LinkedIn Social Media Series: FacebookJuly 2012
Jonathan Bradford
Associate Solutions Consultant UK,FR,NL
Nadia James
Account Planner UK
Learning objectives
• An overview of Facebook
• A few current events related to Facebook
• An overview of their go to market approach
• A top level understanding of their marketing product offering
Disclaimer
This deck is indented to:
• Provide an overview of Facebook• Provide an overview of their current product offering• Marketing is a fast moving market place and so product suite is subject to constant
change• Engagement rates and costs aren't publicly available however guidelines based on public
information have been included as guidelines only• Facebook is an ever changing business and so best efforts have been made to ensure
information is current and valid
• An effort has been made to ensure the material is impartial
• This deck is not intended as a LinkedIn Vs Facebook sales story
Facebook is a public platform!!
Tom has 204 connections
Guess Who? These guys do not like rollercoasters
Give people the power to share and make the world more open and connected
955MActive Users
300MPhotos uploaded daily
552MMobile Users
74%Reach of UK Audience
*Assume figures are monthly, unless otherwise noted.
30MUK Active Users(750% growth ‘10-11)
15,636MUK Minutes Spent on Site
Quick Stats
Audience Demographics
Top 5 Pages in UKAge
Below 20 21%
20-29 28%
30-39 25%
40+ 26%
57% of users are classed as ABC1s
53% Of UK population are Facebook users
28.22%
30.89%
49% Male 51% Female
27% of UK Unique Visitors live in London
25% of visits leaving Facebook go to entertain-ment site
The average Facebook user has
100+ likes assoc. with his/her profile
Company Milestones
Facebook launches
Facebook reaches 1 Million members
Facebook opens membership
globally
Launch of the ‘news feed’
1 Million members in
the UK
Launch of self service Ads and Facebook Pages
Introduction of the Like button
Hits 500 million members WW
Users surge to half of UK population
(30M)
Facebook makes Timeline
mandatory
Facebook announces mobile App
centre
Facebook files $5Bn stock
IPO
Facebook buys Instagram for
$1Bn
Timeline
Arranges user profiles and brand pages as a timeline of their history on Facebook. Allows more free space for users to customise imagery.
Recent consumer product release
Edge Rank• Algorithm that determines how
relevant a piece of content is to user and how high up the news feed it should appear
Features• Centre of homepage
• Content can include posts, photo tags, friend requests, event updates, group membership, etc.
News FeedConstantly updating list of posts from people and Pages that a user follows
Recent consumer product releaseBeta product testing
‘Pay to promote’ system currently being trialled in New ZealandUsers spend 27% of
time on news feed
Noteworthy news
Two approaches to market
Field Sales offering is known as Premium
Self Serve offering is known as Marketplace
Facebook is an advertising business
The Advertiser value proposition
Form a strategy that is social by design
Build your Facebook presence (page)
Share content with people who like your page
Reach friends of those who like your page and attract new fans
Learn, nurture relationships & interact
Objective based solution selling
Foster product development & innovation
Generate Awareness
Drive preference & differentiation
Build loyalty through relationships
Amplify recommendations through WOM Gain insights
Increase traffic & sales
Marketing solutions product overview
PMD
Pages
Brand page updates reach 16% of followers on average
Features• Cover Photo – Express brand personality
• Profile Picture – Appears across platform and on ads
• Views & Apps – Showcase photos and highlight custom builds
• Pinned Posts – Ensure certain stories appear at the top
• Larger Stories– Showcase larger video and stories
• Milestones – Larger images for key events
Global Page Engagement
July Release of targeted page post functionality
Facebook’s Reach Generator guarantees that 75% of a brand’s
fans will see their content
Examples
• Like the page• Offers for those who like • Focus on photos of their people• Gift card App
• Like the page• Share content• Highlight videos & events
• Like the page• Photos of events• Like to watch video content
Consumer B2B High net worth
AdsFeatures• 110x80 size• CPM OR CPC• Cost £0.40 CPM - untargeted• Cost £0.50- £0.80 Targeted• Cost £2.50 – Events / video /
samples• Avg CTR 0.05%• Ads are ~29% cheaper if point
within FB’s network
Best practice• messages with social context gain
68% higher recall and 4x increase of likelihood to purchase
• Horizontal images and close ups of faces perform best
Targeting criteria:
Location · Age · Gender · Birthday · Relationship
status · Language · Education level · Likes
