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2013 facebook whitepaper


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2013 facebook whitepaper

  1. 1. WHITE PAPER The Marketer’s Guide to Driving ROI From Facebook Advertising Top Tips For Building Awareness & Generating Financial Returns
  2. 2. The Marketer’s Guide to Driving ROI From Facebook Advertising Table of Contents Introduction 3 Setting Objectives 4 Audience Targeting 6 Creative 8 User Experience 10 Tracking Conversions, Both Online and Offline 12 Mobile Strategy 13 Bidding 14 Conclusion 15 About Marin Copyright © 2013 Marin Software Inc. All rights reserved. 16 2
  3. 3. The Marketer’s Guide to Driving ROI From Facebook Advertising Introduction Facebook presents marketers with a vast and truly global advertising opportunity: • Of the seven billion people living on our planet, 30% have access to the internet and almost half of those internet users (nearly a billion people) access Facebook1 • 7.5% of global page views are on Facebook2 • The average user views 18 unique pages on Facebook each day, spending around 28 minutes on the site3 • Facebook officially surpassed Google in weekly traffic in 20104 Percentage of population on Facebook by continent: 44% 36% N. AMERICA S. AMERICA 5% 30% AFRICA EUROPE 7% 40% ASIA AUSTRALIA As Facebook becomes more entrenched in people’s lives, marketers increasingly seek to engage with Facebook users through ads, fan pages, news feeds, applications, and events. Facebook’s advertising revenue in the fourth quarter of 2012 grew 41 percent to $1.33 billion6, a testament to the growth of user adoption and the value of the channel. According to statistics from Facebook, people who like a brand’s Facebook Page spend twice as much money on the brand’s products as people who have not connected. Following the success of our 2011 white paper, The Search Marketer’s Guide to Successful Facebook Ads, Marin Software studied our customers—some of the world’s most recognizable brands and prominent Facebook advertisers—and summarized various strategies that any advertiser can employ to initiate a Facebook campaign or improve the performance and ROI of existing Facebook campaigns. This white paper will guide readers through several key aspects of successful Facebook advertising, from reaching the right audience, to fine-tuning ads, to ensuring a positive experience for users, to effective bid management. 1: 2: 3: 4: 5: 6. 3
  4. 4. The Marketer’s Guide to Driving ROI From Facebook Advertising Setting Objectives Getting Started The key to any successful marketing program is to set clear objectives, and Facebook marketing is no different. With the proliferation of Facebook advertising products, marketers are constantly presented with new opportunities to capture the attention of customers across every stage of the buying cycle. While some advertisers continue to view Facebook in traditional, transactional, performance marketing terms, successful Facebook marketers are beginning to adopt a “full funnel” approach. They select their objectives and use these relatively new creative formats to craft a holistic approach to marketing in this rapidly growing channel. Marketers can start by answering two fundamental questions: 1.) What business outcome(s) would you like your Facebook marketing investment to produce? 2.) How will you measure and optimize these outcomes? Advanced Tactics Beyond the standard goal of conversions, consider the awareness amongst your target audience of a new product line or promotion. Think about how to influence customer perception of your brand to increase the likelihood of purchase in the future. Consider building customer loyalty in order to drive repeat purchases from your top customers. Successful marketers are experimenting with awareness and consideration building techniques by utilizing new Facebook ad types and destinations, while at the same time continuing to focus on driving conversions by targeting Facebook users with purchase intent. Those able to identify and articulate clear “top of the funnel” and “bottom of the funnel” objectives throughout the organization will ultimately have a more successful Facebook campaign experience. 1.) Consider the maturity of your brand and degree of equity on Facebook – How established your brand is on Facebook will shape the goals you select. For example, a startup may be new to Facebook and therefore may need to focus on fan acquisition in order to establish a community to engage with over the long term. Mature companies with a strong fan base may find it more appropriate to leverage their existing networks for word-of-mouth marketing and driving brand engagements. 2.) Consider your industry – What goals are appropriate and realistic for your business, your customers and the products you sell? For example, a marketer in the retail industry may set a specific sales objective at a target ROI and use a promotion to achieve this objective. A B2B marketer may instead choose to use Facebook ads for the objective of increasing awareness through a page post distribution strategy that promotes thought leadership. 4
