direct response marketing on facebook

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 results w

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 1.32 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 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 solutionsFrom 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

Introduction

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 or 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

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

Mobile Delivery

Exclusion

Placements All Facebook Facebook desktop only

Standard ads (domain only) Page post ads (link only-beta)

Standard ads, Page post ads,

Mobile

Dynamic Creative

Ad Formats

Access to Facebook’s Targeting

Facebook Lookalike Audiences

Real time bidding

Placements and Ad Units

Facebook off ers several ad units for advertisers to capture attention and drive action News Feed is the most eff ective 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 specifi c

location on your website that you choose

Link ads off er:

• 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 engagement from Facebook’s News Feed

Photo ads off er:

• 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

• Recommended text count: 90 characters

• Recommended image ratio is 1.91:1

• Recommended image size is 1200x900px

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 off er:

• 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 off er:

• 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 specifi c location in app

Creative specs for mobile app ads

• Recommended text count: 90 characters

• Recommended image ratio is 1.91:1

• Recommended image size is 1200x627px

Creative specs for mobile app ads

• Recommended text count: 90 characters

• Recommended image ratio is 1.91:1

• Recommended image size is 1200x627px

Mobile app install ads

Drives installs for your mobile app

Mobile app engagement ads

Drives conversion in and retention for your mobile app

Bid types

Facebook offers a variety of bidding options to help you pay the right amount per objective and deliver your ads to the right audience The 4 bidding options offered are cost per impression (CPM), cost per click (CPC), optimized 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

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

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

Optimized 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 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

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 optimize your ads The Facebook conversion pixel will also enable you to utilize 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 clicks on the photo, like button, comment button and share button, as click conversions

• Conversion activity within 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 minimized redundancies

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

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 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

“We were able to identify the

type of consumer who will

convert, 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.

Core Audiences/

Partner CategoriesCustom Audiences from your websiteLookalike Audiences

Core AudiencesCustom AudiencesLookalike Audiences

Custom Audiences

Custom Audiences

Link ads in New Feed

Link ads in New FeedPhoto ads

Offer ads

Mobile app install ads

Link ads in News Feed

Link ads in News FeedPhoto ads

Offer ads

oCPMCPC

CPM

CPMoCPM

oCPMCPC

oCPMCPC

Driving online traffic from Facebook

Driving in-store traffic from Facebook

Driving mobile app installs and conversions from Facebook

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 other efforts on digital

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 structure

Facebook’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

Campaign

AdAd

AdAd

Set up for measurement

To measure the success of your program, you will need to set the proper measurement

solutions in place

1 Know which KPIs (ROAS, average order value, conversion rate, etc.) you want to

measure and what metrics you consider a success

Make sure your partners (agency and/or PMD) are informed of these success metrics

2 Bring your conversion data onto Facebook

To track online conversions, implement the conversion pixel on the your website

To track conversions in your mobile app, implement the Facebook SDK and set up App Events

to measure specific actions in app and attribute 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 appropri-ate 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 Because Facebook ads can drive consideration from consumers, a last-click

attribution model is not an appropriate measurement solution

With the right targeting strategy, you can reach consumers on Facebook

in meaningful numbers to drive scalable results across devices Though Facebook has more targeting options than other channels, the same audience planning process applies.

Think about the goal you’ve set for your business on Facebook Are you acquiring new customers or remarketing to existing customers? Your objective will define the audience you want to target 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 about them?

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

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

• 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

Driving online traffic

Driving in stores traffic

Driving mobile app installs and conversions

(Partners Categories) (Custom Audiences from your websites)

Acquiring new customers

Acquiring new customers

Acquiring new mobile app users

Remarketing to existing customers

Remarketing to existing customers

Remarketing to existing mobile app users