the top X performing variations 9 Geo/interest combinations x !Multivariate testing can produce the optimal ad 3 Different age ranges x combinations with 3-7x lift or more in 2 Gender performance as seen in client campaigns = 3,888 Combinations • Test more variants in fewer ads via proprietary methodology (3,888 tests in 18 actual ads) 9Confidential
  10. 10. Social Media Advertising Optim.al: Multivariate Testing Setup • Multivariate setup relies on a set algorithm 6x3x2x2. As you add in targeting test elements the algorithm will update • Creates a series of simultaneous A/B tests to save time and money • Find out exactly which variables are best performers 10Confidential
  11. 11. Social Media Advertising Optim.al: 18 Multivariate Ads • 18 ads that each have different variables, targeting and estimated reach See the Estimated Reach per ad 11Confidential
  12. 12. Social Media Advertising Optim.al: Multivariate Testing Optimized Results • Scale your campaign once you know the true lift % for every variable • Get optimized results by Clicks or Conversions 12Confidential
  13. 13. Retargeting Strategy: Retargeting & Social Media • Use Facebook to find your audience • Advertiser places just one piece of code on their site • Retarget Facebook users across the web that visit your site !""#$% &(%$ -./""0 &)*+,% 123+4"5 6"5,%7,8%3Confidential
  14. 14. And now the demo… CONFIDENTIALConfidential

×