Direct Response Marketing on Facebook_DACH

Q4 2014

Direct Response Marketing on FacebookDriving action online, in-store and in your mobile app

Q4 2014

2 Direct Response Marketing on Facebook

Facebook’s solution for direct response marketing Targeting 6 Placement & ad types 10 Bid types 13 Measurement solutions 14

Best practices Campaign prep 19 Targeting 21 Creative 24 Bidding 25 Measurement 26Bonus - all you need to know about Facebook video! 27

Table of contents

3Q4 2014

We live in a transformational time. As the need to stay connected becomes integral to our everyday lives, the use of smartphones, tablets and laptops is becoming in-creasingly common. Not only are people using multiple devices, they’re constantly switching between them throughout the day. Marketers are faced with the chal-lenge of reaching their consumers in this changing environment.

With over 1.32 billion people1 on Facebook checking their News Feed an average of 14x per day2, Facebook provides a unique opportunity for businesses to drive positive business across devices. Marketers can:

• Reach more of the right people with Facebook’s sophisticated suite of targeting solutions

• Drive action across devices with ad units in News Feed• Make insightful decisions with Facebook’s measurement solutions

From campaign prep to targeting, creative, bidding, measurement and optimi-seation, this guide will walk you through our entire solution and best practices for setting up an effective direct response campaign.

Sincerely,Your Facebook team

1, Facebook internal data, June 20142. IDC, “Always Connected,” March 2013

Introduction


Facebook offers a sophisticated direct response marketing solution for marketers. Whether you’re driving sign-ups on your website, sales in store or installs for your mobile app, these products can help drive your business objectives from Facebook across devices.

5Q4 2014

Facebook direct response marketing

solution


With the right targeting strategy, you can reach consumers on Facebook with relevant messaging and drive scalable results across devices. Though Facebook has more targeting options than other channels, the same audience planning process applies.

Core Audiences Reach people based on interests, de-mographics, location and behaviour.

Partner categories are a way to target people based on their off-Facebook behaviour through our partnerships with trusted third-party data providers such as Datalogix, Epsilon and Acxiom.

Custom Audiences Reach people based on the data you already have. With Custom Audiences, you can target people based on CRM data or actions taken on your website or mobile app.

Lookalike Audiences Reach new prospects who look like your best existing customers. You can build a lookalike audience from your CRM database, website visitors, mobile app customers, Page fans

Targeting

Driving online traffic

Acquiring new customers

Remarketing to existing customers

Driving in-store traffic


Remarketing to existing customersDriving mobile app installs and conversions

Acquiring new mobile app users

Remarketing to existing mobile app users

(Partner Categories) (Custom Audiences from your website)

Core Audiences

Think about the goal you’ve set for your business on Facebook. Ask yourself the following questions to help develop your audience strategy on Facebook:

• Who are your target audiences?

• How do you segment your audiences? What types of data/insights do you have?

• What are your key focus markets now and in the future?

• Who manages your CRM database? How do you use your database for marketing?

• What offline data do you use for targeting in other campaigns?

These questions should help determine what audiences you want to reach on Facebook. Next, use Facebook targeting to find your audience.

Recommended targeting solution by objective

Custom Audiences

Lookalike Audiences

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Remarket on Facebook across devices with Custom AudiencesCustom Audiences enable you to target people on Facebook based on the data you own in a privacy safe way. In addition to creating a Custom Audiences from a data file, you can use them to remarket

customers from your website or mobile app and reach them on any device regardless of their original touchpoint. Combine with other Facebook targeting to deliver the right message to the right person.

The power of Custom Audiences

Leverage signals from your website and mobile app

Incredible scaleFacebook’s broad reach across desktop and mobile consists of 1.32 billion monthly active users

(June 2014)

Real identityFacebook’s use of real identity

means you’ll target people, not cookies.

Accurate targetingYou can layer other Facebook

targeting options to ensure you’re sending the right message

Across devicesDeliver ads across desktop

and mobile

Using the Facebook remarketing pixel, you can automatically create Custom Audiences based on the actions people have taken on your website. You can then deliver ads in real-time to drive them back to your website or your mobile app.

Example: A frequent traveler browses for travel packages on a travel website and leaves before purchasing. The travel company can target that potential customer when she visits Facebook on any device to drive her to purchase.

Custom Audiences from your websiteReach people who have demonstrated intent on your website

Matched targets

FacebookPeople you know

Using the Facebook or a third party SDK and App Events*, you can automatically create Custom Audiences based on the actions people have taken within your mobile app. You can then deliver ads in real-time to drive them back to your website or your mobile app.

Example: A frequent apparel shopper browses this season’s shoes in an eCommerce mobile app and leaves before purchasing. The advertiser can automatically deliver an ad promoting a discounted offer to that shopper when she visits Facebook on any device.

*App Events allow you to identify specific actions within your app such as in-app purchases and level achievement.

Custom Audiences from your mobile app Drive existing customers to reengage with your app based on their in-app activity


All Facebook

Facebook desktop only

std. ads (domain only)

Page post ads ( link only-beta)

std. ads, Page post ads, mobile

Custom Audiences from your website and Facebook Exchange are similar but can be leveraged in different ways.

