Scaling Your Business Through Paid Social

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1 Scaling Your Business Through Paid Social Patrick Hounsell Chief Digital Officer

2 Agenda Market Trends The Opportunity Taking Advantage Of The Opportunity

3 Emergence Of Facebook As An Acquisition Platform Social Platforms are becoming Direct Response Marketing Platforms. Facebook defined the path. Twitter, Pinterest and others are following.

4 Facebook Is Now Pay To Play Organic Reach Down to 6%

5 Mobile Is The Next Digital Opportunity

6 Agenda Market Trends The Opportunity Taking Advantage Of The Opportunity

7 Why We Think Facebook Will Be Dominant Cross Device Reach Ad Formats Measurement Targeting

8 Facebook Leads All Platforms in Reach Cross Device Reach 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 80,000 60,000 40,000 20,000 0 Total Views (MM) Total Minutes (MM) 8

9 Facebook Leads All Platforms In Mobile Cross Device Reach Unique Visitors and Time Spent (mobile) 120, ,000 80,000 60,000 40,000 20, ,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Total Unique Visitors/Viewers (Mobile) 9 Total Minutes (Mobile)

10 Native Ad Formats Innovative Formats

11 Targeting Targeting Interest Based ID Based Custom Audiences & Tailored Audiences Content Based CRM List Facebook Behavior Based Matched Targets

12 Measurement Identity Cookie AdID IDFA

13 We ve Seen This Story Before New form of targeting Immense reach and traffic Automated buying platform Native ad units 1 3

14 » Can Facebook rival Google s non-brand scale and performance?

15 Agenda Market Trends The Opportunity Taking Advantage Of The Opportunity

16 Scaling the Facebook Opportunity Achieve quick win against existing Mobile efforts

17 Tiffany & Co Mobile Performance Keyword Targeting VS #chanel Gucci Prada LouisVuitton Elle #vogue Fendi 230X more engagement 0.10% (1 out of 1,000) 23% (1 out of 4)

18 Nespresso Mobile Ad Units Mobile Newsfeed CTR 4.8% CTR - 50X better than standard banner unit

19 Scaling the Facebook Opportunity Establish disciplined approach to optimize paid social levers Achieve quick win against existing Mobile efforts

20 Key Levers For Paid Social Search Paid Social Buy Keywords Buy Audience (e.g. Profile) Layer and Refine with Targeting Layer and Refine with Targeting (e.g. behavioral) Build and Test Creative Build and Test Creative Manage Bid and Budget Manage Bid and Budget Optimize Landing Experience Optimize Landing Experience 20

21 Scaling Your Program Facebook direct marketing platform is delivering massive scale #1 Overall Source of New Customer Acquisition Targeting ID Interest Custom Audience best performing tactic after remarketing Creative Adam Levine Placement Scaled volume 5X Link Post Photo Post RHS

22 Scaling the Facebook Opportunity Scale through Custom Audience program Establish disciplined approach to optimize paid social levers Achieve quick win against existing Mobile efforts

23 Retailer Case Study Custom Audiences: Media Budget Orders 5 month rollout of Custom Audience campaign for a large retail advertisers w/ average monthly display spend of ~$1.6MM in US Scale: 2X increase in average monthly budget over first 5 months Efficiency: CA is driving 51% of orders with 42% of the budget Overall Performance: Best performing media tactic 28% 31% 94% 41% CPO Index 128% 103% 26% 51% 23% FB CA FB STD Display CPO Goal

24 COST PER ORDER Nespresso Overall Results CRM Custom Audiences 43% More Efficient #1 Source of New Visitors to Nespresso Website #1 Prospecting Tactic - Facebook Custom Audiences -43% Custom Audiences Interest Based

25 Scaling the Facebook Opportunity Use Facebook to inform cross-channel targeting Scale through Custom Audience program Establish disciplined approach to optimize paid social levers Achieve quick win against existing Mobile efforts

26 Niche Targeting Program Leverage precise filtering to target Users attending various Universities Expose relevant users to marketers ads When an exposed College Student visits the site, the Google Remarketing Tag fires; segmenting the customer into the appropriate Remarketing List Leverage University Segment Remarketing List for Search For example, this could be, User needs internet for College.

27 Integrated Audience Planning & Experience CRM Leverage CRM Lapsed Gift Givers CRM File Upcoming Anniversary Peretti Purchasers DMP Search RLSA DSP NYC 3 star restaurant

28 Key Takeaways 1 Facebook rapidly transformed from a social platform to an audience platform, establishing the playbook for the industry along the way Leading the industry in building a massively scalable direct marketing platform within the digital ecosystem We see many similarities to Paid Search and expect budgets to continue to flow into their platform. In particular, Facebook is becoming the de-facto Mobile solution Savvy brands and experienced search marketers have an opportunity to create a first-mover advantage

29 Thank You! MerkleRKG.com Merkleinc.com 29