Transcript of Social Media and Facebook Advertising Insights - Kenshoo Social and Resolution Media Webinar
1. SOCIAL MEDIA ANDFACEBOOK ADVERTISING INSIGHTSOCTOBER 23,
2012
2. Erica Barth, VP Products and Partnerships, Resolution
MediaPRESENTERS Viji Davis, VP, Marketing, Resolution Media Aaron
Goldman, CMO, Kenshoo 1
3. Listen via computer speakers or dial into conference call
using numbers listed in email from
[email protected] Still cant hear the
webinar? Tell us please! 2
4. Methodology Understanding Social A Portfolio Approach:
Owned, Paid, and Earned Assets Brand Awareness Metrics:
MeasuringCONTENTS the Hidden Value of Facebook Pre and Post
Engagement Metrics Exposure Rate: A Newly Defined KPI Choosing Your
Audience Countries Gender 3
5. METHODOLOGY WHAT WHY GOALLooked at globalHeard from
manyWanted to provide data across multiplebrands that they the
first benchmarks brandsdidnt know if for Facebook adFacebook
andperformance andsocial were provide someworking for
theiractionable insights programs 4
6. A PORTFOLIO APPROACHOwned, Paid, and Earned Assets
7. FACEBOOK BRAND ASSETS Owned Media Paid Media Earned Media
6
9. PAID MEDIA: FACEBOOK ADS Web Ad Post Ad Sponsored
StorySocial Ad8
10. FACEBOOK PORTFOLIO APPROACHBalance assets to amplifyyour
brand and generateactivity on and off Facebook 9
11. DEVELOP A STRONG CORE OF OWNED ASSETS AND FANSShare of
Clicks Driven to Pages Drive the Highest Engagement Facebook
Objects by Ads Rate (Ad CTR) of all Facebook Objects0.05%
0.04%CTR0.04%0.03%Page80.79%0.03%
0.02%0.02%Event0.02%!App0.01%Place4.03%4.60% 0.0% Pages have the
PagePlace App Eventhighest share of10.58% clicks and engagement
rateof all FacebookObjectsSource: Social Media Insights Part 1
Metrics That Matter | 2012, Kenshoo, Inc. and Resolution
Media10
12. LEVERAGE ADS TO INCREASE REACH AND SCALE YOUR BRANDHigh
Click-Through Rate Correlates toLow Cost-per-Click on Facebook Ads
$0.900.08%$0.800.07%$0.70 $0.60CTR0.06% $0.500.05% CPC $0.400.04% !
$0.300.03%$0.200.02%$0.100.01%$- Post Ads and0.00% Sponsored
StoriesPost Ad Sponsored Web AdSocial Ad have the
highestStoryresponse rates andlowest CPCs Source: Social Media
Insights Part 1 Metrics That Matter | 2012, Kenshoo, Inc. and
Resolution Media11
13. AMPLIFY YOUR OWNED MEDIA WITH PAID ADSSocial Endorsements
for Likes and App Usage Drive Highest Sponsored Story Conversion
Rates 77.25%80% 60.39%60% Conversion Rates!40%15.71%In order to20%
capitalize on Social0.18% Ads and Sponsored Stories, you must0% App
Share App UsedLikePost Like have a scalablefan baseSource: Social
Media Insights Part 1 Metrics That Matter | 2012, Kenshoo, Inc. and
Resolution Media 12
14. KEY INSIGHTS Develop a strong core of owned assets and fans
Leverage paid ads to increase reach and scale your brand Amplify
your owned media with paid ads 13
15. BRAND AWARENESS METRICSMeasuring the Hidden Value of
Facebook
16. METRICS THAT MATTER Pre-EngagementPost-Engagement Metrics
that measure consumer Metrics that measure consumer exposure to ads
and brand prior toexposure to ads and brand following
Definitionclick/interaction exposure Measuring audience exposure