  5. 5. The Marketer’s Guide to Driving ROI From Facebook Advertising 3.) Consider the brand assets you have available to promote – Over the past year, Facebook has allowed marketers to promote numerous online and offline activities and assets, including mobile applications, offers, events, and Facebook applications. Consider which assets you have available to promote and how will they support each of your objectives. If Facebook-compatible assets are limited, develop new assets to promote. 4.) Identify the Facebook metrics that align with your objective – Consider the awareness and conversion metrics that make sense for your business. To fill the top of the funnel, are you concerned mostly with the reach and frequency of your message? Does it make more sense to focus on engagement metrics such as clicks, shares, and likes? Or would it be better to focus on driving leads, sales, or a combination of both? Have a conversation with your senior-level management about the short-term and lifetime value of each of these metrics and be sure to justify the importance of investing towards these objectives. 5.) Confirm tracking and reporting capabilities – Once marketers have identified success metrics for each campaign objective, they must ensure proper reporting processes are in place to track progress towards success. Consider utilizing a social ads management tool that tracks on-Facebook (social) engagement metrics, off-Facebook (website) conversions, sales, ROI, and Lifetime Value in a single interface. Doing so will allow the marketer to accurately determine the ROI of their Facebook program and budget accordingly. Once business goals are confirmed, develop an action plan that allows other higher-level stakeholders and media managers to understand how proposed Facebook investments and targeting strategies align with other company initiatives. This plan will also serve as a guide for Facebook managers to implement and optimize new campaigns. A sample action plan can be found below: BUSINESS GOAL FACEBOOK CAMPAIGN OBJECTIVES SUCCESS METRICS BRAND ASSETS TO LEVERAGE ADS OR STORIES Increase Awareness Reach new Facebook users within target auidence Social reach, Likes, Video plays, Virality, Image tags Page, Page posts, Videos,Images Stories Drive Consideration Acquire new Fans and increase engagement with brand Fan volume, Shares, Application intalls, Event RSVPs Page, Application, Events Both Generate Conversions Increase sales and drive installations of new mobile application Leads, Sales, CPL, ROI, Mobile app installs Website, Mobile appliction, Offers (promotions) Both Build Customer Loyalty Drive repeat sales of high value customers and increase customer advocacy Sales from current customers, Comments on page Customer data (via custom auidences), Page, Questions Ads Copyright © 2013 Marin Software Inc. All rights reserved. 5
  6. 6. The Marketer’s Guide to Driving ROI From Facebook Advertising When creating the action plan, consider a mix of ads (voice of your business), stories (voice of your customers), or a combination of both to communicate the message to your audience. In short, ads are generally best for targeting a broad audience on Facebook to promote content or targetingbrand assets to build awareness and/or acquire new fans. Conversely, sponsored stories allow Facebook users to act as brand ambassadors by promoting their engagements with your brand to their friends. Audience Targeting Getting Started The demographic of Facebook users is similar to that of the general internet population — so if your target customers are online, they are on Facebook too. As such, Facebook has secured a place on the media plan of most online advertisers, but how do they reach the right Facebook users? How do they ensure that clicks from users turn into actual engagement with their brands? At the heart of Facebook’s mission is the concept of sharing information and advertisers treasure that information. Through their personal profiles, users share information about age, occupation, hometown, friends, and interests. Through their actions, users provide key information for advertisers, such as the brands and pages they like. Advertisers can leverage this rich information through the plethora of targeting options available on Facebook, making it easy to reach the right users, at the right time, with an appropriately engaging message. Search marketers can draw on experience from other channels for Facebook audience targeting ideas. Analyzing best performing keywords and best performing placements can provide key insights into what audiences will likely perform best on Facebook. Advanced Tactics Many brands already have a well-established Facebook page and fan base. Marketers with this luxury can mine the demographics of an existing fan base for appropriate targeting criteria for future ad campaigns. Advertisers can expand on this foundation through root analysis of existing fans’ likes and interests. If existing fans are interested in “healthy eating,” then it makes sense to explore other lifestyle terms such as “health foods.” Tools such as the visual thesaurus, Visuwords, can provide visual inspiration for additional areas of interest to explore. Copyright © 2013 Marin Software Inc. All rights reserved. 6
