Facebook provides a direct response marketing solution through its platform. It allows businesses to: 1. Reach more customers and prospects through targeting tools like Custom Audiences and Lookalike Audiences. 2. Drive conversions across devices using direct response ad units in News Feed and optimized bidding. 3. Make insightful decisions with tools like the conversion pixel and SDK that provide cross-device measurement and attribution.

1. Facebook for Direct Response Marketing
Last updated: March 2014

2. Source: eMarketer, US , July 2013
Radio Television
Digital Mobile
1950
1960
2000
2010

4. The path-to-purchase is complex
Are you reaching them where they are converting?
start shopping on one
device and continue
on another
67%
Source: comScore/PayPal “Reaching the Connected Consumer” Custom Surveys, Oct 2013

5. Reach more of
the right people
Make
insightful
decisions
Drive action
across devices
The power of Facebook’s direct response solution

6. Reach more of the right people

7. Reach people otherwise unreachable
Source: *Quarterly estimated based on monthly search query volume from Google Keyword Tool, April 16, 2013, ** (Q4 2012 estimate) – Nate Herman, Vice President, American
Apparel & Footwear Association, *** Gartner, Feb 2013, “Gartner Says Worldwide Mobile Phone Sales Declined 1.7 percent in 2012”, ***Aggregate Knowledge, Q4 2102
Search represents a fraction of purchase intent
Shoes in the US (in millions, Q4-2012)
115 Searches*
784 Purchased**
45%
of people reached via
ads were reached
exclusively through
Facebook***

8. Case study:
Success from leading retailer
Facebook makes search work even harder
Source: Kenshoo “Facebook Advertising Boosts Paid Search Performance,” Nov 2013; study commissioned by Facebook
30%
higher return
on ad spend
24%
increase in
AOV
7%
higher paid
search CTR
4.5%
drop in
CPA

9. Reach all of the people who matter to you
Source: Facebook US internal data, Sept 2013
High-quality reach
180M
monthly
active users
US
146M
mobile monthly
active users
US
104M
mobile daily
active users
US
Incredible scale on mobile

10. Source: US Mobile Total Monthly Minutes, comScore, September 2013
Where they are
most engaged

11. Use data to reach more of the right people
Facebook data
Interests Behaviors ConnectionsLocationDemo
Your data
Custom Audiences
Past
purchasers
Highest LTV
customers
Members
of loyalty
programs
Third-party data
Partner categories

12. Source: Nielsen OCR, August 2013
89%
accurate
38%
Theaverageonlinereachfor
narrowlytargetedcampaignsis
accurate
TheaverageFacebookreachfor
narrowlytargetedcampaignsis
Reach real people with accuracy

13. Facebook Targeting
Core
Audiences
Lookalike
Audiences
Custom
Audiences
Sophisticated targeting with
unsurpassed accuracy
Reach the people you
already know
Find more people like your
best customers

14. Use Core Audiences to segment your audience
Online and offline
sources
Targeting types
Location
Interests
Demographics
Partner
Categories
Sample segments
Age and gender
Engaged gamer
Interested in shopping
Living in Chicago
Android phone user
Behaviors

15. Matched targets
Email addresses
Phone numbers, iOS IDFAs
Facebook User IDs, App User IDs
People you know
Direct or through third-party
People from your website
People from your mobile app
FacebookPeople you know on
Facebook
Custom Audiences
Reach your specific customers or prospects at scale

16. Lookalike Audiences
Find people who look like your customers and prospects
and people who look like them
Fans of your PageWebsite visitors Mobile app customersPeople you know

17. Flagged with cookieVisits website Visits Facebook Person recognized by
cookie, bid placed,
and ad served
Facebook Exchange (FBX)
Dynamic remarketing on desktop

18. Drive action across devices

19. Put your products at the center of the experience
14X
People check
News Feed
per day
Source: IDC, “Always Connected,” March 2013
In-stream and
native
1
Designed for
action
2
Optimized for
conversion
3

20. VS
Third-party ad
Center of the engagement
Formats that are large, visual and in-stream

21. Designed for action
Page post link ads – now with CTAs
• Entire image is clickable
• Offers the highest amount of
real estate to get people to click
on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download

22. Designed for action
Mobile app install and engagement ads
Customer discovery and acquisition Retention, engagement and conversion

23. Optimized for conversion
Website and mobile app conversions with oCPM and CPA

24. Make insightful decisions

25. Current measurement challenges
Key challenges
• Data is fragmented
across devices
• Measurement solutions rely
on proxies
• Optimization is difficult
due to fragmented data
Facebook solutions
• Cross-device: Facebook
measures cross-device behavior
• Accurate: Facebook measures
real people, not proxies
• Actionable: Facebook tracks
performance against goals

26. As a fully cross-device platform, Facebook enables
businesses to accurately track conversions

27. Measure results across devices
Conversion
pixel
SDK Third-party
measurement

28. Reach more of
the right people
Make insightful
decisions
Drive action
across devices
Core Audiences
Custom Audiences
Lookalike Audiences
Facebook SDK
Conversion pixel
Mobile app ads
Page post link ads
3rd party
measurement
Facebook’s complete direct response solution
oCPM / CPA

29. Summary
How Facebook drives effective direct response marketing
1
Reach more of your customers and prospects
with Custom Audiences and Lookalike Audiences
2
Capture attention and drive conversions across devices
with direct response ad units in News Feed and optimized bidding
3
Make insightful decisions
with the Facebook conversion pixel and SDK

