Direct Marketing on Facebook

8/17/2019 Direct Marketing on Facebook

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Direct Response Marketing on Facebook

Direct ResponseMarketing onFacebook

Driving action online, in-store

and in mobile app

June 2015


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Facebook’s direct response marketing solution 4

Best practices 14

Campaign prep 16

Targeting 18

Creative and messaging 20

Bidding 21

Measurement 22

Table of contents


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We live in a transformational time. As the need to stay connected becomes integral to our everyday lives,

the use of smartphones, tablets and laptops is becoming increasingly common. Not only are people using

multiple devices, they’re constantly switching between them throughout the day. Marketers are faced with

the challenge of reaching their consumers in this changing environment.

With over 1.44 billion people1 on Facebook, the platform provides a unique opportunity for businesses to

drive positive business results with more of the right people across devices. Marketers can:

• Reach more of the right people with Facebook’s sophisticated suite of targeting products

• Drive action across devices with ad units in News Feed

• Make insightful decisions with Facebook’s measurement solutions

From campaign prep to targeting, creative, bidding, measurement and optimization, this guide will walk you

through our entire solution and best practices for setting up an effective direct response campaign.

Sincerely,

Your Facebook team

1. Facebook internal data, March 2015

Introduction


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Targeting

Facebook has a powerful targeting solution that enables you to target

based on the data people share on Facebook, your first-party data

and third-party data from trusted partners. Use these tools to findmore of the right people you want to reach.

Core AudiencesReach people based on interests, demographics, location and behavior.

Facebook’s core targeting option allows you to target people based on information shared on their

profiles and the behavior they exhibit on Facebook. Segment your audiences based on their

demographics, location, interests and behaviors.

Partner categories are a way to target people based on their off-Facebook behavior through our

partnerships with trusted third-party data providers such as Datalogix, Epsilon and Acxiom.

Custom AudiencesReach people based on the data you have.

Custom Audiences enable you to target people based on the data you have in a privacy safe way.

With Custom Audiences, you can:

• Target people based on CRM data.

• Target people based on actions taken on your website.

• Target people based on engagement with your mobile app.

Lookalike AudiencesReach people who look like your audiences.

Lookalike audiences help you find people with similar characteristics to your existing customers,

prospects and Page fans.

You can build a lookalike audience from your:

• CRM database

• Website visitors

• Mobile app customers

• Page fans

Success StoryBanana Republic used lookalike

audiences modeled after its

most loyal customers to increase

its customer base during the

competitive holiday season.

Result:

A nearly 4X higher return on

ad spend.

Facebook case study, June 2014

TipUse the Audience Network Reach

your target audience beyond

Facebook on other mobile apps

with the Audience Network.


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Facebook Exchange: Dynamically remarket to website visitors on desktop

Facebook Exchange allows programmatic buying of desktop ad inventory through real-time bidding.

You can remarket to website visitors on Facebook based on the activity they exhibit on your website with

real-time dynamic product ads. Facebook Exchange is only available for link ads and right-hand column on

desktop and can only be purchased through a registered demand side platform (DSP).

Custom Audiences and Facebook Exchange are complementary

Remarketing through Facebook Exchange and Custom Audiences are similar but can be leveraged

in different ways.

Custom Audiences Facebook Exchange

Mobile Delivery

Ad Formats Standard ads, page post ads, MobileStandard ads (domain only)

Right Column ads

Placements All Facebook Facebook desktop only

Facebook Lookalike Audiences

Exclusion

Dynamic Creative

Bidding across publishers

Self-service through Power Editor

Cross-device retargeting


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Link ads direct people off of Facebook from any device to a specific

location on your website that you choose.

Link ads offer:

• A large, clickable real estate in News Feed across devices

• The ability to add strong call-to-action buttons to

drive conversions

• The ability to showcase multiple products from your inventory

within a single link ad unit

• The option to use video or image

Placements and Ad Units

Facebook offers several ad units for advertisers to capture attention and

drive action. News Feed is the most effective placement for advertisers

looking to drive direct response objectives because its ad units arein-stream and native to the Facebook experience and across devices.

