Post on 13-May-2015
Facebook: Opportunities for Brand Advertisers
Daniel SlotwinerHead of Measurement Solutions
1 Facebook research supports brand advertising objectives
2 Capturing Value (measurement)
3 The power of fans… and their friends
Research & Measurement Objectives
1. Re-establish Brand Metrics as the primary outcome measures of interest
2. Use Brand Metrics to evaluate new ad and platform products
3. Demonstrate Facebook’s role in influencing Brand Metrics
4. Drive development, standardization and adoption of methodologies that capture brand value
Scale & speed▪ Reach 750MM+ people worldwide▪ Statistically reliable and representative data
samples collected within a matter of hours, not weeks
Authentic & active▪ Real-name culture and real-world sharing
▪ More than 30 billion pieces of content (photo albums, web links, news stories, etc.) shared each month
▪ Real demographics▪ On the site almost 6 hours per month
▪ 2x next closest site▪ 50% of monthly active users log on each day
Analyze results from innovative data sources▪ Attitudinal, chatter, structured
A global information platform
160M Facebook users in the US
Source: Facebook Internal Data for the US, May 2011
55% of US users return daily
Source: Facebook Internal Data for the US, May 2011
Nielsen Study Released on Monday
Neither resonance nor equity measured in traditional MMM
framework
Driving consumers towards four brand advertising goals Grow product
market potential
Increase short term sales
Drive brand resonance
Promote long-term brand equity
Recall
Brand / Product
awarenessMessage awareness
& associatio
n
Consideration
Purchase intentPurchase
(frequency, sales)
Associations
Loyalty
Advocacy
1
2 4
3
BackgroundBackgroundNielsen NetEffect meta analysis:
“There is no correlation between CTR and ROI%”
Data collection via research polls
Increased participation100x higher response rates than CTRon ads recruiting for offsite surveys
More timely, representative samples1000 respondents with nationallyrepresentative demographics in 15minutes
• Tracking since March 2009• Very strong agreement with Rasmussen (r = 0.91) and Gallup (r = 0.90)• Higher agreement with both than between Gallup and Rasmussen (r = 0.84)
Facebook margin of error +/- 2% or smaller | Gallup margin of error +/- 3% | Rasmussen margin of error +/- 4%
Do you approve or disapprove of the job that Barack Obama is doing as president?
External validity: Political opinions
Comparing the Bid Laden boost
The measured “Bin Laden boost”• Facebook Polls: +10% approval• NYT/Gallup: +11% approval• Washington Post / Pew: +9% approval
11/5
/10
11/8
/10
11/1
1/10
11/1
4/10
11/1
7/10
11/2
0/10
11/2
3/10
11/2
6/10
11/2
9/10
12/2
/10
12/5
/10
12/8
/10
12/1
1/10
12/1
4/10
12/1
7/10
12/2
0/10
12/2
3/10
12/2
6/10
12/2
9/10
1/1/
11
1/4/
11
1/7/
11
1/10
/11
1/13
/11
1/16
/11
1/19
/11
1/22
/11
1/25
/11
1/28
/11
1/31
/11
2/3/
11
2/6/
11
2/9/
11
2/12
/11
2/15
/11
2/18
/11
-10%
0%
10%
20%
30%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Intent, Attendance, & Weekend Gross
% inte
ndin
g o
r re
port
ing a
ttendance
Openin
g w
eekend g
ross (
millions)
External validity: Movie receipts
Did you go to the movies this weekend?
Are you planning to go the movies this weekend?
R = .89
R = .79
Intent
Attendance
Weekend gross ($M)
0% 10% 20% 30% 40% 50% 60%$0
$25
$50
$75
$100
$125
$150
$110,307,189
$128,122,480 $125,017,372
$70,838,207
$30,833,665 $24,005,069
$44,026,211 $40,678,424
$36,063,385
$55,665,805
$17,734,040
$46,016,833
$6,542,779
$29,514,054
$1,218,868
Opening weekend gross vs. Facebook poll response6/10 – 2/11
% planning to attend (7 days prior to opening)
Openin
g w
eekend g
ross (
$M
)
Intent question: Are you planning to see [movie] in theatres? Top 2 box of 5-point scale summarized; All samples 13+ and N>500Question asked 11:00 am PT, 7 days prior to premiere (generally Friday)
ROI proxy: Establishing correlation
Facebook users asked a week before release:
“Are you planning to see [film] in theaters?