  7. 7. The Marketer’s Guide to Driving ROI From Facebook Advertising Gardening Farming | Agriculture | Husbandry Horticulture | Plantsman Landscaping | Landscape Gardening Horticultural Gardening | Horticulture Landscape Flower Gardening | Floriculture Landscape Gardening Market Gardening In addition to rich demographics, Facebook users bring something even more valuable to the equation: friends. Social endorsement has always been powerful, but with Facebook, social endorsement now takes place online. As kids on the playground, we often wanted the same sneakers our friends wore. As adults, we are more likely to go to restaurants that our friends recommend. And this same concept applies in the online world, where friends are more likely to click on ads for brands that are liked by friends. Top Tip: Focus on themes rather than individual words. For example, use “flowers” rather than “roses.” Make sure your audience reach is not too small and don’t forget to save your audience templates for quick re-use. Copyright © 2013 Marin Software Inc. All rights reserved. 7
  8. 8. The Marketer’s Guide to Driving ROI From Facebook Advertising Creative Getting Started After identifying appropriate target audiences, it is important to ensure that creatives match the audience segments. If targeting recent graduates with travel ads, imagery that depicts groups of young travellers would build empathy with Facebook users who see the ad. It is also important to stand out from the crowd. The Paddy Power advertisement below on the left was shown to a male Facebook user in his 20s who has expressed he likes “football” and “golf” on his user profile. Not only does the bold color stand out on the page, but it is also well-tailored to the audience and made even more compelling with a social endorsement. The ad to the right was shown to a recently engaged female Facebook user. This ad was also welltargeted and stands out with contrasting colors, simple imagery, and that all-important social endorsement. The Paddy Power logo has instant brand recognition by millions of people in the UK. The red and pink ad stands out from the white and blue dominated Facebook user interface. The Paddy Power ad uses another great tactic – making use of well-known brand imagery. The green and white logo is instantly familiar to a lot of users in the UK, which encourages clicks. Macys, a top 40 global retailer, uses a different but equally effective tactic to appeal to its target audience on Facebook. In the Offer ad below, they leverage a profile picture of a young female as their creative image. Selecting an image that directly appeals to your targeted audience is critical as they are responsible for 70% of your clicks. When using this approach, the person portrayed in your images should be representative of the specific audience segment that you are targeting with your offer, as Macys has done below. Macy’s Facebook Ad Copyright © 2013 Marin Software Inc. All rights reserved. 8
  9. 9. The Marketer’s Guide to Driving ROI From Facebook Advertising Advanced Tactics With careful selection of target audience and appropriate creative, it is still possible serve up an ad that misses. Creative rotation is the key to ensuring you capture the attention of as many users as possible. The only way marketers can combat ad fatigue is to swap old ads for new. Make sure to keep track of the ads that work best and use similar themes and messages in future ads. Facebook promotions act as a reward to users for interacting with a brand on Facebook. The Now TV ad below is a wonderful example, pulling together many of the best practices discussed. For example, the bright pink image catches the eye, the familiar brand imagery provides credibility, and the ad was well-timed, shown within two weeks of Easter. Furthermore, it attempts to create an emotive response from the audience, conjuring images of spending time with family, and entices the user to click through by offering a free trial. Easter Family Films Ad Making the best use of the various creative formats available to Facebook advertisers can be a daunting task. Advertisers must choose between using standard ads, page post ads, mobile app install ads, or sponsored stories formats alone or in combination. And with Facebook continually innovating, it is likely that additional creative formats will be available in the future. In general, a blend of different ad formats produces the best results. Different users respond to each ad format in different ways. For example, some will completely ignore mobile app install ads but will show a high propensity to engage with ads endorsed by friends. If data indicates little return from a given ad format, remove it from the plan and consider testing another one. However, make sure you have fully evaluated the impact of an ad before deciding to remove it. Top Tip: Save time and improve performance with an image library and automated creative rotation tool to keep your ads fresh and to capture the attention of as much of your target audience as possible. Copyright © 2013 Marin Software Inc. All rights reserved. 9
