2016 holiday truths
Breaking Down the Facebook Auction for More Competitive
Campaigns
11/17/2016
3 Lines > 2 Lines > DATE PLACEMENT1 Lines >
WELCOME _________. Our goal is to help you all prepare now for
success in the holiday season and beyond.
NOW, lets get started! The holidays are quickly approaching and
as you know, this can be a make or break time for your business. Im
going to share some insights about the holidays and consumers, on
and off Facebook. But what I really want to focus on today is
timing how planning and executing now and extending beyond the
holidays could have a huge impact on your business.1
Introductions Facebook & Instagram by the NumbersBreaking
Down the AuctionPlanning for Holiday
2
Introductions
Meet the team
3
Anastasia OulianovaAgency Partner, US
4
Introduce presenter4
JD PraterHead of Paid Social, Hanapin Marketing
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Introduce presenter5
Who is Hanapin?Run the worlds most popular PPC blog and
conference.We manage and optimize global paid search, paid social,
and display programs. Within 12 months, brands can expect a 250%
increase in their growth trajectory.
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Our Clients
7
Join the conversationUse the webinar question box to send us
questions.
8
Live Poll Question #1How long have you been in PPC?
Less than 1 year1-3 years3-5 years5+ years
9
Live Poll Question #1How long have you been working in
Facebook?
Less than 1 year1-3 years3-5 years5+ years
10
FACEBOOK and Instagram IN TheUnited States
Polls end, JD throws it to Anastasia
Before we get started with planning, I wanted to kick things off
by giving you a snapshot of what the Facebook Family of Apps looks
like here in the United States.
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1.8Bon Facebookeach month
1B+on Whatsappeach month
1B+on Messengereach month
500M+on Instagrameach monthSource: Facebook internal data, Q2
2016
Here is a quick overview of how many users are on each of our
family of apps and services. We are continually saying at Facebook
that the journey is only 1% finished. While we have made progress
and continue to grow users and connect people, there is still a lot
of work to be done.
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of internet users*people205M77%13=Facebook in United States of
AmericaSource: Based on Facebook data, June 2016* Percentage of
Internet users calculated with data from eMarketer, April 2016.
Facebook in the US spans to 7% of internet users13
14Reach your audience at the centre of discoverySource: Based on
Facebook data, June 2016.
people access Facebook daily on mobilepeople access Facebook
monthly on mobile187M145M
with 145m users accessing the mobile version daily. It has
become the center of discovery for users, and a way to reach your
audiences where they are most *click*14
15Source: Based on Facebook data, June 2016.Mobile is a constant
companion
of MAUpeople access Facebook monthly on mobile187M91%=
and through the device that they are using the most.15
Source: Instagram Internal Data, Jun 2016Instagram: the fastest
growing social platform500MInstagram has grown to a community of
over
95MOverphotos and videos are posted to Instagram each day
And talk about Instagram. Instagram has grown to a community of
over 500M80% of whom live outside the US. **Click*Over 95 million
photos and videos are posted to Instagram each day.
Its the fastest growing social platform. Its also one of the
largest social networks, second only to Facebook.
Source:eMarketer, US, March 2015, Instagram Internal Data16
Activity on Instagram
95M+ photos and videos daily1+40% increase in time spent
watching video1+50% non-reciprocal relationships2
Visual StorytellingSources: 1. Instagram internal data, June
2016. 2. Instagram internal data, August 2015.
Instagram is a platform for visual storytelling where people can
discover moments that matter to them and get inspired. A recent
study from MIT found that people are able to identify an image
after seeing it for as little as 13 milliseconds. And thats because
were hardwired to communicate through pictures. With the evolution
of mobile phones taking photos became easier and now it is easier
to share these photos instantaneously with your friends.
Since over 50% of relationships on IG are not reciprocal it is a
perfect environment for people to be inspired and discover brands.
There are over 95M+ photos and videos shared daily and recently we
have seen an increase by 40% of people watching video on the
platform. 17
Reach people where they spend their time
of time spent on mobile apps6%
Over 20% of all time spent on mobileSource: US ComScore data,
Media Metrix June 2015 Facebook and instagram
People are spending over 20% of their time on mobile in FB and
IG, this equates to about 1 in 5 minutes within these two apps.
This is about 6% of all time spent on mobile apps. and when we look
at time spent on mobile, we find that people are spending 20% of
their time on either Facebook or Instagram. Thats more than the
next 10 mobile platforms combined.
So no matter the objective, both Instagram and Facebook are
leading channels to reach your audience and drive the results you
care about.
Understanding the FacebookAuction
So I hope thats helped you understand the extent that Facebook
has for your business simply by the sheer numbers of people
utilizing that product. But now we want to answer the question of
how do we can get your Ads seen by people.