For more information on Facebook Exchange : http://www.facebook-pmdcenter.com/category/fbx

Custom Audiences are best when:

• You want to target users across devices• You want to combine your Custom Audience with

other Facebook targeting• Available in all Facebook interfaces

Facebook Exchange is best when :

• You have large product catalogues and remarket to many granular audiences

• You require real-time dynamic ad creative• Available via Demand-Side-Platforms (DSPs)

Complementary to Facebook Exchange (FBX) - Use Custom Audiences and FBX to maximise reach

Consumers trust us with their information and we are committed to maintaining that trust.• Facebook does not share the private information people put on Facebook• Your Custom Audience will never be shared with other advertisers without your permission• Facebook ads make it easy to provide transparency and offer control• For more info, please visit our privacy FAQ at facebook.com/about/privacy/

Privacy - At Facebook, consumer trust is paramount

Availability Global

Compatibility Compatible with all Facebook targeting, ad units, and placements

Objective Driving online conversions, mobile conversions, offline conversions

Requirements To target based on actions on your website, implement the remarketing pixel on your website. To target based on actions in your mobile app, use the Facebook or third-party SDK with App Events

How to buy All Facebook ad interfaces—ad create tool, Power Editor, API partners

Facebook Custom Audiences - At a glance

Mobile delivery

Real-time bidding

Dynamic creative

Access to Facebook’s targeting

ExclusionFacebook lookalike

audiencesPlacementsAd formats

Custom Audiences

Facebook Exchange

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Notes


Placements and Ad UnitsFacebook offers several ad units for advertisers to capture attention and drive action. News Feed is the most effective placement for advertisers looking to drive direct response objectives because its ad units are in-stream and native to the Facebook experience and across devices.

Link ads direct people off of Facebook from any device to a specific location on your website that you choose. Link ads offer:

• A large, clickable real estate in News Feed across devices

• The ability to add strong call-to-action buttons to drive conversions

• The ability to showcase multiple products from your inventory within a single link ad unit

Photo ads are designed to drive brand awareness and engage-ment from Facebook’s News Feed. Photo ads offer:

• A large real estate for an image in News Feed

• A compelling canvas for advertisers to capture attention from News Feed

Creative specs for link ads

• Recommended text count: 90 characters

• Recommended image ratio is 1.91:1

• Recommended image size is 1200x627px

Creative specs for photo ads




Link adsDrive traffic to your website and store

Photo adsDrive traffic to your store

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Mobile app install ads drive people directly from News Feed to the App Store or Google Play to install from a strong call-to-action. Mobile app install ads offer:

• A large, clickable real estate in mobile News Feed

• Strong call-to-action buttons – Install Now, Play Game, Watch Video, Shop Now, Listen Now, and Book Now

• The option to use video or image

Mobile app engagement ads drive existing app users directly from News Feed into your app with a strong call-to-action button. Mobile app engagement ads offer:

• A large, clickable real estate in mobile News Feed

• Strong call-to-action buttons – Use App, Play Game, Watch Video, Open Link, Shop Now, Listen Now, and Book Now

• The ability to direct users to a specific location in app

Creative specs for mobile app ads




Creative specs for mobile app ads




Mobile app install adsDrive installs for your mobile app

Mobile app engagement adsDrives conversion in and retention for your mobile app


Changes to right-hand column adsThis updated look makes right-hand column ads more visually consistent with the ads that appear in News Feed. For advertisers, this offers a simpler way to create ads and an enhanced creative canvas on the right-hand column of Facebook.

For photo, link, offer, desktop app and domain ads:

• Image ratio is 1.91:1

• Image size is 254x133 px

Old formatNot consistent with News Feed format

New formatConsistent with News Feed format

What has changed?Greater real estate: the new format is 2.5x larger than the old format and does not scroll below the fold

Better click through rate (CTR): new format can deliver higher CTR which does not scroll off-page

Simpler set up: the same creative can deliver in both News Feed and in the right column

More value per impression: with fewer ads on a given page, each ad gets more attention compared to the old format.

New creative specs:

For video ads:

• Image ratio is 16:9


For photo, link, offer, desktop app and domain ads:

• Image ratio is 2.7:1


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Bid typesFacebook offers a variety of bidding options to help you deliver your ads to the right audience at the most efficient price for your objective. The 4 bidding options are cost per impression (CPM), cost per click (CPC), optimised cost per impression (oCPM) and cost per action (CPA).

Cost per 1000 impressions (CPM)

Use CPM if your objective is to drive impressions of your ad. If you care about clicks or conversions and you’re targeting a very specific or highly targeted market, you can also bid CPM to gain greater reach for your ad.

Impressions

Clicks

Conversions

Installs

Impressions

ClicksFor CPC with link ads, you pay for clicks on links, likes, com-ments and shares.

For CPC with mobile app ads, you pay for clicks to the app store.

Impressions

Installs

Impressions

Clicks

Conversions

Installs

You value You pay for We optimise for

Cost per click (CPC)

CPC is a good option for advertisers targeting a very specific audience. For example, if you want to target your highest LTV customers, you could use CPC bidding to serve ads to your entire audience rather than those likely to convert.

