The document discusses insights from Facebook Exchange (FBX) advertising campaigns. It shows that FBX campaigns significantly outperformed other real-time bidding exchanges for photo sharing and floral retailers. Specifically, FBX campaigns had 4.2x higher return on ad spend, 5x better post-click conversion rates, and costs that were 1/10th or 1/3 of other exchanges. FBX also ended debates around viewability by achieving a 12.5% post-click conversion rate and $6.22 cost per acquisition for a floral retailer.
9. FBX Campaign Data For Top 3 Photo Sharing Site
FBX Campaign Performance vs Other RTB
Exchanges
• ROAS: 4.2X higher
• Post-click conversion rate: >5X better
• CPA: < 1/10th
• CPCs: only 4% higher
• AOV: 98.3% of non-FBX RTB conversions
• % new customers: 25.4% vs 26.9%
• 1.5x greater likelihood of users converting in the first two
days after seeing an ad on FBX
10. Initial FBX Campaign Data For Top 3 Floral Retailer
FBX Campaign Performance
• Post-click conversion rate: 12.5%
• CPA: 1/3 other display campaigns ($6.22 vs $18)
• CPCs: $0.65
One of the most encouraging insights that continues to surface is around recency. Remember the slide about the wall of impressions throughout the day? Well, not only are people on the social network throughout the entire day, but they can also be found within seconds of indicating their value through a site visit. For marketers, this translates to a very powerful (and profitable) advantage: only Facebook combines the ability to retarget visitors who have explicitly expressed interest via RTB while finding those users at almost the same levels of recency as search. So to take apart this gigantic eye on the screen.. It’s saying that 60% of people on Facebook see the ad in the first hour after leaving the site. While 15% of people on Facebook see the ad in the first five minutes. So three quarters of your potential customers see an ad that’s relevant to them on Facebook within the first hour after they navigate away from your site. Incredible.
For those of you where a good old distribution chart is more eye candy than.. Well an eye, here you go. An account manager on our team pulled this chart to better illustrate my point. The same pattern happens here -- for over 100,000 of the site visitors that we saw on FBX for a retail client, the vast majority of them saw the ad in the first hour. This is an incredible opportunity, again – on Facebook you’re able to target people who have made their intent clear within an incredibly short period of time on brand safe pages. Your ads are also always above the fold as a person scrolls through, so you have an increased likelihood of people seeing your ad on the one website where they’re always parked.
So on that note.. Some more data points to prove why this is going to be a huge new direct response channel. This chart might look familiar to you, it made its way around the internet when we first announced our results on Sept 13th. The chart on the left shows when ads are seen by time of day – for traditional RTB display campaigns. The trend that occurs is that the leisure times for browsing ads happen in the evening hours, when people are at home back from work. On Facebook, you see a wall of impressions that are being seen throughout the day. From morning to night, Facebook is the default tab that is open, meaning that more people are seeing your ads.
So this last data point helps wrap up all the insights I just shared around Facebook’s efficacy and performance.. When we aggregated the data for campaigns across several verticals that were running on both FBX and traditional RTB, the CPAs on FBX campaigns are 3 to 7 times lower than all the other big exchanges. When we show numbers like these, it’s clear the Facebook Exchange is going to emerge as one of the biggest new direct response marketing channel to emerge since paid search.
This chart shows why Facebook outperforms above-the-fold only, brand-safe impressions on traditional display. At 1/3 the cost, you’re advertising on all brand-safe pages – all Facebook pages are brand-safe and innocuous.. At 1/3 the cost, all your ads on Facebook Exchange are viewable. There’s no such thing as “above the fold” – there’s actually no fold because as you scroll, the ads follow you.
What you’re seeing here is CTR rates for dynamic versus static ads by page types on Facebook. The red line represents the click-through rates for dynamic ads, the blue line for static ads for five advertisers on the Facebook Exchange. The results show a 7x increase in CTR on average for dynamic ads than static. But it multiples better.