Thats where the Facebook Auction comes in. **click**19
Facebook Ads Auction is Different
There's a lot that goes into determining who sees which ads on
Facebook. That's because our ad system is built based on the
premise that ads shown on Facebook should be relevant to the people
that see them and maximize value for advertisers. 20
The gap between content creation and ability to consume content
will continue to widenEach user has over 1500 pieces of content
eligible for their News Feed when they sign on, but only about 300
are displayedAll media platforms face the reality that as available
content grows, it's more difficult to reach your audience
Competition for feedContentTimeContent createdAbility to consume
content
JD increased competition and teed up Anastasia on the
auction
First, theres increased competition to be in News Feed: Facebook
has grown significantly. More people are connected and more content
is being created by a growing number of people and Pages The number
of stories inNewsFeed isgrowing faster than peoples ability to
consume them.When you sign onto Facebook, there are on average 1500
storiesthat could possibly show up in your News Feed; but only
about 300 are displayed because we want to make sure youre seeing
the stories that are the most relevant to you. Every piece of
content is evaluated to deliver the best one to you.The more
content to choose from, the higher the quality bar to be in News
FeedAn algorithmic feed like ours ensures you can stay closer to
the people who want to hear from you21
And millions of advertisers are trying to reach them every
day
There are over1 billion people on Facebook, Instagram and the
Audience NetworkSource: Combined data across Facebook, Instagram
and the Audience Network, Q4 2015
Back to Anastasia.
There are more than 2 billion people combined on Facebook,
Instagram and the publishers within the Audience Network, and
millions of advertisers wanting to connect with them. 22
Ad #1Ad #2
We hold an auction to show the right ads to the right people
Rather than showing every ad to every targeted individual, we
have an ads auction that determines what ads to show in order to
create the most value for both the targeted individual and the
advertiser, so people see ads that theyre more likely to find
interesting and useful, and advertisers reach people who can help
them meet their campaign objectives. 23
Understanding the Facebook Auction
= B x EA + R
BID FOR DESIRED OUTCOMEESTIMATED ACTION RATERELEVANCY AND
QUALITY
MAXIMIZES ADVERTISER VALUEOPTIMIZES CONSUMER EXPERIENCE
MAXIMIZES ADVERTISER VALUEOur Auction Maximizes Value, Not
Revenuex+
The ad with the highest total value wins the auction for the
targeted individual. For example, an ad thats very relevant to that
person could win the auction, but if another ad with similar
relevance to the same person is placed with a higher bid and higher
estimated action rates, then that ad may win over the first ad.
Maximize ad delivery to your target audience with these auction
best practices:Set optimal bids and budgets that will help be
competitive in the ad auctionOptimize events to maximize estimated
ad action rates Ensure your ad is relevant to the target audience
to achieve a high relevance score
Breaking this down into specific tips **click**_________
The Facebook auction plays a large role in making sure that we
do help tailor the content to the right person at the right time.
We care about maximizing value for the consumer, not revenue
brought in.
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Tip 1Set the right bid
Conversion value = $20
Your bid = $20
Higher bids can help you win more auctionsManual bidding:If you
dont have a specific monetary value for the outcome youre
optimizing for, you can select automatic bidding. Automatic bidding
will allow the system to use your budget to get as much of your
desired outcome as possible.
Tip #1 : Set the right bid
After setting the outcome you want to drive with your ad, you
have two options for setting your bid: automatic bidding, where our
ad auction system will adjust your bid to generate the most desired
actions possible within your budget, or manual bidding, where you
set the monetary value of your desired outcome. If youre using
manual bidding, its best to start with a bid that represents how
much you value each outcome or action you're optimizing for. For
example, if you want website conversions and a conversion is worth
$20 to you, bid at least $20. Lower bids may reduce the number of
people in your target audience who see your ad.
If youre not getting the results you want at a certain bid, try
increasing your bid amount. And, if you don't have a specific
monetary value for your desired outcome, consider using automatic
bidding instead of manual bidding. 25
ConversionConversionConversionConversionConversion
Tip 2Determine the right budgetConversion
Daily budget = $5Advertiser values a conversion at $5 -> bids
$5 per conversionDaily budget = $30
Tip #2: Determine the right budget
To ensure smooth and ongoing delivery, your daily ad set budget
should at the least be greater than your bid. If your objective is
conversions, your ad set budget should be many times greater than
your bid. Be aware that splitting your total budget across too many
individual ad sets might make it harder for your ads to deliver as
much as you intend them to. 26
Optimize for high frequency conversion events to help avoid
under-delivery
What do I want to Achieve?