Optimised CPM (oCPM)

oCPM enables you to specify the action that you care most about and set a target bid for that action. Facebook will then optimise delivery and bid aggressively to serve ads to users we believe are most likely to take that action.

N.B. for oCPM to work properly you need a target audience > 600K

Cost per action (CPA)

Designed for mobile app ad campaigns, CPA bidding will efficiently spend your budget by delivering ads to users who are most likely to install your mobile app. With CPA, you have full control over what you spend per action and our system will deliver the results you care about.


Facebook offers customisable, transparent and actionable insights for effective online advertising across devices. Use the Facebook conversion pixel and Facebook or third-party SDK to better understand the people you’re reaching and how your campaigns are performing against your advertising goals.

The changing landscape- People are spending more time across devices

People live their lives on multiple mobile devices and they’re constantly switching between them throughout the day. A person can see an ad for a product on their mobile phone and purchase on their desktop later. The ability to measure across devices can offer marketers vital insight into how and where their campaigns are performing.

Cross-device measurement - Measure the value of your campaigns across devices

See how your customers are moving between devices before they convert.

Example: If you see that your customers convert more on desktop, you can sequence the messaging for your ads and use a stronger call-to-action on the device they’re likely to convert. You can use Custom Audiences to segment customers closer down the purchase funnel and reach them on the specific device they’re likely to convert.

Accurate reporting - Measure real people, not cookies

With over 1.32 billion monthly active users (Jun 2014), Facebook is the largest and most accurate measure of cross-device usage. While other advertising channels rely on cookies and outdated metrics (e.g. visits and page views), Facebook reports on real people’s actions no matter which device they’re using.

Actionable insights - Access data and take action faster

The Facebook conversion pixel and Facebook or third-party SDK allows you to measure:

• Your progress against the specific actions that align with your advertising objectives (e.g. website conversions and app installs)

• High- and low-performing campaigns so you can adjust budgets, pause or update.

• The types of devices on which customers are most likely to convert so you can tailor messages and segment your audience

The power of Facebook reporting: Cross-device: See how your customers are moving between devices before they convert

Accurate: Measure the actions of real people, not cookies

Actionable: Quickly review results and take action

Measurement

41%of people are switching between devices to complete a single activity

Source: Study by international market research agency GfK (commissioned by Facebook), March 2014

Facebook ads reporting: Availability: GlobalObjective: Online conversions, mobile conversions

Requirements: For the most accurate reporting, implement the Facebook conversion pixel on your website and Facebook or third-party SDK in your mobile app.

How to measure: All Facebook ad interfaces – ads create tool, Power Editor and API

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Facebook conversion pixel & SDKTrack and analyse the performance of your campaigns with Facebook’s measurement solutions. You can measure conversions where they happen, across devices and in mobile apps.

Facebook’s conversion pixel measures website conversions

When driving traffic to your desktop or mobile website, the Facebook conversion pixel will measure how your ads perform and provide the granular data needed to optimise your ads. It will also enable you to use other Facebook solutions that leverage pixel data such as Custom Audiences from your website and oCPM bidding.

The Facebook conversion pixel measures:

• Your cross-device conversions on Facebook

• Any interaction with your ad, such as photo clicks on the photo, like button, comment button and share button, as click conversions

• Conversion activity in a 1-day, 7-day or 28-day window based on time the ad is shown

While Facebook provides its own conversion pixel for tracking, you can also implement a third-party pixel for measurement beyond Facebook. Generally, third-party pixels will measure:

• Granular data outside of Facebook such as LTV, KPIs and multi-touch attribution

• Click conversions as clicks off of Facebook

• All other clicks prior to a conversion as a view conversion

• Data across channels with minimised redundancies

• Data when the conversion takes place within a predefined attribution window

“We were able to identify the type of consumer who will convert, profile them, and use this to find more people to serve New Feeds adverts to.”

Henry Arkell, Social Advertising Director, MGOMD.

Facebook case study, April 2014

Facebook’s SDK and App Events measure mobile app conversions

The Facebook SDK or Mobile Measurement Partner’s SDK will measure the granular data needed to optimise your mobile app ads to meet specific goals. You will need to measure in-app actions to optimise budgets for actions that matter. You can do this via Facebook App Events or through a Mobile Measurement Partner.

The Facebook SDK and App Events measure:

• Any action taken in your mobile app ad such as an install or a purchase

• Conversion activity within a 1-day, 7-day or 28-day window based on time the ad is shown

• Rich people-based insights such as who buys the most in your app via App Insights

While Facebook provides its own SDK for tracking, you can also implement a third-party measurement solution. Generally, our third party mobile measurement partners measure:

• Cross ad network ad spend

• Deeper downstream performance metrics and analysis such as funnel analysis


Conversion lift testsConversion lift tests are the only way to objectively vet an attribution model.

1. Before uploading your Custom Audience to Facebook, randomly divide your audience into two groups This creates a test group and a control group. Only include people you want to target for your specific objective. For example, if you’re a travel company promoting hotels to people who recently booked a flight, run a conversion lift test to people from that campaign.

2. Upload the two groups as separate Custom Audiences Do not make any changes to the Custom Audiences during the test to maintain accuracy.