Mobile app install ads drive people directly from Facebook and the

Audience Network to the Apple App Store, Google Play, or Amazon

App Store to install from a strong call-to-action.

Mobile app ads offer:

• A large, clickable real estate in mobile News Feed

• Strong call-to-action buttons to drive install and engagement

• The option to use video or image

• Text count: 90 characters

• Image ratio is 1.91:1

• Image size is 1200x627px

• Video file size: up to 1 GB

• Video format: .MOV files

• Video resolution:at least 720p

• Video aspect ratio:at least 16:9

Link adsDrives traffic to your website and store

Mobile app adsDrive installs, conversions, and engagement for your mobile app

Creative specs for mobile app ads

• Text count: 90 characters

• Image ratio is 1.91:1

• Image size is 1200x627px

• Video file size: up to 1 GB

• Video format: .MOV files

• Video resolution:at least 720p

• Video aspect ratio:at least 16:9

Creative specs for link ads


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Automatically promote your entire product catalog on Facebook.

How dynamic product ads workDynamic product ads leverage Custom Audiences to help you create targeted audiences of people who

have viewed, added to cart or purchased products on your website or mobile app. By uploading your

product catalog to Facebook, you can reach shoppers with dynamically generated product ads showcasing

relevant products they may be interested in purchasing.

Advertise all of your productsMany advertisers are already using Facebook to promote their products. But, customizing creative with the

right targeting for each and every product takes time, especially when inventory changes frequently. Dynamic

product ads enable you to import your entire product catalog to Facebook so that you can automatically

promote any product from your inventory to people who visited your website or mobile app, without having

to create thousands of individual ads.

Capture sales from people already interested in your productsWith dynamic product ads, you can keep your business top of mind with people already interested in your

products by reaching them on Facebook. Automatically bring your potential customers back to your website

or mobile app to purchase publishers. You can use dynamic product ads to leverage Facebook native targeting

and multi-product ad formats across devices.

Dynamic product ads

Power of dynamicproduct ads:

Scale:

Promote all of your products

with unique creative without

having to configure each

individual ad

Always-on:

Set up your campaigns once and

continually reach people with the

right product at the right time

based on actions taken on your

website or mobile app

Cross-device:

Reach people with ads on any

device they use, regardless oftheir original touch-point for

your business

Highly relevant:

Show people ads for products

that they have shown interest in

from your product catalog


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Bid types

Facebook offers a variety of bidding options to help you pay the right

amount per objective and deliver your ads to the right audience. The

4 bidding options offered are cost per impression (CPM), cost perclick (CPC), optimize for conversions and cost per action (CPA).

You value You pay for We optimize for

Cost per 1000 impressions (CPM)

Use CPM if your objective is to drive impressions of your ad. If

you care about clicks or conversions and you’re targeting a very

specific or highly targeted market, you can also bid CPM to gaingreater reach for your ad.

Impressions Impressions Impressions

Cost per click (CPC)

CPC is a good option for advertisers targeting a very specific

audience. For example, if you want to target your highest LTV

customers, you could use CPC bidding to serve ads to your entire

audience rather than those likely to convert.

Clicks

Clicks

For CPC with link ads,

you pay for clicks on

links, likes, comments

and shares.

For CPC with mobile

app ads, you pay

for clicks to the

app store.

Clicks

Optimize for conversions

oCPM enables you to specify the action that you care most about

and set a target bid for that action. Facebook will then optimize

delivery and bid aggressively to serve ads to users we believe are

most likely to take that action.

Conversions Impressions Conversions

Cost per action (CPA)

Designed for mobile app ads campaigns, CPA biding will efficiently

spend your budget by delivering ads to users who are most likely

to install your mobile app. With CPA, you have full control over

what you spend per action and our system will deliver the results

you care about.

Installs Installs Installs


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Measurement

Measure the performance of your campaigns with Facebook’s

measurement solutions.

