Agenda

1 2 3 4 5
Communication Platform Facebook Pages Facebook Engagement Ads Success Stories Facebook Connect

Banner ads turn 15

The first banner ad

Today

Internet growth cycles

An emerging pattern
1994-2000 2001
2002-2008

2009

2010-?

Recession

Recession

Technology
The digital foundation was created. Powerful web sites

Advertising
The advertising foundation was created. Powerful advertising networks CPM based economy deflated

Marketing
The marketing foundation will be created. Definition and role of advertising changes Creation of powerful marketing networks owned and operated by clients

Technology enables communication

Newspapers Cave Paintings CellRosetta Stone phones & Internet

Old formats on new technologies

The evolution of digital

Old formats on new technologies

The evolution of digital

Online and offline have integrated

Authenticity and identity

An example

Moving away from the anonymous web

Bringing authentic real-world connections online

Two results of the relevance web

Evolving from the information web

1 2

A growing importance of identity and authenticity Real people want to connect with real things

Identity and authenticity

To marketers

204.15.20.9 0

The conversation is two-way

Business and the social web

The Facebook product

Friends Family

Brands

Coworkers

Every communication is a link

The social graph maps connections

Mission Give people the power to share and make the world more open and connected

Key Facebook milestones

Sign Up In the beginning New applications launched News Feed & Open Registration Platform launch Facebook Ads Internationalization

February 2004

2004-2005

September 2006

May 2007

November 2007

2008

The social marketing & information platform

Authentic Informed Connected

BRAND

Authentic Informed Connected

Facebook Scale
Rapid Growth #1 Daily Reach #1 in Time Spent
Facebook 5hr 46min Facebook 34.95 Google % Yahoo

#1 in User Loyalty
Facebook 46% NPS

Google

Yahoo

Google

350M Worldwide 100M US 50% return daily

Source: CI Brand Study; US active users, Aug 09

Yahoo

Source: Compete.com, US 30 day active, Oct 09

Source: Nielsen, Aug 09

Demographic breakdown in the U.S.

Gender Age

Source: Total U.S. active audience Facebook internal data November 2009

Most-trafficked sites
1

Google Facebook Microsoft

Source: comScore top global properties based on total pages viewed, October 2009

Facebook Pages

Facebook Page
1. Fan connections

2. Brand voice

3. Viral distribution

Facebook Wall, Publisher Page

Real-time publishing Same as on user profiles Multi-media functionality

Post text, photos, videos, links etc.

Dialogue with Fans

Facebook Page
Tabbed structure
Brand information Real-time conversations Multi-media content Applications And more...

Homepage Engagement Ads

Targeting capabilities

Based on authentic user data From mass reach to specific targeting Targeting parameters include:
Birthdays Country State City or Town Age Gender Interests Activities Music TV shows Education High school College Major Workplace Relationship Status Books Fans Non-Fans

Social branding: Engagement Ads

Fan Poll Event

Sampling

Gift Comment

Social branding: distribution

Engagement Ad impression

your brand

engagement

organic impression

connection

Connections: Lasting marketing asset

1
advertising helps make connections

2
publish messages to your fans via your Page

3
encourage feedback and purchase

Social Marketing & Information Platform: Example

Authentic Informed Connected

BRAND

Authentic Informed Connected

Side Ad Space

Facebook users with camping in their profile Searches for tents 1,203,120 135,000

Standard Ads

Standard Standard w/ Social Event Fan

More info...

Inclusive or exclusive connections targeting

Leverage ad format for compelling ads

Attract Fans with Facebook Ads for Pages

Driving ROI with Facebook Ads

Goal: Bonobos, a clothing e-tailer, wanted to sell out certain styles Solution: Facebook Ads targeted to fans of specific sports teams ROI: This was five minutes of our time, and we sold through these very specific pants for which we otherwise would have had a hard time selling to the right audience.

Drive traffic with Facebook Ads for Events

Facebook marketing solutions

Weave your brand into their lives
CONSUMER INSIGHTS
UR AS ME

Reach a large audience Target authentic users Measure quickly, accurately Make lasting connections Engage in 2-way dialogue Drive conversions

SOCIAL BRANDING

T EN EM

DIRECT CONNECTION RESPONSE S

CONVERSIO N

Measurement and insights

Global information platform

Global scale at speed

350M+ people worldwide Fast data collection - a matter of hours vs weeks Representative sample - not professional survey takers

Active and authentic audience

On the site almost 6 hours per month Real name culture and real world sharing 2 billion photos are uploaded each month 40 million people update their status per day 14 million videos uploaded each month 10 million people become fans of a page each day

Multiple data sources Polls Chatter Profile

Measurement and insights overview

Valuation Determine the total value of your Facebook campaign and optimize Insights Determine the total value of your Facebook campaign and optimize

Ad Effectiveness Detect influence of a campaign on consumer attitudes and behaviors

Advertising Connect with users the same way they connect with their friends

Research Polls: data collection

Representative: tracking consumer sentiment

Do you think that economic conditions in the country as a whole are getting better or getting worse?