Do we have the volume?
Optimize ad delivery with the conversion event that best aligns
with your campaign objective Ensure your ad set captures 15-25
conversions/week to help establish an adequate baseline ad action
rateUnder-Delivering?If under-delivery is an issue, optimize
for:High frequency conversion events, ex: if purchases are low,
test optimizing for Add To Cart to increase ad action rates
Pro Tip: If under-delivery continues to be an issue, use the
default automatic bidding option or increase bids/budgets to be
more competitive in manual bidding
Tip 3Optimize Events to Maximize Action Rates
Tip 3#: Optimize your events to maximize on action rates. You
need to answer the questions of-What do I want to achieveDo I have
the volume
Make sure to set your ad delivery to the conversion event that
best aligns with your campaign objective, but keep in mind that
your ad set should capture 15-25 conversions per week to establish
an adequate baseline. If your volume is lower than this, move your
optimization event up the funnel to actions like add-to-cart.27
Broad ReachPeople who matter to you
Tip 4Choose the right audience
Tip #3: Choose the right audience
Choosing the right audience makes a big difference in the
delivery of your ad set. Use an audience thats specific, so that
your ads will reach people who find your content interesting and
relevant, but not so specific that the audience size becomes too
small. Pay attention to our audience size estimate in the ads
create tool that tells you if your targeted audience is very broad
or narrow and adjust accordingly. When choosing an audience,
consider:
Using interest and or behavior-based targeting categories to
zero in on the people who you are interested in connecting
withRetargeting website visitors or existing customers using Custom
AudiencesUsing a Lookalike Audience based on people that interact
with your business
Your audience range should also match your ads objective, so you
may use a broad audience for brand awareness ads and use more
specific audiences for direct response ads. If your ad is not
delivering as often as you'd like, try expanding the audience
size.
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Consumer Journey
Pre-PurchaseDelivering relevant content based on previous
behavior: Drive SalesPurchasers: Driving Loyalty1st Touchpoint:
Demand Generation
I want to approach this process by starting with an image you
are all familiar with: The funnel.
I want to look at the funnel in regards to touchpoints. There
are three main phases. We have the first touchpoint of Demand
Generation and introducing someone to you brand. We then have a
secondary phase which consists multiple touchpoints where you
deliver content based on previous behavior. This leads to the
purchase and the last phase of targeting your existing purchasers
and creating loyalty.
Come holiday we want to make sure each piece of this funnel is
as buttoned up and strong as possible.
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Consumer Journey
Pre-PurchaseCRM DATANon-WebsiteVisitorsWebsiteVisitorsLookalike
or Interest/Behavior Targeting
We can then adapt funnel initiatives based on audiences that we
want to target.
Generating Demand/Gaining Awareness can be done through
implementation of Lookalike Audiences or our core audiences around
interest/behaviors
Delivering Relevant Content There are the people who watch a
video or engaged with a canvas who didn't make it to your site. So
for these people we can retarget based on engagement so based on
what percentage of the video was viewed, or how long they engaged
with your canvas. Or assessing website signals to understand how to
strategically target people
Last is loyalty and using your CRM data to understand how to
continue to engage these consumers during big moments.30
Consumer Journey
Pre-PurchaseHigh LTVLow LTV
Last is loyalty and understanding how high LTV & Low LTV can
be used most efficiently
During holiday your loyalty segment is invaluable. They will not
only re-buy for themselves but buy gifts for friends and family
which bring more people into your brand.
Within your loyalty segment, you have higher LTV and lower LTV
customers. Some brands see a big spike for clients who purchase
more than once. Some clients sell value packs vs buying a single
item. We can take into account spend, frequency, and ultimately
figure out what that threshold is that differentiates the typical
customer from a great customer.
Based on this distinction we can determine what type of
messaging the client needs.
A low LTV client ( one time purchasers, single item purchasers,
etc) may need more reactivation so for example a one time buyer may
need to see your best sellers.
VS a high value client that you are focusing on retention and
keeping them loyal. That may look like a refer a friend program,
updating these customers on the latest updates ( for example could
these towels get any softer? product improvements, free shipping),
knowledge of the latest sales and big product launches, etc
In a couple of slides I will go over how to create a strong seed
audience for lookalike audiences and will cover more ways to
segment out your high LTV customers using the data you already
have.
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Lookalike AudiencesFind more people who look like your best
customersPeople who have shopped Nordstrom in the last three
monthsPeople who have lifetime spend at Lowes over $50kPeople who
are loyalty members of Macys mailing list
and people who look like them
Facebook offers many types of targeting including interest
based, and behavioral based targeting but I want to first focus on
our golden product for new customers, lookalike audiences. Most of
you are familiar with lookalike audiences but I will recap for
those of you who aren't. Facebook allows you to use a seed audience
( which you can create utilizing your own CRM data or pixel
data).