3. When running your campaign, only show ads to the test group Make sure to exclude the control group from your campaign. Make sure to reach more than 75% of people in your test cell to get a good read on the impact of your advertising.

4. Analyse your point-of-sale data from both groups When measuring the results of your campaign, look at the data of all people within your test and con-trol group.

5. Calculate the lift between the two groups Compare the delta in conversion rate and sales volume between the test and control group.

For more information on conversion lift tests and details on our managed conversion lift test solution, reach out to your Facebook contact.

Conversion lift measurement is a true experimental design approach which enables advertisers to determine the value of all Facebook impressions (views and clicks) beyond the last touch and determine the incremental impact Facebook advertising had on their business.

How to implement a conversion lift test in 5 easy steps

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Solution by ObjectiveThis is our recommended solution set for marketers looking to acquire customers or remarket to existing customers online, in-store and in mobile app.



Acquiring new mobile app users

Core Audiences

Custom Audiences exclusion

Core Audiences/ Partner Categories

Custom Audiences from your website

Lookalike Audiences

Core Audiences

Custom Audiences

Lookalike Audiences

Custom Audiences

Custom Audiences

Custom Audiences

Link ads in New Feed

Link ads in New Feed

Photo ads

Offer ads

Mobile app install ads

Link ads in News Feed

Link ads in News Feed

Photo ads

Offer ads

Mobile app engagement ads

oCPM

CPC

CPM

CPM

oCPM

oCPM

CPC

oCPM

CPC

CPC

Conversion pixel

Conversion lift tests

Conversion pixel

Conversion lift tests

Facebook SDK + App Events or third party mobile measurement partner

Facebook SDK + App Events or third party mobile measurement partner

Targeting

Targeting

Targeting

Ad units

Ad units

Ad units

Bid types

Bid types

Bid types

Measurement

Measurement

Measurement



Remarketing to existing mobile app users

Driving online traffic from Facebook

Driving in-store traffic from Facebook

Driving mobile app installs and conversions from Facebook


Best Practices

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Best PracticesCampaign Prep

Planning your campaignAs you plan your campaign on Facebook, you can start by asking yourself a few questions:

• What are my business goals and how do they map to the objectives I can drive on Face-book? For instance, your business goals could be acquiring new customers or remarketing to existing customers.

• How will I measure and track results? Before launching your campaign, identify clear KPIs so you and your partners can work towards the same goal.

The answers to these questions will define your strategy and help you measure the effectiveness of Facebook alongside other direct response channels.

Next, follow these steps:

• Align Facebook with your other efforts on digital From account planning to the KPIs you’ll measure, leverage the same processes and best prac-tices for an apples-to-apples comparison between channels.

• Consider long-term success metrics It’s not too early to set long-term goals for your program. Consider metrics such as lifetime value (LTV), downstream value, average order value (AOV) and share of new customers.

• Leverage your fans Your business will benefit from having more people who like your Page since Facebook ads show social context, which increases the efficacy of your ads. Audience Insights from your Page such as geographic, demographic and interests data can also enhance your ability to target the right people and refine your creative for specific campaigns.

Campaign structureFacebook’s campaign structure makes it easier for you to organise, optimise and measure the performance of your ads. The structure has three levels: campaign, ad set and ad.

Campaign

Ad set Ad set

AdAdAdAd

Campaign best practices

1. Set up campaigns based on advertising objectives

2. Create multiple campaigns within an ad account

3. Cap spend across all campaigns and track spend for each campaign

Ad set best practices

1. Organise ad sets by audience segment

2. Optimise top performing placements

3. Set bidding to maximise performance

4. Adjust budgets to optimise spend


Ad best practices1. Use ad types that match your campaign objective

2. Create multiple ads to optimise performance

3. Improve the performance of your creative

4. Don’t go over the limits for number of campaigns, ads sets and ads

Set up for measurement

To measure the success of your program, put in place the proper measurement solutions.

1. Know which KPIs (ROAS, average order value, conversion rate, etc.) you want to measure and what metrics you consider a success Share these success metrics with your partners (agency and/or PMD).

2. Bring your conversion data onto Facebook To track online conversions, implement the conversion pixel on your website. To track conversions in your mobile app, implement the Facebook SDK and set up App Events to measure and attribute specific ad spend to specific in-app actions.

3. Identify where the majority of conversions happen Looking at your data, identify where the majority of conversions occur. If you notice that more conversions occur on desktop than mobile, then increase spend on desktop and use the appropriate ad units and creative to drive your desired action.

4. Set up measurement for lifetime value (LTV) It’s not too early to set long-term goals for your program. Consider metrics such as lifetime value (LTV), downstream value and share of new customers.

5. Partner with a third-party solution for cross-channel measurement Encourage advertisers to implement third-party measurement solutions to measure the path-to-conversion for their customers and the impact Facebook has compared to other channels.

21Q4 2014

Use the following best practices to efficiently reach the people in your target audience.

1. Reach audiences based on where they are in the lifecycle For example, remarket to people who demonstrated purchase intent on your website, target existing customers who are likely to churn and reach your highest LTV customers to keep them engaged.

