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Insiders guide to retargeting with facebook exchange

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FBX Ad FormatsAdvertisers have multiple options for FBX ad placement which include: News Feed Unpublished Page Post Link Ads Creative can be dynamic or static.. HOW TO GET THE MOST OUT O

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Insider’s Guide to

Retargeting with Facebook Exchange

Strategies, Case Studies, and Best Practices

to Maximize Your FBX Campaigns

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Retargeting has become a must-have component of

any performance marketing campaign as marketers

have discovered the extraordinary value of reaching

the 98% of consumers who didn’t convert on their

first visit to a website Brands across the majority

of verticals have achieved exceptional results by

leveraging behavioral data from their websites for ad

targeting

Concurrently, Facebook emerged as a powerful

advertising channel boasting more than 1 billion

users globally Facebook won over advertisers with its

innovative targeting capabilities and native ad units that perform exceptionally well because of their centralized location, ability to scale and high engagement rates

To capitalize on its massive inventory, Facebook introduced Facebook Exchange (FBX) in June 2012 FBX lets advertisers purchase Facebook ad inventory that

retargets users based on their browsing behavior or intent shown on websites Since then, FBX has grown to represent a significant portion of retargeting

ad spend—it now accounts for about half of retargeted clicks on the web

Numerous studies have shown that FBX delivers an astounding return on

investment (ROI) On average, we’ve seen FBX campaigns achieve an ROI (return on

ad spend investment) of 546%

However, there is some confusion about how advertisers can make the most of FBX to meet their ROI objectives at scale In this latest eBook we explore:

Details on how FBX works

Strategies and approaches for your

FBX Campaigns

Case studies on FBX performance

A comparison of FBX to other exchanges

Best practices for maximizing your FBX campaigns

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A consumer visits a product page on a brand’s website and a cookie is set on their browser A request is sent to the Facebook servers to notify the DSP of when the

user is on Facebook Next, Facebook notifies the DSP of the users presence, with

what is commonly called a bid request The DSP responds to Facebook with a bid and an ad creative, within 100ms of the initial request Facebook holds an auction and if the ad wins the consumer sees a product ad retargeted uniquely to them on Facebook The user clicks on the ad and purchases a product after seeing the FBX ad

Real-Time Marketing

FBX powers time-sensitive advertising because ads are bid on and delivered to

users in real time as people browse Facebook This allows marketers to drive

performance by targeting a user who for example, has recently browsed a hotel

room on an online travel agency website with personalized ads immediately when they open their Facebook page FBX is ideal for displaying the right product at

the right time to the right user, increasing not only clicks, but more importantly

consumer purchases

Customer sees a product

ad retargeted uniquely to them on Facebook

 Customer visits a

product page for a

and purchases a product after seeing FBX ad

HOW FBX WORKS

Real time bidding (RTB) helps media buyers find audiences at scale with automated

or programmatic buying that allows advertisers to bid on each ad impression as it

is served Facebook entered the RTB market with Facebook Exchange

FBX gathers data data from people’s interactions on external websites Advertisers can then retarget Facebook ads to potential customers who previously browsed

their site Consumer behavior with FBX often works as follows:

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FBX Ad Formats

Advertisers have multiple options for FBX ad placement which include:

News Feed

Unpublished Page Post Link Ads Creative can be dynamic or static

Right Hand Side

Domain Ads on the right hand side (RHS) Creative can be dynamic or static

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HOW TO GET THE MOST OUT OF

YOUR FBX CAMPAIGN

When using FBX, it’s important to consider the following strategies to yield

maximized return:

Leverage dynamic creative for better ad relevancy

Use FBX in combination with native Ads API ads

Target specific audience pools using rules-based logic

Create your retargeting groups around the goal you are trying to achieve

Dynamic Creative

By leveraging dynamic creative, advertisers have the option to dynamically

display creative at an individual SKU, or product, level With intent already shown, dynamic creative promises to provide greater relevancy for consumers and better performance for advertisers

Nanigans’ FBX solution supports dynamic

SKU based creative for both domain ads

on the right hand rail, Page post link ads

and unpublished Page posts in News

Feed

With support for hundreds or thousands

of creative versions, advertisers can

make frequent changes to an ad,

target a specific creative message to a

select audience and optimize the best

performing creative elements

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A Nanigans study highlighted the importance of leveraging dynamic creative

through FBX:

FBX Dynamic creative resulted in a 5.1.X higher ROI (return in sales revenue on the cost of ad spend) than evergreen creative

Case Study

Evergreen FBX Creative

Dynamic FBX Creative

Compared to more evergreen creative delivered through FBX, dynamic creative resulted in:

