Educated LinkedIn's EMEA Sales Organization (Marketing, Talent & Sales Solutions) on alternative social media and digital offerings within the market. Objective of the training was to support sellers in practicing consultative selling.
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
Facebook Platform & Ad Offering Overview
1. LinkedIn Social Media Series: Facebook
July 2012
Jonathan Bradford
Associate Solutions Consultant UK,FR,NL
Nadia James
Account Planner UK
2.
3. Learning objectives
• An overview of Facebook
• A few current events related to Facebook
• An overview of their go to market approach
• A top level understanding of their
marketing product offering
4. Disclaimer
This deck is indented to:
• Provide an overview of Facebook
• Provide an overview of their current product offering
• Marketing is a fast moving market place and so product suite is subject to constant change
• Engagement rates and costs aren't publicly available however guidelines based on public
information have been included as guidelines only
• Facebook is an ever changing business and so best efforts have been made to ensure
information is current and valid
• An effort has been made to ensure the material is impartial
• This deck is not intended as a LinkedIn Vs Facebook sales story
5. Facebook is a public platform!!
Tom has 204
connections
Guess Who?
These guys do not
like rollercoasters
6. Give people the power to share and make the world
more open and connected
7. 955M
Active Users
300M
Photos uploaded daily
552M
Mobile Users
74%
Reach of UK Audience
*Assume figures are monthly, unless otherwise noted.
30M
UK Active Users
(750% growth ‘10-11)
15,636M
UK Minutes Spent on Site
Quick Stats
8. Audience Demographics
Top 5 Pages in UK
Age
Below 20
21%
20-29
28%
30-39
25%
40+
26%
57% of users are classed as ABC1s
53%
Of UK population
are Facebook
users
28.22%
30.89%
49% Male 51% Female
27% of UK
Unique Visitors
live in London
25%
of visits
leaving
Facebook
go to
entertain-
ment site
The average
Facebook user has
100+ likes assoc.
with his/her profile
9. Company Milestones
Facebook
launches
Facebook reaches
1 Million members
Facebook opens
membership
globally
Launch of the
‘news feed’
1 Million
members in
the UK
Launch of self
service Ads and
Facebook Pages
Introduction of
the Like button
Hits 500 million
members WW
Users surge to half
of UK population
(30M)
Facebook makes
Timeline
mandatory
Facebook
announces
mobile App
centre
Facebook files
$5Bn stock
IPO
Facebook buys
Instagram for
$1Bn
10. Timeline
Arranges user profiles and brand pages as a timeline
of their history on Facebook. Allows more free space
for users to customise imagery.
Recent consumer product release
11. Edge Rank
• Algorithm that determines how
relevant a piece of content is to user
and how high up the news feed it
should appear
Features
• Centre of homepage
• Content can include posts, photo
tags, friend requests, event updates,
group membership, etc.
News Feed
Constantly updating list of posts from
people and Pages that a user follows
Recent consumer product release
Beta product testing
‘Pay to promote’ system
currently being trialled in New
Zealand
Users spend 27% of
time on news feed
15. Two approaches to market
Field Sales offering
is known as
Premium
Self Serve offering is
known as
Marketplace
Facebook is an advertising business
16. The Advertiser value proposition
Form a strategy that is social by design
Build your Facebook presence (page)
Share content with people who like your page
Reach friends of those who like your page and
attract new fans
Learn, nurture relationships & interact
17. Objective based solution selling
Foster product
development &
innovation
Generate
Awareness
Drive preference
& differentiation
Build loyalty
through
relationships
Amplify
recommendations
through WOM Gain insights
Increase traffic
& sales
19. Pages
Brand page updates reach 16% of followers
on average
Features
• Cover Photo – Express brand personality
• Profile Picture – Appears across platform
and on ads
• Views & Apps – Showcase photos and
highlight custom builds
• Pinned Posts – Ensure certain stories
appear at the top
• Larger Stories– Showcase larger video
and stories
• Milestones – Larger images for key events
Global Page
Engagement
July Release of targeted page
post functionality
Facebook’s Reach Generator
