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Facebook for Direct Response Marketing

Last updated: March 2014
Source: eMarketer, US , July 2013
Radio
Television
Digital
Mobile
!"#$ !"&$ '$$$ '$!$
The path-to-purchase is complex
Are you reaching them where they are converting?
start shopping on one
device and continue
on another

&()
Source: comScore/PayPal “Reaching the Connected Consumer” Custom Surveys, Oct 2013
Reach more of
the right people
Make
insightful
decisions
Drive action
across devices
The power of Facebook’s direct response solution
Reach more of the right people
Reach people otherwise unreachable
Source: *Quarterly estimated based on monthly search query volume from Google Keyword Tool, April 16, 2013, ** (Q4 2012 estimate) – Nate Herman, Vice President, American
Apparel & Footwear Association, *** Gartner, Feb 2013, “Gartner Says Worldwide Mobile Phone Sales Declined 1.7 percent in 2012”, ***Aggregate Knowledge, Q4 2102
Search represents a fraction of purchase intent

Shoes in the US (in millions, Q4-2012)
115
Searches*
784 Purchased**
*#)
of people reached via
ads were reached
exclusively through
Facebook***
Case study:
Success from leading retailer
Facebook makes search work even harder
Source: Kenshoo “Facebook Advertising Boosts Paid Search Performance,” Nov 2013; study commissioned by Facebook
+$)
higher return
on ad spend
'*)
increase in
AOV
()
higher paid
search CTR
*,#)
drop in
CPA
Reach all of the people who matter to you
Source: Facebook US internal data, Sept 2013
High-quality reach
!-$.
monthly
active users
US
!*&.
mobile monthly
active users
US
!$*.
mobile daily
active users
US
Incredible scale on mobile
Source: US Mobile Total Monthly Minutes, comScore, September 2013
Where they are
most engaged
Use data to reach more of the right people
Facebook data
Interests Behaviors Connections Location Demo
Your data
Custom Audiences
Past
purchasers
Highest LTV
customers
Members
of loyalty
programs
Third-party data
Partner categories
Source: Nielsen OCR, August 2013
-")
accurate
+-)
The average online reach for
narrowly targeted campaigns is
accurate
The average Facebook reach for
narrowly targeted campaigns is
Reach real people with accuracy
Facebook Targeting
Core
Audiences
Lookalike
Audiences
Custom
Audiences
Sophisticated targeting with
unsurpassed accuracy
Reach the people you
already know
Find more people like your
best customers
Use Core Audiences to segment your audience
Online and offline
sources
Targeting types
Location
Interests
Demographics
Partner
Categories
Sample segments
Age and gender
Engaged gamer
Interested in shopping
Living in Chicago
Android phone user
Behaviors
Matched targets
Email addresses
Phone numbers, iOS IDFAs
Facebook User IDs, App User IDs
People you know
Direct or through third-party
People from your website
People from your mobile app
Facebook
People you know on
Facebook
Custom Audiences
Reach your specific customers or prospects at scale
Lookalike Audiences
Find people who look like your customers and prospects
and people who look like them
Fans of your Page Website visitors Mobile app customers People you know
8/21/13
Flagged with cookie Visits website Visits Facebook Person recognized by
cookie, bid placed,
and ad served
Facebook Exchange (FBX)
Dynamic remarketing on desktop
9/16/13
Drive action across devices
Put your products at the center of the experience
!*/
People check
News Feed
per day
Source: IDC, “Always Connected,” March 2013
In-stream and
native
1
Designed for
action
2
Optimized for
conversion
3
VS
Third-party ad
Center of the engagement
Formats that are large, visual and in-stream
Designed for action
Page post link ads – now with CTAs
• Entire image is clickable
• Offers the highest amount of
real estate to get people to click
on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download
Designed for action
Mobile app install and engagement ads
Customer discovery and acquisition Retention, engagement and conversion
Optimized for conversion
Website and mobile app conversions with oCPM and CPA
Make insightful decisions
Current measurement challenges
Key challenges
• Data is fragmented
across devices
• Measurement solutions rely
on proxies
• Optimization is difficult
due to fragmented data
Facebook solutions
• Cross-device: Facebook
measures cross-device behavior
• Accurate: Facebook measures
real people, not proxies
• Actionable: Facebook tracks
performance against goals
As a fully cross-device platform, Facebook enables
businesses to accurately track conversions
Measure results across devices
Conversion
pixel
SDK Third-party
measurement
Reach more of
the right people
Make insightful
decisions
Drive action
across devices
Core Audiences
Custom Audiences
Lookalike Audiences
Facebook SDK
Conversion pixel
Mobile app ads
Page post link ads
3
rd
party
measurement
Facebook’s complete direct response solution
oCPM / CPA
Summary
How Facebook drives effective direct response marketing
!
Reach more of your customers and prospects
with Custom Audiences and Lookalike Audiences
'
Capture attention and drive conversions across devices
with direct response ad units in News Feed and optimized bidding
+
Make insightful decisions
with the Facebook conversion pixel and SDK
Getting started
with driving website conversions
Setting up a campaign
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Objectives in ad create tool and Power Editor
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Acquire new customers with Core Audiences
Purchase based*
Psychographic
Geographic
Intent/interest
Demographic
Lifestyle/life-stage
Cross-sell and upsell with Custom Audiences
! Download your ad account in Power Editor
'
Upload your lists (email, phone, etc.) or select
visitors of your website or mobile app.
+ Save your Custom Audience
*
Include or exclude your Custom Audience in
targeting
# Layer Core Audiences for further segmentation
Expand reach with Lookalike Audiences
!
Select your existing Custom Audience and click
“Create Similar Audience”
' Choose which country you want to target
+
Select whether you want to optimize for
similarity or greater reach
* Access your Lookalike Audience in 6-24 hours
# Layer Core Audiences for further segmentation
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Creative and messaging
• Use powerful imagery
• Use succinct messaging that
promotes action
• Take your audience to where
they want to land
• Keep ads fresh by updating
creative on a regular basis
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Placements
News Feed Right Column
10/29/13
Page Post Link Ads
• Entire image is clickable
• Offers the highest amount of real
estate on desktop and mobile to
get people to click on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download
Ad format optimized to drive offsite conversions
RETAIL / ECOMMERCE
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Optimize your bidding around campaign goals
You value You pay for
We optimize
for
Best practice
Cost per mille (CPM) Impressions Impressions Impressions
You care about showing your
ad; can work well if micro-
targeting an audience even if
you only value clicks
Cost per clicks (CPC) Clicks Clicks Clicks
A basic strategy for
performance advertisers.

