driving action online, in store and in mobile app

Marketers can: • Reach more of the right people with Facebook’s sophisticated suite of targeting products • Drive action across devices with ad units in News Feed • Make insightful decis

Direct Response

Marketing on

Facebook

Driving action online, in-store

and in mobile app

Facebook’s direct response marketing solution 4

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 increasingly common Not only are people using multiple devices, they’re constantly switching between them throughout the day Marketers are faced with the challenge of reaching their consumers in this changing environment.

With over 1.44 billion people1 on Facebook, the platform provides a unique opportunity for businesses to drive positive business results with more of the right people across devices Marketers can:

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

• 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 optimization, 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, March 2015Introduction

Facebook direct response

marketing solution

Facebook offers a sophisticated direct response marketing solution for marketers to reach more of the right people, drive action across devices and make more insightful decisions

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.

Facebook has a powerful targeting solution that enables you to target based on the data people share on Facebook, your first-party data and third-party data from trusted partners Use these tools to find more of the right people you want to reach.

Core Audiences

Reach people based on interests, demographics, location and behavior

Facebook’s core targeting option allows you to target people based on information shared on their profiles and the behavior they exhibit on Facebook Segment your audiences based on their demographics, location, interests and behaviors

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

Custom Audiences

Reach people based on the data you have

Custom Audiences enable you to target people based on the data you have in a privacy safe way

With Custom Audiences, you can:

• Target people based on CRM data

• Target people based on actions taken on your website

• Target people based on engagement with your mobile app

Lookalike Audiences

Reach people who look like your audiences

Lookalike audiences help you find people with similar characteristics to your existing customers, prospects and Page fans

You can build a lookalike audience from your:

Banana Republic used lookalike

audiences modeled after its

most loyal customers to increase

its customer base during the

competitive holiday season

Use the Audience Network Reach

your target audience beyond

Facebook on other mobile apps

with the Audience Network

Facebook Exchange: Dynamically remarket to website visitors on desktop

Facebook Exchange allows programmatic buying of desktop ad inventory through real-time bidding You can remarket to website visitors on Facebook based on the activity they exhibit on your website with real-time dynamic product ads Facebook Exchange is only available for link ads and right-hand column on desktop and can only be purchased through a registered demand side platform (DSP)

Custom Audiences and Facebook Exchange are complementary

Remarketing through Facebook Exchange and Custom Audiences are similar but can be leveraged

in different ways

Custom Audiences Facebook Exchange

Mobile Delivery

Right Column ads

Facebook Lookalike Audiences

Exclusion

Dynamic Creative

Bidding across publishers

Self-service through Power Editor

Cross-device retargeting

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

• The option to use video or image

Placements and Ad Units

Facebook 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.

Mobile app install ads drive people directly from Facebook and the Audience Network to the Apple App Store, Google Play, or Amazon App Store to install from a strong call-to-action

Mobile app ads offer:

• A large, clickable real estate in mobile News Feed

• Strong call-to-action buttons to drive install and engagement

• The option to use video or image

• Text count: 90 characters

• Image ratio is 1.91:1

• Image size is 1200x627px

• Video file size: up to 1 GB

• Video format: MOV files

Drives traffic to your website and store

Mobile app adsDrive installs, conversions, and engagement for your mobile app

Creative specs for mobile app ads

• Text count: 90 characters

• Image ratio is 1.91:1

• Image size is 1200x627px

• Video file size: up to 1 GB

• Video format: MOV files

Designed for any objective, carousel ads give you more creative real estate to showcase compelling imagery for your brand or products, driving people to your website to convert or your app to install or engage You can showcase up to 10 clickable images within a single ad unit and Facebook can optimize the order of the images based on relevance to each targeted individual.

Ads in the carousel format offer:

• The ability to showcase up to 10 clickable images within a single ad unit

• The option to let Facebook optimize the order of images for each person

• Insights on top performing images

Creative specs for ads in the carousel format

• Image size: 600 x 600 pixels

• Image ratio: 1:1

• Text: 90 characters

• Headline: 25 characters

• Link description: 30 characters

Ads in the carousel formatAdd more creative real estate in News Feed

When comparing carousel

link ads to single link ads,

Automatically promote your entire product catalog on Facebook

How dynamic product ads workDynamic product ads leverage Custom Audiences to help you create targeted audiences of people who have viewed, added to cart or purchased products on your website or mobile app By uploading your product catalog to Facebook, you can reach shoppers with dynamically generated product ads showcasing relevant products they may be interested in purchasing

