Facebook Advertising Best Practices
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Presentation by Kenshoo CMO, Aaron Goldman, at SES San Francisco sharing best practices for Facebook Ad Automation.
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Facebook Advertising Best Practices
- 2. 2 Keys to Success
- 3. Facebook has Lots of Ad Inventory 3 Source: Comscore May 2011
- 4. The Click Conundrum 4 People on Facebook Are Busy Connecting, Not Clicking 0.10 % Average Display CTR 0.05 % Average Facebook CTR Source: Webtrends Feb 2011, Kenshoo Social July 2011
- 5. The Impression Issue 5
- 6. Monitor Social KPIs 6 Uniques ROI Revenue Clicks Purchases Follows Social Impressions Churn Cost CPF Video Views Connections Downloads CPL Likes Conv Rate Mentions CPM Tweets Shares AOV Retweets CPC Fans Share of Voice CTR Impressions CPA Social Reach RSVPs Engagements Reach Leads Revenue/Click
- 7. 7 Automate KPI Reporting
- 8. 8 Keys to Success
- 9. Set an Attribution Model to Reflect the True Value of Each Engagement Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 Leverage automated advertising tracking systems to report and act on all consumer touchpoints prior to purchase 9
- 10. Set an Attribution Model to Reflect the True Value of Each Engagement Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 60% 25% 10% 5% (Last Click) 10
- 11. Set an Attribution Model to Reflect the True Value of Each Engagement Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 40% 10% 10% 40% (Last Click) 11
- 12. Set an Attribution Model to Reflect the True Value of Each Engagement Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 25% 25% 25% 25% (Last Click) 12
- 13. Set an Attribution Model to Reflect the True Value of Each Engagement Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 0% 0% 0% 100% (Last Click) 13
- 15. Prefer First
- 17. U-Shaped
- 18. Prefer Last
- 19. Last Touch20% 40% 60% 80% 100%
- 21. Prefer First
- 23. U-Shaped
- 24. Prefer Last
- 25. Last Touch20% 40% 60% 80% 100%
- 27. Prefer First
- 29. U-Shaped
- 30. Prefer Last
- 31. Last Touch20% 40% 60% 80% 100%
- 33. Prefer First
- 35. U-Shaped
- 36. Prefer Last
- 37. Last Touch20% 40% 60% 80% 100%
- 39. Prefer First
- 41. U-Shaped
- 42. Prefer Last
- 43. Last Touch20% 40% 60% 80% 100%
- 45. Prefer First
- 47. U-Shaped
- 48. Prefer Last
- 49. Last Touch20% 40% 60% 80% 100%
- 50. Mine Insights from Search and Social Interaction Top 100 Internet Retailer running DR search and social campaigns, each with positive ROI 20% of all conversion paths showed ad clicks from more than one channel (searchand social) Over 1/3 had brand queries in the path to conversion Consumers discover brand on FB and then search for it by name
- 51. 21 Keys to Success
- 55. 25 Automatically Create Ad Groups Ad Group Creative Target x = x =
- 56. 26 Dynamically Generate Segments Dynamic Estimated Reach Full Geographic Targeting and Language Settings
- 57. 27 Dynamically Generate Segments Target by age, gender, relationship status
- 58. 28 Dynamically Generate Segments Relate to your audience through likes & interests, education & workplaces
- 59. 29 Dynamically Generate Segments Save Custom Target Settings Reach Friends of Friends
- 60. 30 Keys to Success
- 61. 31 Avg. CPC Population Size Source: Facebook API June 2011 High Variable Cost Between Targets
- 62. 32 Testing Tactics Segments Images Messaging Scheduling Bidding
- 63. 33 Save Segments Segments
- 64. Iterate Images Images Use buttons Image frames Celebrities Think outside the box! Background colors People vs. objects Animals Shock and awe 34
- 65. Messaging Messaging Matters 35
- 66. Messaging Matters Messaging Use a Call to Action Refresh Copy Often Use Promotional Codes Don’t Use Standard Search Copy Personalize Ads Short and Concise is Best 36
- 67. Track Timing Scheduling 37
- 69. CPA
- 70. ROI
- 71. Follow FB Suggested BidSearch # of Campaigns CTR
- 73. CPA
- 74. ROI
- 75. Follow FB Suggested BidSearch # of Campaigns CTR
- 76. 40 Keys to Success
Notas do Editor
- Now let’s get into some trends and best practices. Here are 4 keys to success in social advertising.Picking the right Key Performance Indicators.Determining the role of social in driving those KPIs.Setting your targets to reach your best prospects.Testing everything and continuing to iterate. Remember, social is still super new and you have to figure out what will work best for your company.Now let’s dig into KPIs.
