Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads

Succeeding with Facebook Advertising

Presented by Chris Treadaway

October 25, 2011

Design ©2011 Social Media Examiner • Content Copyrighted by Presenter

©2011 Social Media Examiner • Do NOT distribute

Agenda

!   Intro !   The business case for Facebook Ads !   Facebook Ad basics !   Facebook Ads weaknesses !   Driving success with Facebook Ads !   Sample campaigns

!   Techniques !   A/B & multivariate testing !   Metrics & outcomes

!   Top 10 things we’ve learned !   Q&A


About

!   Chris Treadaway !   Founder, CEO Notice Technologies !   31/2 years at Microsoft, Group Product Manager for Web

Strategy !   3-time startup founder !   MBA – University of Texas


Company

Notice Technologies is a software & data-driven agency that focuses exclusively on social media to influence opinion and get people to act.

Local business self-serve marketing and couponing

Managed Facebook Advertising campaigns for SMBs and major brands

Social data harvesting, mining, and analysis for major brands


Co-Author

http://www.facebook.com/marketingbook


Contributor/Technical Editor


!   What we know about Facebook…


Facebook owns the social audience


Facebook Ad growth is unreal

!   2009 Estimates according to AllFacebook !   $350 million from CPC

self-serve ads !   $225 million from CPM,

corporate ads !   eMarketer 2010 estimate -

$1.28b in revenue in 2010 !   Roughly 88-91% Facebook

revenue comes from advertising


Facebook dominates social media


The business case for Facebook Ads

!   Accessible for as little $1/day budget !   Easy to get started, takes time & effort to master !   Richest demographic targeting in the world

!   800m + profiles !   Available to advertisers

!   Targeting combinations/permutations are endless *and* still relatively inexpensive !   Approximately $1.50-$2.00 CPC, $0.25-$0.30 CPM for most

targeting options with more than 100,000 users. !   More expensive as targeting gets narrower


Social advertising alternatives

!   Google !   Mature auction model – over a decade old !   Many clickthroughs are now very expensive

!   LinkedIn !   DirectAds $3+ CPM (much higher than Facebook) !   Branding advertising $18+ CPM !   Not terribly effective, but improving

!   Twitter !   No rich profile targeting available !   Simple, Sponsored Tweets


Old media alternatives

•  $3-6 CPM •  Usually requires long

time commitment •  Doesn’t directly land a

customer for the business

Billboard

•  $10-12 CPM •  Sirius/XM-effect •  Difficult to get responses

to call to action while people drive

Radio

•  $10-$12 CPM •  Tivo factor – many

people don’t even see commercials

•  High production costs

Television

•  $10-$15 CPM •  Many demographics

don’t use YP in favor of Internet – effective CPM rates are likely considerably higher

Yellow Pages

•  $10-30 CPM •  Not typically a good fit

for local advertising •  High creative &

production costs

Magazine

•  $15-$25 CPM •  Declining & aging

customer base •  Too expensive for many

local businesses

Newspaper


!   How Facebook Ads work…


What is a Facebook Ad?


Basic Facebook Ad specs

Title: 25 character limit

Body: 135 character limit

Exact dimension is based image’s aspect ratio


Where ads appear

!   Profile Pages !   Facebook Pages !   Game/App Pages !   News Feed Page

!   Sponsored position managed by Facebook !   Not available through self-serve ads !   Higher CPM & minimum monthly spend


What you can promote

!   Website !   Facebook Page, Place !   Facebook Event !   Facebook Apps & Tabs

Website

Event Page


Types of Facebook Ads

!   Self-serve !   For as little as a $1/day budget

! CPM – when advertiser wants impressions ! CPC – when advertiser needs clicks

!   Highly configurable !   Sponsored

!   Bigger budgets, large ad buys -> Sponsored ads !   ~ minimum $5,000/month, $5-7 CPM list price !   Administered by Facebook Ad sales


Types of self serve ads

Facebook Ads •  Target a demographic group or friends of people who like a page

•  Standard Ads – target a URL •  Page Post Ad – promote a page Post •  Facebook Ads for Pages – get fans for a Page

Sponsored Stories •  Get more distribution for your content on a Page, Place, or App

•  Page Like Story – when people like a Page, their friends see it in an ad •  Check-in Story (places only) – when people check-in to a Place, their friends

see it in an ad •  Page Post Like Story – when people like a Page Post, their friends see it in an ad


How to buy

!   Lifetime budget or monthly budget !   Run ongoing or set start/stop for campaigns !   You create the ad copy & upload ad imagery !   Approval process