R = .90
Ad effectiveness
Ad Recall Message Association Purchase Intent
-5%
0%
5%
10%
15%
Delta versus control – 24 hrs post-exposure
Homepage ads
Advertising on Facebook moves metrics
+13%
+3%
+1%
Source: Nielsen 5/12/11, n=399
• Predictive model for opening weekend box office gross established (R2 = .89)• β1xi1+…+βpxip where:
o β1 = purchase intent
o β2 = ln(purchase intent)
o β3 = number theatres
• +1% in purchase intent 1 week prior to opening ~$4M (+/- ~$1M) in additional opening weekend revenue
• Estimated advertising cost to move intent 1%: $600K
• ROI for opening weekend alone ~700%
Media In-vestment
Incremental Sales
Average movie per-formance
$600K
$4M
ROI proxy: Calculation of ROI
700%
ROI
Ad effectiveness
Standard measurement
What it means TVOnline
comparable data
Numbers, demos, overlap & frequency Nielsen GRP Nielsen OCR
Changes in perceptions Nielsen IAG Nielsen Brand Effect
Impact of actual sales Custom solutions (MMM, etc)
Custom Solutions (MMM, comScore, proxy
markers)
Developing cross-platform measurement
Reach
Resonance
Reaction
Value of Nielsen OCR
Measure online reach and frequency in a consistent way, across publishers and for your entire online media campaign
Understand the demographics of who you are actually reaching online, in a consistent way across multiple publishers
OCR reports include campaign, demographic segment, and placement-level GRP calculations that are comparable to other media, including TV
Audience identification
True reach & frequency
Comparability
Control group created dynamically1 Ad displayed to user
2 Polls next day in ad context Fast, representative results
• Summary results with demographic cuts delivered within week following campaign
• High response rates, 10-100x of other methods, ensure representative sample & not “professional survey takers”
• Users randomly assigned to exposed & control groups while ads are served, yielding two groups that are perfectly matched on targeting and site usage
Ad Effectiveness: Nielsen Brand Effect
Social context boosts effectiveness
1.6Xlift in brand recall
2X lift in message awareness
4Xlift in purchase intent
Ad effectiveness
Source: Nielsen
comScore whitepaper▪ The right metrics for measuring earned media are reach and frequency, not just raw counts
▪ Friends of fans are the biggest opportunity for marketers on Facebook and are largely untapped – 34x the size of the fan base
▪ Fans are primarily consuming content from pages in the Newsfeed, not by visiting the page itself; brands should be optimizing for this context
Facebook population
Fan base500K fans
Friends of fans60M friends
US Facebook data
My friend likes this brand
Ads with friends
Fans are more valuable when they impact their friends
Facebook population
Fan base19M fans
Friends of fans527M friends
This is word of mouth at unprecedented scale
Global data
Starbucks
Source: The Power of the Like, comScore and Facebook, July 2011* Numbers compared to average internet user
Significant opportunity with Friends
Brand Engagement
27% more searches by friends of fans
Web Traffic
2.6x more site visits by friends of fans
8% higher spend11% more transactions
Sales
Reach + Impact Value & ROI
Communication Types
Reach
(Il
lustr
ati
ve)
Series1
Today's ReachPotential ReachTotal Population
Sponsored Stories
&
Social Ads
PUSHPULL
Endorsed Brand Messages
Friend-endorsed Brand Messages
Direct from Friends
Passively from Friends
Opt-in from Brands
Generic Brand
Messages
Ad effectiveness
Thank You.
▪Daniel Slotwiner▪slotwiner@fb.com