facebook marketing success summit presentation 2011 - success with facebook ads
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Succeeding with Facebook Advertising
Presented by Chris Treadaway
October 25, 2011
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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
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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
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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
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Co-Author
http://www.facebook.com/marketingbook
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Contributor/Technical Editor
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! What we know about Facebook…
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Facebook owns the social audience
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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
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Facebook dominates social media
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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
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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
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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
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! How Facebook Ads work…
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What is a Facebook Ad?
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Basic Facebook Ad specs
Title: 25 character limit
Body: 135 character limit
Exact dimension is based image’s aspect ratio
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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
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What you can promote
! Website ! Facebook Page, Place ! Facebook Event ! Facebook Apps & Tabs
Website
Event Page
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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
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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
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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
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Targeting options
! Geography ! Demographics (age, gender) ! Education level ! Interests ! Workplaces ! Sexual orientation ! Relationship status ! Languages ! College attended ! Birthday
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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
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! What you can do with Facebook Ads…
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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
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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.
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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
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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
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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
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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.
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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
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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
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! Facebook advertising gotchas…
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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
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! Things we’ve learned…
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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.
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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
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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
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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 ($1,000/month +) &
CPM campaign optimization
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Spreadsheets critical to analyze data
Start Date End Date DaysDays
Remaining % Oct Wk1 Oct Wk2 Oct Wk3 Oct Wk4 Oct Ttl Oct Wk1 Oct Wk2 Oct Wk3 Oct Wk4 Oct Ttl
9/14/2011 Ongoing 250,000 209.2% 739,563 51 0.007% 1.31$ 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
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Don’t overestimate targeting
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Managed social advertising campaigns for SMBs and major brands
Thank you! Questions?
! Chris Treadaway
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