Facebook Conversion PixelMeasure website conversions

The Facebook conversion pixel helps you measure the effectiveness of your Facebook campaigns. With the

conversion pixel, you can measure conversions that happen as a result of your Facebook ads - even if the

conversion happens on a different device than where your ad was served. The Facebook Conversion Pixel

reports on Facebook clicks and impressions that happen within a 1-day, 7-day, or 28-day window after the ad

was shown.

The Facebook conversion pixel:

• Measures the actions of people, not cookies

• Measures conversions that happen across devices

• Works with Facebook Lift measurement

• Lets you generate Lookalike audiences of people who convert

• Allows optimization for conversions

Optimize for success

The Facebook conversion pixel also helps marketers to optimize their ads for conversions. With conversion

optimization, Facebook leverages real time data beyond just clicks or impressions to show your ad to those

customers most likely to convert on your specific ad, purchase or sign up for a subscription.

With the Facebook conversion pixel you can:

• Lower your cost per action by showing your ads to people most likely to convert at the most

efficient price

• Automatically optimize the delivery of your ads to increase the number of conversions

• Optimize for success across all the devices your customers use

Facebook SDK and App EventsMeasures mobile app conversions

The Facebook SDK or Mobile Measurement Partner’s SDK will measure the granular data needed to

optimize your mobile app ads to meet specific goals. You will need to measure in-app actions to optimize

budgets for actions that matter. You can do this via Facebook App Events or through a Mobile

Measurement Partner.

The Facebook SDK and App Events enable:• The ability to measure any action taken in your mobile app ad such as an install or a purchase

• Conversion activity within a 1-day, 7-day or 28-day window based on time the ad is shown

• Rich people-based insights such as who buys the most in your app via App Insights

While Facebook provides its own SDK for tracking, you can also implement a Mobile Measurement Partner

solution. Generally, our Mobile Measurement Partners provide:

• Cross mobile ad network measurement

• Deeper downstream performance metrics and analysis such as funnel analysis

“We were able to identify the

type of consumer who will con-

vert, profile that, and use this to

find more people to serve thoseNew Feeds adverts to,”

—Henry Arkell,

Social Advertising Director,

Manning Gottlieb OMD.

Facebook case study, April 2014


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Solution by Objective

This is our recommended solution set for marketers looking to

acquire customers or remarket to existing customers online,

in-store and in mobile app.

Driving in-store traffic from Facebook

Driving mobile app installs and conversions from Facebook

Targeting Ad units Bid types Measurement

Acquiring new customers

Core Audiences

Custom Audiences

Lookalike Audiences

Link ads in New FeedOptimize for conversions

CPCConversion pixel

Remarketing toexisting customers

Custom Audiences Link ads in News FeedOptimize for conversions

CPCConversion pixel


Acquiring new customers

Core Audiences/Partner Categories

Custom Audiences from your website

Lookalike Audiences

Link ads in New Feed

Photo ads

Offer ads

CPM Conversion lift tests

Remarketing toexisting customers

Custom Audiences Link ads in News FeedOptimize for conversions

CPCConversion pixel


Acquiring new mobile

app users

Core Audiences

Custom Audiences

Lookalike Audiences

Mobile app install ads

CPM

Optimize for conversions

CPA

CPC

Facebook SDK + AppEvents or third party

mobile measurement

partner

Remarketing to existing

mobile app usersCustom Audiences

Mobile app

engagement ads

CPC

CPM

Facebook SDK + App

Events or third party

mobile measurement

partner


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Best Practices


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Campaign Prep

Planning your campaignAs you plan your campaign on Facebook, you can start by asking yourself a few questions:

• What are the business goals I’m seeking to achieve and how do they map to the objectives I

can drive on Facebook? For instance, your business goals could be acquiring new customers orremarketing to existing customers.

• How will I measure and track results? Before launching your campaign, identify what metrics will

be measured so you and your partners can work towards the same goal.

The answers to these questions will define your strategy and help you measure the effectiveness of

Facebook alongside other direct response channels.

Next, follow these steps:

• Align Facebook with your marketing efforts

From account planning to the KPIs metrics you’ll measure, leverage the same processes and best

practices for an apples-to-apples comparison between channels.

