“Pown” the Newsfeed: Advanced Marketing on the Facebook Platform

“Pown” the Newsfeed:Advanced Marketing on the Facebook Platform

Presented by: Paul SteketeeHead of Paid Social and Emerging Media, MerkleFacebook.com/Steketee@Steketee

November 20 -‐ 21, 2013

November 20 -‐ 21, 2013

© 2013 Merkle Inc. All Rights Reserved. Confidential

POS Phone Site Mobile TV Radio Display Print Social Direct mail Email Search

Merkle - The Customer Relationship Marketing Agency

Integrating diverse capabilitiesThrough optimizing customer touchpoints

Increased customer value Improved media effectivenessImproved marketing ROI | |

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300 experienced digital marke2ng professionals 100+ Digital clients

70% YOY revenue growth

Approaching $300 million in managed

media spend

Our Integrated Digital Media Group

Over 2,000 Employees Globally Driving CRM Outcomes

© 2013 Merkle Inc. All Rights Reserved. Confidential © 2013 Merkle Inc. All Rights Reserved. Confidential

Merkle delivers true customer-centric advertising in social via our deep customer insights and data-driven strategic approach to targeting, buying,

and optimizing paid social media.

Vision - Precise and Direct Targeting in Paid Social Media

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© 2013 Merkle Inc. All Rights Reserved. Confidential © 2013 Merkle Inc. All Rights Reserved. Confidential

We increase campaign effectiveness with better insight into customers and through our data-driven targeting, better analysis, and better optimization strategies.

Merkle’s Approach To Paid Social Targeting Optimization

All site Visitors are added to the database via cookie or social login. Previous and recently sold customers are also added to the database along with their purchase information.

“High-value” segment customers are flagged and their online behaviors across digital media and channels is analyzed to create a look-alike models.

Models implemented into Facebook Custom Audiences to directly target customers and create look-alike models that target best customers based on FB likes/interests.

Analytic process uses algorithmic attribution of conversions across display, search, mobile, and social – beyond last-click.

Based on attribution, media mix, frequency, and cost allowables are all optimized directly into the media platforms

Customers added to database

Digital Targeting model created

Models fed into Facebook to target

Digital attribution identifies what is

working

Optimization feed closes the loop

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Advanced marketing on the

Facebook platform

The products & results

The Results

Advanced marketing on the Facebook Platform

How to take advantage of the

opportunity

The RoadmapThe Opportunity

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Facebook is Applying Focus to Direct Marketing

Facebook Ad

Share

Like

Facebook Ad

Better price and responseMost InventoryBest Targeting

Website

In store

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The Facebook Opportunity

Facebook has become the publisher/platform with the largest reach

ReachFacebook is building tools to enable best consumer level targeting available online

Targeting

Facebook has a wealth of innovative ad products

Innovative Formats

Facebook has overcome the tracking hurdles associated with cookies

Tracking

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Facebook reaches

73% of US active online users

Across all age demos

Source: Facebook Q1 Earnings Call, Comscore, Key Metrics, February 2013 Source: Comscore for the Month of April 2013

Facebook’s Reach is Massive

1.19 Billion(online users globally)

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Facebook leads the space in total page views and time spent among total internet audience

Total Page Views and Time Spent (total internet audience)

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Face

book

Goo

gle

Yaho

o

YouT

ube

AOL

Amaz

on

Pint

eres

t

Twitt

er

Micr

osof

t

Total Views (MM) Total Minutes (MM)

Source: Comscore, Key Metrics, February 2013

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U.S. desktop users spend and average of around 6 hours every month on Facebook

U.S. mobile users spend and average of around

14 hours every month on Facebook

* Data gathered from Comscore January 2013

Facebook engagement continues to increase

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From Cookie Based to Identifiable IDs

Mobile & tablet tracking challenges Cross device tracking

3rd Party Cookie Unique ID

Accurate

Persistent

Cookie deletion

Browser opt out (threat)