Facebook will then take into account thousands of
characteristics about this seed audiences and create a new audience
of millions of people who look just like that seed audience. And
your seed audience matters!
We should always be utilizing purchasers in our seed audience
but the minimum for these audiences is 1000 people and the highest
amount of people recommended is 50,000 so we can get more granular.
This is where I am going to tie back to high LTV. You can create a
seed audience based on recent purchasers, people who have purchased
above a certain value, people who have purchased multiple times.
People who have purchased from a specific category, people who
purchased from a specific country if you are thinking
internationally, etc. You can even utilize a list of your best
holiday shoppers from last year and years prior. You have the
option to upload all of this information from your CRM database. If
that is the case I recommend constantly refreshing this lookalike
audience to include the most recent data.
Given the updates to the pixel you can now also create
essentially all of these audience using pixel data. Pixel data will
only take into account the last 180 days worth of data so the
recency factor is there, you can also include purchase value on
your purchase event, the amount of times the purchase event has
fired, you can even add parameters to your pixel to determine which
category a customer purchased from.
So again, your current purchasers are important even when it
comes to prospecting, espeically high LTV customers. We want more
of them. Lets make sure your seed audience reflects that.
Standard AudiencesChannelData typePurchase based*
Psychographic
Geographic
Intent/interest
Demographic
Lifestyle/life-stage
Partner Categories
Segments
Categories & Interests
Interested in gardening
Newly engaged
Android phone user
Premium brand buyers
In market for entry level car
First-time mortgage household
The other option for this area of the funnel is by using
Facebooks set of Standard Audiences.
Facebook is one of a few companies with incredible access to
data on consumersfrom the information you share in your profile and
behaviors you exhibit on our platform, to what we know about your
cohorts in the offline worldwe use this data to create targetable
audiences.These targetable audiences are on the shelf and based on
proprietary Facebook data and data from trusted 3rd party sources
(some are already added in).
Native FB targeting (Broad category/precise interests)About 120
broad categories today expanding to more than 500 in the
futureThese clusters are a cross-section of likes, keywords, and
aggregated clicks on adsThe quality of these categories are
maintained by machine learning algorithms to understand how topics
are related and are validated through CTR measurement and user
surveys.
Matched targetsEmail addressesPhone numbers, iOS IDFAsFacebook
User IDs, App User IDsPeople you knowDirect or through
third-partyPeople from your website
FacebookPeople you know on FacebookCustom AudiencesReach your
specific customers or prospects at scale
How do we find loyalty customers thats with using your CRM data
to find users that have engaged and are committed to your
business.
**70% is average match rate**
Last is loyalty and understainding how high LTV & Low LTV
can be used most efficiently
During holiday your loyalty segment is invaluable. They will not
only re-buy for themselves but buy gifts for friends and family
which bring more people into your brand.
Within your loyalty segment, you have higher LTV and lower LTV
customers. Some brands see a big spike for clients who purchase
more than once. Some clients sell value packs vs buying a single
item. We can take into account spend, frequency, and ultimately
figure out what that threshold is that differentiates the typical
customer from a great customer.
Based on this distinction we can determine what type of
messaging the client needs.
A low LTV client ( one time purchasers, single item purchasers,
etc) may need more reactivation so for example a one time buyer may
need to see your best sellers.
VS a high value client that you are focusing on retention and
keeping them loyal. That may look like a refer a friend program,
updating these customers on the latest updates ( for example could
these towels get any softer? product improvements, free shipping),
knowledge of the latest sales and big product launches, etc
Custom Audiences from intent dataAcquire customers
Ads automatically served in News FeedDrive back to your website
or retarget in feedExit and didnt purchase
Your website or mobile app
Retargeting based off of website traffic is a huge benefit of
having the pixel set up. You have the option of targeting people
using standard creative also known as website custom audiences, or
with dynamic creative also known as dynamic ads. In order to run
dynamic ads you need to modify you pixel and create a product
catalog so that when someone visits your website our pixel can sync
with your product catalog and show that visitor an ad of what they
looked at on your site.
Segmenting website visitors
IntentRecency
Product SetsDynamic Ads
When we think about retargeting people who have been to your
website the biggest challenges is that brands either get too
granular or not granular enough. This will vary depending on your
website traffic and your conversion rates. Its important to think
about retargeting in three main buckets: Intent, Recency, and for
Dynamic ads, product sets.
