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Office: 678-364-3475
Williams@shipperswarehouse.com
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Bill Stankiewicz copy of Anixter PresentationBillStankiewicz
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Best Regards,
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Office: 678-364-3475
Williams@shipperswarehouse.com
http://www.linkedin.com/in/billstankiewicz2006
http://www.slideshare.net/BillStankiewicz.
http://www.twitter.com/BillStankiewicz
Sustainable Consumer Packaged Goods member
CPG Branding and Forum Member
Please consider the environment before printing this e-mail
“Change doesn\'t start on the surface. It\'s generated from consciousness.”
Deepak Chopra
http://bill-stankiewicz.blogspot.com/2009/07/shippers-warehouse-in-top-70-food.html
http://ask.depaul.edu/Students/MentoringandAdvice/ASK_Away_Archive.asp
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Tbg digital q2_2011_global_facebook_marketing_report
1. Global Facebook
Advertising Report
Q2 2011
www.tbgdigital.com
2. Contents
02 Introduction
Headlines
03 Growth of Brand Advertising
04 Benefits of Advertising to Facebook Fans
05 Hot Sectors
06 Price Trends
07 Price Trends (continued)
08 Sponsored Stories
09 Methodology
Report Authors
About TBG Digital
10 Report Glossary
3. Introduction
TBG Digital examined 200 billion impressions across 167 clients advertising on
Facebook in 21 countries to produce its Q2 2011 Global Facebook Advertising Report.
TBG Digital is one of the largest global companies specialising in Facebook marketing.
With its substantial catalogue of historical data TBG Digital is uniquely positioned to
analyse the state of the Facebook advertising market. This is the first of our quarterly
reports that will examine the trends and changes in Facebook advertising.
The Psychometrics Centre of the University of
Cambridge has verified the results, graphical
illustrations and methodology used in this report
based on the data provided by TBG Digital.
The Psychometrics Centre
Headlines
Growth of Brand Advertising
Brand campaigns on Facebook grew by 104% between Q1 2011 and Q2 2011.
Benefits of Advertising to Facebook Fans
435% improvement in campaign conversion rates when targeting existing fans
Hot Sectors
Retail gets best CTR (Click Through Rates) and grows to 36% of total impressions in Q2 2011
Price Trends
CPM (Cost per Thousand Impressions) rises by 45% across 4 markets between Q2 2010 and Q2 2011
CPC (Cost per Click) rises by 74% across 4 markets between Q2 2010 and Q2 2011
Sponsored Stories
Using Sponsored Stories ads in Facebook campaigns decreases CPA (Cost per Aquisition) by 32%
www.tbgdigital.com
02
4. Growth of Brand Advertising
Brand campaigns on Facebook grew by 104% between Q1 2011 and Q2 2011
In Q2 2011 TBG Digital served 60 billion impressions in a strongly growing market. The most
prominent trend within the overall picture was the increasing focus on campaigns to build
brands’ fan bases (brand campaigns). These accounted for nearly half of the impressions
worldwide, a 104% quarterly increase.
The share of impressions related to the offsite campaigns (campaigns driving traffic off
Facebook) remained relatively stable and fluctuated around 50% (Figure 1). Interestingly,
the UK market seemed to be slow in adopting brand campaigns, possibly due to the high
emphasis on Return on Investment/Offsite Campaigns (ROI), with only 3% of impressions
aimed at fan acquisition in Q2 2011.
Figure 1. Total impressions by campaign type
Note: Figure based on 170 billion
Impressions, 146 clients, and 21 countries.
Impression counts are confidential and
were removed.
Number of Impressions
0
2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2
Brand Offsite
www.tbgdigital.com
03
5. Benefits of Advertising to Facebook Fans
435% improvement in campaign conversion rates when targeting existing fans
TBG case studies provide evidence for the benefits of advertising to Facebook fans. Comparison
between identical campaigns aimed at fans and non-fans showed a three to six fold increase in
Conversion Rates and a significant increase in Click Through Rates (CTR) while targeting fans.
