1. 1. SOCIAL MEDIA ANDFACEBOOK ADVERTISING INSIGHTSOCTOBER 23, 2012
2. 2. Erica Barth, VP Products and Partnerships, Resolution MediaPRESENTERS Viji Davis, VP, Marketing, Resolution Media Aaron Goldman, CMO, Kenshoo 1
3. 3. Listen via computer speakers or dial into conference call using numbers listed in email from gotowebinar@citrixonline.comAUDIOINSTRUCTIONS Still cant hear the webinar? Tell us please! 2
4. 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. 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. 6. A PORTFOLIO APPROACHOwned, Paid, and Earned Assets
7. 7. FACEBOOK BRAND ASSETS Owned Media Paid Media Earned Media 6
8. 8. OWNED MEDIA: FACEBOOK OBJECTSPagePlace App Event 7
9. 9. PAID MEDIA: FACEBOOK ADS Web Ad Post Ad Sponsored StorySocial Ad8
10. 10. FACEBOOK PORTFOLIO APPROACHBalance assets to amplifyyour brand and generateactivity on and off Facebook 9
11. 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. 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. 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. 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. 15. BRAND AWARENESS METRICSMeasuring the Hidden Value of Facebook
16. 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. 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. 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. 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. 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. 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. 22. KEY INSIGHTS Leverage exposure rate Balance exposure rate with frequency Bid higher than Facebooks recommended max bid 21
23. 23. CHOOSING YOUR AUDIENCECountry Insights
24. 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. 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. 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. 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. 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. 29. CHOOSING YOUR AUDIENCEGender Insights
30. 30. WHOS THE FAIREST OF THEM ALL? 58% 42%Available Male Available Female Target Audience On Facebook Target Audience On Facebook29
31. 31. MORE WOMEN ARE ON FACEBOOK, BUT Budget Allocation for Facebook Ads 53% MALE47% FEMALE30
32. 32. MEN ARE SERVED MORE FACEBOOK ADSImpression Volume for Click Volume for Facebook AdsFacebook AdsMALEMALE58% 60% FEMALEFEMALE42% 40% 31
33. 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. 34. AD DOLLARS GO FURTHER WHEN TARGETING MALESExposure Rate for Facebook Ads7.88%4.94% FEMALE MALE33
35. 35. AND YOU CAN AFFORD TO SHOW THEM THE SAME AD MORE OFTENFrequency forFacebook Ads11.95 9.74Threshold foroptimal frequency FEMALE MALE34
36. 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. 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
38. 38. THANK YOU!RESOLUTIONMEDIA.COM/WHITE-PAPERS KENSHOO.COM/RESOURCES