2. Minimise overlapping audiences Overlapping target audiences mean multiple ads are competing for the same auctions, thus cannibalising the delivery for your campaign. Consider consolidating target audiences into larger but fewer audience segments. Also, evaluate the timing of ad sets as they may not need to run at the same time

3. Remarket to people who demonstrate purchasing intent Advertisers can leverage data from Audience Insights and App Insights to identify audiences that may be interested in purchasing their products and increase the relevancy of their ads.

4. Exclude current customers from acquisition campaigns If you’re running a campaign with the goal of acquiring new customers, use Custom Audiences to exclude your existing customers from your campaign.

5. Use specific seed lists to build lookalike audiences When building a lookalike audience, start with a seed list that is specific to the objective you’re trying to achieve. For example, build a seed list of people who tend to convert online versus offline and find people who look like them.

6. Reach people where they are most likely to convert If your target audience is more likely to convert on mobile (based on audience insights) then remarket to them with mobile ads.

7. Continously test and iterate Follow the 80:20 rule to scale your direct response marketing campaigns. You should set aside 20% of your budget for testing purposes and measure the overall prospecting CPA weekly. Then, to optimise your camapign you should replace the lowest performing delivery combinations with the highest performing ones from the test sample.

Success Story

Italy’s ING Direct used Website Custom Audiences to shrink its acquisition costs and boost online sales by remarketing to people who didn’t complete the joining process.

Result: 50% lower CPA than average for other remarketing channels.

Facebook case study, June 2014

Targeting Best Practices


Facebook Custom Audiences Best Practices

Custom Audiences enables you to connect with your most

valuable audiences

Your CRM or intent data(Direct or through third party)

Facebook real identity across 1.3B people

Matched targets

Why Facebook Custom Audiences?

Incredible scale: 1.32 billion people are on Facebook worldwide1

Real identity across devices: Facebook is uniquely positioned to reach authentic people, not cookies, no matter where they are or what device they’re using

Accurate targeting: Working with real identities, our targeting is over 2x more accurate than other ad networks2

Measurable results: Track the incremental value of your ads on Facebook

Custom Audiences Best Practices

1. Leverage the data sources that align best with your objective• Custom Audiences from a data file

Import a list of contacts from your CRM database to acquire, retain and re-engage with former, at-risk and high LTV customers.

• Custom Audiences from your website or mobile app Implement the Facebook conversion pixel on your website or the Facebook SDK in your mobile app to acquire prospects who demonstrated intent on your

website or mobile app and re-engage with customers who recently purchased.

2. Mirror your Custom Audiences to your existing segmentation efforts

Leverage what you already know about your customer and tailor your messaging to your audience segments to personalise their experience and drive your desired business outcome.

For example, are you looking to reconnect with your loyalty members? Or customers who left items in their online shopping cart with a special discount?

3. Build Custom Audiences based on where your customers are in the funnel

For example, target new customers with educational messaging to learn more about your brand and target high-value customers with messaging tailored to their needs.

Why is this important? A recent Facebook study discovered that sequenced marketing messaging, as your customers move through the funnel, could improve the results

With Custom Audiences, you can safely and privately reach your most valuable audiences on Facebook using CRM data and intent data from your website or mobile app.

23Q4 2014

that matter to your campaign or brand.

4. Exclude existing customers from new customer acquisition campaigns

Don’t pay for unwanted impressions, clicks or conversions in your new customer acquisition campaign. You can exclude your current customers from your campaign to ensure your messaging is on target.

For example, if you’re looking to drive sign-ups for your newsletter, exclude existing subscribers from your campaign.

5. Supercharge your email or direct mail campaigns• Direct Mail and Email

Use Custom Audiences from a data file to complement your next direct mail campaign. Reach those who don’t open email, or amplify your direct mail message by reinforcing it within your audience on Facebook.

• Search Campaign Find your customers before they search for you. Use Custom Audiences from your website or mobile app to uncover intent earlier in the purchase funnel to maximise search spend. Remember: most people don’t look for your brand by name if they’re not aware you exist.

6. Target customers that have demonstrated intent to purchase

Implement the Facebook conversion pixel and/or the Facebook SDK to target people based on intent. With Custom Audiences, you can target people based on the specific actions taken on your website or mobile app. E.g. remarket to people who abandoned their shopping cart with messaging that drives them back to purchase.

7. Target customers across devices

Facebook targets real people no matter which device they’re using. Consider your cross-device conversions to ensure you’re sending the right message to the right people on the right device based on where they are in the conversion funnel. You can view your cross-device conversions by enabling the cross-device view in Facebook ads reporting.

8. Find people who are similar to your best customers

Use Facebook lookalike audiences to grow your customer base by finding people who have similar characteristics to your highest lifetime value customers, current subscribers, high-value prospects or engaged app users. Build lookalike audiences from your CRM database, website visitors and mobile app customers.

9. Use a bid type that best suits your goals

If you’re running a direct response campaign, use oCPM to deliver ads to people likely to convert. Use CPA if you don’t want to pay more than a specific cost per mobile app install. Lastly, test CPM to increase delivery to a highly qualified audience such as your high LTV customers.