toMeasuring audience interaction with brands as a proxy for
awareness brands as a proxy for brand Purpose/Use engagement and
purchase intent Case Exposure Rate Clicks Frequency Conversions
(likes, shares, sales) Key Performance Reach (Unique Visitors) CTR
Indicators (KPIs) Impressions Conversion Rate Available Target
Audience Source: Social Media Insights Part 1 Metrics That Matter |
2012, Kenshoo, Inc. and Resolution Media 15
17. LEVERAGE EXPOSURE RATE TO BENCHMARK PERFORMANCEDistribution
of Facebook Ads by Exposure Rate10,000 8,000Exposure Rate 6,000
4,000 2,000 EXPOSURE RATE:0Unique impressionsQuartile 1 Quartile
2Quartile 3 Quartile 4 divided by the (0-25%) (26-50%)(51-75%)
(76-100%) target audience Source: Social Media Insights Part 1
Metrics That Matter | 2012, Kenshoo, Inc. and Resolution
Media16
18. HIGHER EXPOSURE RATES = EFFICIENT AD ENGAGEMENT High
Facebook Ad Exposure RatesHigh Facebook Ad Exposure RatesCorrelate
to High Click-Through Rates Correlate to High Conversion RatesCTR
CVR 0.036% 0.038%31.92%0.04% 0.031%35.00%28.57% 0.028%30.00%0.03%
25.00% 17.03%20.00%11.81%0.02%15.00%0.01% 10.00% ! 5.00%0.00%0.00%
Quartile 1 Quartile 2 Quartile 3 Quartile 4 Quartile 1 Quartile 2
Quartile 3 Quartile 4(0-25%) (26-50%) (51-75%) (76-100%) (0-25%)
(26-50%) (51-75%) (76-100%) When exposure rate is high, CTRand CVR
are alsohigh Source: Social Media Insights Part 1 Metrics That
Matter | 2012, Kenshoo, Inc. and Resolution Media17
19. KEEP FREQUENCY AT 6 OR BELOW TO KEEP ADS FRESHFacebook Ads
Average Conversion Rate Facebook Ads Average CTR is 39%is 75% Lower
After the 6th ImpressionLower After the 6th
ImpressionCVRCTR57.17%0.059% 60% 46.53% 0.06% 0.046%
50%0.05%0.035%0.029% 40%0.04% 30%14.61% 11.95% 0.03% 20%0.02%
10%0.01% 0% 0.00% Frequency Frequency Frequency Frequency Frequency
Frequency Frequency Frequency 1-3 4-6 7-9 Over 10 1-3 4-6 7-9 Over
10FREQUENCY: Total impressionsdivided by unique impressions;Optimal
frequency is 6 or belowSource: Social Media Insights Part 1 Metrics
That Matter | 2012, Kenshoo, Inc. and Resolution Media 18
20. BID HIGHER FOR INCREASED ENGAGEMENTBids Above the Facebook
Bids Above the Recommended Recommended Maximum Bid Drive UpFacebook
Maximum Bid Decrease Average Exposure Rate by 11.5% Average
Frequency by 1.7 ExposuresExposure Rate Frequency20.23%11.62 9.93
25%13 20%8.73% 11 ! 15%9 10%7 5% 5 CPC < Max Rec. Bid CPC >
Max Rec. Bid CPC < Max Rec. Bid CPC > Max Rec. Bid Max
recommended bid amounts correlateto increasedengagement Source:
Social Media Insights Part 1 Metrics That Matter | 2012, Kenshoo,
Inc. and Resolution Media19
21. SPONSORED STORIES SHOW THE SUCCESS OF OUR METRICS Sponsored
Stories Most Effective Ad TypeSponsored Stories Were Delivered
withfor Unique Brand Reach with 36%the Lowest Frequency, Driving Up
Exposure RateUnique Users ReachedExposure
RateFrequency35.99%40%12.4930%156.55 6.835.8320%10!10% .46%1.23%
1.39%5 0%0Post AdSocial AdSponsoredWeb AdPost Ad Social Ad
SponsoredWeb AdStoryStorySponsored Storiesdeliver the
highestexposure rate andlowest frequencySource: Social Media
