Retargeting on Facebook Exchange

Marc Poirier
@marcpoirier
Acquisio
Co-Founder, EVP Business Development
Retargeting on Facebook Exchange
Some Case Studies

Questions – Comments: marc@acquisio.com

RETARGET VISITORS ON FACEBOOK

IT STARTS WITH A VISIT TO YOUR SITE

BUT VISITOR DOES NOT CONVERT

RETARGET HER ON FACEBOOK

1 BILLION USERS
1 TRILLION MONTHLY PAGE
VIEWS
VS
800 BILLION IMP / MONTH ON
AD eXCHANGES
FBX IS HUGE!

ALWAYS BRAND SAFE!

RETARGET USERS WITHIN SECONDS!
According to Triggit, for those who are on
Facebook:
•15% will see the ad within the first 5
minutes of leaving the site.
•60% will see the ad within the first hour.

RETAILAND TRAVEL – USE DCO
DCO FEED

4 RUMORS ABOUT FBX:
1 – FBX Yields the Lowest eCPMsEver Seen
2 – FBX Yields Higher CTRs
3 – FBX Yields Higher Conversion Rates
4 – FBX Yields Lower CPAs/CPOs
BUT DOES IT LIVE UP TO THE HYPE?

The Acquisio Trading Desk (ATD) ran
over 40 campaigns since the FBX
launch
Across 3 continents, 15 countries and
most verticals
3
We selected 3 campaigns for their
variety, different goals and executions,
here are the results:
THE DEVIL IS IN THE DATA

EXHIBIT 1 – General Retail Test
BUSINESS TYPE – HugeE-commerce site which sells a large range of products
both online and offline. For this test, product range covers small
electronics, home appliances, and pet products.
SIMILAR TO – Wal-Mart, Target.
GEO executed – Russia (Note: Facebook is 3rd largest social network in Russia
but growing rapidly)
BUSINESS MODEL – Retail, need to generate direct profit from each sale
CAMPAIGN GOALS – CPO = $12
STRATEGY USED – 7 Day test – Only FBX retargeting using 3 segments:
•Site-Wide Visitors
•Shopping Cart Abandoners (DCO)
•Converted users

CAMPAIGN 1 – Retail – RESULTS – 7 Day Run
Impressions won Clicks Cost eCPM CTR Conv. rate CPA
Site-Wide 4,051,473 2,066 $5,969 $0.38 0.05% 1.3% $209.6
Shopping Cart 758,162 1,831 $1,158 $1.30 0.24% 8.3% $7.6
Converted Users 220,387 570 $329 $1.28 0.26% 5.1% $11.3
Key Findings:
•Average of $0.53 eCPM .
•$0.38 CPM for site wide
•$1.30 for high quality audiences – why?
•Small audience. Bid high to win more frequently and gain volume.
•Site-wide drives volume but is about 17X our CPO!
Comments:
•Huge difference between performance of audiences
•DCO for shopping cart abandoners delivers orders at $7.60 (target was $12)

CAMPAIGN 2 – SPORT CLOTHING RETAILER
BUSINESS TYPE – Sport clothing retailer selling sport apparels: t-
shirts, polo’s, hoodies, jackets, caps, jerseys, duffle bags etc.. as well as customizable
items.
SIMILAR TO – Foot Locker, Nike
GEO executed - UK
BUSINESS MODEL – Retail, generate direct profit from each sale
CAMPAIGN GOALS – CPO = $15
STRATEGY USED
•Retarget Cart Abandoners
•Display exchanges
•FBX
•First party Search Ad Retargeting on Display Exchanges
•No DCO and only generic branded creatives

CAMPAIGN 2 – Clothing Retail - RESULTS
Impressions Bid
On
Impressions won Win rate Clicks Cost eCPM CTR Conv. rate CPO
FBX re-targeting 4,4345,233 3,272,311 75.3% 1,990 $3,466 $1.06 0.06% 3.3% $21.00
Search Re-targeting 1,075,098 452,857 42.1% 421 $1,390 $3.07 0.09% 4.3% $20.50
SiteRe-targeting 6,120,709 2,576,843 42.1% 2,471 $5,561 $2.93 0.10% 4.0% $24.40
•Key Findings:
•CPO is between 40% and 60% too high on all efforts
•FBX had the lowest CPM, almost 3 times lower than those on regular Ad Exchanges,
•Despite low CPM, we had the highest impression win rate, twice as high as Ad Exchanges
•BUT CTR was also much lower than on Ad Exchanges, in fact half the expected Ad Exchange average
(which usually stands at about 0.1 – 0.15% for non-DCO campaigns)
Comments:
•Having a proper creative strategy in place would have allowed us to deliver better CTR and probably hit
the target CPO.

CAMPAIGN 3 – SHOPPING COMPARISON SITE
BUSINESS TYPE – Shopping comparison website. Their mission is to offer the most
comprehensive list of products anywhere on the web with thousands of new products
added daily.
SIMILAR TO –Shopping.com
GEO executed - US
BUSINESS MODEL – Razor thin margins. Paid for Click-Through to Retail Websites
(Arbitrage)
CAMPAIGN GOALS – CPA = $0.52
STRATEGY USED – Pure FBX re-targeting concentrating on 6high value products (for
the shopping site) : iPhones, Car Batteries, Mattresses,TIres, TVs and Samsung Galaxy
Phones

CAMPAIGN 3 – RESULTS
Impressions Bid On Impressions
won
Win
rate
Clicks Cost eCPM CTR Conv. rate CPA
FBX re-targeting 8,134,250 4,777,257 58.7% 3,525 $3,980 $0.83 0.07% 33.9% $3.30
•Key Findings:
•Tightly optimised for frequency and recency due to the very low CPA target, we
managed to achieve very low CPM of $0.83
•CTR about 3X lower than their display retargeting campaigns
•At 33% conversion rate, FBX delivered a much lower Conversion rate than the
Display average for the client which stands at 63%.
•Comments:
•Clearly the FBX is not suited for very aggressive CPA campaign and
affiliation/arbitrage is probably not a good fit
•We had no leeway to optimise using different creative as no assets where available
from the client.

1 – FBX Yields the Lowest eCPMsEver Seen
2 – FBX Yields Higher CTRs
3 – FBX Yields Higher Conversion Rates
4 – FBX Yields Lower CPAs/CPOs
BUT DOES IT LIVE UP TO THE HYPE? HOW DID WE DO?
3 assumptions = Truth or Myth?

SOME EXTRA CONCLUSIONS & Recommendations
• Low Competition = Low eCPM
• Facebook Ad Formats = Low CTR
• Low CPM not equal to Low Avg CPA/CPO
Because of Low CTR and Low Conversion Rate
• Not suitable for really low Avg CPA targets
• Narrow Audiences Win
• DCO Wins, especially for travel and retail
• Non-DCO Require Frequent Creative Changes
• Align Audience and Creative for Best Results

Questions?

Retargeting on Facebook Exchange

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