  10. 10. The Marketer’s Guide to Driving ROI From Facebook Advertising User Experience Getting Started Let’s take a moment to walk through a user journey with a brand on Facebook – A user may see your ad, click “like” and go to your Facebook brand page. In this example, your brand has acquired a Facebook fan. However, acquiring a new fan alone may not present clear long-term value to a brand, unless the user is given a compelling reason to return and re-engage with the brand. A Facebook user does not necessarily want to be immediately directed away from Facebook to an e-commerce site, so consider tactics to reward the user for engagement. There are countless ways to reward Facebook users, including fan-only promotions and vouchers, sale previews, prize drawings, and competitions. Voucher from Ocado The Ocado ad above promotes a voucher to the first 1,500 customers to claim the offer. This not only rewards existing fans but encourages them to regularly visit the Ocado Facebook page. Once a user has liked your brand on Facebook you can then open up dialogue with them. Over time you can send messages and status updates about forthcoming sales, new products, and events. These messages can be used to send users to your website and drive sales. Copyright © 2013 Marin Software Inc. All rights reserved. 10
  11. 11. The Marketer’s Guide to Driving ROI From Facebook Advertising Advanced Tactics Facebook apps provide the marketer with more control over the user experience as well as the ability to gather detailed demographic data from user profiles. We live in a world where there is always “an app for that,” and Facebook is a prime portal through which to reach app-hungry users. Facebook apps are primarily for use within the Facebook user interface, but you can also drive users to download apps through Apple or Google Play. While building a Facebook app may be time and resource intensive, the long term benefits to marketers can be significant; engagement with users is often higher quality and can be more rewarding compared to other forms of Facebook advertising and interaction. As many Facebook advertisers work towards fan acquisition, they are presented with two distinct problems: how to acquire new fans and how to retain existing fans. In the Audience and Creative sections of this white paper we discussed ways to acquire new fans, so now let’s talk about driving interaction and retaining existing fans. Users need a good reason to interact with your brand, but it doesn’t necessarily have to be a financial or tangible reward such as a discount or prize. Facebook users love to share information. We tell our Facebook friends what we’re doing, we let them know where we’ve been, and we share photos and videos. Ads that encourage users to share their experiences get great click-through rates. For example, Discover Ireland’s ad below invites users to share their St Patrick’s Day celebrations through uploading pictures. This ad alone generated nearly 6,000 likes and over 450 shares, 100s of users uploaded photos and videos, and the most liked of these generated an additional 3,000 likes. And it didn’t stop there - the conversation will continue as Discover Ireland announces the winner through a status update, which will be seen by all their existing and newly-acquired fans Discover Ireland Ad Top Tip: Make the most of the Facebook experience to encourage long-term interaction with users. Reward your fans with user-generated content and also tangible rewards from time to time. Copyright © 2013 Marin Software Inc. All rights reserved. 11
  12. 12. The Marketer’s Guide to Driving ROI From Facebook Advertising Tracking Conversions, Both Online and Offline Getting Started CMOs love online advertising because it is accountable. It is now commonplace to track conversions resulting from ad clicks, and Facebook is no exception. Regardless of their objective, before spending a single dollar, advertisers need to ensure that adequate tracking is in place. Without proper visibility into revenue streams, it will be difficult to evaluate the success of Facebook advertising. Many Facebook campaigns will have short-term goals such as fan acquisition, as well as long-term goals such as sales. So to fully understand the value of Facebook advertising, it is important to properly track multiple conversion