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IntentHome PageCategory PageProduct PageAdd-to-CartPurchase
Low intentHigh intent
WCA audience for each step
The first thing I think about is intent. What actions did this
person take on my website? Did they make it to my home page and
bounce, did they make it to a category page, did they get curious
and look at a specific product, did they then add to cart and not
actually purchase? We think about each of these audiences and would
communicate with each of them very differently. If I added a pair
of leggings to my cart, didnt have my wallet and forgot to make my
purchase later in the day, sending me an ad to remind me is going
to look different than the person who went to the homepage looked
at leggings and decided they wanted to shop around more. Therefore,
we want to adjust our bids and messaging accordingly.
Dynamic ads focus on the website visitors who showed the most
intent ( the product viewers and the people who add to cart) and
shows customers products based on what they looked at. If you do
not have DPA set up, website custom audiences would be an
alternative, you would just have to set creative manually. 37
Recency3 days14 days28 days 7 daysAdd to Cart
Next we have recency. Based on your website traffic you may just
focus on the intent piece have last 30 or 90 days cart abandoners
and last 30 or 90 day website visitors and that is fine. If you do
have enough traffic we can continue to to break this down. What
does your consumer purchase decision time look like? Do the
majority of people buy within a couple days? A week? a couple
weeks? This is where we can create windows. We can segment out last
3 days, 3-7 days, 7-14 days. Whatever windows make the most sense
given your traffic. The intention here would be to bid highest
based on recency. So for example people who added to cart in the
last 3 days are going to be the most valuable so we would bid
up.
It is also important to take a step back and think about the
entire consumer experience. What does your customers ad experience
look like if I have been retargeted and finally make a purchase
after 45 days? If they have been to the website, what does the rest
of their ad experience look like? What are they seeing in that 3
day window? What are they seeing in the 3-7 day window? 7-14? etc.
We want to ensure we are telling a cohesive story.
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Overlapping Demographics Targeted Campaign #1Targeted Campaign
#2
Tip 5Be mindful of audience overlap
Tip #4: Be mindful of audience overlap
Audience overlap means you're setting up several ad sets to
deliver to audiences that contain some of the same people. This is
not necessarily a bad thing, but because the ad auction tries to
avoid showing people too many ads from a single advertiser in a
short period of time, audience overlap can explain why some of
those ad sets may not be spending their full budgets. Keep in mind
that each advertiser has frequency caps1. 4x on facebook & 1x
on Instagram for each user, down to the Page level.
To avoid or reduce audience overlap, refine your audience using
the tips above. If it keeps happening, you may see better results
by consolidating your ads into a single ad set with a larger
budget.39
Tip 6Select flexible placement options, like Instagram and
Audience Network
Avg. Cost Per Outcome: Instagram-only Avg. Cost Per Outcome:
Facebook-and Audience Network only Avg. Cost Per
Outcome:Combined
Cost per outcomeTime Elapsed
Tip #5: Select flexible placement options, like Instagram and
Audience Network
Weve touched on powering Ads across all platforms already, but
this is another way to help increase your chances of having steady
delivery by reaching each user where he or she will be most
impacted.40
Source: Kissmetrics anayltics infographic:
https://blog.kissmetrics.com/loading-time/?wide=1
VISIT OURWEBSITE
Click HereClick Here
12345
WELCOME
40% of consumers abandon a site that takes over 4 seconds to
load.On mobile, you need to be fast
40% of consumers abandon a site that takes over 4 seconds to
load.
Tip 7
On mobile, loading time is a major contributing factor to
abandonment. **click to start timer**
(Source: https://blog.kissmetrics.com/loading-time/?wide=1)
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Tip 8Improve your relevance and monitor feedback
Check your relevance score in ads reportingMonitor the positive
and negative feedback for your ads
Tip #6: Improve your relevance and monitor feedback
We consider an ad's relevance to a person when we evaluate the
best ad to show that person at any point in time. You can use
relevance score to gauge whether your ad is likely to be relevant
to people in your target audience, compared to other advertisers
targeting the same people. As part of your ad's relevance score,
each ad is evaluated for positive feedback, like clicks, likes and
shares, and negative feedback, like people hiding or reporting your
ad. If your ad has little positive feedback or a lot of negative
feedback, its delivery may be affected, so review your ad's
relevance metrics in ads reporting to see if that is the case. If
it is, try adjusting your targeting so your ad message is more
relevant to the group you want to connect with.
