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Facebook for Direct Response Marketing Last updated: March 2014

Facebook for Direct Response Marketing

Last updated: March 2014

Radio

1950

Television

1960

2000

Digital

2010

Mobile

Source: eMarketer, US , July 2013

The path-to-purchase is complex

Are you reaching them where they are converting?

67% start shopping on one device and continue on another
67%
start shopping on one
device and continue
on another

Source: comScore/PayPal “Reaching the Connected Consumer” Custom Surveys, Oct 2013

The power of Facebook’s direct response solution

Reach more of the right people

Reach more of the right people

Drive action across devices

Drive action across devices

Make insightful decisions

Make

insightful

decisions

Reach more of the right people

Reach people otherwise unreachable

Search represents a fraction of purchase intent

45%
45%
Search represents a fraction of purchase intent 45% Shoes in the US (in millions, Q4-2012) of

Shoes in the US (in millions, Q4-2012)

of people reached via ads were reached exclusively through

Facebook*** 115 Searches* 784 Purchased**
Facebook***
115 Searches*
784 Purchased**

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

Facebook makes search work even harder

Case study:

Success from leading retailer

30%

higher return on ad spend

24%

increase in AOV

7%

higher paid search CTR

4.5%

drop in

CPA

in AOV 7% higher paid search CTR 4.5% drop in CPA Source: Kenshoo “Facebook Advertising Boosts

Source: Kenshoo “Facebook Advertising Boosts Paid Search Performance,” Nov 2013; study commissioned by Facebook

Reach all of the people who matter to you

High-quality reach

180M monthly active users US
180M
monthly
active users
US
to you High-quality reach 180M monthly active users US Source: Facebook US internal data, Sept 2013

Source: Facebook US internal data, Sept 2013

Incredible scale on mobile

146M mobile monthly active users US
146M
mobile monthly
active users
US
104M mobile daily active users US
104M
mobile daily
active users
US
Where they are most engaged Source: US Mobile Total Monthly Minutes, comScore, September 2013
Where they are most engaged Source: US Mobile Total Monthly Minutes, comScore, September 2013

Where they are most engaged

Source: US Mobile Total Monthly Minutes, comScore, September 2013

Use data to reach more of the right people

Your data

Custom Audiences

Past purchasers
Past
purchasers
Members of loyalty programs
Members
of loyalty
programs
Highest LTV customers
Highest LTV
customers
Members of loyalty programs Highest LTV customers Third-party data Partner categories Facebook data Demo
Members of loyalty programs Highest LTV customers Third-party data Partner categories Facebook data Demo
Members of loyalty programs Highest LTV customers Third-party data Partner categories Facebook data Demo
Members of loyalty programs Highest LTV customers Third-party data Partner categories Facebook data Demo

Third-party data

Partner categories

Third-party data Partner categories
Third-party data Partner categories
Third-party data Partner categories

Facebook data

Demo
Demo
Interests
Interests
Behaviors
Behaviors
Location
Location
Connections
Connections

Reach real people with accuracy

Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate
Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate
Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate
Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate
Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate
Reach real people with accuracy The average online reach for narrowly targeted campaigns is 38% accurate

The average online reach for narrowly targeted campaigns is

38%

accurate

Source: Nielsen OCR, August 2013

The average Facebook reach for narrowly targeted campaigns is

89%

accurate

Facebook Targeting

Core Audiences Sophisticated targeting with unsurpassed accuracy
Core Audiences Sophisticated targeting with unsurpassed accuracy

Core

Audiences

Sophisticated targeting with unsurpassed accuracy

Custom Audiences Reach the people you already know

Custom

Audiences

Reach the people you already know

Lookalike Audiences Find more people like your best customers

Lookalike

Audiences

Find more people like your best customers

Use Core Audiences to segment your audience

Online and offline sources

to segment your audience Online and offline sources Partner Categories Targeting types Interests Location

Partner

Categories

Partner Categories
Partner Categories
Partner Categories
audience Online and offline sources Partner Categories Targeting types Interests Location Demographics Behaviors

Targeting types

Interests

Interests

Locationsources Partner Categories Targeting types Interests Demographics Behaviors Sample segments Interested in

Demographics

Demographics

BehaviorsCategories Targeting types Interests Location Demographics Sample segments Interested in shopping Living in Chicago Age

