Direct Response Marketing on the Facebook Platform Customer Experience Delivery

Welcome

Megan Pagliuca Vice President & General Manager of Digital Media Merkle Bryan Schroeder Product Marketing Director, Data and Targeting Facebook

3

Direc t res pons e marketing on the

Facebook p la tfo rm

The products & res u lts

The Results

Agenda

How to take advantage of the

opportun ity

The Roadmap The Opportunity

Facebook is Applying Focus to Direct Marketing

Facebook Ad

Share

Like

Facebook Ad

Better price and response Most Inventory Best Targeting

Website

In store

The Facebook Opportunity

Facebook has become the publisher/platform with the largest reach

Reach Facebook is building tools to enable best consumer level targeting available online

Targe ting

Facebook has a wealth of innovative ad products

Innova tive Formats

Facebook has overcome the tracking hurdles associated with cookies

Tracking

Facebook reaches

73% of US active online users

Across all age demos

Source: Facebook Q1 Earnings Call, Comscore, Key Metrics, February 2013 Source: Comscore for the Month of April 2013

Facebook’s Reach is Massive

1.1Billion (online users globally)

U.S. desktop users spend and average of around 6 hours

every month on Facebook

U.S. mobile users spend and average

of around 14 hours every month

on Facebook

* Data gathered from Comscore January 2013

Facebook engagement continues to increase

From Cookie Based to Identifiable IDs

Mobile & tab le t tracking cha llenges Cros s device tracking

3rd Party Cookie Unique ID

Accura te

Pers is ten t

Cookie de le tion

Brows er opt out (threa t)

We’ve seen this story before

New form of targeting

Immense reach and

traffic

New economic

model

Best ROI for

Marketers

10

Direc t res pons e marketing on the

Facebook p la tfo rm

The products & res u lts

The Results

Agenda

How to take advantage of the

opportun ity

The Roadmap The Opportunity

Facebook Targeting Products

Facebook Custom Audiences & Lookalikes March 2013

• Marketer Known Data + Facebook data

Facebook Custom Audiences September 2012

• Marketer Known Data

Like - Comment - Share Like - Comment - Share

Facebook Exchange March 2012

• Marketer Anonymous Data

Like - Comment - Share

Facebook Native Older

• Facebook Data

Like - Comment - Share

Facebook Exchange Versus Display RTB

• agd

12

Outcome FBX has a 79% lower cost per quote than RTB, driven by key levers:

• The inventory is both highly incremental (only 5% overlap with RTB), and available at higher frequency

• The inventory is less expensive, CPMs are 60% lower than RTB. • The inventory is 92% more responsive than RTB line items.

RTB Environment (72% users)

Frequency =1.4

FBX (23% users)

Freq=3.4

5% RTB + FBX Freq=9.4

-60%

92%

-79% -100% -80% -60% -40% -20%

0% 20% 40% 60% 80%

100% 120%

CPM Response Rate Cost per Quote

FBX vs. RTB Performance

Facebook Custom Audiences Versus Interest-Based Targeting

• Match rates above 70%

• Overall Cost Per Sale 500% more efficient

• Works for Cross-Sell / Up-Sell and Prospecting

Outcome

Facebook Native: Newsfeed versus Marketplace Performance

Marketplace

Newsfeed

Outcome

3367%

-25%

1646%

4654%

-63% -1000%

0%

1000%

2000%

3000%

4000%

5000%

CTR Spend CPM Response Rate

CPA

Newsfeed vs. Marketplace

• CPAs for the Newsfeed ads were 63% lower

• Higher CPMs (+1600%) were counterbalanced by large gains in response rate.

• CTR was 33x higher

15

Direc t res pons e marketing on the

Facebook p la tfo rm

The products & res u lts

The Results

Agenda

How to take advantage of the

opportun ity

The Roadmap The Opportunity

Engagement tools: • Saturation mail • Target direct mail • Catalogs • Shared mail

Platform Supplied Tools: • NCOA • DSF • LACS

Platform Supplied Tools: • GA, GS3, DBM • Exact Target,

Social.com, Buddy Media, Radian6

• Facebook Power Editor

• EF, Omniture

Engagement tools: • Email • Social • Display • Search

3rd Party Tools: • Unica • Group 1 • PostalSoft • Pitney Bowes • Alterian

3rd Party tools: • Mediamath • Nanigans • Marin Software • Responsys

The Direct Marketing Platforms

Data Management, Technology, Analytics, Creative

The direct marketer and MSP’s had deep expertise and knowledge of how to use the USPS platform and packaged tools, services and customer experiences to

leverage this platform

The direct response marketer is a digital marketer with deep expertise and knowledge

of the new direct response platforms and packages tools, services and customer

experiences to leverage these new platforms

Direct Mailer & MSP

Data Management, Technology, Analytics, Creative

Digital Direct Marketer

Deep expertise and knowledge of platform

Packaging of comprehensive tools and services

Deep expertise and knowledge of desktop and mobile platforms

Packaging of comprehensive tools and services

Contenders:

What’ s Required to Execute?

Integrated Consumer Experience

Data-driven skillsets

Technology to enable data

management & analytics

Data-driven offer & Audience

Platform expertise

Attribution and Measurement

Program Optimization

cR CRM Database

Digital Data Mgmt

Platform

How do you get started?

18

Pixel Placement Creative (can be easily adapted from

search or display) Give Facebook administrator access to

agency and sPMD partners

Average timeline to go live: 2-3 weeks

Summary

There are new platforms that direct marketers need to leverage for acquisition, Facebook is a dominant player.

The same foundational skills sets should be applied against these, but the tactics will be new and different.

Integration of targeting and measurement is necessary across these platforms

THANK YOU! Presented by Megan Pagliuca, VP Merkle mpagliuca@merkleinc.com 347.751.2669 Bryan Schroeder Product Marketing Director, Data and Targeting bshroeder@facebook.com 408.202.3043