Facebook Advertising: The Basics

FACEBOOK ADVERTISING: THE BASICS April 2012

FACEBOOK ADVERTISING: THE BASICS June 2012


Why would we want to advertise on FB?Hint: It’s not because “everyone else” is.

Strengths• High penetration of all demographics within the U.S audience

• Premium targeting capabilities (profile data)

• Pay per performance pricing models

• Easily optimized

• Turnkey creative

• Allows for easy testing

• Multiple creative options

Facebook has created an ad model that allows businesses, no matter what size their budget, to target a desired audience on a site that is utilized by over 800 million people worldwide. With a very low barrier to entry, the Facebook platform allows advertisers to chose from a number of creative and targeting options to reach their desired audience with ease.


WeaknessesNobody’s perfect.

Weaknesses• Non-standard creative• Non-standard analytics

• Ads cannot be third-party served• On-page analytics not as robust as on-site analytics

• Frequently changing opportunities• Requires ongoing management


What kinds of ads does Facebook offer?

What do they look like?


Marketplace & Premium Ads

Advertisers have two different investment levels when considering the Facebook platform: Marketplace and Premium. Here’s a quick rundown of the two.

Element Premium Marketplace

How to secure Through sales rep + Insertion Order OR ‘Power Editor’

Self-service platform OR ‘Power Editor’

Management Facebook (secured through FB)

OR Advertiser (self-service)

Advertiser

Spend minimum $50,000 per campaign No minimum

Placement page User news feed & profile pages (Highest share of voice on page)

Photo pages, within photos, general pages (Up to 7 ads per page)

Mobile User news feed only User news feed only

Pricing models CPM CPM or CPC

Price determined by: Facebook sales (rate card) OR auction-based bid marketplace

Auction-based bid marketplace

Creative opportunities

PollVideoSponsored StoriesText + ImageEventSampling

Sponsored StoriesText + ImageEventApplication


MARKETPLACE AD OPPORTUNITIES

Marketplace AdsDisplayed outside of the news feed (unless mobile). Low commitment. CPC or CPM pricing.

Standard image and copy ad. The clickable headline drives users to an external URL.

Ad that allows users to “like” your brand within the unit. It also shows which friends of the user have also “liked” your brand. A click on the headline leads users to either an external URL or the brand page.

Ad that allows users to RSVP to a specific event set up by your brand. Much like the “like” ad, it shows which friends of the user have also RSVPd. A click on the headline brings users to the Event Page where they can obtain more info.

If a brand offers an application to its users, this ad will display the names of their friends who have already used the application within Facebook. A click drives users to the application page.

Mobile Ad: the only market-place ad that appears within the news feed.


Premium AdsDisplayed in news feed and profile pages. $50K spend commitment. High engagement units.

Premium Poll Ad

Premium Sampling Ad

Premium Event Ad

Premium Video Ad Premium Like Ad

Mobile Ad


Page Post AdsCan be purchased as Marketplace or Premium

Page Post ads allow you to take content that’s been added to your Facebook page (text, video, photo, question, link or event) and turn it into an ad with the name of the Facebook page as the title. In this unit, users are able to see how many likes the page has, and a user can even comment on the post or “like” the page directly within the ad.

Posted to the “Ides of March” Facebook page

Content is then turned into a Page Post ad


Sponsored Story AdsCan be purchased as Marketplace or Premium.

Sponsored Story ads highlight your existing fans’ actions on your page and turn them into ads. For example, if someone “likes” your page or posts a comment, this action is turned into an ad that is then more prominently shown to that person’s friends.

A user (Jessica) checks into Starbucks and posts it to her profile

That post is turned into a Sponsored Story ad, which is displayed to Jessica’s friends

A sponsored story always includes the profile picture of the person who made the action, which also becomes the ad title. The ad also shows the names of the people in a user’s friend network who have completed whatever action the sponsored story is based on.

**A list of the types of sponsored stories available can be found in the appendix


OffersAt a price that everyone loves: free.

Offers are a completely free way to offer your fans discounts on your products and/or services. Creating an offer can be done directly from your brand’s page and can be posted to your timeline as soon as it is created. Once posted, users can comment on, share and, most importantly, claim the offer.

Create the offer

Although the offers themselves are free to post, one must remember that only fans of your page will be able to see them (unless the offer is shared by a fan to a non-fan). And even then, fans of your page may still not even see the offer. So, to increase the the number of eyeballs seeing the offer, a brand can utilize a Sponsored Story ad to promote the offer and reach more potential customers.