Sample segments

Interests Location Demographics Behaviors Sample segments Interested in shopping Living in Chicago Age and gender
Interests Location Demographics Behaviors Sample segments Interested in shopping Living in Chicago Age and gender
Interested in shopping
Interested in shopping
Behaviors Sample segments Interested in shopping Living in Chicago Age and gender Engaged gamer Android phone
Living in Chicago
Living in Chicago
Behaviors Sample segments Interested in shopping Living in Chicago Age and gender Engaged gamer Android phone
Age and gender
Age and gender
Behaviors Sample segments Interested in shopping Living in Chicago Age and gender Engaged gamer Android phone
Engaged gamer
Engaged gamer
Engaged gamer
Engaged gamer
Engaged gamer
Engaged gamer

Engaged gamer

Engaged gamer
Behaviors Sample segments Interested in shopping Living in Chicago Age and gender Engaged gamer Android phone
Android phone user
Android phone user

Custom Audiences

Reach your specific customers or prospects at scale

People you know

Direct or through third-party

Email addresses Phone numbers, iOS IDFAs Facebook User IDs, App User IDs People from your website People from your mobile app

People you know on Facebook

Facebook

App User IDs People from your website People from your mobile app People you know on
App User IDs People from your website People from your mobile app People you know on

Matched targets

Lookalike Audiences

Find people who look like your customers and prospects

Find people who look like your customers and prospects People you know Website visitors Mobile app
Find people who look like your customers and prospects People you know Website visitors Mobile app

People you know

who look like your customers and prospects People you know Website visitors Mobile app customers Fans
who look like your customers and prospects People you know Website visitors Mobile app customers Fans

Website visitors

customers and prospects People you know Website visitors Mobile app customers Fans of your Page and
customers and prospects People you know Website visitors Mobile app customers Fans of your Page and

Mobile app customers

and prospects People you know Website visitors Mobile app customers Fans of your Page and people
and prospects People you know Website visitors Mobile app customers Fans of your Page and people

Fans of your Page

and people who look like them

Facebook Exchange (FBX)

Dynamic remarketing on desktop

Visits website

Visits website

Flagged with cookie

Flagged with cookie

Visits Facebook

Visits Facebook

Person recognized by cookie, bid placed, and ad served

Person recognized by cookie, bid placed, and ad served

Drive action across devices

Put your products at the center of the experience

People check News Feed 14X 1 per day 2 3
People check
News Feed
14X
1
per day
2
3

Source: IDC, “Always Connected,” March 2013

In-stream and native

Designed for action

Optimized for conversion

Center of the engagement

Formats that are large, visual and in-stream

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

VS

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

Third-party ad

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

to click on your ad •   Option to add call-to-action buttons: Shop Now, Learn More,

Designed for action

Mobile app install and engagement ads

Customer discovery and acquisition

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

Retention, engagement and conversion

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

Optimized for conversion

Website and mobile app conversions with oCPM and CPA

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

Make insightful decisions

Current measurement challenges

Key challenges

Data is fragmented across devices

Measurement solutions rely on proxies

Optimization is difficult due to fragmented data

  Optimization is difficult due to fragmented data Facebook solutions •   Cross-device: Facebook

Facebook solutions

Cross-device: Facebook measures cross-device behavior

Accurate: Facebook measures real people, not proxies

Actionable: Facebook tracks performance against goals

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

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

Measure results across devices

Conversion

pixel
pixel

SDK

SDK

Third-party

measurement

Third-party measurement

Facebook’s complete direct response solution

Reach more of the right people

Core Audiences

Core Audiences

Custom Audiences

Custom Audiences

Lookalike Audiences

Lookalike Audiences

Drive action across devices

Page post link adsAudiences Lookalike Audiences Drive action across devices Mobile app ads oCPM / CPA Make insightful decisions

Mobile app ads

Mobile app ads

oCPM / CPAaction across devices Page post link ads Mobile app ads Make insightful decisions Conversion pixel Facebook

Make insightful decisions

Conversion pixel

Conversion pixel

Facebook SDKPage post link ads Mobile app ads oCPM / CPA Make insightful decisions Conversion pixel 3

3 r d party measurement

3 rd party

measurement

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

Getting started with driving website conversions

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

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Objectives in ad create tool and Power Editor

Objectives in ad create tool and Power Editor

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Acquire new customers with Core Audiences

Acquire new customers with Core Audiences Intent/interest Geographic Lifestyle/life-stage Psychographic Demographic

Intent/interest

GeographicAcquire new customers with Core Audiences Intent/interest Lifestyle/life-stage Psychographic Demographic Purchase based*

Lifestyle/life-stageAcquire new customers with Core Audiences Intent/interest Geographic Psychographic Demographic Purchase based*

PsychographicAcquire new customers with Core Audiences Intent/interest Geographic Lifestyle/life-stage Demographic Purchase based*