• Consider long-term success metrics

It’s not too early to set long-term goals for your program. Consider metrics such as lifetime value

(LTV), downstream value, average order value (AOV) and share of new customers.

• Leverage your fans

Your business will benefit from having more people who like your Page since Facebook ads show

social context, which increases the efficacy of your ads. Audience Insights from your Page such

as geographic, demographic and interests data can also enhance your ability to target the right

people and refine your creative for specific campaigns.

Campaign structureFacebook’s campaign structure makes it easier for you to organize, optimize and measure the

performance of your ads. The structure has three levels: campaign, ad set and ad.

Campaign best practices

1. Set up campaigns based on advertising objectives

2. Create multiple campaigns within an ad account

3. Cap spend across all campaigns and track spend for each campaign

Ad set best practices

1. Organize ad sets by audience segment

2. Optimize top performing placements

3. Set bidding to maximize performance

4. Adjust budgets to optimize spendAd best practices

1. Use ad types that match your campaign objective

2. Create multiple ads to optimize performance

3. Don’t go over the limits for number of campaigns, ads sets and ads

Campaign

Ad set Ad set

AdAdAdAd


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Set up for measurementTo measure the success of your program, you will need to set the proper measurement

solutions in place.

1. Determine your objective for each campaign and define a metric for success

Every successful campaign begins with a clear objective in mind. Make sure your marketing team and

your partners (agency and/or your Facebook Marketing Partner) are aligned on which metrics you will

use to determine success. Common metrics include conversion rate, return on ad spend (ROAS), life

time value (LTV), and conversion Lift.

2. Install Facebook conversion pixel on your website and App Events in your app

Since many conversions happen on a different device or platform than an ad was displayed it is

important to install conversion tools on each touchpoint for your business. To track conversions that

happen on your website and mobile website, implement the conversion pixel. To track conversions that

happen in your mobile app, implement the Facebook SDK and set up App Events. If you are tracking

purchases, add a conversion value to your pixel and app events to understand the total value of

purchases attributed to your Facebook ads.

3. Track your ads with the conversion pixel and app events

Make sure that each ad you run is configured to track your conversion pixel and, if you have an app,

your app events.

4. Look at your cross-device reports

After your campaign has finished, view your ad reports in Facebook Ads Manager. Find which

campaigns and ads drove the most conversions and allocate your budgets accordingly. Next, compare

the Placement Device with the Conversion device to understand how your customers are interacting

with your ads and then converting across different devices. Cross device reporting provides vital

insights into consumer shopping behavior that can help you optimize your mobile ads.

5. Set up measurement for lifetime value (LTV)

It’s not too early to set long-term goals for your program. Consider metrics such as lifetime value

(LTV), downstream value and share of new versus returning customers.

6. Partner with a third-party measurement provider to consider alternate attribution models

Most marketers today rely on attribution models that give full credit to the last ad clicked on that

browser, without considering the cross device behavior of their customers. Facebook conversion

reporting measures real people, not cookies, so you can always attribute the success of your ads to

people no matter which device they last saw your ad. In addition to Facebook conversion tracking,

consider partnering with a measurement provider that can help you explore other attribution models

beyond last click.


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Targeting

With the right targeting strategy, you can reach consumers onFacebook in meaningful numbers to drive scalable results across

devices. Though Facebook has more targeting options than otherchannels, the same audience planning process applies.

Think about the goal you’ve set for your business on Facebook. Are you acquiring new customers

or remarketing to existing customers? Your objective will define the audience you want to target.

Ask yourself the following questions to help develop your audience strategy on Facebook:

• Who are your target audiences?

• How do you segment your audiences? What types of data/insights do you have about them?

• What are your key focus markets now and in the future?

• Who manages your CRM database? How do you use your database for marketing purposes today?

• What offline data do you use for targeting in other campaigns?

These questions should help determine what audiences you want to reach on Facebook. Next, use

Facebook targeting to find your audience.

Recommended targeting solution by objective

Core Audience Custom Audience Lookalike Audience

Driving online traffic

Acquiring new customers X X X

Remarketing to existing customers X

Driving in store traffic

Acquiring new customersX

(Partners Categories)X

Remarketing to existing customers X

Driving mobile app installs and conversions

Acquiring new mobile app users X X X

Remarketing to existing mobile app users X X


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Best practices for targetingUse the following best practices to efficiently reach the people in your target audience.