guarantees that 75% of a brand’s
fans will see their content
20. Examples
• Like the page
• Offers for those who like
• Focus on photos of their people
• Gift card App
• Like the page
• Share content
• Highlight videos & events
• Like the page
• Photos of events
• Like to watch video content
Consumer B2B High net worth
21. Ads
Features
• 110x80 size
• CPM OR CPC
• Cost £0.40 CPM - untargeted
• Cost £0.50- £0.80 Targeted
• Cost £2.50 – Events / video /
samples
• Avg CTR 0.05%
• Ads are ~29% cheaper if point
within FB’s network
Best practice
• messages with social context gain
68% higher recall and 4x increase
of likelihood to purchase
• Horizontal images and close ups
of faces perform best
Targeting criteria:
Location · Age · Gender ·
Birthday · Relationship
status · Language ·
Education level · Likes
and interests · Friends of
those who like your page
· Current fans
Social ads are
expected to
account for 50%
of Facebook’s
ad budget
CPM +116%
CPC +86%
CTR +78%
2011-2012
22. Sponsored Stories
Features
• Amplify likes, check ins, content
shares, app installs, app usage
• Appears to friends of followers
only
• Auctioned the same as ads via
CPC or CPA
• Appears on web and mobile
interface
Vs. Facebook basic ads
• 46% higher CTR
• 20% lower CPC
• 28% lower CPF
Mobile vs. Desktop
performance
• 13x higher CTR
• 11.2x higher eCPM
Benefits
• Promote word of mouth
recommendations
• Increase brand lift, ad recall, and
likeliness to recommend brand to
friend
23. Platform
Free API offering that helps
developers build applications for
on-, off-, or mobile platform with
Facebook’s social plugins
230m people have played
games on Facebook in past
month
App Center
• Platform agnostic app storefront
• Encourages developers to build
with Facebook connect
• Offers Personalized App
Recommendations
• Attracted 150 m users in 1st month
• Increased app installations by 240%
Video help series posted onto platform
about developing apps
24. Apps
Wrapp allows users
to send gift cards to
their friends
Pinterest lets you
organize and share
images with network
Benefits of Facebook integration
• App can post updates of activity to
user’s network
• Users can see which of their friends
are using an app
• Overall, Word of mouth functionality
25. Insights
Features
• Insights are measured in real
time
• Data segmented by page, post
or tab level
Based on ROI data from 60+
campaigns, 70% of campaigns
resulted in at least 3x return on ad
spend, and 49% achieved at least
5x return on ad spend
Reach:
Paid- Unique view from audience
targeted with sponsored content
Viral- Unique viewers who saw
post through friend
Organic- All unique viewers of
content
Interaction:
• Likes, shares & comments
• High traffic visitor times
• Which posts visitors engage with
most
• Where on site likes were acquired
• Negative feedback
26. Case study- Ben & Jerry’s
Objective: Increase sales
Premium Ads Results
• 4x increase in Reach
• Able to reach 98% of fans
• Engagement Doubled
• For every $1 spent, saw $3 return
in incremental sales
“
We really want to have a holistic
relationship with our community,
with our consumers, about
values, about great ice cream.
“ Example of “Fan Fotos” page
initiative
- Rep from Ben & Jerry’s
27. Case study- Nutella
Objective: Increase awareness
and sales from Dec. 1-24
• Christmas Ad campaign
included TV-Facebook media
plan mix
• Purchased Reach block ads
• Campaign directed people to
like/follow page, and try out
“Advent calendar” app
“
There was a positive cross-
media effect between TV and
Facebook.
“
Results
• Reached 30% of German
online population (3.8M
Unique Impressions)
• Facebook ads accounted for
15% of sales over Christmas
• 2.8 m who saw Facebook ad
did not see the TV campaign
(29% exclusive reach)
- Rep from Nutella’s parent company
28. Confessions of an ad man
Agency set up
• Premium ads continue to be purchased via digital teams
• Self-serve is largely handled via APIs
this is handled by digital or search. A few agencies have set up ‘social
response’ teams whose sole responsibility is the purchase of social
media ads using APIs
Agency use cases for Premium vs Marketplace
• The split is not always as straight forward as brand vs. DR but this offers a
fairly good steer
• Premium ads are primarily for engagement; E.G. drive people to watch a
video, to an event, answer a question etc..