If that doesnt help, consider adjusting your creative in the
following ways:
Tell a visual story with images and video. The ads image and
video is more noticeable than its text, so focus on improving it
first. Make sure you keep your visual message simple and related to
what youre promoting.Be wary of using overly provocative or
controversial language or images. Such content might get peoples
attention, but it ultimately leads to a poor experience. Find a
different way to stand out.Test different ads and audiences. Show
different ads to the same target audience, or the same ad to
different target audiences. Look for patterns in how your ads
perform that give insight into what works. For instance, some ads
may have consistently higher relevance scores. What do they have in
common?Refresh your creative. Over time, an audience that once
responded positively to your ad can grow tired of it. When the
relevance score for an ad drops, try creating another ad with new
content for that audience.42
The gap between content creation and ability to consume content
will continue to widenEach user has over 1500 pieces of content
eligible for their News Feed when they sign on, but only about 300
are displayedAll media platforms face the reality that as available
content grows, it's more difficult to reach your audience
Competition for feedContentTimeContent createdAbility to consume
content
Why is relevance important? The Facebook arena is becoming more
and more competitive when it comes to capturing consumer
attention.
First, theres increased competition to be in News Feed: Facebook
has grown significantly. More people are connected and more content
is being created by a growing number of people and Pages The number
of stories inNewsFeed isgrowing faster than peoples ability to
consume them.When you sign onto Facebook, there are on average 1500
storiesthat could possibly show up in your News Feed; but only
about 300 are displayed because we want to make sure youre seeing
the stories that are the most relevant to you. Every piece of
content is evaluated to deliver the best one to you.The more
content to choose from, the higher the quality bar to be in News
FeedAn algorithmic feed like ours ensures you can stay closer to
the people who want to hear from you
Competition is not specific to Facebook alone: all media
platforms face the reality that as available content grows, its
more difficult to reach your audience For platforms that dont rank
content, this problem is likely exacerbated because there is SO
much content being fed into streams that its impossible for someone
to consume it all. People can miss the content that isnt toward the
top when they log on.
43
Search is not a natural point of entry on mobile
In apps, people expect to discover things just for them
But even outside of competition, its important to remember that
Facebook operates on a Push model, where we are actively pushing
advertisements into peoples newsfeed for discovery. Search, on the
other hand, operates on a pull model, where users are actively
seeking products through search, showing intent to find that
product. This is one of the reasons that we have much heavier focus
on the relevance of products being shown to users.
Its important to understand that the search paradigm doesn't
work as well in apps. The mobile app experience isn't the phone
book, where people go with specific intent in mind. It's everyone's
favorite magazine, tailored just to them.
[CLICK]
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Right contentRight personRight time
There is now an overwhelming expectation of personalized
content. Consumers know how much data brands and platforms have
about themThey have the most personalized, intimate device theyve
ever had in their hands, with them at all timesIts a privilege for
brands to enter that personalized space, and thus, consumers expect
highly relevant, highly personalized contentThe accuracy of our
targeting means you can tell that personalized story (89% accurate
with narrowly targeted, 92% accurate with broadly targeted
campaigns)And now we need to look on our end on how do we reach and
accomplish that?45
Holidays on Facebook
Now with both structure and delivery covered well transition
into using these two sections to implement a strategy to succeed
during the holidays.46
Source: 1 National Retail Federation survey, Jan. 15 20162 IPSOS
Holiday Survey (commissioned by Facebook), US general population
aged 18-65, Dec 2015-Jan 20163 TheStreet, Google and Facebook Will
Dominate the $1 Billion Digital Ad Spend for Election 2016, June 8
20164 AdAge, 2016 Election Digital Ad Spending will Break
$1Billion, Aug 201547Holiday shopping is starting earlierMobiles
role in the path to purchase is accelerating
40% of consumers report starting holiday shopping by
Halloween1
20% start by end of September1
62% of consumers report using their smartphone more than in
previous years to research holiday shopping22016 holiday truths
Lets start with three holiday truths:
Holiday shopping is starting earlier. So when planning for the
holidays, the earlier the better.Mobile is playing a bigger role in
the path to purchase than ever before. And Im sure this doesnt
surprise you to know that most will use their smartphones for
holiday shopping even more this year than last.This year will be
incredibly competitive. Not only are you battling the typical
holiday demand for ad space, but many of you were also competing
with a presidential election. Ad buys are competitive than usual,
and that includes the Facebook auction. 47
Source: eMarketer, US Holiday Shopping Preview 2016, Feb
201648Mobile is fueling online
growth201420152016Desktop$53.31B$56.43B+6%Mobile$7.98$12.65BTotal$61.29$69.08+13%
Mobile sales grew nearly 10x the rate of desktop in 2015
+59%US Holiday Season Retail, eCommerce Sales by Device
http://totalaccess.emarketer.com/Powerpoint.aspx?R=5100897&dsNav=Ro:6,N:908,Nr:NOT(Type%3aComparative+Estimate)
Desktop presence is still vitally important, but you cannot
ignore the massive growth on mobile - especially this holiday
season where we expect it to grow even more.