- So how do you determine what are the right KPIs. Well, weall know there’s a ton of ad inventory available on Facebook. The question is, what do you want to do with it?
- When setting your goals and KPIs, you have to remember what Facebook is all about. People on Facebook are busy connecting, not clicking. As you can see Facebook click-rates are, on average, about half that of standard display ads.And therein lies the conundrum. If you want to drive direct response off Facebook, you’ll have a relatively limited pool of responders.
- But what about all those impressions that don’t get clicked? How do you measure they’re value?
- So let’s focus on some new KPIs that can help put all those impressions in perspective, namely social impressions, reach, social reach, and engagements.
- And let’s put these metrics in context of an actual campaign. As you can see here, we used Kenshoo Social to promote the webinar on Facebook and while our primary goal was to drive registrations, we were also able to see how many impressions we delivered with a viewer’s friend or connection already engaging with us. And as we know, our industry is a small one and too many of us spend too much time on Facebook (just for research, right guys?) but it seems like many of you have friends also in the industry and thus your identities were likely tied to ads we were showing. So thanks for that!
- Now that you’ve figured out what you’re trying to do and how you’ll measure it, let’s talk about how you appropriately credit social advertising for it’s role in the mix.
- That said, when your goal is to drive activity off Facebook to your site, it’s critical to keep in mind all the touchpoints along the way. In this example, we have someone who clicks on a Facebook ad but doesn’t buy anything, then does 3 keyword searches and clicks on corresponding ads before finally making a purchase. Now, most platforms will report and act only on that last click. In this case, search would get all the credit and bids and budgets would be optimized accordingly. In Kenshoo Social, however, we have different attribution models you can set based on your business situation.Whether it’s linear ratio or U-shaped which gives 40% to first click, 40% to last and splits up the clicks in the middle evenly, or a complete even split or first or last click, you must think thru which model is most appropriate.
- That said, when your goal is to drive activity off Facebook to your site, it’s critical to keep in mind all the touchpoints along the way. In this example, we have someone who clicks on a Facebook ad but doesn’t buy anything, then does 3 keyword searches and clicks on corresponding ads before finally making a purchase. Now, most platforms will report and act only on that last click. In this case, search would get all the credit and bids and budgets would be optimized accordingly. In Kenshoo Social, however, we have different attribution models you can set based on your business situation.Whether it’s linear ratio or U-shaped which gives 40% to first click, 40% to last and splits up the clicks in the middle evenly, or a complete even split or first or last click, you must think thru which model is most appropriate.
- That said, when your goal is to drive activity off Facebook to your site, it’s critical to keep in mind all the touchpoints along the way. In this example, we have someone who clicks on a Facebook ad but doesn’t buy anything, then does 3 keyword searches and clicks on corresponding ads before finally making a purchase. Now, most platforms will report and act only on that last click. In this case, search would get all the credit and bids and budgets would be optimized accordingly. In Kenshoo Social, however, we have different attribution models you can set based on your business situation.Whether it’s linear ratio or U-shaped which gives 40% to first click, 40% to last and splits up the clicks in the middle evenly, or a complete even split or first or last click, you must think thru which model is most appropriate.
- That said, when your goal is to drive activity off Facebook to your site, it’s critical to keep in mind all the touchpoints along the way. In this example, we have someone who clicks on a Facebook ad but doesn’t buy anything, then does 3 keyword searches and clicks on corresponding ads before finally making a purchase. Now, most platforms will report and act only on that last click. In this case, search would get all the credit and bids and budgets would be optimized accordingly. In Kenshoo Social, however, we have different attribution models you can set based on your business situation.Whether it’s linear ratio or U-shaped which gives 40% to first click, 40% to last and splits up the clicks in the middle evenly, or a complete even split or first or last click, you must think thru which model is most appropriate.
- That said, when your goal is to drive activity off Facebook to your site, it’s critical to keep in mind all the touchpoints along the way. In this example, we have someone who clicks on a Facebook ad but doesn’t buy anything, then does 3 keyword searches and clicks on corresponding ads before finally making a purchase. Now, most platforms will report and act only on that last click. In this case, search would get all the credit and bids and budgets would be optimized accordingly. In Kenshoo Social, however, we have different attribution models you can set based on your business situation.Whether it’s linear ratio or U-shaped which gives 40% to first click, 40% to last and splits up the clicks in the middle evenly, or a complete even split or first or last click, you must think thru which model is most appropriate.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s look at the impact of various attribution models. In this case, by giving all credit to the last click, Facebook ROI stood at about 70%. But as we work our way up to first-only attribution, ROI on FB would have been 85%, hence justifying more budget allocation and potentially driving more sales. So key take-aways here: 1. You can drive direct ROI from Facebook but it will never be as high as search and won’t also show positive ROI so don’t let that be your end-all-be-all 2. Make sure to give credit to Facebook’s impact on sales thru other channels and 3. Back to KPIs, consider other ways beyond direct ROI to measure efficacy of social advertising.