10. Use quality data to build your Custom Audience

When using Custom Audiences from a data file, you will have a better match rate with the people on Facebook when using higher quality data (e.g. complete email addresses, newer data, etc.).

For example, if your contacts were entered several years ago and haven’t been updated since, it’s likely that their contact information is out of date.

For more success stories check out:

www.facebook.com/business/success

1Facebook Internal Data, June 20142Nielsen OCR, August 2013

Mornin’ GloryThey used Custom Audiences to find its existing customers and set up lookalike audiences modeled after its most loyal customers to grow its customer base by finding the right audience for their product.

Result: 30% higher conversion rate and a 50% lower CPO.

Facebook case study, Q1 2013


Creative best practicesGreat creative drives engagement and can lead to higher delivery at a cheaper cost. Take advantage of the visual and native canvas in News Feed to drive your direct response objectives.

Best practices for direct response creative1. Stick to one strong focal point

Keep to one focal point within your creative so that your objective is clear to your audience. For example, if you’re a retailer, showcase the product you’re selling and provide a clear directive within the ad.

2. Make your ad noticeable Use creative that captures attention and gets people to stop scrolling through their News Feed.

3. Insert brand personality Showcase your brand identity through your creative. For example, insert your logo or use your brand’s colour palette.

4. Create informational reward Make sure the product or service you’re promoting is relevant to your audience. For example, an events business can promote tickets for a concert to people who have previously expressed an interest in the band.

5. Create emotional reward Think of ways to connect with your audience emotionally. Humour is a great trigger.

6. Mirror creative to where your audience is in the sales funnel If your audience is in the consideration phase, use creative to drive interest in your products or services. If your audience has demonstrated intent on your website, use creative with a strong call-to-action to drive the outcome you care about.

7. Use a strong call-to-action Vital to direct response campaigns, ensure you have a single, clear call-to-action that drives your objective on Facebook. Do not confuse the call-to-action by asking them to purchase a product and like your Page.

8. Create consistency across the path-to-conversion When driving a conversion on your website or mobile app, keep the look and feel of the experience seamless from the ad itself all the way to the conversion page.

9. Keep the creative fresh Campaigns will begin to fatigue over time given the frequency with your target audience. Review performance over time and update creative often to maximise results.

10. Optimise your creative based on drop-off rates Ensure you’re using the best performing creative by testing continuously. Regularly review the performance of your creative and discard underperforming combinations.

25Q4 2014

BiddingFacebook’s auction is designed to give you the least expensive delivery possible regardless of your bid. On Facebook, the bid is assumed to be the value (e.g. revenue) captured from each click, impression or action.

PricingWe charge you based on:

• The position you win in the auction

• The weighted average of your competitors’ bids

Best practices to test: oCPM + offsite conversion1. Establish a baseline

Add the conversion pixel, establish a baseline and generate at least 20 conversions before making assumptions.

2. Set the desired action Test oCPM with a conversion action that has a 1-day click-to-convert rate of 0.5% or higher – in some cases, this means the “action” should be an upper funnel action like “conduct a search” or “add to cart”

3. Set the bid Set the bid high for the first few days before reducing; keep in mind that the oCPM algorithm is based on a 1-day click conversion.

4. Determine your audience and budget Use a large target audience of 600k + and a budget of at least $20 per campaign

5. Test, test, test Advertisers should test which bidding option works best for them

Best practices for bidding1. Bid your true value

Bid the maximum amount you’re willing to pay per objective. Figure out what the max bid is by calculating the average profit from a click or action (this varies by target audience, and possibly other factors, and should be adjusted over time).

2. Increase your bid if you’re willing to pay more per objective Prices are calculated based on the position won in the auction and the weighted average of your competitors’ bids. This means that the price charged is almost always less than the bid. So if you’re willing to spend more, increase your bid to maximise delivery.

3. Set accurate end times for your ad sets You might get slower delivery if the system thinks it has to spread your spend out over a long period of time.

4. Set different bids for low and high LTV users Create different LTV audience segments. Bid higher for people that bring more value in the long run, while bidding less for people that have a lower LTV.

5. Don’t change bids and budgets too frequently Fluctuations in bids may affect delivery.

6. Don’t try for the cheapest clicks or impressions You will reach people that are easier reached, but don’t necessarily provide the LTV you expect. In addition, you might not be able to scale your campaign properly.

7. Don’t create offensive or intrusive ads - it will cost you The more “x-outs” you receive on your ads, the more you will have to pay to reach users, and the smaller your target audience will become.


MeasurementProperly measuring and optimising your ad campaigns is core to success on Facebook.

General remarketing

Lead generation

Mobile app installs

Mobile app re-engagement

Loyalty

Upselling

Fan acquisition

Retention with lapse customers

Main landing pages, search pages, category pages

Main landing pages, loyalty/rewards pages, newsletter pages

Activate App and App Purchase

Activate App, App Purchase, Add to Cart, Initiated Checkout

Loyalty/rewards pages

Category/product pages

Main landing pages

Loyalty/rewards pages, shopping cart (exclude purchasers via Custom Audiences pixel on checkout/thank you pages)

If your goal is... You should apply the pixel/App Event to...