Predicts the next Consumer Confidence Index (r = 0.83) Strong agreement with Gallup (r = 0.80)
Facebook margin of error +/- 2% or smaller | Gallup based on 3 day rolling average

Facebook, Inc. confidential do not distribute

Predictive: consumer confidence index

Month April May June July August September October Facebook Polls Up Up Down Down Up Down Down Consumer Confidence Report Up Up Down Down Up Down Down

Facebook Polls run a week before the Consumer Confidence report have correctly predicted its direction since starting measurement in March Point correlation with Consumer Confidence Index is r = 0.83

Facebook, Inc. confidential do not distribute

Success Stories

Kellogg Cares
Objective Build awareness of hunger in America

Video Comment Engagement Ad

Communicate Kellogg Companys commitment to Feeding America

Results More than 100,000 fans in 1 week

5,900+ wall posts, comments and likes 34.8 million organic impressions 38,000 video plays on Page

Kellogg Cares Page

Texas Pete Hot Sauce

10,000 bottles of hot sauce in 6 days
Objective Build brand awareness

Sampling Engagement Ad

Allow users to sample product Connect with fans.

Results Over 10,000 samples given away

Over 35,000 Fans acquired during campaign Used campaign data to study geographic trends for brand interest

Campaign Launch

Fan growth over time

American Heart Association (AHA)

Client objective Raise awareness of heart disease and women through National Wear Red Day Results 76,000+ RSVPs 6,000+ wall posts on Page 42,892 Fans acquired during campaign 4.61% engagement rate for event ad 2.89% engagement rate for fan ad
Fan Engagement Ad

Event Engagement Ad

Starbucks
Reach Block success story
Objective Raise awareness around promotions and gain Fans Solution 3 reach blocks in 5 weeks (Fan and Event Engagement Ads)

Fan Engagement Ad

Event Engagement Ad

Target: US users, 18-49

Results 1 million new Fans

133% growth Largest brand on Facebook!

Starbucks Facebook Page

Facebook Connect

Sharing and connecting

Facebook Page

Connect-enable site

Social everywhere
Web Mobile

Identity

Social Relevancy

Distribution

Desktop

Game Consoles

Over 80,000 Connect-enabled sites

How Connect works

Basic features
Share button Comments box Live Stream box Fan box

adidas Originals

Showtime L Word

Obama Inauguration

Coca-Cola

Examples of success with Connect

CBS Insider
Social Filtering Display socially-contextual content based on what users' friends are doing. For example: Which concerts are most popular with your friends? Which book is everyone reading? Or which book is your mom reading?

Since integrating with Facebook Connect, page views for

the sites are up 99%, pages per visit are up 34%, and average time spent on the sites is up 20%

Lollapalooza

CNN: Michael Jackson Broadcast

Live Feed Widget: Enabled users viewing the broadcast live on CNN to chat via Status Updates. Filter Status Updates by everyone watching the event, or by your friends. Status Updates to Facebook included attribution links.

Approximately 1 million users posted approximately 800k status updates

CNN - Michael Jackson Broadcast

TV % of Time Spent: 37% % of Ad Spending: 32% Internet % of Time Spent: 29% % of Ad Spending: 8%
Magazines % of Time Spent: 7% % of Ad Spending: 6% Radio % of Time Spent: 19% % of Ad Spending: 9% Newspapers % of Time Spent: 8% % of Ad Spending: 20%

Source: emarketer 2009

Guiding principles for brands

1. Make it social.
Thats what I do on Facebook.

2. Keep it simple.
If I understand something, Im more likely to try it.

3. Optimize for speed.

If its fast, Ill do more of it.

4. Integrate.
Keep it within my Facebook experience.

 Facebook.com/Marketing Facebook.com/ConnectNews Facebook.com/Non-Profit Facebook.com/Platform InsideFacebook.com (independent blog)

(c) 2007 Facebook, Inc. or its licensors. "Facebook" is a registered trademark of Facebook, Inc.. All rights reserved. 1.0