Results are presented in Figure 2.
Figure 2. Increase in CTR and Conversions when targeting fans
Conversion Click Through Rates
600%
140%
500%
120%
400%
% Increase
% Increase
100%
300% 80%
200% 60%
40%
100%
20%
0% 0%
le
le
n
n
t
t
Sa
Sa
io
io
en
en
at
at
Ev
Ev
tr
tr
is
is
eg
eg
R
R
Note: Figure based on 170 billion impressions, 146 clients, and 21 countries. Impression counts are confidential and were removed.
Event Campaign aimed at acquiring RSVP’s to a concert organized by a major US soft drink brand - 50 million impressions
Registration Campaign aimed at generating registrations for a loyalty card/programme - 100 million+ impressions
Sales Campaign aimed at driving sales for two large US retailers - 150 million+ impressions
www.tbgdigital.com
04
6. Hot Sectors
Retail gets best CTR and grows to 36% of total impressions in Q2 2011
Retail was by far the hottest sector in the last 12 months (Figure 3). From being nearly non-
existent in Q3 2010, it has shown steady growth and accounts for 36% of all our impressions in
Q2 2011. The growth of Retail was fuelled by positive feedback from consumers as expressed
by the highest Click Through Rates (CTR) among all sectors (Figure 4). The second fastest
growing sector was Finance, driven by credit card campaigns. The numbers of impressions in
the Jobs & Education sector also grew rapidly, however this growth was seen mostly in the US.
The dominance of B2C advertising on Facebook is clear. Figure 4 demonstrates this by
comparing global CTRs across industries in Q2 2011. It is important to note that Business &
Industrial is among the top five sectors with highest CTRs, suggesting that Facebook is also a
valid B2B marketing channel.
Figure 3. Top 6 growing sectors in Q2 2011
Note: Figure based on 120 billion
impressions served worldwide in Q2
2011. Impression counts are confidential
and were removed.
Number of Impressions
0
Figure 4. CTR values across the sectors
Note: Figure based on 60 billion
impressions served worldwide in
Q2 2011. CTR values are confidential
and were removed.
0
www.tbgdigital.com
05
7. Price Trends
Facebook uses two different pricing models for its ad inventory: CPC and CPM. As an advertiser
paying via the CPM model (Cost Per Thousand Impressions) on Facebook, you pay a flat fee
(pre-determined by Facebook) for 1,000 impressions. There is no guarantee that any of those
impressions will generate a ‘click’. If you use CPC (Cost per Click) pricing then you only pay your
desired bid amount when a user actually clicks on the advertisement.
CPM Rates
CPM increases by 45% across 4 markets between Q2 2010 and Q2 2011
TBG Digital’s data has identified that CPM (Cost Per Thousand Impressions) rates seem to be
rising. Figure 5 indicates that the CPM rate increased by 60% between Q2 2010 and Q2 2011 in
the UK and by 40% in the US.
In Q2 2011 CPM in the UK decreased by 11%, which we can deduce was probably a re-adjustment
after a 30% increase between Q2 2010 and Q1 2011.
It is important to note that during 2011 the costs of impressions remained relatively flat
in Germany and France which means Facebook continues to offer advertisers a relatively
competitively priced marketplace in these growing markets.
Figure 5. CPM changes across 4 major markets.
Note: Figure 5 based on 162 billion
impressions served worldwide in Q2
2011. CTR values are confidential and
were removed.
www.tbgdigital.com
06
8. Price Trends (continued)
CPC Rates
CPC rates increase 74% across 4 markets between Q2 2010 and Q2 2011
Looking more specifically at CPC rates (Cost per Click); Figure 6 presents CPC growth trends in 4
major markets. The growths were substantial, with over 100% increase in UK, 55% in US and 70%
in France. There is still potential for advertisers to take advantage of lower CPC rates in France as
its CPC is still 30% lower than in Germany. High CPC prices in the UK reflect the dominance of ROI
campaigns (offsite campaigns) in this market.