1. Reach audiences based on where they are in the lifecycle

Identify audiences by where they are in the lifecycle. For example, remarket to people who

demonstrated purchase intent on your website, target existing customers who are likely to churn

and reach your highest LTV customers to keep them engaged.

2. Minimize overlapping audiences

Overlapping target audiences mean multiple ads are competing for the same auctions, thus

cannibalizing the delivery for your campaign. Consider consolidating target audiences into larger

but fewer audience segments. Also, evaluate the timing of ad sets as they may not need to run at

the same time.

3. Use Audience Insights and App Insights to better understand the demographics of your most

engaged audiences

Advertisers can leverage data from Audience Insights and App Insights to identify audiences that

may be interested in purchasing their products and are most engaged.

4. Exclude current customers from acquisition campaigns

If you’re running a campaign with the goal of acquiring new customers, use Custom Audiences to

exclude your existing customers from your campaign.

5. Use specific seed lists to build lookalike audience

When building a lookalike audience, start with a seed list that is specific to the objective you’re

seeking to achieve. For example, build a seed list of people who tend to convert online versus

offline and find people who look like them.

Success Story20Jeans used Custom

Audiences to remarket to people

who abandoned their shopping

cart on their website.

Result:

Saw a 300% decrease in CPA anda 2-3X higher conversion rate

than other display platforms

Facebook case study, June 2014


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Creative and messaging

After you’ve identified your goal and target audience, reach them

with compelling creative that drives them to your website, store or

mobile app.

Great creative drives engagement and can sometimes lead to higher delivery and cheaper costs. Take

advantage of the visual and native canvas in News Feed to drive your direct response objectives.

Best practices for direct response creative1. Stick to one strong focal point

Keep to one focal point within your creative so that it’s obvious to your audience what your

objective is. For example, if you’re a retailer, showcase the product you’re looking to sell and

provide a clear directive within the ad.

2. Make your ad noticeableUse creative that captures attention and gets people to stop scrolling through their News Feed.

3. Insert brand personality

Add your brand personality into your creative. For example, insert your logo or stick to colors from

your brand.

4. Create informational reward

Make sure the product or service you’re promoting is something the audience might be interested

in. For example, an events business can promote tickets for a concert to people who have previously

purchased concert tickets from their website.

5. Create emotional reward

Think of ways to connect with your audience emotionally. Humor is a great emotional trigger.

6. Mirror creative to where your audience is in the sales funnelIf your audience is in the consideration phase, use creative to drive interest in your products or

services. If your audience has demonstrated intent on your website, use creative with a strong

call-to-action to drive the outcome you care about.

7. Use a strong call to action

Vital to direct response campaigns, ensure you have a single, clear call-to-action that drives the

objective you’re looking to achieve on Facebook. Do not confuse the call-to-action by asking them to

purchase a product and like your Page.

8. Create consistency across the path-to-conversion

When driving a conversion on your website or mobile app, keep the look and feel of the experience

seamless from the ad itself all the way to the conversion page.

9. Consider refreshing the creative

Campaigns will begin to fatigue over time given the frequency with your target audience. Reviewperformance over time and update creative often to maximize results.

10. Test, test, test!

Ensure you’re using the best performing creative by testing continuously.


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Bidding

Facebook’s auction is designed to give you the least expensive

delivery possible regardless of your bid. On Facebook, the bid is

assumed to be the value (e.g. revenue) captured from each click,impression or action.

Prices are calculated based on the position won in the auction and the weighted average of your

competitors’ bids. This means that the price charged is almost always less than the bid. Figure out

what the max bid is by calculating the average profit from a click or action (this varies by target

audience, and possibly other factors, and should be adjusted over time).

Best practices for bidding• Bid your true value

Bid the maximum amount you’re willing to pay per objective.

• Increase your bid if you’re willing to pay more per objective

You will almost always be charged less than your bid. So if you’re willing to spend more, increase

your bid to maximize delivery.

