Using multivariate techniques, social media campaigns can be optimized to increase ROI. Automated tools allow for the creation of targeted audiences at scale and simultaneous A/B testing of ad components across many combinations to find the highest performing variations. Multivariate testing of text, images, locations, interests, ages and gender can produce 3-7x lifts in performance. Retargeting strategies use Facebook ads to follow users across the web who previously visited a site.

1. Using Multivariate Techniques
To Increase ROI In Social Media
Campaigns
Matt Esslinger, XA.net COO
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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)
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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)
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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)
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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 2011
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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
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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 7
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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?
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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)
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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
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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
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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
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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%3
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14. And now the demo…
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