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Advancedmarketing on the

Facebook platform


The Results


opportunity


Facebook Advertising - The Products and Results

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Facebook Targeting Products - Recent Advances

Like -‐ Comment -‐ Share

Facebook NaKveOlder

• Facebook Data

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Facebook NaKveOlder

• Facebook Data


Facebook ExchangeMarch 2012

• Marketer Anonymous Data

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Facebook NaKveOlder

• Facebook Data





September 2012

• Marketer Known Data

Facebook Custom Audiences

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Facebook NaKveOlder

• Facebook Data





September 2012


Facebook Custom AudiencesFacebook Custom Audiences & LookalikesMarch 2013

• Marketer Known Data + Facebook data

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Facebook NaKveOlder

• Facebook Data





September 2012


Facebook Custom Audiences

Facebook 3rd Party Data PartnersApril 2013

Facebook Custom Audiences & LookalikesMarch 2013

• Marketer Known Data + Facebook data

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Facebook Exchange Versus Display RTB

• agd

OutcomesFBX has a 79% lower cost per quote than RTB, driven by key levers:

• The inventory is both highly incremental (only 5% overlap with RTB), and available at higher frequency

• The inventory is less expensive, CPMs are 60% lower than RTB.• The inventory is 92% more responsive than RTB line items.

RTB Environment (72% users)

Frequency =1.4FBX (23% users)

Freq=3.4

5% RTB + FBX Freq=9.4

Pilot January February March April

36%49% 45%

55%66%41%

54% 59% 61%67%

10%20% 22%

38%30%

FBX Scale

% Con

tribution

Budget Quotes Sales

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© 2013 Merkle Inc. All Rights Reserved. Confidential 15

Facebook Custom Audiences Versus Interest-Based Targeting

Outcomes• Match rates 3X higher than open web• Find Rate 5X higher• 500% more efficient versus demographic targeting• LookaLike Models consistently most efficient form

of prospecting


Newsfeed Versus Marketplace Performance

Marketplace

Newsfeed

Newsfeed Marketplace

34.7

47.5

CTR Spend eCPM Resp. Rate CPA

0.75

17.5

0.37

Outcomes

• 34x Higher CTR• 1 - 5% CTR consistently

• CPA 63% more efficient

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Newsfeed Ads - Facebook• New large image formats allows much more engaging/clickable image • Page Post Photo ads drive high intenders

“Pown” the Newsfeed - New Larger Image formats


Newsfeed Ads - Facebook• New Link Page Post Format allows much more engaging/clickable image • 5X improved CTRs and higher 3X higher click to visit ratio

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“Pown” the Newsfeed - Link Posts with Expanded Clickable Area

http://www.samsung.com

http://www.samsung.com


“Pown” the Newsfeed - Link Page Posts for Retargeting

Use Cases:

• Site Shopper/Browser

• Abandoned Cart

• Dynamic product displays developing

• Seamlessly integrate with general display targeting


Direct response marketing on the

Facebook platform


The Results


opportunity


Facebook Advertising - How To Take Advantage of the Opportunity

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Engagement Playbook

Identify:Objectives for

Facebook

Target:Use data to inform your

targeting strategies

Optimize: messaging,

format, target audience based

on analytics

Facebook media planFacebook media plan

Placements/Formats

Page PostsPlacements/

Formats RHSPlacements/

FormatsFBX/API

ObjectivesObjectives

ObjectiveProspecting

Objective CrossSell, UpsellObjective

Retention

Facebook Native Interests

Partner Category Targeting

Custom Audiences (CRM)

High Value Segments

Geo & Demo Audience Sets

High Purchase Intent

Target or Surpress

Look-A-Like Models

cR

Offline Media database

Online Mediadatabase

CRM database

Connected CRM Pla.orm

1

2

3Optimization Loop

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THANK YOU!

Paul SteketeeHead of Paid Social and Emerging Media, MerkleFacebook.com/Steketee@Steketee

November 20 -‐ 21, 2013

November 20 -‐ 21, 2013