• Set accurate end times for your ad sets

You might get slower delivery if the system thinks it has to spread your spend out over a long

period of time.

• Identify high LTV users

Find users with high life time value and adjust your bids for those segments that will deliver the

greatest return for your business.

• Don’t change bids and budgets too frequently

Fluctuations in bids may affect delivery.

• Don’t try for the cheapest clicks or impressions

You will reach people that are easier reached, but don’t necessarily provide the LTV you expect.

In addition, you might not be able to scale your campaign properly.

PricingWe charge you based on:

• The position you win inthe auction

• The weighted average of your

competitors’ bids


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Measurement

For a complete view of your efforts on Facebook, we recommend

a combination of measurement solutions:

• Track your Facebook ad performance with the Facebookconversion pixel and SDK

• Measure the incremental lift you receive from advertisingon Facebook using conversion lift tests

• Utilize Mobile Measurement Partners to determine

effectiveness of ads for apps

Track Facebook ad performance online and in mobileProperly measuring and optimizing your ad campaigns is a core to success on Facebook. The Facebook

conversion pixel or App Events should be placed on each key aspect in the conversion flow.

By placing the conversion pixel/App Events across the funnel, you will be able to test several

optimization techniques that could lead to additional conversions. In addition, you will be able to

measure the downstream effect of our ads in relation to key conversion events.

If your goal is... You should apply the pixel.App Event to...

Lead generation Main landing pages, loyalty/rewards pages, newsletter pages

Mobile app installs Activate App and App Purchase

Mobile app re-engagement Activate App, App Purchase, Add to Cart, Initiated Checkout

Loyalty Loyalty/rewards pages

Retention with lapse customersLoyalty/rewards pages, shopping cart

(exclude purchasers via Custom Audiences pixel on checkout/thank you pages)

Upselling Category/product pages

Drive people to purchase Conversion pixel on purchase page


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Facebook Conversion LiftMeasure additional business driven by Facebook in a cross-channel world

Facebook lift measurement determines the true impact Facebook has on real people for any business

objective from brand awareness to sales. Using Conversion Lift, advertisers can determine the additional

business driven online or offline from people reached by Facebook ads across devices.

The power of Facebook lift measurement:

• Cross platform: Tie cross device ad exposure to cross-channel conversions

• Accurate: Measure real business outcomes, not proxies

• Actionable: Make better marketing decisions based on driving additional business

From results to actionConversion Lift provides cross-platform, accurate and actionable data that helps advertisers make more

informed marketing decisions. With Conversion Lift, you can:

• Prove ROAS: Determine whether your campaign was successful at driving your desired outcome

• Understand which channels drive impact: Re-assess your current cross-channel attribution models to

more accurately value Facebook

• Make more informed budgeting decisions: Allocate budget to advertising channels that driveadditional impact

• Optimize campaigns on Facebook: Optimize campaigns post results to improve performance

Conversion Lift in 5 easy steps

Facebook

randomizes and

splits audience

into test and

control groups

Run campaign to your

target audience – ads

will be delivered to the

test group and will not

be delivered to the

control group

Pass your

conversion data

to Facebook via a

Facebook pixel(s)

or secure upload

Facebook calculates

lift by comparing

conversions in the te

group to conversions

in the control group

Identify your

business objective

and campaign

to measure


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Whether you are a new or experienced advertiser on

Facebook, we hope this guide provided helpful tips to improve

the performance of your campaigns. In summary, keep the

following recommendations in mind:

• Use the recommended suite of Facebook ads products that align with your direct response objectives

• Ensure your campaigns are structured efficiently according to Facebook’s best practices

• Use compelling creative with strong call-to-actions to drive attention and conversion• Follow Facebook’s bidding best practices to ensure you’re paying the right amount per objective

• Use the Facebook conversion pixel and/or SDK as well as experimental design tests for a complete

view of your ad performance

• Test targeting, creative, placement, ad unit and bids often to optimize for better results

For more information about Facebook Advertising, visit facebook.com/business.

Conclusion

Direct Marketing on Facebook

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