Post the offer to Timeline Offer is automatically posted to current fans’ news feed

User has ability to claim, comment or share offer


Where would my ads go?


Profile pages:2-3 ads

(Premium)

Photo page: 7 ads

(Marketplace)

In-image: 2 ads(Marketplace)

User home screen: 7 ads

(Premium)

Mobile (within user news feed): 1

ad(Premium & Marketplace)


How can we target a specific audience using Facebook?


User-entered profile data!We benefit from people sharing way too much about themselves.

• Location• Country• State• City (with option

for mile radius)• Zip Code

• Demographics• Age (13+)• Sex

• Likes & Interests• Profile data and /

or liked pages

•Connections• Only available

when linked to an advertiser account

•Advanced Demographics

• Interested In• Relationship

Status• Languages

•Education & Work

In the near future, marketers will also be able to start targeting based on users’ recent posts.


Targeting RemindersDon’t cut your pie too thin.

Even though Facebook offers advertisers a wealth of targeting options, one must remember that the more specific of targeting you have, the smaller the audience becomes. A smaller, more niche audience can cause issues with:

•Reach• A smaller audience = smaller impact

•Delivery• Fewer people targeted, fewer people see

the ad

•Cost Per Click• As your audience decreases, your CPC

increases• Hard-to-reach audiences cost more to

find

Even though Facebook offers advertisers a wealth of targeting options, one must remember that the more specific your targeting, the smaller your audience becomes. A smaller, more targeted niche audience can cause issues with:


What kind of performance data can we get from Facebook?


Facebook InsightsA look into how your campaign is performing.

Audience• Reach• Frequency• Impressions

Click Metrics• Clicks• Click Through Rate• Cost Per Click• Cost Per Thousand

Social• Social Impressions• Social %• Social Clicks• Social CTR• Social Reach• Connections

*A glossary of these terms can be found in the appendix

Reports can be pulled by day, week, month and campaign to date


Key TakeawaysThe meat and potatoes.

• Scalable opportunities with an extremely low barrier to entry

• Ability to leverage and promote brand page posts

• Big brother can target • Metrics matter


PERISCOPE®

THANK YOU! THANK YOU!


APPENDIX


APPENDIXDefinitions of commonly used Facebook terminology.

Clicks• Clicks are counted each time a user clicks through your ad to your landing page. If you're

advertising a Facebook Page or Event, a click is also counted when a user "likes" your Page or Place or RSVPs to your Event within the ad.

Click Through Rate• Click-through rate (CTR) is the number of clicks your ad receives divided by the number of

times your ad is shown on the site (impressions) in the same time period.Connections

• If you're advertising a Facebook Page, event or app, Connections measures the response your message is driving among people who have seen your ads or Sponsored Stories.

Frequency• Frequency tells you how many times each person saw your ads or Sponsored Stories, on

average.Impressions

• Ad impressions are counted each time an ad or Sponsored Story is shown to a user, regardless of whether the user clicks or takes any other action on the ad.

Reach• The number of individual people who saw Sponsored Stories or ads in the campaign during

the dates selected. This is different than impressions, which includes people seeing the ad multiple times.

Social Reach• Social Reach tells you how many people saw your ad or Sponsored Story with the names of

their friends who had already liked your Page, RSVPd to your event, or used your app.


APPENDIXDifferent types of Sponsored Stories available.

Page Like•Ad shows when a friend likes the page. Includes a thumbnail of the page’s profile picture along with a like button (there’s always a like button in sponsored stories).Page Post Like•Ad shows when a friend likes a specific post in the feed. Includes the liked post.Page Post Comment•Ad shows when a friend makes a comment on a post from the fan page. Includes the comment and a link to the commented post.App Used/Game Played•Ad shows when a friend uses an app (for instance, plays a game). Includes a thumbnail of the app and an option to play.App Shared•Ad shows when a friend shares a story from a page’s app tab. Includes a thumbnail of the app and a description of the action.Checked In•Ad shows when a friend checks in at a physical location. Includes a thumbnail of the profile picture and the comment the user made when checking in.Domain•Ad shows when someone likes an item outside of Facebook. Includes a thumbnail of the liked item and a link to the offsite destination. Question Vote•Ad shows when a friend has answered a question in a poll of some kind. Includes the results of the poll. Event RSVP•Ad shows when a friend has RSVP’d to an event. Includes a thumbnail of the event and a link to it.

Facebook Advertising: The Basics

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