types. Facebook’s integrated tracking solution automatically tracks social conversions, such as likes, RSVPs, and application installs. Combined with cost data, Facebook marketers are able to determine the cost of a like, an RSVP, or an install and use that information to increase volume and improve ROI. However, if there is a need to track off-Facebook conversions, such as account openings, sales, etc., marketers often rely on a third-party tracking solution to monitor conversions and tie them back to Facebook clicks. Using revenue-to-click attribution, marketers can understand how Facebook advertising contributes to actual sales and revenue. Advanced Tactics What happens when users convert offline? When promoting an in-store sale or event, how do advertisers measure the number of people who take advantage of the offer? One possible answer is to utilize a third-party solution to generate unique voucher codes. The codes can be distributed to Facebook users and can be redeemed by them at the point of sale (either electronically or in paper form) in exchange for a discount. This will provide direct evidence of Facebook-influenced sales and provide insights into whether those customers were more or less profitable than average. Facebook marketers can combine this offline revenue data with CRM data overlaying demographic data to further inform analysis. Top Tip: Think about all possible touch points you create with users and deploy third-party tracking solutions to understand the full impact of Facebook advertising. 12
  13. 13. The Marketer’s Guide to Driving ROI From Facebook Advertising Mobile Strategy Getting Started Today, more than half of Facebook users access Facebook via a mobile device7. As mobile usage continues to increase, so does Facebook’s revenue from mobile advertising. At the time of this writing, 23% of Facebook’s advertising revenue comes from ads targeted to mobile devices8. Separating ads that target mobile devices and those that target desktop devices into different campaigns is a must in order to understand how performance varies across different devices. Additionally, by creating different campaigns with different ads, you can tailor the ads to mobile or desktop users. Today, mobile ads have a lower CPC (compared to desktop ads) and can be a good way of gaining low-cost likes, thus providing a growing list of fans to target in the future. It is worth noting that mobile ads are shown exclusively in the Facebook News Feed. Therefore, advertisers should think carefully about timing, as many people use the work commute time to catch up on Facebook activities or share new information with friends. Advertisers should also think carefully about landing pages and destination URLs because mobile users will be frustrated if an ad takes them to a non-mobilefriendly destination. Therefore, one effective mobile strategy could be to focus on simple Facebook engagement conversions that are contained entirely within the Facebook environment. Advanced Tactics Mobile app install ads are similar in look and feel to other ad formats, with a key difference being that they invite users to engage with games and apps rather than Facebook pages. Clearly, this type of ad is limited to companies that have developed Android or IOS apps, but it provides marketers with both a new way to interact with customers and a valuable stream of analytics. Mobile offer ads also provide a great way to engage with on-the-go mobile users, such as by offering a discount at a store or restaurant while mobile users are near that location. As with all Facebook marketing efforts, revenue tracking is especially important with mobile creative formats. Reports show that users who have downloaded a retailer’s Facebook app spend more than those who have not and are more likely to be repeat customers. Top Tip: Take advantage of the growth in mobile with mobile-specific campaigns. Track long-term engagement, sales, and revenue using a sophisticated tracking solution. 7. 8. Copyright © 2013 Marin Software Inc. All rights reserved. 13
  14. 14. The Marketer’s Guide to Driving ROI From Facebook Advertising Bidding Getting Started Facebook offers advertisers a chance to buy ads on a CPM, CPC, or “OCPM” model. The majority of advertisers opt for a CPC model, taking advantage of the opportunity to pay only for clicks. The CPM or OCPM models are worth testing if you are targeting a very niche audience and are facing low levels of competition. For advertisers wishing to take advantage of the CPC pricing, Facebook provides a suggested bid range, which will ensure visibility. If advertisers set bids too low, there is a risk that Facebook will not show the ads very frequently. If impression volume is limited, advertisers may not be able to achieve optimal audience reach and campaigns may flounder despite well-crafted audiences and ads. Alternatively, implementing bids at the top end of Facebook’s recommended bid range could result in paying