Connected CRM in Paid Social – Using advances in data-driven targeting capabilities to “Pown” the newsfeed. Facebook is no longer just a “like” engine. It’s now a mass reach vehicle that delivers efficiently across a wide variety of audiences, platforms, and marketing objectives. These facts, coupled with Facebook’s rapidly changing advertising offerings present some challenges -- but more opportunities -- for advertisers to be relevant and effective using data-driven targeting techniques. From cross-selling existing customers, to prospecting for those most likely to become your next customers, learn the latest techniques incorporating all of the recent advances in Facebook advertising to drive real business results. Specifically: • Key changes in Facebook’s core advertising products provide targeted-scale for marketers • The newsfeed is now for sale – how to ensure your message gets seen • Bringing your own data to the party - how you can use connected CRM to get razor-sharp targeting and results • Using the Facebook Exchange as a core component to your remarketing strategy • Use fresh data and real-time optimization techniques to increase performance

1. “Pown” the Newsfeed:
Advanced Marketing on
the Facebook Platform
November
20
-­‐
21,
2013
November
20
-­‐
21,
2013
Presented by:
Paul Steketee
Head of Paid Social and Emerging Media, Merkle
Facebook.com/Steketee
@Steketee

2. Merkle - The Customer Relationship Marketing Agency
Over 2,000 Employees Globally Driving CRM Outcomes
Increased customer value
Improved media effectiveness
|
Improved marketing ROI |
Integrating diverse capabilities
Through optimizing customer touchpoints
POS
Phone
Site
Mobile
TV
Radio
Display
Print
Social Direct mail Email
Our Integrated Digital Media Group
Approaching
$300
million
in
managed
media
spend
70%
YOY
revenue
growth
300
experienced
digital
marke2ng
professionals
© 2013 Merkle Inc. All Rights Reserved. Confidential
2
100+
Digital
clients
Search

3. Vision - Precise and Direct Targeting in Paid Social Media
Merkle delivers true customer-centric advertising in social via our deep
customer insights and data-driven strategic approach to targeting, buying,
and optimizing paid social media.
© 2013 Merkle Inc. All Rights Reserved. Confidential
3

4. Merkle’s Approach To Paid Social Targeting Optimization
We increase campaign effectiveness with better insight into customers and through our datadriven targeting, better analysis, and better optimization strategies.
Customers added
to database
Digital Targeting
model created
Models fed into
Facebook to target
All site Visitors are
added to the database
via cookie or social
login. Previous and
recently sold customers
are also added to the
database along with
their purchase
information.
“High-value” segment
customers are flagged
and their online
behaviors across digital
media and channels is
analyzed to create a
look-alike models.
Models implemented into
Facebook Custom
Audiences to directly
target customers and
create look-alike models
that target best
customers based on FB
likes/interests.
© 2013 Merkle Inc. All Rights Reserved. Confidential
4
Digital attribution
identifies what is
working
Optimization feed
closes the loop
Analytic process uses
algorithmic attribution of
conversions across
display, search, mobile,
and social – beyond lastclick.
Based on attribution, media
mix, frequency, and cost
allowables are all optimized
directly into the media
platforms

5. Advanced marketing on the Facebook Platform
Advanced marketing
on the
Facebook platform
The products &
results
How to take
advantage of the
opportunity
The Opportunity
The Results
The Roadmap
© 2013 Merkle Inc. All Rights Reserved. Confidential
5

6. Facebook is Applying Focus to Direct Marketing
Share
Like
Facebook
Ad
Better price and response
Most Inventory
Best Targeting
Website
In
store
Facebook
Ad
© 2013 Merkle Inc. All Rights Reserved. Confidential
6

7. The Facebook Opportunity
Reach
Facebook has become the
publisher/platform with the
largest reach
Targeting
Facebook is building tools to
enable best consumer level
targeting available online
Tracking
Facebook has overcome the tracking
hurdles associated with cookies
© 2013 Merkle Inc. All Rights Reserved. Confidential
7
Innovative Formats
Facebook has a wealth of
innovative ad products