!   Can sometimes take some time !   Not guaranteed; idiosyncratic

!   You select which Facebook users you want to target


Targeting options

!   Geography !   Demographics (age, gender) !   Education level !   Interests !   Workplaces !   Sexual orientation !   Relationship status !   Languages !   College attended !   Birthday


Things you CAN’T target

!   People who attended “some college” !   Race !   Specific high schools !   Zip Code (available but not “functional” yet in many zip

codes) !   People who do not enter relevant information in their

Facebook profiles


!   What you can do with Facebook Ads…


Drive successful business outcomes

!   Direct incremental revenue !   Spend $5 in advertising !   Get $10 in revenues in return

!   Build customer lists, find leads !   Viral marketing

!   Propagation of online message through social channels

!   Improve awareness, clicks, and other important metrics by buying traffic/attention


Lower your costs

!   Lower customer acquisition cost !   Lower marketing costs

!   Reduce cost/touch or cost/engagement !   Lower customer service costs by driving customers to

Facebook, social media, or other touchpoints !   Reduce customer service calls !   Inform customers of new programs designed to save

money !   Lower cost/touch, easier to administer program, etc.


How? Iterate.

1- Create new ad copy/targeting &

set budget

2 - Run ads for statistically valid

period of time

3 - Assess outcomes, let the numbers do the

talking

4 - Retire underperforming ads, images, etc.

5 - Make changes to creative, landing

pages, etc.

!   Set up in Ads & Pages app in Facebook

!   Run ads on 7 day cycles before judging results

!   Scrutinize results & make changes

!   Rinse & repeat


Basics of iteration – the a/b test

!   A/B test – testing differences in ad performance based on a single variable, keeping all others alike or dissimilar

!   Campaign level example – run these ads at women (A) vs. men (B)

Eat at Joe’s! Eat at Joe’s! CPM campaign $2/ads per day Men Age 35-54

CPM campaign $2/ads per day Men Age 35-54


A/B test tale of the tape

Eat at Joe’s! Eat at Joe’s! CPM campaign $2/ads per day Men Age 35-54

CPM campaign $2/ads per day Men Age 35-54

!   CPM Campaign !   Bid $0.40 in the target market !   Actual CPM cost is $0.27 !   CPCs with same target criteria are $0.52


Iteration makes you smarter

1- Create new ad copy/targeting &

set budget

2 - Run ads for statistically valid

period of time

3 - Assess outcomes, let the numbers do the

talking

4 - Retire underperforming ads, images, etc.

5 - Make changes to creative, landing

pages, etc.

Over time, adherence to this process will help you learn who responds best to your ads and what variables impact your success.


Time trending analysis

!   Very important to track ad results over time. Why? !   Ads & ad campaigns fatigue over time !   Record success of retiring unsuccessful ad variations

with new, improved ones !   Informs next steps, new ideas, and when you need a

new trick/approach to improve your numbers


A real-life example

!   Spreadsheet of results from an actual campaign for a major brand !   Ad tweaks became less effective at Week 7 per CTR #s and

Cost/Fan #s !   Tactics started in Week 1 got stale by Week 7


!   Facebook advertising gotchas…


Facebook advertising gotchas

1.  Relies upon user profile data in most cases 2.  Demographic targeting does not imply purchase intent 3.  Finicky ad copy regulations 4.  Advertisers cannot target a user’s status updates 5.  Currently no mobile advertising or targeting available 6.  Ads don’t appear in mobile, iPad versions 7.  Requires significant work to manage, administer, and optimize 8.  Deep a/b testing is a very manual process 9.  No help/assistance with landing pages 10.  Questions regarding effectiveness, direct & immediate ROI


!   Things we’ve learned…


Best practices

!   Make your ad as interesting as possible to the target markets. Don’t be boring.

!   Make your ad actionable and relevant for the target market. !   Don’t run your ads exclusively at a small demographic group. !   Include a specific call-to-action in your ad so customers know exactly what

to do next. !   Make sure you send customers to an interesting landing page that also very

clearly communicates the next step. !   Multiple combinations of ad copy, images, and landing pages work best. !   Use eye catching images to accentuate your add to grab your customers’

attention. !   Usually, it requires 10 ad impressions per person in the target market before

drawing conclusions.