Advertise all of your productsMany advertisers are already using Facebook to promote their products But, customizing creative with the right targeting for each and every product takes time, especially when inventory changes frequently Dynamic product ads enable you to import your entire product catalog to Facebook so that you can automatically promote any product from your inventory to people who visited your website or mobile app, without having

to create thousands of individual ads

Capture sales from people already interested in your productsWith dynamic product ads, you can keep your business top of mind with people already interested in your products by reaching them on Facebook Automatically bring your potential customers back to your website

or mobile app to purchase publishers You can use dynamic product ads to leverage Facebook native targeting and multi-product ad formats across devices

Dynamic product ads

Power of dynamic

product ads:

Scale:

Promote all of your products

with unique creative without

having to configure each

individual ad

Always-on:

Set up your campaigns once and

continually reach people with the

right product at the right time

based on actions taken on your

website or mobile app

Cross-device:

Reach people with ads on any

device they use, regardless of

their original touch-point for

your business

Highly relevant:

Show people ads for products

that they have shown interest in

from your product catalog

You value You pay for We optimize for

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

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

Clicks

ClicksFor CPC with link ads, you pay for clicks on links, likes, comments and shares

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

Clicks

Optimize for conversions

oCPM enables you to specify the action that you care most about

and set a target bid for that action Facebook will then optimize

delivery and bid aggressively to serve ads to users we believe are

most likely to take that action

Cost per action (CPA)

Designed for mobile app ads campaigns, CPA biding 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

Measure the performance of your campaigns with Facebook’s measurement solutions.

Facebook Conversion Pixel

Measure website conversions

The Facebook conversion pixel helps you measure the effectiveness of your Facebook campaigns With the conversion pixel, you can measure conversions that happen as a result of your Facebook ads - even if the conversion happens on a different device than where your ad was served The Facebook Conversion Pixel reports on Facebook clicks and impressions that happen within a 1-day, 7-day, or 28-day window after the ad was shown

The Facebook conversion pixel:

• Measures the actions of people, not cookies

• Measures conversions that happen across devices

• Works with Facebook Lift measurement

• Lets you generate Lookalike audiences of people who convert

• Allows optimization for conversions

Optimize for success

The Facebook conversion pixel also helps marketers to optimize their ads for conversions With conversion optimization, Facebook leverages real time data beyond just clicks or impressions to show your ad to those customers most likely to convert on your specific ad, purchase or sign up for a subscription

With the Facebook conversion pixel you can:

• Lower your cost per action by showing your ads to people most likely to convert at the most efficient price

• Automatically optimize the delivery of your ads to increase the number of conversions

• Optimize for success across all the devices your customers use

Facebook SDK and App Events

Measures mobile app conversions

The Facebook SDK or Mobile Measurement Partner’s SDK will measure the granular data needed to optimize your mobile app ads to meet specific goals You will need to measure in-app actions to optimize 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 enable:

• The ability to 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 Mobile Measurement Partner solution Generally, our Mobile Measurement Partners provide:

• Cross mobile ad network measurement

• Deeper downstream performance metrics and analysis such as funnel analysis

“We were able to identify the

type of consumer who will

con-vert, profile that, and use this to

find more people to serve those

New Feeds adverts to,”

—Henry Arkell,

Social Advertising Director,

Manning Gottlieb OMD

Facebook case study, April 2014

Solution by Objective

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

Driving in-store traffic from Facebook

Driving mobile app installs and conversions from Facebook

Targeting Ad units Bid types Measurement

Acquiring new customers

Core AudiencesCustom AudiencesLookalike Audiences

Link ads in New Feed Optimize for conversions

Remarketing to

existing customers Custom Audiences Link ads in News Feed

Optimize for conversions

Targeting Ad units Bid types Measurement

Acquiring new customers

Core Audiences/

Partner CategoriesCustom Audiences from your website

existing customers Custom Audiences Link ads in News Feed

Optimize for conversions

Targeting Ad units Bid types Measurement

Acquiring new mobile

app users

Core AudiencesCustom AudiencesLookalike Audiences

Mobile app install ads

CPMOptimize for conversionsCPA

CPC

Facebook SDK + App Events or third party mobile measurement partner

Remarketing to existing

Mobile app engagement ads

CPCCPM

Facebook SDK + App Events or third party mobile measurement partner

Best Practices

Campaign Prep

Planning your campaign

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

• What are the business goals I’m seeking to achieve and how do they map to the objectives I can drive on Facebook? 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 what metrics will

be measured 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 marketing efforts

From account planning to the KPIs metrics you’ll measure, leverage the same processes and best practices 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 organize, optimize and measure the performance of your ads The structure has three levels: campaign, ad set and ad

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 Organize ad sets by audience segment

2 Optimize top performing placements

3 Set bidding to maximize performance

4 Adjust budgets to optimize spend

Ad best practices

1 Use ad types that match your campaign objective

2 Create multiple ads to optimize performance

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

Campaign

Ad set Ad set

Ad Ad Ad

Ad