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Retail Briefing for
Preferred Marketing
Developers
June 5

New York City
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We live in a transformational time: the convergence of digital and mobile technologies is
fundamentally challenging the established approaches to retail and retail marketing. This
presents you with tremendous opportunity to expand your reach and your business in new,
extraordinary, and cost-effective ways.
As retailers move towards making their businesses truly omni-channel, Facebook provides
a much-needed and effective solution. How? The only part of the retail equation that is
truly omni-channel is people. Facebook can help retailers connect with new and existing
customers and sell more products. And we can help businesses do that at scale—increas-
ing not only sales for retailers, but also profits as they increase the efficiency of their
marketing mix. And importantly, this helps bring people the goods and services that make
up their lives.
This wisdom is combined with thinking from experts and marketers in our industry. The
result will include both strategies and tactics that that you can use to help your clients
execute their marketing initiatives.
• Discovery. Most people don’t know what they want, which gives retailers vast oppor-
tunity to inspire ideas through merchandising. Facebook News Feed is particularly ef-
fective in this arena because of its engaging, large-ad format, and because it is where
people spend time discovering what matters to them numerous times throughout
their day.
• Personalization. The proliferation of smartphones and tablets means marketers
have to work harder to ensure new and existing customers see the right product at
the right time with the right message. Facebook’s reach and unique targeting capabil-
ities empower marketers to time and tailor messages, which increases the effective-
ness of ad spend and allows for personalized marketing at scale. This is incredibly
powerful from a cost and business standpoint.
• Return on Investment. The path to purchase is becoming increasingly complex as
people discover, research, and shop for products across devices. Because people
are their true selves on Facebook, retailers can accurately measure their advertising
performance across devices and the incremental value they receive.
Nicolas Franchet, Facebook Global Head of Retail/eCommerce Strategy
Note to our Preferred Marketing Developers:
We’ve heard from many in the PMD community that you’d like to be better aligned with
Facebook sales messaging. We couldn’t agree more. So the following is a compilation of
our key retail messages designed to help you create better, more consistent marketing
materials. We hope you find it helpful.
Retail and Facebook:
How We Work Together
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Discovery
Most people don't know what they want, which gives retailers tremendous opportunity to
inspire ideas through merchandising. But as people spend more time on mobile, real estate
is shrinking and it is making discovery increasingly difficult for marketers and shoppers
alike. Facebook News Feed offers prime digital real estate (across devices) to help 1.28
billion people to discover what matters to them.
With people checking Facebook an average of 14x per day, retailers can utilize the visual
creative canvas of News Feed to showcase their products in-stream with ad units that are
optimized to drive sales in-store, online, or in a mobile app.
14x 45
%
People check News Feed
per day of people reached via ads were reached
exclusively through Facebook
IDC, “Always Connected,” March 2013 Aggregate Knowledge, Q4 2012
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Compression forces marketers to work harder to get their products in front of the right
people. Facebook offers incredible scale, but it’s the sophisticated targeting products that
help businesses reach the people that matter most.
Because retailers can use their own first- and third-party date to target people on Facebok
in a privacy safe way, they can pinpoint precise audiences and tailor messages directly to
them, getting the right message in front of the right people at the right time.
>
2x
Facebook is
more accurate than other ad networks
Nielsen OCR, August 2013
Personalization
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ROI
The path to purchase has become increasingly complex, as people discover, research,
and shop for products across devices. Because people are their true selves on Facebook,
advertisers can accurately measure their advertising performance across devices and the
incremental value they receive from Facebook.
With Facebook’s complete measurement solution, advertisers can close the loop on their
advertising spend to the conversion no matter where it happened—in-store, online or in
mobile app. Advertisers that used Offline Conversion Lift to understand the impact of their
Facebook advertising saw a median ROAS of 8x.
8x
average return on ad spend
Offline Conversion Lift
Facebook internal data, all campaigns measured using Offline Conversion Lift or similar system
(20 campaigns in total), 2% average lift in sales calculated using weighted incremental sales [Q3 2013 – Q1 2014]
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Reach more of the right people
Drive action across devices
Make insightful decisions
Core Audiences
Link and photo ads
Conversion pixel
Custom Audiences
Mobile app ads
Facebook SDK
Lookalike Audiences
oCPM/CPA
Lift studies
Product Framework
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Proven Results
Incremental in-store sales from
Facebook campaigns comes from
more people buying and people
buying more
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For retail online direct response campaigns, Facebook works to drive
incremental business impact at all levels of the online marketing funnel
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Facebook is a profitable channel
for product specific promotions
and also influences cross-sell
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39% 36% 20%
More people search More people visiting
brand websites
More people buying
life in branded
search activity
lift in branded website
visitation rate
lift in site purchase rate,
once someone visited the
advertiser website
1. Facebook internal data, all campaigns measured using Offline Conversion Lift or similar system (20 campaigns in total),
based on weighted average percentage of incremental sales that came from increased customer conversion rate and
increased basket size [Q3 2013 – Q1 2014]
2. Facebook internal data, campaigns measured using Offline Conversion Lift or similar system, based on weighted aver-
age percentage of incremental sales that came from promoted and non-promoted products for measured campaigns. 3X
ROAS represents average return on ad spend for measured campaigns when only considering incremental sales from the
promoted products. [Q3 2013 – Q1 2014]
3. ComScore Action Lift Study “Apparel Retail Campaigns on Facebook” commissioned by Facebook in, U.S. only, desktop
only, measuring effectiveness of Facebook online direct response campaigns from the apparel industry in driving key
online behaviors – ecommerce purchases (8 campaigns), site visitation and branded search (12 campaigns) . All data are
statistically significant at 90% confidence level. [Oct. – Dec. 2013]
1/3
20
%
80
%
2/3
More people
buying
People buying
more Approximate portion of
incremental sales from the
rest of the store
Approximate portion of incremental
sales from promoted products
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Success Stories
+12
%
+23
%
>25
%
approximate portion of
incremental sales from
increased basket size
in-store sales growth of
promoted items on
Facebook
transition from paper flying
to digital in 2015
Facebook assists Sport Chek with
a new digital game plan
This past spring, Canada’s largest sport retailer, Sport Chek, pulled its paper flyer from
circulation and shifted this spend to a two-week experiment on digital - mostly with Face-
book. Sport Chek determined this test would be successful if they saw a 5% growth, but
over this 2-week period national sales grew by 12% YOY and in-store sales items promoted
in the digital flyer grew 23%.
“Without a doubt, Sport Chek and Facebook demonstrated
that social media can be successfully used to reach
customers with specific offers and drive in-store sales.”

Duncan Fulton, SVP, Communications (Canadian Tire Corporation) and
Chief Marketing Officer (Sport Chek and Mark's)

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