• Marketplace ads are primarily used for traffic
29. Confessions of an ad woman contd
Fan acquisition
• This is nearly always done via self serve (although there is a Premium offering)
• Targeting is an option however this in itself does not affect cost
• They use an auction model so price is according to demand
Field Sales approach
• The Facebook reps talk about the full suite of products. They give feedback and
advice on both Premium and Marketplace offerings.
• They see them as complimentary and generally suggest both to achieve an
advertisers objective.
Management of pages
• Real variety in terms of who has ownership of the status updates. Sometimes the
client does this directly, others are managed by PR or media specialist agencies.
30. Key Takeaways
• 74% of UK internet audience use Facebook; 68% access via mobile
• Users spend 27% of their time on the news feed
• Facebook offers Self service & Marketplace Advertising platforms
• 4 product offerings- pages, ads, sponsored stories & open developer
platform
• Only Sponsored Stories are pushed onto their mobile platform
• Social ads expected to account for 50% of ad budget
31. Links to learn more
• Facebook news room
• Demographics data- Facebook UK
• Road to IPO- Milestones in Facebook’s history
• Best Practice Guide- Marketing on Facebook
• Notes of slides
Vs LinkedIn
Connect the worlds professionals to make them more productive and successful
http://tinyurl.com/cq9ywfz
Users outside of US and Canada make up 81% of facebook’s monthly active users, but rev made up 50% of Q1 revenue
http://techcrunch.com/2012/07/31/facebook-mobile-only/
102M people accessed solely from mobile in June, up 23% since March
10% Growth in US YOY, 29% global average
Brazil monthly users up by 146%, India up by 84%
Minutes spent on site is 17% of all time spent on Internet
Slide sources:
Comscore March 2012
http://newsroom.fb.com/content/default.aspx?NewsAreaId=22
More on mobile (20.5M are mobile users in UK) - http://www.socialbakers.com/storage/www/facebookmobile2.jpg
Vs LinkedIn
- Members: 170 m WW; 90 m UK
- Monthly Uniques: 100M
- Monthly PV: 3.1B
- UK visits per month: 4.9
- UK av mins per visit: 5.6mins
- UK monthly Uniques: 7.1M
89% of LinkedIn’s audience visits Facebook, and only 20.3% of Facebook’s audience visits LinkedIn.
LinkedIn
Top 5 UK Pages (Adele, Beatles, Man U, Mr. Bean, Coldplay)
More on top pages (http://www.zoomsphere.com/charts#!0|10)
More from Comscore
- only 5.1% UV are Social grade A
40% have children
More from (http://www.fourthsource.com/news/facebook-uk-stats-you-should-know-8577)
20 year olds typically have 300+ likes assoc with their profile
1000+ is uncommon
More from (http://www.fanalyzer.co.uk/demographics.html)
30.89% Single
28.22% in relationship
7.42% engaged
33.47% married
Age stats
- 21% below 20 yo
- 28% 20’s yo
- 25% 30’s
26% 40+
More on age (http://www.inc.com/news/articles/2010/08/users-over-50-are-fastest-growing-social-media-demographic.html)
Do they have research offering? alternative measurement to ctr?
