Facebook Ads 2013 Sudden & abundant performance-based media buying opportunities

Facebook Ads has been branding focused Direct response advertisers have been underserved. Why Facebook? Facebook has opened up the data ecosystem. A rush of new products for direct response recently released. Facebook Ads

Branding is 64% of Facebook Ads revenue (2012) Vs. less than 40% for all US online ad spend (2011) Facebook Ads has been branding focused Source: Blackstone Facebook Ads Revenue Total US online ad spend

Facebook Ad Revenue Breakdown Includes Insurance & Mortgage CPC Presumably, Jobs & Education are a subset of “Others” Source: TBG Digital

Many headwinds for direct response advertisers made success difficult. High cost of testing Overwhelming 10 Million+ Likes and Interests, Topics, Broad Categories, demo targets Likes signals not as strong as Search KW High campaign maintenance, rapid CTR burnout, constant rotation and refreshing Facebook Ads, self-contained ecosystem Prior Facebook Advertising = MehMeh

Facebook Funnel Focus Top of funnel, no external data/signals Pre-2012

If you struggled, you’re not alone Source: Blackstone

High Quality/converting New land grab opportunity Opened the ecosystem for external data; bring your own data, and 3 rd party data. New ad products to address all parts of the funnel. Facebook Ads

FB Canvas app landing page experience 760 pixels wide 15% to 25% conversion lift CONS: Secure and non-secure version needed Tight audience segments with highly customized messaging Frequent ad refresh/rotation Recycle prior campaigns Image tips: color border, text copy in the image Marketplace Ads Best Practices Reference:

FBX Facebook Exchange: June/Sept 2012 Search retargeting Dec 2012 Sponsored Search Aug 2012 Custom Audiences: Sept 2012 Exclusions Jan 2013 Lookalikes Feb rd party Partners Feb 2013 Mobile Page Posts Nov 2012 Other enhancements Page posts targeting non-fans Nov 2012 Conversion pixel tracking Jan 2013 New Facebook Ads Products

FBX – FB Exchange Real time bidding Retargeting Not available via UI nor Power Editor, access via DSP or FB marketing partner $20M to $30M in Q42012 revenue, projected to $420M+ in 2013, 7% of revenue. Search “retargeting” partners announced in Dec 2012 and Jan 2013 to address middle funnel, earlier and larger audience pools Source: Triggit

Sponsored Search Ads 1 Billion Search Queries per Day (vs. 3B for Google) – Most searches are for people/brands, not quite the same power of pure Search intent signals.

Facebook Custom Audiences Target existing pool with and/or phone numbers and UIDs.  great for bottom funnel upsells, repeat sales Audience exclusions: Partner with Facebook Marketing vendors with large audiences to filter out  excluding.edu addresses  excluding low household income zip+4 from prime credit card offers Lookalike custom audiences  Upload a target segment and Facebook creates a similar audience pool. Great for top funnel and scale.  3 rd party data Partnerships Tactical Tip: Try multiple load attempts, with and phone numbers to increase match rates.

Facebook Mobile Page Post Ads BEFORE: Mobile Apps Installs Like generation for Fan pages Sponsored Stories targeting existing fan base. NOW: Page Post ads with external URL links Ability to target non-fans. Very useful for top of funnel prospecting. Click2Call

Facebook Funnel Focus Retargeting via Custom Audiences and FBX START HERE highest ROI Start leveraging your data.

Facebook Funnel Focus Retargeting via Custom Audiences and FBX Work up the funnel. Re-invest earnings for more learning. Build on prior success. Leverage more data. FBX “Search” targeting, Custom Audiences with exclusions. Managed campaigns with partners and other people’s data, 3 rd party data partners.

Facebook Funnel Focus Retargeting via Custom Audiences and FBX Continue upwards for scale. Continue stacking on prior success. Sponsored Search, FBX “Search” targeting, custom audiences with exclusions. Managed campaigns with partners and other people’s data. Facebook Marketplace Ads (with or without custom audiences and exclusions), Custom Audience Lookalikes Mobile and desktop Page Post Ads

FBX expansion into Page Posts/Newsfeed Graph Search and new Newsfeed layout Facebook Ad Network Acquired Atlas from MSFT Mobile Ad Network Tested in Q42012, currently on-hold Future Speculation

Questions? Find me at the Cocktail Hour Booth #400 Mini-Session: Wednesday, 10:30 AM Montego E Want a copy of this presentation?

FB canvas app documentation: FB custom audiences 3 rd party data partnerships audience Blackstone 2013 Digital Marketing Industry Review, Ken Allen TBG Digital Global Facebook Advertising Report Q1 2012, Kenneth Lillie, page 6 Triggit Infographic: brings-fbx-retargeting-system-out-of-beta/ Appendix