[CLICK]Consumers are researching and purchasing more on mobile
than ever before mobile sales last year grew ten times faster than
desktop.
THINK ABOUT YOUR MOBILE PURCHASE PATH especially as this
connects directly with updates that were previously touche dupon by
our auction system
48
Source: Facebook earnings, Q1 2016; Instagram internal data,
June 2016, US ComScore data, Media Metrix June 2015 49
So start sooner to maximize efficiency
20%time spent on mobile
6%additional mobile reach
where consumers spend their time.
\Considering the landscape, the most EFFICIENT BUYS occur before
and after the holidays, when the auction is less competitive.
[CLICK] and of, course, we can help put you where people spend
their time. You know mobile is crucial so just as a reminder, over
20% of time spent on mobile is with FB and IG (1 in 4 minutes if
you include the Audience Network).
With the Facebook family of apps and services, you have access
to some of the worlds most-used, most-engaged apps. Not only
enormous reach but an enormous share of TIME. We offer the
ingredients for successful holiday advertising, and now lets talk
about the recipe 49
August - SepBuild momentumInvest in building awareness,
prospecting and driving demand50Jan-MARGenerate loyaltyCapitalize
on demand from returners and gift card recipients with an eye
toward growing LTVNowMaximize salesBreak through the clutter to
drive holiday sales for shoppers with high intent1
Spread your efforts across these key stages to use your
resources effectivelyLets start maximizing!
its important to divide up your marketing strategy into these
three phases to focus your efforts with the months between Mar
August to focus on planning:
While planning for the holiday seasons is key to success, it is
important to divide up your marketing strategy into these four
phases to focus your efforts and use your resources
effectively:
Preparation (Mar - July): Before the holiday rush hits, take
this time to set up the right tools, study your target audience and
test your creative strategy
Pre-Holidays (August - September): Take advantage of these
less-promotional summer months to build momentum, get your brand
message out, grow your customer base and capture intent data from
your website or mobile app.
Holidays (October - December): Your pre-holiday campaigns will
do the heavy lifting, preparing you for the holiday season. With
the right tools in place and a larger customer base, you are ready
to break through the clutter and focus on customers who already
expressed interest.
Post Holidays (January): Post-holidays is an excellent time to
deepen your relationship with the customers you worked so hard to
acquire during the holiday season and convert them to repeat buyers
with the right demand generation and cross-sell programs.
HOLIDAYS (October - December): The holidays, of course, should
be about acquiring even more customers and driving sales. Its all
about capturing and converting those people with high intent to
buy.
POST-HOLIDAYS (January): The area a lot of marketers forget is
January. Post-holidays is an excellent time to deepen your
relationship with the customers you worked so hard to acquire
during the holiday season. Convert them to repeat buyers with the
right demand generation and cross-sell/up-sell programs.
50
Target shoppers with high intent to generate demand and
sales
Break through the clutter this holiday season
TimelineOctober- DecemberGoalsGenerate demand among existing
customers:Focus on people who are already familiar with your brand
to drive holiday salesRetarget with Dynamic Ads: Drive sales by
retargeting website and mobile app visitors with relevant
products
Generate store visits and salesTarget people near your stores to
drive foot traffic
34
10-12
Holiday Season is a big focus for every retailer, making it a
highly promotional period on Facebook starting as early as August.
This is the time where all your pre-holiday planning will pay off
in spades: With the right tools in place, your brand top of mind
for your key segments and a larger customer base, you are in great
shape for retargeting customers who are already familiar with your
brand and demonstrated interested in your products and
services.
In addition to generating demand among existing customers,
retargeting with Dynamic Ads, this is a great time to target people
near your business locations to drive them to your stores
51
50%of shoppers say theyleave buying presents until December31%of
men say they will shop December 11-31Source: IPSOS Holiday Survey
(commissioned by Facebook), US general population aged 18-65, Dec
2015-Jan 2016 During which of the following time frames do you do
MOST of your holiday shopping?5228%of Millennials say they will
shopDecember 11-31Buy Online, Pick-Up in Store (BOPUS) adoption may
lead consumers to shop after traditional shipping cut-off
dates27%of singles say they will shopDecember 11-31Millions of
people in the US wait to the last minute
52
Source: Facebook data, US only, Jan 1, 2015 Jan 30, 2016.
Analysis of conversion pixel and App Events data for conversions of
people ages 18+ on Facebook. The gaming vertical is excluded from
this analysis.53Transactions initiated on Facebook accelerate in
Q4People shop year-round on Facebook in the US
Q4
53
Source: : Facebook data, US only, Jan 1, 2015 Jan 30, 2016.