- Now let’s talk about targeting within Facebook.
- The beautiful thing about Facebook, beyond these beautiful bubbles, is that you can cut the audience very finely to reach only your best prospects. And then show ads tailored just for them.
- The beautiful thing about Facebook, beyond these beautiful bubbles, is that you can cut the audience very finely to reach only your best prospects. And then show ads tailored just for them.
- The beautiful thing about Facebook, beyond these beautiful bubbles, is that you can cut the audience very finely to reach only your best prospects. And then show ads tailored just for them.
- One of the things that’s unique about Kenshoo Social is how you can set up your targets. Rather than set up one ad at a time by matching a creative with a target, you can choose your creatives, choose your targets, and we’ll do all the permutations and upload them to Facebook. We’ll even automatically name each ad with the creative and target so you can easily slice the data.So in this case here, we have 2 creatives and 2 targets. Kenshoo Social creates 4 ads. Or take 1 creative and 3 targets, and we’ll create 3 ads on Facebook.
- When choosing your targets, you’ll want to pay attention to your estimated reach which we update dynamically so you can see how many people you can actually reach based on the criteria selected. For this webinar, we were focused on US and UK. To all our friends down under and across Asia, we’ll be recording this and making it available at a more convenient time.
- Next, choose demographic variables like age, gender, relationship.
- And then choose supplemental info such as likes and interests, workplaces, education. You can see we selected online advertising and whittled down to 380 people. Clearly not as many of us digital marketing geeks on Facebook as we thought or at least we don’t want to promote that fact on our profiles.
- And finally you can target connections and friends of connections, incredibly valuable when trying to expand your reach but remain targeted and relevant. The last thing to point out is that you can save custom target settings in Kenshoo Social so you don’t have to start from scratch the next time you want to set up an ad.
- OK, now let’s talk about testing.
- Why is testing so important? Well you can see here there’s a high variable cost between different targeting criteria. In this case, you can see the variance in cost per click by age and by gender. Older people skew higher probably because there are fewer of them and they have higher buying power.
- As for the tactics you can take with your testing, 5 areas we’ll quickly cover are Segments, Images, Messaging, Scheduling, and Bidding.
- With segments, we just talked about all the ways you can target your ads and the key is to take segments that worked and try cutting them even further.
- As for your ad itself, just like with search, you’ll want to test every possible combination to see what works best. Some things to experiment with include background colors, buttons, and even animals. Proprietary Kenshoo research shows cats work better than dogs. Just Kidding.
- As for the copy you use in your messaging, some best practices include having clear calls-to-action, refreshing often, personalizing, and just keeping it short and sweet. Oh, and don’t just repurpose your search ad copy. Remember, people are in a much different mindset on Facebook than they are on Google.
- As for the copy you use in your messaging, some best practices include having clear calls-to-action, refreshing often, personalizing, and just keeping it short and sweet. Oh, and don’t just repurpose your search ad copy. Remember, people are in a much different mindset on Facebook than they are on Google.
- I just mentioned refreshing your ad copy. Indeed, ads can go stale so you’ll want to test different days of week and times of day to run your ads. In Kenshoo Social, scheduling is a snap and you can view reports that show you performance by day and time.
- When it comes to bidding, you have to take a different approach from search.1, because your goals should be different.And 2, because the variance in click-rate in social is a lot smaller. Here you can see we looked at 40 campaigns in social and about 100 in search, and the distribution of click-rate for social is all pretty tight between 0.01% and 0.09% and for search it’s scattered between 0.1% and 10%. This requires algorithms to work with a lot less standard deviation.
- When it comes to bidding, you have to take a different approach from search.1, because your goals should be different.And 2, because the variance in click-rate in social is a lot smaller. Here you can see we looked at 40 campaigns in social and about 100 in search, and the distribution of click-rate for social is all pretty tight between 0.01% and 0.09% and for search it’s scattered between 0.1% and 10%. This requires algorithms to work with a lot less standard deviation.
- Now let’s get into some trends and best practices. Here are 4 keys to success in social advertising.Picking the right Key Performance Indicators.Determining the role of social in driving those KPIs.Setting your targets to reach your best prospects.Testing everything and continuing to iterate. Remember, social is still super new and you have to figure out what will work best for your company.Now let’s dig into KPIs.