and interests · Friends of those who like your page
· Current fansSocial ads are expected to account for 50% of Facebook’s ad budget
CPM +116%CPC +86% CTR +78%
2011-2012
Sponsored StoriesFeatures• Amplify likes, check ins, content
shares, app installs, app usage• Appears to friends of followers
only• Auctioned the same as ads via
CPC or CPA• Appears on web and mobile
interface
Vs. Facebook basic ads• 46% higher CTR• 20% lower CPC• 28% lower CPF
Mobile vs. Desktop performance• 13x higher CTR • 11.2x higher eCPM
Benefits• Promote word of mouth
recommendations• Increase brand lift, ad recall, and
likeliness to recommend brand to friend
PlatformFree API offering that helps developers build applications for on-, off-, or mobile platform with Facebook’s social plugins
230m people have played games on Facebook in past
month
App Center• Platform agnostic app storefront• Encourages developers to build
with Facebook connect • Offers Personalized App
Recommendations• Attracted 150 m users in 1st month• Increased app installations by 240%
Video help series posted onto platform about developing apps
Apps
Wrapp allows users to send gift cards to their friends
Pinterest lets you organize and share images with network
Benefits of Facebook integration
• App can post updates of activity to user’s network
• Users can see which of their friends are using an app
• Overall, Word of mouth functionality
InsightsFeatures• Insights are measured in real
time• Data segmented by page, post
or tab level
Based on ROI data from 60+ campaigns, 70% of campaigns resulted in at least 3x return on ad spend, and 49% achieved at least 5x return on ad spend
Reach:Paid- Unique view from audience targeted with sponsored content
Viral- Unique viewers who saw post through friend
Organic- All unique viewers of content
Interaction:• Likes, shares & comments
• High traffic visitor times
• Which posts visitors engage with most
• Where on site likes were acquired
• Negative feedback
Case study- Ben & Jerry’s
Objective: Increase sales
Premium Ads Results
• 4x increase in Reach
• Able to reach 98% of fans
• Engagement Doubled
• For every $1 spent, saw $3 return in incremental sales
“We really want to have a holistic relationship with our community, with our consumers, about values, about great ice cream.
“Example of “Fan Fotos” page initiative- Rep from Ben & Jerry’s
Case study- Nutella
Objective: Increase awareness and sales from Dec. 1-24
• Christmas Ad campaign included TV-Facebook media plan mix
• Purchased Reach block ads
• Campaign directed people to like/follow page, and try out “Advent calendar” app “There was a positive
cross-media effect between TV and Facebook.
“
Results
• Reached 30% of German online population (3.8M Unique Impressions)
• Facebook ads accounted for 15% of sales over Christmas
• 2.8 m who saw Facebook ad did not see the TV campaign (29% exclusive reach)
- Rep from Nutella’s parent company
Confessions of an ad man
Agency set up • Premium ads continue to be purchased via digital teams• Self-serve is largely handled via APIs
this is handled by digital or search. A few agencies have set up ‘social response’ teams whose sole responsibility is the purchase of social media ads using APIs
Agency use cases for Premium vs Marketplace • The split is not always as straight forward as brand vs. DR but this offers a
fairly good steer• Premium ads are primarily for engagement; E.G. drive people to watch a
video, to an event, answer a question etc.. • Marketplace ads are primarily used for traffic
Confessions of an ad woman contd
Fan acquisition • This is nearly always done via self serve (although there is a Premium offering)• Targeting is an option however this in itself does not affect cost
• They use an auction model so price is according to demand Field Sales approach • The Facebook reps talk about the full suite of products. They give feedback and
advice on both Premium and Marketplace offerings. • They see them as complimentary and generally suggest both to achieve an
advertisers objective. Management of pages • Real variety in terms of who has ownership of the status updates. Sometimes the
client does this directly, others are managed by PR or media specialist agencies.
Key Takeaways
• 74% of UK internet audience use Facebook; 68% access via mobile
• Users spend 27% of their time on the news feed
• Facebook offers Self service & Marketplace Advertising platforms
• 4 product offerings- pages, ads, sponsored stories & open developer platform
• Only Sponsored Stories are pushed onto their mobile platform
• Social ads expected to account for 50% of ad budget
Links to learn more
• Facebook news room
• Demographics data- Facebook UK
• Road to IPO- Milestones in Facebook’s history
• Best Practice Guide- Marketing on Facebook
• Notes of slides
urther Questions?