Analysis of conversion pixel and App Events data for conversions of
people ages 18+ on Facebook. The gaming vertical is excluded from
this analysis.54Some Q4 moments matter more than others
Nov 18
BLACKFRIDAY
CYBERMONDAY
DEC 31
JAN 17
54
Source: National Retail Federation Holiday Trends report 2015,
Jan 15, 20165565%of shoppers plan to keep shopping browsing and
buying after Christmas
47%plan to shop in-store the weekafter Christmas
plan to keep shopping browsing and buying after Christmas
plan to shop in-store the weekafter ChristmasConsumers keep
shopping after the holidays
65%47%Source: National Retail Federation Holiday Trends report
2015, Jan 15, 2016
We see that after the holidays people continue shopping
The first two weeks in January offer the best value CPMs to be
found all year on Facebook, and New Years resolutions create
significant consumer spending.
At this point, you have successfully acquired new customers, and
driven holiday sales Dont let your customer acquisition efforts go
to waste deepen these relationships and boost the lifetime value of
your holiday shoppers.
It is an ideal time to generate additional transactions and
convert customers to loyal, repeat buyers with the programs.
(Source: 2014 EMEA holiday desk drop)55
Source: Facebook data, US only, Dec 1-31, 2015. Analysis of
posts, videos, photos uploaded by people age 18+ on Facebook.
56267mAverage posts, photos and videos published to Facebook in the
US every day in December28%increase in average daily content
uploads in December relative to the rest of the year84%of this
content shared via mobileUS consumers are on Facebook throughout
the holidays
Even taking a step back from shopping behavior US consumers are
on Facebook during the Holiday season so why not capture them where
they spend their time
Recap stats
How can you get ahead of this to influence their purchase
behaviors during this season?
1 Content produced (video, posts, photos) to Facebook Dec 1-31
in the United States 2 % of posts, photos, videos published to FB
Dec 1-31 in the United States relative to annual average in 20153 %
of posts, photos, videos published to FB from mobile devices Dec
1-31, 201556
57
LOYALTYNOWGain momentumHOLIDAYMaximize salesJAN-MARGenerate
loyalty DEMAND GENERATIONAWARENESSACQUISITIONTRANSACTIONWith
Facebook, you can deliver people-based marketing at every stage of
the consumer journey
We have advertising solutions that enable you to deliver
people-based marketing at every stage of the consumer journey.
To recap
Gain momentum now: Take advantage of this less promotional time
to let your pre-holiday awareness campaigns grow the customer base
youll retarget during the holidays.
In October and December, maximize sales by focusing on that
larger pool of existing customers youve invested in. By retargeting
people who have already expressed interest and acquiring even more
people like them, youll be able to break through the clutter and
drive transactions among high-intent shoppers during this highly
competitive time.
And make the most of your holiday investment by continuing into
the huge opportunity that is January. You worked hard to acquire
these customers, this is the month to build loyalty. Convert them
to repeat buyers with the right demand gen and cross-sell/up-sell
programs.
57
Build a solid foundation Invest in a mobile optimized creative,
website and purchase experience
Prepare your product catalog for effective re-targeting
Add Facebook Pixel to your site and Facebook SDK to your app
Get to know your audience Identify and segment key audiences you
want to target by campaign
Leverage Facebook's Audience Insights to learn about your
audience (e.g. psychographics, purchase behavior) and create new
target audiences
Review your customers' conversion path based on the Facebook
Pixel and SDK in ads reporting
Test different creative formats and messaging to determine what
works for your audience
Set up your auction & delivery strategy Allocate your budget
for always-on campaigns and for big moments Set your budget to
account for higher conversion rates during the holidays
Consider manual bidding to hit your ROAS as the auction gets
competitive during the holidays; utilize automatic bidding for
dynamic ads to maximize efficiency
Be mindful of audience overlap to ensure delivery, consider
consolidating ads or refining your targets
58Plan early to maximize your holiday campaignNOW
NOW
This is a handy checklist for you to check off as you prepare
for your holiday campaigns:
Build a strong foundation: These are your technical tasks to set
up a seamless user experience for your potential customers and
setting up the right foundation for effective re-targeting during
the thick of the holiday season.
Get to know your audience: The more customer insights, the
better you are equipped to sail through the holidays with the best
campaigns tailored to your audience. Here are key steps to building
the right campaign for your audience.
Set up your auction & delivery strategy: Start budget
planning early to ensure you are allocating your resources for
always on campaigns and big holiday moments58
Happy holidays!
59
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