more than necessary. As a general guideline, advertisers should pick a mid-point in the recommended bid range and adjust from there based on performance. Advanced Tactics Tracking is essential for automated Facebook bidding solutions. In general, the more data points an algorithm has to use for decision-making, the better the results. For example, if an advertiser seeks both likes and sales, it is important to select a tracking provider that can distinguish between on- and off-Facebook conversions, and weight them independently. A tracking solution that treats all conversion types equally will prove problematic, diverting budget away from ads that drive more high-value sales. Marketers must also account for “noise” produced by short-term campaigns when optimizing Facebook creatives across an entire portfolio. For example, the Marks & Spencer ad below was part of a one-day sale promotional campaign designed to instill a sense of urgency and drive a short-term spike in sales. Although short-term promotional sales may produce a quick lift in sales volume, manually bidding on these types of creatives can be expensive in terms of time and unnecessary spend. Marks & Spencer Ad Copyright © 2013 Marin Software Inc. All rights reserved. 14
  15. 15. The Marketer’s Guide to Driving ROI From Facebook Advertising Facebook would deem this creative as a new ad upon creation and, as such, marketers would have no historical data upon which to select an appropriate starting bid. In this example, marketers would need to analyze their creative portfolio to find other creatives with a similar message and goal and then base their bids on the performance of those previous ads. This process can be time-consuming and prone to error. Sophisticated third-party bidding solutions enable marketers to create custom groups of ads based on business goals and will then use data from other ads to calculate the best bid. This can be done at scale within a few clicks, saving time and improving ROI. Top Tip: Choose an automated bid technology that can integrate multiple conversion types and conversion data from multiple sources. Conclusion It is clear that there is a significant opportunity to drive incremental ROI through Facebook advertising. Whether this white paper prompts you to set up your very first Facebook campaign, give Facebook another go after a shaky start, or fine-tune your successful campaigns, we recommend keeping the following concepts in mind: • Don’t be afraid to experiment with new targeting options and ad formats • Remember that Facebook advertising is often about measuring long-term engagement rather than short-term sales • Consider Facebook alongside the rest of your online and offline activity for a full picture of the success and uplift Marin software is fully integrated with the Facebook advertising API and enables marketers to efficiently follow the best practices outlined in this white paper. Copyright © 2013 Marin Software Inc. All rights reserved. 15
  16. 16. The Marketer’s Guide to Driving ROI From Facebook Advertising ABOUT MARIN SOFTWARE Marin offers the complete revenue acquisition management platform, incorporating the workflow, analytics, and optimization tools necessary to enable marketers to save time, make better decisions, and improve financial results. Marin represents a natural evolution for the marketer, offering tools that measure, manage, and optimize digital advertising campaigns to achieve desired revenue outcomes. With Marin, advertisers can transform data into actionable business information and complexity into opportunity- which is the simplest equation to drive revenue. Our customers, including many of the world’s largest interactive agencies and advertisers, rely on Marin Software’s platform to manage more than $4.7 billion of annual marketing spend. Leading advertisers using Marin include University of Phoenix, Macy’s, Razorfish, Neo@Ogilvy, PriceGrabber, Symantec and United States EMEA APAC San Francisco 123 Mission Street 25th Floor San Francisco, CA 94105 415-399-2580 United Kingdom 1st Floor, Orion House, 5 Upper St Martin’s Lane, London, WC2H 9EA +44 (0)203 595 1595 Japan 3rd Floor, Sanno Park Tower 2-11-1 Nagata-cho Chiyoda-ku Tokyo 100-6162 Tel: +81 3 6205 3179 New York 215 Park Avenue South Suite 1801 New York, NY 10003 Tel: (646) 490-2427 France Actualis Level 2 21 and 23 Boulevard Haussmann Paris 75009 Tel: +33 1 80 95 68 60 Singapore One Raffles Quay North Tower, Level 25 048583 Tel: +65 6622 5888 Chicago 203 N. LaSalle St, Suite 300-A Chicago, IL 60603 Tel: (312) 267-2083 Germany Am Kaiserkai 1 20457 Hamburg Tel: +49 40 80 80 74-522 Australia Level 33 Australia Square 264 George Street Sydney NSW 2000 Tel: +61 (0)2 9258 1820 (415) 399-2586 Copyright © 2013 Marin Software Inc. All rights reserved. 123 Mission Street, 25th Floor San Francisco, CA 94105 16 © 2013 Marin Software. All rights reserved. Other trademarks belong to their respective owners. WP 267_0620613