8. Facebook’s Reach is Massive
Across all age demos
Facebook reaches
1.19
Billion
(online users globally)
73% of US active online users
Source:
Facebook
Q1
Earnings
Call,
Comscore,
Key
Metrics,
February
2013
© 2013 Merkle Inc. All Rights Reserved. Confidential
8
Source:
Comscore
for
the
Month
of
April
2013

9. Facebook leads the space in total page views and time spent
among total internet audience
Total Page Views and Time Spent (total internet audience)
80,000
140,000
70,000
120,000
60,000
100,000
50,000
80,000
40,000
60,000
30,000
40,000
20,000
20,000
10,000
Total Views (MM)
9
os
oft
Mi
cr
Tw
itte
r
st
ter
e
Total Minutes (MM)
Source:
Comscore,
Key
Metrics,
February
2013
© 2013 Merkle Inc. All Rights Reserved. Confidential
Pin
az
on
Am
AO
L
e
Tu
b
Yo
u
Ya
ho
o
oo
eb
Fa
c
Go
og
le
0
k
0

10. Facebook engagement continues to increase
U.S.
desktop
users
spend
and
average
of
around
6
hours
every
month
on
Facebook
U.S.
mobile
users
spend
and
average
of
around
14
hours
every
month
on
Facebook
*
Data
gathered
from
Comscore
January
2013
© 2013 Merkle Inc. All Rights Reserved. Confidential
10

11. From Cookie Based to Identifiable IDs
3rd Party Cookie
Unique ID
Mobile & tablet tracking
challenges
Cross device tracking
Cookie deletion
Accurate
Browser opt out (threat)
Persistent
© 2013 Merkle Inc. All Rights Reserved. Confidential
11

12. Facebook Advertising - The Products and Results
Advanced
marketing on the
Facebook platform
The products &
results
How to take
advantage of the
opportunity
The Opportunity
The Results
The Roadmap
© 2013 Merkle Inc. All Rights Reserved. Confidential
12

13. Facebook Targeting Products - Recent Advances
Facebook
NaKve
Older
•
Facebook
Data
Like
-­‐
Comment
-­‐
Share
© 2013 Merkle Inc. All Rights Reserved. Confidential
13

14. Facebook Targeting Products - Recent Advances
Facebook
Exchange
March
2012
Facebook
NaKve
Older
Like
-­‐
Comment
-­‐
Share
•
Facebook
Data
Like
-­‐
Comment
-­‐
Share
© 2013 Merkle Inc. All Rights Reserved. Confidential
13
•
Marketer
Anonymous
Data

15. Facebook Targeting Products - Recent Advances
Facebook
Custom
Audiences
September
2012
Like
-­‐
Comment
-­‐
Share
•
Marketer
Known
Data
Facebook
Exchange
March
2012
Facebook
NaKve
Older
Like
-­‐
Comment
-­‐
Share
•
Facebook
Data
Like
-­‐
Comment
-­‐
Share
© 2013 Merkle Inc. All Rights Reserved. Confidential
13
•
Marketer
Anonymous
Data

16. Facebook Targeting Products - Recent Advances
Facebook
Custom
Audiences
&
Lookalikes
March
2013
Facebook
Custom
Audiences
September
2012
Marketer
Known
Data
+
Facebook
data
•
Like
-­‐
Comment
-­‐
Share
•
Marketer
Known
Data
Facebook
Exchange
March
2012
Facebook
NaKve
Older
Like
-­‐
Comment
-­‐
Share
•
Facebook
Data
Like
-­‐
Comment
-­‐
Share
© 2013 Merkle Inc. All Rights Reserved. Confidential
13
•
Marketer
Anonymous
Data