66%

lower CPA for new customers who purchased on the same day they viewed ads

43%

lower CPCs

7X

higher CTRs

68%

higher day-1 purchase rates

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Product Feeds

A product feed is a file that includes a

company’s full product list and all information

tied to each individual product, such as the

price, an image, and a description This allows

the contextual creation of ads based on the

copy or image associated with a particular

product

Product feeds make it easy to remarket

and dynamically display product ads at the

individual SKU level, providing increased ad

relevancy for targeted consumers A best

practice is to update your product feeds based on the rate of product changes on

your website

To set up a product feed, you’ll need a feed (.csv, txt, or tsv) that includes:

Product SKU Product Category Image URL Product URL Product Title (optional) Product Description (optional)

When setting up dynamic creative, make sure to keep creative image sizes in mind For example, when using unpublished Page post link ads in News Feed, the creative image should be in a 1.9:1 ratio (1200x627) pixels

Ad headline changes depending on product or product category featured.

Image dynamically

rotates depending

on product or

product category.

Ad body/message

rotates depending

on product feed.

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Benefit from “The Assist”

For advertisers seeking to achieve ROI objectives at scale, it’s essential to use

FBX in conjunction with prospecting and Custom Audience targeting through the native Facebook Ads API Complementary advertising channels, a mix of FBX and Facebook Ads API lets you maximize reach and achieve a strong return on your ad spend

The Facebook Ads API provides access to Facebook’s rich targeting data

(demographics, connections, interests, and more), while FBX allows marketers

to bring their own fist party data to Facebook Facebook API ads are effective for driving users to landing pages who can then be retargeted with FBX ads This will help you grow the pool of people in your remarking groups

While DSPs typically only have

access to FBX, Nanigans is one of

three Facebook Strategic PMD’s

with access to both the native

Ads API and FBX Advertisers

choosing a to run a combination

of the two benefit from “the

assist”—by leveraging the Ads

API to discover audiences and

generate demand, and FBX to close

individual customers

Demand Generation

Demand Fulfillment

Standard Facebook Ads

FBX Ads

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Case Study

Facebook Ads API and FBX Boost eCommerce

Sales by 89%

In a study of $1.2M in ecommerce sales, Nanigans found that customers

who entered FBX remarketing pools after first viewing a standard Facebook ad purchased 89% more in sales revenue than those who entered FBX remarketing pools from other channels, such as organically or through search

The study also found that coupling FBX buys with prospecting through the native Facebook Ads API drove 39% additional customers into FBX remarketing pools The results underscore that without using native Facebook audience targeting with the Ads API, the retailer would have seen a smaller pool of potential customers to retarget Filling the remarketing funnel with high quality candidates is critical for a successful FBX campaign

In addition, customers acquired

through native Facebook audience

targeting were much better

qualified than those acquired

through other channels This

can be attributed to the deep

targeting capabilities and social

context of Facebook’s native

ad types, available through the

Facebook Ads API

Based on the results, it’s clear that

if an advertiser is not leveraging Facebook Ads API buys alongside FBX retargeting, they are not only missing out on new customers, but they are missing out on their highest quality customers and significant incremental revenue

Facebook Ads API Non-Facebook Channels

Customers Entering FBX Remarketing Pools from Ads API Buys Purchase 89% More in Sales Revenue

Origin of Customer in FBX Remarketing Pool

$354.11

$187.70

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Target Specific Audiences Using Rules Based Logic

Marketers have achieved FBX targeting success with highly targeted user segments

by defining a set of behavior rules to create and automatically update retargeting groups Some examples include:

A best practice is to use inclusion or exclusion rules on a combination of events that occur within a designated timeframe to design targeted messages for greater

ad relevance and performance

People who have added an item to their cart but didn’t purchase People who viewed a product but didn’t purchase

People who have visited the website but didn’t purchase People who have registered or logged in but didn’t purchase

eCommerce

Gaming People who have made a purchase but not in the last 3 or 7 days

People who have fired a DAU pixel but not in the last 3 or 7 days

Travel People who searched for a flight but didn’t purchase within a specific

time period (e.g 3, 7, or 14 days) People who searched for a hotel but didn’t purchase within a specific time period (e.g 3, 7, or 14 days)