Insights Part 1 Metrics That Matter | 2012, Kenshoo, Inc. and
Resolution Media20
22. KEY INSIGHTS Leverage exposure rate Balance exposure rate
with frequency Bid higher than Facebooks recommended max bid
21
23. CHOOSING YOUR AUDIENCECountry Insights
24. GLOBAL INSIGHTS: US & UK ARE THE MOST EXPENSIVE MARKETS
Average Cost-Per-Click (CPC) for Facebook Ads Source: Global Social
Media Insights 2012, Resolution Media!It is imperative to research
andleverage advanced audience targeting 23
25. AD TYPES AND FORMATS NEED TO BE ADJUSTED BY
COUNTRYMEXICOMobile Phone PenetrationFacebook Users49.0% 35.6
MillionPopulationOnline Ad Spending% of Internet Users on
Facebook112 Million $159,000,000103%Internet User Penetration GDP
per Capita (USD)31.0% $15,610TURKEYMobile Phone PenetrationFacebook
Users84.9% 31.1 MillionPopulationOnline Ad Spending% of Internet
Users on Facebook!77.8 Million$264,000,000100%Internet User
Penetration GDP per Capita (USD)39.8% $14,517 Consider adformats
based ondevice usageSource: Global Social Media Insights 2012,
Resolution Media 24
26. LOW MAX RECOMMENDED BID AMOUNTS = GOOD TEST MARKETS Average
Frequency forMaximum Recommended BidsDelivery of Facebook Ads for
Facebook Ads Source: Global Social Media Insights 2012, Resolution
Media! When the max recommended bidamounts are low,there is
lesscompetition 25
27. HIGH EXPOSURE RATES AND CTRS = HEAVY ENGAGEMENT Average
Exposure Rate forAverage Click-Through Rate (CTR) Delivery of
Facebook Adsfor Facebook AdsSource: Global Social Media Insights
2012, Resolution Media !When exposure and click-throughrates are
high, users are heavily engaged 26
28. KEY INSIGHTS For expensive markets, audience research is a
must Consider ad formats based on device usage Test in markets
where max recommended bids are low Users are heavily engaged when
exposure andclick-through rates are high 27
29. CHOOSING YOUR AUDIENCEGender Insights
30. WHOS THE FAIREST OF THEM ALL? 58% 42%Available Male
Available Female Target Audience On Facebook Target Audience On
Facebook29
31. MORE WOMEN ARE ON FACEBOOK, BUT Budget Allocation for
Facebook Ads 53% MALE47% FEMALE30
32. MEN ARE SERVED MORE FACEBOOK ADSImpression Volume for Click
Volume for Facebook AdsFacebook AdsMALEMALE58% 60% FEMALEFEMALE42%
40% 31
33. AND MEN ARE CHEAP Cost-Per-Thousand (CPM)Cost per Click
(CPC) for Impressions for Facebook Ads Facebook Ads$0.20 $0.68
$0.16 $0.51 FEMALEMALEFEMALEMALE 32
34. AD DOLLARS GO FURTHER WHEN TARGETING MALESExposure Rate for
Facebook Ads7.88%4.94% FEMALE MALE33
35. AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE
OFTENFrequency forFacebook Ads11.95 9.74Threshold foroptimal
frequency FEMALE MALE34
36. KEY INSIGHTS Create very targeted ad segments Use custom
text and images for targeting men vs. women Adjust bidding
strategies based on segment gender Monitor frequency 35
37. MARKETER TAKE-AWAYS Calibrate your portfolio Build a fan
base for scaling targeted reach and ongoing engagement Keep
exposure rates high and frequency 6 or below Testing is important
Focus on metrics that matter Leverage audience targeting36