Although the general picture shows the rising price of adverts on Facebook, there are territories
and approaches that can offer significantly lower costs. One of these approaches – focusing on
using Sponsored Story ad formats – is discussed in the next section.
Figure 6. CPC changes across 4 major markets.
Note: Figure 6 based on 162 billion
impressions served worldwide in Q2
2011. CTR values are confidential and
were removed.
www.tbgdigital.com
07
9. Sponsored Stories
Sponsored Stories ads in Facebook campaigns decreases CPA (Cost per Aquisition) by 32%
One of the most important Facebook developments in Q2 has been the release of Sponsored
Stories. They are new social ad formats through which advertisers can amplify news feeds related
to their brands. Sponsored Stories support Facebook’s ‘social by design’ approach to advertising
i.e. using the influence of friends to generate actions. There are seven types of Sponsored
Stories currently available: Brand Campaigns (Page like, Page Post and Page Post like stories),
Application Campaigns (App used and App Shared Story), Offsite Campaigns (domain story),
and Offline Campaigns (check in story).
The results of two TBG case studies show that using Sponsored Story ads considerably improved
campaign performance (Figure 7). Comparison between similar campaigns using Sponsored
Stories and standard ASU fan ads, showed a positive change in all of the campaign metrics
produced by Sponsored Stories conditions and a major decrease (32%) in acquisition costs.
Example of a ‘Page Like’ Sponsored Story
What happens: Someone liked your Page directly from Facebook or from
the Like box on your website at any point.
What you can do: You can use the Page Like Story to make sure his friends
know about this section.
Friend’s Photo & Name Mike Fretto and Mary-Jane Page Name
The photo and link take Faul like Southwest Airlines Full Name of Page
you to this friend’s profile is preserved (up
to 70 characters)
Southwest Airlines
Page Thumbnail Image
50px wide, 50px high
(same as thumbnail Like
managed by Page; aspect. Clicking on it makes you a
ratio is preserved), takes fan of the Page, inline.
you to Page.
Figure 7. Change in campaign metrics for ‘Page Like’ Sponsored Story versus standard ASU formats
on Fan campaigns for two clients
Note: Figure based on 208 million US
impressions served in Q2 2011.
% Change in Performance
CTR CPC Conversions CPA
Client 1 Client 2
www.tbgdigital.com
08
10. Methodology
TBG Digital used a subset of total data across 167 clients, running in 21 countries worldwide
generating a total of 200 billion impressions to provide this analysis. Methodology has been
provided in each section.
The Psychometrics Centre of the University of
Cambridge has verified the results, graphical
illustrations and methodology used in this report
based on the data provided by TBG Digital.
The Psychometrics Centre
Report Authors
This report was written by Simon Wardropper, Social Media Director TBG Digital with additional
commentary and validation from Cambridge University Institute of Psychometrics provided by
Michal Kosinski and Stephen Haggard.
About TBG Digital
TBG Digital is a global marketing and technology company, specializing in Facebook advertising
and social media marketing. Combining technology with unparalleled experience, the company
collaborates with clients to meet their marketing objectives. Founded in 2001, TBG Digital has
offices in London, San Francisco, New York, Chicago, Paris and Hamburg and manages campaigns
for more than 90 advertisers targeting in 60+ countries. For more information, please visit our
website at www.tbgdigital.com.
www.tbgdigital.com
09
11. Report Glossary
CTR Click Through Rate
CPM Cost per Thousand Impressions
CPC Cost per Click
ASU Ad Space Unit
Brand Campaign Fan Acquisition or Fan
engagement activity
on Facebook
Offsite Campaign Any Facebook Advertising
that leads the consumer
off Facebook
Sales ‘Sale’ is an online purchase
Registrations ‘Registration’ is a consumer
registering their details for
submission to a client
Events ‘Events’ is an RSVP campaign
driving people to sign up to
events on Facebook.
www.tbgdigital.com
10