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

Demographic

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

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

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

4 Include or exclude your Custom Audience in targeting 5 Layer Core Audiences for further segmentation
4 Include or exclude your Custom Audience in targeting 5 Layer Core Audiences for further segmentation

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

greater reach 4 Access your Lookalike Audience in 6-24 hours 5 Layer Core Audiences for further
greater reach 4 Access your Lookalike Audience in 6-24 hours 5 Layer Core Audiences for further

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

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

Take your audience to where they want to land •   Keep ads fresh by updating

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Placements

Placements News Feed Right Column

News Feed

Right Column

Page Post Link Ads

Ad format optimized to drive offsite conversions

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

click on your ad •   Option to add call-to-action buttons: Shop Now, Learn More, Sign

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

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

       

A

basic strategy for

performance advertisers.

Cost per clicks (CPC)

Clicks

Clicks

Clicks

Clicks include likes, shares and comments.

Optimized CPM (OCPM)

     

If

you care about a trackable

Conversions

Impressions

Conversions

action, you should use OCPM

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

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Measurement tools

Conversion

pixel
pixel

SDK

SDK

Getting started with mobile app ads

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

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Objectives in ad create tool and Power Editor

Objectives in ad create tool and Power Editor

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Acquire new app users with Core Audiences

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

Demographic

GeographicAcquire new app users with Core Audiences Demographic Device Operating System Interests / intent Psychographic

DeviceAcquire new app users with Core Audiences Demographic Geographic Operating System Interests / intent Psychographic

Operating SystemAcquire new app users with Core Audiences Demographic Geographic Device Interests / intent Psychographic

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

Interests / intent

Psychographic

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

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

greater reach 4 Access your Lookalike Audience in 6-24 hours 5 Layer Core Audiences for further
greater reach 4 Access your Lookalike Audience in 6-24 hours 5 Layer Core Audiences for further

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

4 Include or exclude your Custom Audience in targeting 5 Layer Core Audiences for further segmentation
4 Include or exclude your Custom Audience in targeting 5 Layer Core Audiences for further segmentation

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

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

Take your audience to where they want to land •   Keep ads fresh by updating

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Ad units

5

Bid optimization

6

Measurement and attribution

Ad units that drive installs and engagement

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

Mobile app install ads

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

Mobile app engagement ads

Page Post Link Ads

Ad format optimized to drive offsite conversions

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

buttons: Shop Now, Learn More, Sign Up, Book Now or Download Page post link ad Page

Page post link ad

Shop Now, Learn More, Sign Up, Book Now or Download Page post link ad Page post

Page post link ad with call-to-action buttons

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Optimize your bidding around campaign goals

 

You value

You pay for

We optimize for

Best practice

       

A

basic strategy for performance

advertisers. Clicks include likes, shares and comments.

Cost per clicks (CPC)

Clicks

Clicks

Clicks

Available for installs and engagement

       

If

you care about a trackable action,

Optimized CPM (OCPM)

Impressions

you should use OCPM

Conversions

Conversions

Available for installs

Cost per action (CPA)

     

When available, CPA is likely the best bidding option for you

Installs

Installs

Installs

Available for installs

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

1

Define your marketing objective

2

Targeting

3

Creative and messaging

4

Placements and ad units

5

Bid optimization

6

Measurement and attribution

Measure what matters with Facebook SDK and third-party partners

Measurement Facebook Both Partner •   Deeply integrate with Facebook social features •   Measure
Measurement
Facebook
Both
Partner
•   Deeply integrate
with Facebook
social features
•   Measure
advertising
performance
•   Measure ROI and
LTV on mobile
app ad campaigns
•   Measure app
events
•   Compare cross
channel ad spend

Try out a Preferred Marketing Developer to optimize at scale

Daily bidding and creative optimizationTry out a Preferred Marketing Developer to optimize at scale Day part Manage large amounts of

Day partto optimize at scale Daily bidding and creative optimization Manage large amounts of ads and accounts

Manage large amounts of ads and accountsat scale Daily bidding and creative optimization Day part Use advanced features not available in Ads

Use advanced features not available in Ads ManagerDay part Manage large amounts of ads and accounts Manage ads across marketing channels Source: Country

Manage ads across marketing channelsaccounts Use advanced features not available in Ads Manager Source: Country updated as of October 2013

Source: Country updated as of October 2013

45+ countries A community of best-in- class developers focused on making social marketing easier and

45+

countries

A community of best-in- class developers focused on making social marketing easier and more effective

www.facebook.com/PMD