31. Getting started
with driving website conversions

32. Setting up a campaign
1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

33. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

34. Objectives in ad create tool and Power Editor

35. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

36. Acquire new customers with Core Audiences
Purchase based*
Psychographic
Geographic
Intent/interest
Demographic
Lifestyle/life-stage

37. Cross-sell and upsell with Custom Audiences
1
Download your ad account in Power Editor
2
Upload your lists (email, phone, etc.) or select
visitors of your website or mobile app.
3
Save your Custom Audience
4
Include or exclude your Custom Audience in
targeting
5
Layer Core Audiences for further segmentation

38. Expand reach with Lookalike Audiences
1
Select your existing Custom Audience and click
“Create Similar Audience”
2
Choose which country you want to target
3
Select whether you want to optimize for
similarity or greater reach
4
Access your Lookalike Audience in 6-24 hours
5
Layer Core Audiences for further segmentation

39. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

40. Creative and messaging
• Use powerful imagery
• Use succinct messaging that
promotes action
• Take your audience to where
they want to land
• Keep ads fresh by updating
creative on a regular basis

41. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

42. Placements
News Feed Right Column

43. Page Post Link Ads
• Entire image is clickable
• Offers the highest amount of real
estate on desktop and mobile to
get people to click on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download
Ad format optimized to drive offsite conversions

44. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

45. Optimize your bidding around campaign goals
You value You pay for
We optimize
for
Best practice
Cost per mille (CPM) Impressions Impressions Impressions
You care about showing your
ad; can work well if micro-
targeting an audience even if
you only value clicks
Cost per clicks (CPC) Clicks Clicks Clicks
A basic strategy for
performance advertisers.
Clicks include likes, shares and
comments.
Optimized CPM
(OCPM)
Conversions Impressions Conversions
If you care about a trackable
action, you should use OCPM

46. Determine how much to bid for your ad
• Bid your true value: for every ad you run, you should consider your
advertising objective and bid the maximum amount you’re willing to pay
for that objective
Example of profit maximization:
• Profit: $5
• Click to conversion rate: 2%
• Optimal bid for profit maximization: $0.10 CPC

47. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

48. Measurement tools
Conversion
pixel
SDK

49. Getting started
with mobile app ads

50. Setting up a campaign
1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

51. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

52. Objectives in ad create tool and Power Editor

53. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

54. Acquire new app users with Core Audiences
Psychographic
Geographic
Interests / intent
Demographic
Device
Operating System

55. Expand reach with Lookalike Audiences
1
Select your existing Custom Audience and click
“Create Similar Audience”
2
Choose which country you want to target
3
Select whether you want to optimize for
similarity or greater reach
4
Access your Lookalike Audience in 6-24 hours
5
Layer Core Audiences for further segmentation

56. Drive conversions with Custom Audiences
1
Download your ad account in Power Editor
2
Upload your lists (email, phone, etc.) or select
visitors of your website or mobile app.
3
Save your Custom Audience
4
Include or exclude your Custom Audience in
targeting
5
Layer Core Audiences for further segmentation

57. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

58. Creative and messaging
• Use powerful imagery
• Use succinct messaging that
promotes action
• Take your audience to where they
want to land
• Keep ads fresh by updating creative
on a regular basis

59. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Ad units
5
Bid optimization
6
Measurement and attribution

60. Ad units that drive installs and engagement
Mobile app install ads Mobile app engagement ads

61. Page Post Link Ads
• Entire image is clickable
• Offers the highest amount of
real estate on mobile to get
people to click on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download
Ad format optimized to drive offsite conversions
Page post link ad Page post link ad
with call-to-action
buttons

62. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

63. Optimize your bidding around campaign goals
You value You pay for We optimize for Best practice
Cost per clicks (CPC) Clicks Clicks Clicks
A basic strategy for performance
advertisers. Clicks include likes,
shares and comments.
Available for installs and
engagement
Optimized CPM
(OCPM)
Conversions Impressions Conversions
If you care about a trackable action,
you should use OCPM
Available for installs
Cost per action
(CPA)
Installs Installs Installs
When available, CPA is likely the
best bidding option for you
Available for installs

64. Determine how much to bid for your ad
• Bid your true value: for every ad you run, you should consider your
advertising objective and bid the maximum amount you’re willing to pay
for that objective
Example of profit maximization:
• Profit: $5
• Click to conversion rate: 2%
• Optimal bid for profit maximization: $0.10 CPC

65. 1
Define your marketing objective
2
Targeting
3
Creative and messaging
4
Placements and ad units
5
Bid optimization
6
Measurement and attribution

66. Measure what matters with Facebook SDK and
third-party partners
Facebook
Measurement
Partner
Both
• Measure ROI and
LTV on mobile
app ad campaigns
• Measure
advertising
performance
• Measure app
events
• Deeply integrate
with Facebook
social features
• Compare cross
channel ad spend

67. Try out a Preferred Marketing Developer to
optimize at scale
A community of best-in-
class developers focused
on making social
marketing easier and
more effective
45+
countries
Manage large amounts of
ads and accounts
Use advanced features not
available in Ads Manager
Manage ads across marketing
channels
Daily bidding and creative
optimization
Day part
www.facebook.com/PMD
Source: Country updated as of October 2013