Rules of thumb

!   More local = more expensive !   $0.30 CPM & $1.50 clicks are routine for local targeting !   Cheaper if you target additional areas

!   Make sure you can advertise to a market segment of at least 10,000 people

!   Run ads for at least 7 days and with at least 10 impressions/person !   Use targeting to your advantage, but don’t rely on it exclusively !   Landing pages must be actionable for conversion to happen !   Experimentation is necessary to know what will work !   Measurement is KEY. Data and outcomes drive the best next steps


Success criteria

!   Good scenarios !   Enticing offer & eyecatching imagery !   Good demographic fit !   Understandable & easy call to action

!   Bad scenarios !   “Spray & pray” !   Bad landing pages !   Unclear ad copy


Tools necessary for big a/b tests

!   Tools such as AdParlor can help automate submitting campaigns with different a/b criteria !   Male vs. Female !   Age demographic a/b test !   Imagery !   Ad title, copy

!   Pay additional fee to help manage !   Recommended for larger ad buys ($1,000/month +) &

CPM campaign optimization


Spreadsheets critical to analyze data

Start Date End Date DaysDays

Remaining % Oct Wk1 Oct Wk2 Oct Wk3 Oct Wk4 Oct Ttl Oct Wk1 Oct Wk2 Oct Wk3 Oct Wk4 Oct Ttl

9/14/2011 Ongoing 250,000 209.2% 739,563 51 0.007% 1.31$ 0.65$ 1.88$ 2.25$ 1.10$ 1.18$ 0.08$ 0.08$ 0.07$ 0.07$ 0.08$ 0.08$ 10/1/2011 10/26/2011 25 1 900,000 95.7% 861,159 44 0.005% 3.13$ 2.19$ 2.92$ 2.22$ 2.62$ 2.62$ 0.12$ 0.14$ 0.14$ 0.13$ 0.13$ 0.13$ 9/16/2011 11/16/2011 61 22 600,000 66.6% 399,436 15 0.004% 1.98$ 1.44$ 2.25$ 3.00$ 3.18$ 0.11$ 0.11$ 0.10$ 0.10$ 0.11$ 0.12$ 9/20/2011 9/19/2012 365 330 3,000,000 10.9% 328,304 20 0.006% 2.58$ 2.43$ 1.11$ 2.50$ 1.80$ 2.24$ 0.12$ 0.15$ 0.15$ 0.13$ 0.14$ 0.14$ 9/28/2011 10/26/2011 28 1 1,000,000 96.0% 960,229 38 0.004% 2.65$ 3.54$ 3.36$ 3.16$ 3.11$ 3.04$ 0.11$ 0.11$ 0.13$ 0.13$ 0.12$ 0.12$ 10/5/2011 10/8/2011 3 305,000 109.6% 334,399 29 0.009% 2.25$ 1.55$ 1.98$ 1.98$ 0.18$ 0.16$ 0.17$ 0.17$ 10/5/2011 11/1/2011 27 7 575,000 73.0% 419,669 43 0.010% 1.40$ 1.50$ 1.17$ 0.64$ 1.19$ 1.19$ 0.11$ 0.12$ 0.13$ 0.12$ 0.12$ 0.12$ 10/7/2011 11/4/2011 28 10 1,000,000 60.1% 601,033 43 0.007% 1.30$ 1.84$ 3.80$ 1.30$ 2.04$ 2.04$ 0.15$ 0.14$ 0.15$ 0.14$ 0.15$ 0.15$ 10/20/2011 10/22/2011 2 555,555 100.3% 557,480 136 0.024% 0.70$ 0.70$ 0.70$ 0.17$ 0.17$ 0.17$ 10/21/2011 11/11/2011 21 17 1,230,000 34.2% 420,782 72 0.017% 1.30$ 0.82$ 1.00$ 1.00$ 0.19$ 0.16$ 0.17$ 0.17$ 10/21/2011 12/31/2011 71 67 1,700,000 14.7% 249,766 14 0.006% 3.68$ 1.85$ 2.50$ 2.50$ 0.15$ 0.13$ 0.14$ 0.14$ 10/21/2011 10/26/2011 5 1 416,000 74.2% 308,755 35 0.011% 1.44$ 2.10$ 1.76$ 1.76$ 0.21$ 0.19$ 0.20$ 0.20$

Promised Impressions

Lifetime Impressions

Lifetime Clicks

Lifetime CTR

eCPCLifetime eCPC

eCPM Lifetime eCPM

!   Best way to watch health of campaigns, time trending results for campaigns

!   Manual effort but rewarding to understand outcomes


Don’t overestimate targeting


Managed social advertising campaigns for SMBs and major brands

Thank you! Questions?

!   Chris Treadaway

ASKING A LIVE QUESTION: Already on the phone: (*) (8) on your telephone to get in queue. Listening online: Call 866-630-3507, pin 9206; then press (*) (8) Outside US/Canada: Call +1 (503) 295-8000, enter: (866) 630-3507 (do not dial '1'), pin 9206. Press (*) (8)

Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads

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Transcript of Facebook Marketing Success Summit Presentation 2011 - Success with Facebook Ads