1. The document provides a quarterly report on Facebook and Instagram advertising trends in Q2 2016. It analyzes spending patterns and campaign objectives. 2. On Facebook, video views, clicks to website, and mobile app installs received the highest spending. On Instagram, clicks to website, video views, and page post engagement had the highest spending. 3. The report outlines various updates to Facebook and Instagram ads, including improvements to dynamic ads, video ads, lead ads, pixel matching, text guidelines, and budgeting algorithms.

1. COPYRIGHT © WISEBIRDS CORP. ALL RIGHTS RESERVED.
WISEBIRDS
QUARTERLYREPORT
2016Q2FACEBOOK&
INSTAGRAMTRENDS

2. FASTER&EASIER
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InQ2onFacebook, thespendingwashighintheorderofVideoView,ClickstoWebsite, andMobile AppInstalls.
ComparedtoQ1,theadspending ofVideoViewandClickstoWebsite havenotablyincreased,whilethead
spending ofMobile AppInstallsandPagePostEngagementhaveslightlyreduced.
Q1/Q2AD
KEYINDEX
DominantShares:VideoViews/Clicksto
Website/MobileAppInstalls
Q1/Q2ADKEYINDEX
Source:Q2WisebirdsCampaignData
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
FacebookAdSpendingofCampaignObjectives
VIDEO VIEWS LICKS TO WEBSITE MOBILE APP INSTALLS PAGE POST ENGAGEMENT PAGE LIKES
MOBILE APP ENGAGEMENT WEBSITE CONVERSIONS PRODUCT CATALOG SALES LEAD GENERATION
22.76% 19.84% 19.13% 17.31% 8.81% 7.54% 2.39% 1.7% 0.52%
100%
22.05% 14.85% 26.54% 18.27% 8.59% 3.3% 0.97% 4.25% 1.2%
100%
Q1
Q2

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OnInstagram,thespending washighintheorderofClickstoWebsite, VideoViews,andPagePost
Engagement.ComparedtoQ1,whiletheadspending ofVideoViewandClickstoWebsite havedecreased, the
adspending ofPagePostEngagementandMobile AppInstallshavesignificantly increased.
Q1/Q2AD
KEYINDEX
DominantShares:VideoViews/Clicksto
Website/MobileAppInstalls
Q1/Q2ADKEYINDEX
Source:Q2WisebirdsCampaignData
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
InstagramAdSpendingofCampaignObjectives
VIDEO VIEWS CLICKS TO WEBSITE MOBILE APP INSTALLS PAGE POST ENGAGEMENT WEBSITE CONVERSIONS
51% 42% 3% 4% 0.05%
100%
31.46% 44.11% 7.03% 16.47% 1.03%
100%
Q1
Q2

4. Q1/Q2FacebookAverageEfficiencyforCampaignObjectives
Q1/Q2ADEFFICIENCY
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q1/Q2AD
KEYINDEX
0.19
0.39
2.07
18.9%
12%
Mobile App Installs Clicks to Website Video Views
CPC CPI CVR
1.63
0.18
0.26
0.73%
1.92
2.65
CPC CTR CPM
1.29%
0.010.01
17.49%
2.34
2.59
CPV VTR CPM
17.41%
0.03
0.03
7.16%
2.15
2.51
CPE ETR CPM
7.42%
Page Post Engagement
Page Likes ProductCatalogSales MobileAppEngagement LeadGeneration WebsiteConversions
0.13
0.18
0.25
4.04
3.74
CPC CPL CPM
0.4
0.13
0.16
4.73%
2.078%
696.2%
CPC CTR ROAS
5.81%
0.13
0.41
1.24%
4.91
3.06
CPC CTR CPM
2.42%
1.131.26
0.73%
9.96
CPC CTR CPL
0.50%
0.21
0.37
0.86%
3.15
4.41
CPC CTR CPM
2.01%
Q1 Q2
2.02
*OnlyFacebookPageLikecampaignsapplyClicks(All,allclickswithinadare),andothercampaignsapplyLinkClick
**CampaignData: 2016.04.01–06.30allcampaignsbyWisebirds
***CVR:ConversionRate,itrepresentsClick/Installation. Itistheconversionratefromthelinkclicks.
(Unit : $, 1$=1,100)

5. Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q1/Q2AD
KEYINDEX
0.52
0.67
1.62
41.1%
28,5%
Mobile App Installs Clicks to Website Video Views
CPC CPI CVR
1.83
1.43
1.45
0.25%
3.61
3.91
CPC CTR CPM
0.27%
0.02
0.02 13.5%
3.74
2.73
CPV VTR CPM
15.8%
0.06
0.05
10.18%
5.54
6.09
CPE ETR CPM
10.23
%
Page Post Engagement
*OnlyFacebookPageLikecampaignsapplyClicks(All,allclickswithinadare),andothercampaignsapplyLinkClick
**CampaignData: 2016.04.01–06.30allcampaignsbyWisebirds
***CVR:ConversionRate,itrepresentsClick/Installation. Itistheconversionratefromthelinkclicks.
(Unit : $, 1$=1,100)
Q1 Q2
Q1/Q2InstagramAverageEfficiencyforCampaignObjectives
Q1/Q2ADEFFICIENCY

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MoreAdvancedDynamicAds
FacebookDynamicAdsareoneofthekeyproductsofFacebook,whichretargetsaudiencewhoviewed
productsonwebsite orapp,andmaximizes DirectSales.Othermediaarealsoconsideringanddeveloping this
automaticretargetingproductastheirnextstrategicitem.TherehavebeenvariouschangesonDynamicAdsto
enlargeitsusage,andtherewereincreasingnumberofadvertisersrunningDynamicAds.
1
2
ApplicableEventsEnlarged
From theexistingeventsofViewContent,AddtoCart,Purchase,
theeventsenlargedtoSearchandCategory
InventoryEnlarged
InstagramandAudienceNetworkareaddedtoreachable
inventoryof DynamicAds
3 OpportunitytouseProductFeed Enlarged
MobileAppInstallcampaignscanuseProductFeedas
creative.
MainImprovementsforDynamicAdsinQ2
Q2ADKEYUPDATES
4 DynamicAdsforTravel100%roll-out
DynamicAdsforTravelis100%rolled-outforalladvertisers,
whichenablestoincludevacantroomsorstarratesof
hotelsincreativeQ2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q2ADKEY
UPDATES

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Audience Exportfrom
Previous Campaigns
VideoAdUpdates
InQ2,Facebook VideoAdhadupdates includingvideo looping, CTAformat,VideoLinkAd,andnewlandingformat
whichvideo continuestoplayafterlinklanding.ItisexpectedthatnotonlyBrandingadbutalsoDirectResponse
campaignswillincreasetouseVideoads.
FacebookVideoLoop NoCTAwhenVideoEnds VideoLinkAd VideoContinuesafterLanding
LikeInstagram,Facebookvideos
getloopingthatvideo
automaticallyreplays.However,
videolongerthan30secondsgets
loopingonce,andvideosshorter
than30secondsgetsloopingup
to90seconds
※ Loopingdoesn’tgetcountedas
videoviewbutgetscountedinthe
playedtime
ThereisnoCTAoverlay,butthere
willbethumbnailimageand
replaybuttoninstead
Whenvideocreative+websiteURL
areaddedunderVideoView/Brand
Awarenessobjectives,thecampaign
isinVideoLinkAdformat
WhenVideoLinkAdisclicked,
videocontinuestoplayandthe
landingwebsiteappearsbelow
Q2ADKEYUPDATES
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q2ADKEY
UPDATES