Place Facebook’s conversion pixel or App Events at each key part of the conversion flowBy placing the conversion pixel/App Events across the funnel, you will be able to test several optimisation techniques that could lead to additional conversions. In addition, you will be able to measure the downstream effect of our ads in relation to key conversion events.

For a complete view of your efforts on Facebook, we recommend a combination of measurement solutions:

• Track your Facebook ad performance with the Facebook conversion pixel and SDK

• Measure the incremental lift you receive from advertising on Facebook using conversion lift tests

• Use third-party tracking and measurement to determine attribution across publishers

27Q4 2014

Bring your brand to life with sight, sound and motion in Facebook’s News Feed, the centre of discovery

• Up to 3 video creative per carousel• First video creative (per carousel) auto-plays with no sound until

clicked and can be up to 30 seconds long; others can be longer form content

• Video is pre-cached on mobile devices and plays seamlessly with no mobile buffering

• Standard Facebook ad guidelines; requires creative approval• Facebook Creative Shop dedicated resources

• Single video creative• In the US, some videos will autoplay; for others a

person must click to play the video• Can be up to 20 minutes long• Standard Facebook ad guidelines

PREMIUM VIDEO ADS

Designed for advertisers who want to own key moments and achieve high awareness of their video fast. Each 30 second auto play premium video advert is bought on guaranteed GRP’s over 1 day, so is easily comparable to TV.

VIDEO ADS

Designed for advertisers who want to run their video campaign over a longer period of time, building up reach, with a more granular audience. No guaranteed GRP’s however no minimum spend, and longer video length.

Your video advertising options on Facebook

1 billion video views each day

on Facebook

65%of them taking

place on mobile

20 million people on Facebook each day in Germany


Ad format Video Ad Premium Video Ad

Buying type Reach & frequency oCPM for video views Reach Block Targeted GRPs verified by Nielsen OCR

When to use Drive targeted awareness of your video with predictable reach and controlled frequency

Drive as many video views as possible by delivering your ad to people who are most likely to view your videos

Drive mass awareness to a broad audience with guaranteed impressions on a single day using video ads

Drive mass awareness with guaranteed targeted GRPs in News Feed using Facebook’s richest storytelling ad format

Geographic availability

Global Global Global Limited release in: AU, BR, CA, FR, DE, JP, US, UK

Duration 3 - 30 days You select 1 day 1 day

Frequency You select frequency for entire duration of campaign

Up to 2 per day; no lifetime frequency capping2

1 Up to 3 insertions (carousels) per day

Targeting All Facebook targeting capabilities3

All Facebook targeting capabilities

Broad age and gender Broad age and gender

Billing Predictable CPM CPM Fixed CPM Fixed price based on targeted GRPs verified by Nielsen OCR

Pricing Varied based on audience size and frequency

Based on your bid Set by rate card Set by rate card

Buying channel Ads create tool, Power

Editor, API

Ads create tool, Power

Editor, API

Insertion order Insertion order

Lead time 0 - 8 weeks in advance4 Can be set up immediately ~ 3 days in advance At least 6 weeks in advance5

Measurement Impressions, views, completed views, quartile views, shares, link clicks (in Page Insights and Ads Reporting), Nielsen Brand Effect, Nielsen OCR, Nielsen XCR, Datalogix6

1 Available in all countries with >1.5M MAUs2 Over the life of a campaign, an ad can be inserted multiple times. It can be inserted multiple times per day in the right column. Note: A Page that is running multiple ad creative to fans may have their ads inserted up to 4 times per day for those fans.3 Reach and frequency campaigns are compatible with all targeting types except website Custom Audiences and fan-exclusion targeting.4 Can schedule day of or up to 8 weeks before campaign end date.5 Note that the campaign starts at midnight Eastern time.6 Nielsen and Datalogix measurement only available in select countries. Please speak with your Facebook account representative to inquire about availability.

Case Studies

19% uplift

in purchase intent with its

World Cup real-time video

campaign on Facebook.

17% incremental reach over

TV for V40 car launch

(Northstar)

54%

greater impact when combining

Facebook and TV than either

either medium alone (GfK)

27% incremental sales by

extending their campaign

from TV to Facebook

29Q4 2014

Consumers are shifting to mobile and 1 in 5 minutes on mobile is spent with Facebook and Instagram. Align your marketing budget to reach this audience.

1 Be where people are

Facebook can offer both mass broadcast and targeted reach: 20 million daily active users in Germany and 16 million mobile daily active users.

On average, people check Facebook 14x a day. Mobile News Feed lets people focus on one piece of content at a time, which is 7x more effective than a traditional display ad.

2 Reach all the people who matter to you

3 Live on the most engaging digital real estate

Achieve your business objectives by investing on Facebook

Get noticed !Videos directly uploaded to Facebook can take up nearly the full screen in mobile News Feed

Link to offsite videoVideo directly uploaded to Facebook

When compared to offsite video links, video directly uploaded to Facebook has performed better:

2.5x3.5xhigher CTR* lower CPC*

Images are 11X larger than links to offsite videos, ensuring your brand

gets noticed in News Feed.