Sources:
More on IPO (filed for $5 billion IPO, set stock price range at $28-$35)
http://www.technobuffalo.com/internet/social-networking/facebook/facebook-officially-files-for-5-billion-ipo/
http://www.guardian.co.uk/technology/blog/2012/feb/01/facebook-ipo-announcement-live
More on history- http://www.businessweek.com/ap/2012-05/D9UHGBV80.htm
More on UK user growth- http://www.dailymail.co.uk/news/article-1362413/Facebook-users-UK-surges-HALF-population.html
More on timeline-
http://newsroom.fb.com/content/default.aspx?NewsAreaId=20
http://mashable.com/2012/04/30/facebook-timeline-eyetrack-study/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Mashable+%28Mashable%29
More on Instagram- http://techcrunch.com/2012/04/09/facebook-to-acquire-instagram-for-1-billion/
More on app center- http://www.computerworld.com/s/article/9227039/Facebook_App_Center_targets_mobile_users
Functionality
Favorited timeline photos appear 4X larger in timeline
Sources:
http://newsroom.fb.com/content/default.aspx?NewsAreaId=20
More on timeline- https://www.facebook.com/about/timeline
Sources:
http://www.telegraph.co.uk/technology/facebook/9263845/Facebook-charges-users-for-prominent-posts.html
Wildfire’s Social Advertising Part 1, Webinar
More on IPO-- http://mashable.com/2012/05/14/facebook-ipo-week/
More recent news
Facebook’s US growth is slowing (http://mashable.com/2012/06/11/facebooks-u-s-growth-slowing/)
Facebook quietly tests shareable ad units (http://mashable.com/2012/06/13/facebook-offsite-ad-shares/?utm_medium=email&utm_source=newsletter)
*face.com (http://www.engadget.com/2012/06/18/face-com-acquired-by-facebook-for-80-million-recognition/)
Revenue from advertising was $992 million, representing 84% of total revenue and a 28% increase YOY
From Facebook's Form S-1:
“The substantial majority of our revenue is currently generated from third parties advertising on Facebook. In 2009, 2010, and 2011, advertising accounted for 98%, 95%, and 85%, respectively, of our revenue. ”
http://techcrunch.com/2012/07/31/page-post-targeting-enhanced/
Page post targeting criteria same as ad targeting
Source
http://www.fourthsource.com/news/facebook-uk-stats-you-should-know-8577
http://thenextweb.com/socialmedia/2012/03/21/facebook-launches-a-tool-showing-you-what-sponsored-stories-look-like-in-your-news-feed/
http://www.zoomsphere.com/charts/facebook/all/pages/#!0|10
Best in class example pages—appendix
Final slide “further information”– links to marketing material, etc etc
Ads API can be used to purchase and test different variants
Source
http://www.marketingprofs.com/charts/2012/7872/adoption-of-facebooks-social-ads-grows-fourfold
Wildfire Social Advertising Part 1 Webinar
honest can't remember. think it's about £0.40 CPM for ROS activity with no targeting, maybe moving to £0.46 with... then £2.20-2.50 CPM for premium ads (videos, events etc) depending on clients or spend
http://techcrunch.com/2012/07/31/facebook-mobile-only/
Sponsored Stories are bringing in $1 million in ad spend per day, $500,000 from mobile
Computer shows up to 7 ads per page, mobile can’t compete with space for impressions
Slide source/notes:
Cost figures are since product launch
Launched in Jan 2011
Facebook mobile ads monetization (http://techcrunch.com/2012/06/19/facebook-mobile-ads/)
Facebook advertisers find better payoff with sponsored stories (http://www.emarketer.com/Article.aspx?R=1009109)
http://allfacebook.com/facebook-sponsored-stories-increase-ctr-by-46_b41947
http://www.roshsillars.com/2012/06/how-well-do-sponsored-stories-and-ctr-get-along/
http://onforb.es/JhEnzA
Potential rev generation: charge fee for app purchases it drives to other platforms (Ios or Android) or offer paid web apps
Slides sources
http://www.itproportal.com/2012/08/15/figures-show-flying-start-for-facebook-app-center/
https://www.facebook.com/platform
https://developers.facebook.com/
http://www.pcmag.com/article2/0,2817,2407969,00.asp
http://techcrunch.com/2012/08/03/230-million-people-played-games-on-facebook-com-in-the-last-30-days/
230m people have played games on Facebook.com in past 30 days
8 out of 10 top grossing iPhone apps are Facebook integrated
Still figuring out how to monetize app and game plug in integration
Sources:
http://news.cnet.com/8301-1023_3-57493357-93/wrapp-using-facebook-to-target-back-to-school-shoppers/
Facebook App Center
Facebook offers insights on pages, apps, and 3rd party websites. This slide focuses on Pages insights.
Offer Insights through API
Slide sources:
http://investor.fb.com/releasedetail.cfm?ReleaseID=695976
https://www.facebook.com/help/?page=120881494659811