17. Facebook Targeting Products - Recent Advances
Facebook
3rd
Party
Data
Partners
April
2013
Facebook
Custom
Audiences
&
Lookalikes
March
2013
Facebook
Custom
Audiences
September
2012
Marketer
Known
Data
+
Facebook
data
•
Like
-­‐
Comment
-­‐
Share
•
Marketer
Known
Data
Facebook
Exchange
March
2012
Facebook
NaKve
Older
Like
-­‐
Comment
-­‐
Share
•
Facebook
Data
Like
-­‐
Comment
-­‐
Share
© 2013 Merkle Inc. All Rights Reserved. Confidential
13
•
Marketer
Anonymous
Data

18. Facebook Exchange Versus Display RTB
Outcomes
• agd
FBX has a 79% lower cost per quote than RTB, driven by key levers:
• The inventory is both highly incremental (only 5% overlap with RTB),
and available at higher frequency
• The inventory is less expensive, CPMs are 60% lower than RTB.
• The inventory is 92% more responsive than RTB line items.
RTB
Environment
(72%
users)
Frequency
=1.4
FBX
(23%
users)
Freq=3.4
%
Contribution
FBX
Scale
41%
49%
36%
10%
Pilot
5%
RTB
+
FBX
Freq=9.4
© 2013 Merkle Inc. All Rights Reserved. Confidential
54%
61%
59%
20%
January
February
38%
22%
Budget
14
55%
45%
March
Quotes
67%
66%
30%
April
Sales

19. Facebook Custom Audiences Versus Interest-Based Targeting
Outcomes
• Match rates 3X higher than open web
• Find Rate 5X higher
• 500% more efficient versus demographic targeting
• LookaLike Models consistently most efficient form
of prospecting
© 2013 Merkle Inc. All Rights Reserved. Confidential
15

20. Newsfeed Versus Marketplace Performance
Outcomes
• 34x Higher CTR
•
1 - 5% CTR consistently
•
CPA
63%
more
efficient
47.5
Marketplace
34.7
Newsfeed
17.5
0.75
0.37
CTR
Spend
eCPM
© 2013 Merkle Inc. All Rights Reserved. Confidential
Resp.
Rate
CPA
Newsfeed
16
Marketplace

21. “Pown” the Newsfeed - New Larger Image formats
Newsfeed Ads - Facebook
• New large image formats allows much more engaging/clickable image
• Page Post Photo ads drive high intenders
© 2013 Merkle Inc. All Rights Reserved. Confidential
17

22. “Pown” the Newsfeed - Link Posts with Expanded Clickable Area
Newsfeed Ads - Facebook
• New Link Page Post Format allows much more engaging/clickable image
• 5X improved CTRs and higher 3X higher click to visit ratio
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© 2013 Merkle Inc. All Rights Reserved. Confidential
18

23. “Pown” the Newsfeed - Link Page Posts for Retargeting
Use Cases:
• Site Shopper/Browser
• Abandoned Cart
• Dynamic product
displays developing
• Seamlessly integrate with
general display targeting
© 2013 Merkle Inc. All Rights Reserved. Confidential
19

24. Facebook Advertising - How To Take Advantage of the Opportunity
Direct response
marketing on the
Facebook platform
The products &
results
How to take
advantage of the
opportunity
The Opportunity
The Results
The Roadmap
© 2013 Merkle Inc. All Rights Reserved. Confidential
20

25. Engagement Playbook
1
Identify:
Objectives for
Facebook
Facebook media plan
Objectives
Prospecting
Objective
CrossSell, Upsell
Retention
2
Target:
Use data to
inform your
targeting
strategies
3
Optimize:
messaging,
format, target
audience based
on analytics
© 2013 Merkle Inc. All Rights Reserved. Confidential
Placements/
Formats
Page Posts
RHS
FBX/API
Facebook Native Interests
Geo & Demo Audience Sets
Partner Category Targeting
High Purchase Intent
Custom Audiences (CRM)
Target or Surpress
High Value Segments
Look-A-Like Models
Connected
CRM
Pla.orm
Optimization Loop
Offline Media
database
Online Media
database
cR
CRM
database
21

26. THANK YOU!
November
20
-­‐
21,
2013
November
20
-­‐
21,
2013
Paul Steketee
Head of Paid Social and Emerging Media, Merkle
Facebook.com/Steketee
@Steketee