5.5x 30%lower cost per

video play* higher video play

rate*

*Sources: comScore Mobile Metrix, (US March 2014); Facebook internal data (June 2014); Telco Outcome Measurement (2013); AdParlor, 2014 (1) http://adparlor.com/promoting-videos-on-a-facebook-page-youtube-vs-native/ ; AdParlor, 2014 (2) http://adparlor.com/facebooks-ads-and-calls-to-action-week-1-review/

“By using Facebook native video player we managed to deliver a view rate 6x

higher vs. other high impact digital takeovers,”

Sofia Chiliadaki, Account Director, Mindshare.

“Video gets 4X the reach if you put it through Facebook as opposed to YouTube” Olivia Nunn, Senior Marketing Manager, Universal Music UK

Public Content - Cristiano RonaldoJust 12 hours after Cristiano Ronaldo posted a video on his Facebook page, it had 4 million views. He

posted the same video to YouTube and, seven days later, it had only managed 750k views.


1. Optimise for video views

Drive awareness by optimising for video views.

2. Remarket to video viewers Drive affinity and extend your storytelling by sending another targeted message to people

who watched one of your videos.

3. Add a call-to-action

Influence consideration by inviting people to further interact with your brand on Facebook or offsite.

4. Understand how your video resonates with people Use video metrics to better understand what resonated with your target audiences and improve future campaigns.

1Optimise for video views

2Remarket to video viewers

3Call-to-action

Video ads

Over 1 billion video views happen on Facebook everyday, make the most of your video strategy with these best practices.

Tell rich stories with Facebook video

Test your creative before launchA leading retailer changed their lead creative as a result of comparing engagement with related content among the same audience.

Select an engaging thumbnail imageA leading UK entertainment brand recently saw significant uplift in both engagement and positive sentiment by improving their video thumbnail.

Consider call-to-action driven adsAdParlor found that CTA-driven ads yielded higher click to conversion rates and

more efficient costs per user acquisition.

Focus on quality from the first frame Since videos auto-play silently in Feed, you should lead with imagery that will catch a person’s eye from the very beginning.

Premiere exclusive contentPost exclusive video content to your Page to reward them with something that they can’t get anywhere else.

Provide contextPull out a key quote or moment from the video as the text component of your post. This will help set expectations for the experience ahead.

Directly upload your videos to FacebookDirectly uploaded videos play in the News Feed, delivering a seamless experience. Often, using a link to an off-site video creates an extra step where people must navigate to another site. Also, if you embed a video from another video player or link to a video off Facebook, you will have much more limited data to learn from.

Use video metrics to help you improve your campaignsUse the Audience Retention graph to see how engaging your video is at different points. You can understand which parts are most and least interesting to viewers, enabling you to identify ways to improve your videos.

Our APIs make it easy to upload your videos

1

2

4

5

6

7

4Analyse

resonance

3

8

9

31Q4 2014

We’ve added video metrics in Page Insights and Ads Reporting to help you understand how your videos are performing on Facebook. These metrics are designed to show you what’s resonating with people and tune the length and content for your video audience.

Views at different intervals in your video

• Audience Retention Graph:

This chart shows the percentage of views at various moments throughout your video. If you see a spike in the percentage of views at a given point, it may be due to the fact that people rewatched that specific section of your video; similarly, if you see a dip, the portion of the video before the dip may not have captured viewers’ attention.

Video metrics Refine your strategy with video insights

Page Insights view

• Quartile video views to: 25%, 50%, 75%, 95%, and 100%:

Shows the specific number of views occurring at these points within your video. Due to blank end screens on many videos causing a high rate of depar-ture in the last few seconds, we highlight “Video Views to 95%” so you can see the number of views to the final seconds of your video.

Ads Reporting “Edit Columns” view

Cost per Video View: Average cost per view for your video ads. Note: Only available in Ads Reporting. This is a reporting metric, not a bid type.

Clicks to play Video: Clicks to play register when the video starts after a person has clicked to play it.

Video Views A view of 3 seconds or more of a video. You can also see the portion of your video views driven by paid advertising.

Unique Video Views The number of people who viewed your video for 3 seconds or more. You can also see the portion of your unique views driven by paid advertising.

Average Duration of Video Viewed The average number of time people spent viewing your video.

• Other Measurement

Plus, you can measure the success of your video campaign in line with your overall business objectives using metrics such as Nielsen OCR or XCR, Brand Effect or Datalogix.


Whether you are a new or experienced advertiser on Facebook, we hope this guide provided helpful tips to improve the performance of your campaigns. In summary, keep the following recommendations in mind:

• Use the recommended suite of Facebook solutions that align with your direct response objectives

• Ensure your campaigns are structured efficiently according to Facebook’s best practices

• Use compelling creative with strong call-to-actions to drive attention and conversion

• Follow Facebook’s bidding best practices to ensure you’re paying the right amount per objective.

• Use Facebook’s conversion pixel and/or SDK as well as experimental design tests for a com-plete view of your ad performance

• Test targeting, creative, placement, ad unit and bids often to optimise for better results.

For more information about Facebook Advertising, visit facebook.com/business.

Conclusion

33Q4 2014

Notes

Direct Response Marketing on Facebook

Documents

Direct Response Marketing on Facebook_DACH