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Case Study

Facebook Exchange -

News Feed Increases

ROI 197%

FBX Page post link ads in News Feed

delivered an average 17.1 times

higher CTRs and 51 percent lower

CPCs versus the RHS

ROI was 197% higher as a result

ROI RHS, Domain Ads Page Post Link AdsROI News Feed,

FBX in News Feed

Initially FBX ads were only delivered in the right

hand side, and while, advertisers were already

seeing great performance compared to other

exchanges, Facebook’s News Feed inventory

brought FBX to a whole new level

Located prominently in the center of the

News Feed, FBX Page post link ads are highly

visible and engaging The News Feed is the

place people go when they come to Facebook

and where they spend the majority of their

time Plus these ad units have all of the

Facebook social elements—Likes, shares, and

comments—for additional viral distribution

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FBX vs Other Exchanges

Through exchanges, advertisers can find specific audiences across the web and retarget specifically to behavior patterns and purchase activity Advertisers can bid in real time for these users, meaning that inventory can be sold to the most qualified bidder via an auction-based bidding model Yahoo, Google, Microsoft, and other major players on the web all have exchanges, but with one in five U.S page views being on Facebook, the social network is the heavyweight in the crowd

+ Lower costs-per-acquisition and ads that

appear above the fold and on brand-safe pages

With News Feed inventory, FBX ads are

in the large Page post link format and get prime real estate among posts from people’s friends and pages

FBX ads include options for Likes, comments, and shares, which can lead to other types of engagement

A combination of FBX and Ads API can fill your remarketing groups with high value prospects—a critical element for any successful FBX campaign

Benefits of FBX compared to other exchanges

FBX

+ API

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FBX BEST PRACTICES

Since FBX went live, Nanigans has worked with hundreds of the world’s largest ecommerce, gaming, and travel companies to help them remarket on Facebook We’ve found that there are a variety of factors that help advertisers boost

conversions and have created a list of some best practices to help you get the most out of FBX

Keep creative for non-dynamic creative gender neutral so it is appealing to a wider audience

Differentiate your FBX ads from your API Ads

to avoid serving the same ads over and over

to the same people

If you are not using dynamic creative, push new creative often to keep ads fresh

Customize your creative to specific categories and subcategories and analyze performance across the entire category to optimize results

Test, test, and test some more—changing colors, images, and CTAs can make the difference between a low CTR and a high one

Tips for Compelling FBX Creative

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Tips for Increasing Volume with FBX

FBX remarketing segments are limited by the number of people who visit your website so volume can be more challenging with FBX as compared to acquisition campaigns with the Facebook Ads API Here are some best practices for reaching a bigger audience on Facebook

Increase your bids to reach a

broader audience

Utilize Facebook API ads to

fill your remarketing pool by

bringing more traffic to your

website

Create more retargeting groups

based on user behaviors to

increase the amount of people in

your remarketing pools

Push more dynamic creative ads

to new categories to increase

relevancy

Adjust your frequency limits

to increase the amount of

impressions a user sees in a

given time period

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What to Expect After You’ve Launched Your

First Campaign

 Higher CTRs for dynamic creative ads—Dynamic creative is more personalized which improves CTRs and ultimately, ROI

Higher CTRs for Page post link ads

in News Feed—News Feed ads are more engaging with large native

ad formats and a more centralized location than the RHS

Higher purchase rates with dynamic creative in comparison

to static FBX—Dynamic creative is more engaging and more relevant

in comparison to static creative Lower volume for FBX ads in comparison to regular API Ads—

This is because the audiences targeted only includes people who have visited your website

Lower volume on News Feed ads

in comparison to RHS ads—News Feed ads have a limited number of impressions per user per day

Lower volume for dynamic creative rather than static creative—Static

ad creative is not limited by SKU matching

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With only 2% of web traffic converting on the first visit, ad retargeting will only continue to grow in importance during 2014 Retargeting not only helps to remind consumers of the product they may have recently viewed, but it takes the next step

to reengage them for specific purchase events

Facebook Exchange has driven significant impression volumes since launch With

20 billion user minutes spent on Facebook per day, the ability to serve dynamic ads based on known user preferences will be a key contributor to driving conversions

As Facebook continues to see strong demand for FBX ads in both the desktop

News Feed and RHS, some, such as a J.P Morgan analyst, suspect they will look to capitalize on their mobile momentum and roll out retargeting to mobile later this year

Today, just as you wouldn’t run advertising campaigns on desktop without buying

on Facebook, you certainly shouldn’t be retargeting consumers without FBX

Facebook’s extensive reach combined with its high quality ad inventory provide exceptional results for advertisers When planning your campaign, be sure to

leverage the Facebook Ads API to discover and FBX to close individual customers to maximize the return on your retargeting campaign

“We believe FBX will become an increasingly important part of

Facebook’s ad platform as retargeted ads move further into the Desktop and Mobile News Feeds.”

Doug Anmuth, J.P Morgan Internet Analyst

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