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EnhancementsonLeadAds
FacebookLeadAd,whichenablestoacquirepotential customers,isalsomakingvariousupdates toprovide
efficientopportunities foradvertisers.Therecentupdateenablestocustomaudienceofpeople wholeftinthe
middleoffillingtheleadform.Also, newoptionisaddedfortheadoptimization objective whichistooptimize on
people whosignuponthewebsite throughLeadotherthanleadformfilling,whichisuseractiononwebsite.
EngagementAudiences
Customaudienceofpeopleleftinthemiddleof
leadtoretargetfornextLeadAd,forLookaliketo
scale-up,andforotherbrandingorDR
campaigns
UseinVariousIndustries
TheuseofLeadAdmaybeexpectedtobe
limitedonfinancialadvertisers.However,there
areactuallymorevariousindustriesusingLead
Adsafteritslaunchthanexpected.
OptimizationbasedonWebsitePixel
YoucansetoptimizationobjectiveasWebsite
Pixel,whichcanbesuitablewhentheobjectiveis
toacquirepeoplenotonlyfromFacebookLead
butalsofrompeoplesigninguponthewebsite
viatheLeadad
Facebook
Pixel
73.4%
8.9
%
6.9%
6.8
%
2.9
%
0.9
%
Commerce
CPG
Organization
Transportation
App&Media
Fashion/Beauty
Source:Q2WisebirdsCampaignData
Q2ADKEYUPDATES
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q2ADKEY
UPDATES

9. FASTER&EASIER
Create
Campaign
Fastwith
Multiple
Creative&
AdSet
BulkAdvertCreation
One-click AdSet
Segmentation
Audience Exportfrom
Previous Campaigns
AdvancedMatchingwiththeFacebookPixel
FacebookPixel continuestohaveupdates throughoutthequarters.InQ1,therewasanupdateforPixelofusing
frequencyandtimetocategorize userswithhighpurchasepotential.InQ2,Facebook Pixelenables youtotransfer
yourcustomerdatatofindcustomersonFacebook foryourcampaigns.
AdvancedWaytoRetargetonFacebookwithpixel
Facebook Pixel
ByusingFacebookPixel,CRMdata(personalinfoincludingmobilenumber,email,nameetc.)iscollectedandfindtherightaudienceonFacebookforefficiencyre-
targetingofyourcampaign.ThemanualtasksofuploadingCRMdatacanbesimplifiedbyFacebookPixel. Moreover,alldatafromthepixelgetshashingbySha256,and
FacebookdoesnotcollectorsaveanypersonalinformationasFacebookonlysavesdataofwhetheritismatchingornon-matching
CustomerData
Finding
Customeron
Facebook
FacebookPixel
Q2ADKEYUPDATES
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q2ADKEY
UPDATES

10. FASTER&EASIER
Create
Campaign
Fastwith
Multiple
Creative&
AdSet
BulkAdvertCreation
One-click AdSet
Segmentation
Audience Exportfrom
Previous Campaigns
ChangesonTextGuideline &BudgetingAlgorithm
Facebooknolongerlimitsin20%textpolicyonanadimage, whichmeansallcreativearepossible regardless
oftheamountoftextwhileminimaltextisstillpreferred.
Inaddition tothesettingandspending theexactdailybudgetamounteachday,thenewbudgeting algorithm
allowstospecifyadaily*average* budgetyou’dliketoapplytoyouradset.
TextPolicyin4Categories
Facebook Pixel
Previously,if20%ofanadimage’sareawastext,itwouldn’tbe
approvedtorunonFacebook.Whileminimaltextisstillpreferred,
Facebooknowallowsyoutorunadsthatwould'vebeenrejectedunder
oldpolicy. Thetextstatusgetsjudgedin4categories,and“Mediumor
High”effectonimpression.Forminimalrestrictionsonimpression,
“Littleornotext”isimportant.
ImageText:OK ImageText:Low
ImageText:Medium ImageText:High
AverageDailyBudget
Facebook Pixel
Fordailybudget,youcansettheaverageamounttospendinsteadofexact
amount.Forexample,ifyousetadailybudgetof$10,Facebookwillspendup
to$12.50orlowerthantheaveragedependingthedailyefficiency.Whenyou
settheaveragebudgetas$10,thespendingmayvarydaytodaybutthetotal
spendingwillexceed$70($10x7).
Time
Cost
$12$12
$10
$4
$8
$2
Q2ADKEYUPDATES
Q2ADKEYUPDATES
Q1/Q2ADKEYINDEX
Q2ADKEY
UPDATES