Clicks include likes, shares and
comments.
Optimized CPM
(OCPM)
Conversions Impressions Conversions
If you care about a trackable
action, you should use OCPM
Determine how much to bid for your ad
• Bid your true value: for every ad you run, you should consider your
advertising objective and bid the maximum amount you’re willing to pay
for that objective

Example of profit maximization:
• Profit: $5
• Click to conversion rate: 2%
• Optimal bid for profit maximization: $0.10 CPC
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Measurement tools
Conversion
pixel
SDK
Getting started
with mobile app ads
Setting up a campaign
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Objectives in ad create tool and Power Editor
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Acquire new app users with Core Audiences
Psychographic
Geographic
Interests / intent
Demographic
Device
Operating System
Expand reach with Lookalike Audiences
!
Select your existing Custom Audience and click
“Create Similar Audience”
' Choose which country you want to target
+
Select whether you want to optimize for
similarity or greater reach
* Access your Lookalike Audience in 6-24 hours
# Layer Core Audiences for further segmentation
Drive conversions with Custom Audiences
! Download your ad account in Power Editor
'
Upload your lists (email, phone, etc.) or select
visitors of your website or mobile app.
+ Save your Custom Audience
*
Include or exclude your Custom Audience in
targeting
# Layer Core Audiences for further segmentation
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Creative and messaging
• Use powerful imagery
• Use succinct messaging that
promotes action
• Take your audience to where they
want to land
• Keep ads fresh by updating creative
on a regular basis
! Define your marketing objective
' Targeting
+ Creative and messaging
* Ad units
# Bid optimization
& Measurement and attribution
Ad units that drive installs and engagement
Mobile app install ads Mobile app engagement ads
Page Post Link Ads
• Entire image is clickable
• Offers the highest amount of
real estate on mobile to get
people to click on your ad
• Option to add call-to-action
buttons: Shop Now, Learn More,
Sign Up, Book Now or Download
Ad format optimized to drive offsite conversions
RETAIL / ECOMMERCE
Page post link ad Page post link ad
with call-to-action
buttons
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Optimize your bidding around campaign goals
You value You pay for We optimize for Best practice
Cost per clicks (CPC) Clicks Clicks Clicks
A basic strategy for performance
advertisers. Clicks include likes,
shares and comments.

Available for installs and
engagement
Optimized CPM
(OCPM)
Conversions Impressions Conversions
If you care about a trackable action,
you should use OCPM

Available for installs
Cost per action
(CPA)
Installs Installs Installs
When available, CPA is likely the
best bidding option for you

Available for installs
Determine how much to bid for your ad
• Bid your true value: for every ad you run, you should consider your
advertising objective and bid the maximum amount you’re willing to pay
for that objective

Example of profit maximization:
• Profit: $5
• Click to conversion rate: 2%
• Optimal bid for profit maximization: $0.10 CPC
! Define your marketing objective
' Targeting
+ Creative and messaging
* Placements and ad units
# Bid optimization
& Measurement and attribution
Measure what matters with Facebook SDK and
third-party partners
Facebook
Measurement
Partner
Both
• Measure ROI and
LTV on mobile
app ad campaigns
• Measure
advertising
performance
• Measure app
events
• Deeply integrate
with Facebook
social features

• Compare cross
channel ad spend
Try out a Preferred Marketing Developer to
optimize at scale
A community of best-in-
class developers focused
on making social
marketing easier and
more effective
*#0
countries
Manage large amounts of
ads and accounts
Use advanced features not
available in Ads Manager
Manage ads across marketing
channels
Daily bidding and creative
optimization
Day part
www.facebook.com/PMD
Source: Country updated as of October 2013