LinkedIn Social Media Series: FacebookJuly 2012

Jonathan Bradford

Associate Solutions Consultant UK,FR,NL

Nadia James

Account Planner UK

Learning objectives

• An overview of Facebook

• A few current events related to Facebook

• An overview of their go to market approach

• A top level understanding of their marketing product offering

Disclaimer

This deck is indented to:

• Provide an overview of Facebook• Provide an overview of their current product offering• Marketing is a fast moving market place and so product suite is subject to constant

change• Engagement rates and costs aren't publicly available however guidelines based on public

information have been included as guidelines only• Facebook is an ever changing business and so best efforts have been made to ensure

information is current and valid

• An effort has been made to ensure the material is impartial

• This deck is not intended as a LinkedIn Vs Facebook sales story

Facebook is a public platform!!

Tom has 204 connections

Guess Who? These guys do not like rollercoasters

Give people the power to share and make the world more open and connected

955MActive Users

300MPhotos uploaded daily

552MMobile Users

74%Reach of UK Audience

*Assume figures are monthly, unless otherwise noted.

30MUK Active Users(750% growth ‘10-11)

15,636MUK Minutes Spent on Site

Quick Stats

Audience Demographics

Top 5 Pages in UKAge

Below 20 21%

20-29 28%

30-39 25%

40+ 26%

57% of users are classed as ABC1s

53% Of UK population are Facebook users

28.22%

30.89%

49% Male 51% Female

27% of UK Unique Visitors live in London

25% of visits leaving Facebook go to entertain-ment site

The average Facebook user has

100+ likes assoc. with his/her profile

Company Milestones

Facebook launches

Facebook reaches 1 Million members

Facebook opens membership

globally

Launch of the ‘news feed’

1 Million members in

the UK

Launch of self service Ads and Facebook Pages

Introduction of the Like button

Hits 500 million members WW

Users surge to half of UK population

(30M)

Facebook makes Timeline

mandatory

Facebook announces mobile App

centre

Facebook files $5Bn stock

IPO

Facebook buys Instagram for

$1Bn

Timeline

Arranges user profiles and brand pages as a timeline of their history on Facebook. Allows more free space for users to customise imagery.

Recent consumer product release

Edge Rank• Algorithm that determines how

relevant a piece of content is to user and how high up the news feed it should appear

Features• Centre of homepage

• Content can include posts, photo tags, friend requests, event updates, group membership, etc.

News FeedConstantly updating list of posts from people and Pages that a user follows

Recent consumer product releaseBeta product testing

‘Pay to promote’ system currently being trialled in New ZealandUsers spend 27% of

time on news feed

Noteworthy news

Monetisation – Intro video

http://www.facebook.com/business

Two approaches to market

Field Sales offering is known as Premium

Self Serve offering is known as Marketplace

Facebook is an advertising business

The Advertiser value proposition

Form a strategy that is social by design

Build your Facebook presence (page)

Share content with people who like your page

Reach friends of those who like your page and attract new fans

Learn, nurture relationships & interact

Objective based solution selling

Foster product development & innovation

Generate Awareness

Drive preference & differentiation

Build loyalty through relationships

Amplify recommendations through WOM Gain insights

Increase traffic & sales

Marketing solutions product overview

PMD

Pages

Brand page updates reach 16% of followers on average

Features• Cover Photo – Express brand personality

• Profile Picture – Appears across platform and on ads

• Views & Apps – Showcase photos and highlight custom builds

• Pinned Posts – Ensure certain stories appear at the top

• Larger Stories– Showcase larger video and stories

• Milestones – Larger images for key events

Global Page Engagement

July Release of targeted page post functionality

Facebook’s Reach Generator guarantees that 75% of a brand’s

fans will see their content

Examples

• Like the page• Offers for those who like • Focus on photos of their people• Gift card App

• Like the page• Share content• Highlight videos & events

• Like the page• Photos of events• Like to watch video content

Consumer B2B High net worth

AdsFeatures• 110x80 size• CPM OR CPC• Cost £0.40 CPM - untargeted• Cost £0.50- £0.80 Targeted• Cost £2.50 – Events / video /

samples• Avg CTR 0.05%• Ads are ~29% cheaper if point

within FB’s network

Best practice• messages with social context gain

68% higher recall and 4x increase of likelihood to purchase

• Horizontal images and close ups of faces perform best

Targeting criteria:

Location · Age · Gender · Birthday · Relationship

status · Language · Education level · Likes

and interests · Friends of those who like your page

· Current fansSocial ads are expected to account for 50% of Facebook’s ad budget

CPM +116%CPC +86% CTR +78%

2011-2012

Sponsored StoriesFeatures• Amplify likes, check ins, content

shares, app installs, app usage• Appears to friends of followers

only• Auctioned the same as ads via

CPC or CPA• Appears on web and mobile

interface

Vs. Facebook basic ads• 46% higher CTR• 20% lower CPC• 28% lower CPF

Mobile vs. Desktop performance• 13x higher CTR • 11.2x higher eCPM

Benefits• Promote word of mouth

recommendations• Increase brand lift, ad recall, and

likeliness to recommend brand to friend

PlatformFree API offering that helps developers build applications for on-, off-, or mobile platform with Facebook’s social plugins

230m people have played games on Facebook in past

month

App Center• Platform agnostic app storefront• Encourages developers to build

with Facebook connect • Offers Personalized App

Recommendations• Attracted 150 m users in 1st month• Increased app installations by 240%

Video help series posted onto platform about developing apps

Apps

Wrapp allows users to send gift cards to their friends

Pinterest lets you organize and share images with network

Benefits of Facebook integration

• App can post updates of activity to user’s network

• Users can see which of their friends are using an app

• Overall, Word of mouth functionality

InsightsFeatures• Insights are measured in real

time• Data segmented by page, post

or tab level

Based on ROI data from 60+ campaigns, 70% of campaigns resulted in at least 3x return on ad spend, and 49% achieved at least 5x return on ad spend

Reach:Paid- Unique view from audience targeted with sponsored content

Viral- Unique viewers who saw post through friend

Organic- All unique viewers of content

Interaction:• Likes, shares & comments

• High traffic visitor times

• Which posts visitors engage with most

• Where on site likes were acquired

• Negative feedback

Case study- Ben & Jerry’s

Objective: Increase sales

Premium Ads Results

• 4x increase in Reach

• Able to reach 98% of fans

• Engagement Doubled

• For every $1 spent, saw $3 return in incremental sales

“We really want to have a holistic relationship with our community, with our consumers, about values, about great ice cream.

“Example of “Fan Fotos” page initiative- Rep from Ben & Jerry’s

Case study- Nutella

Objective: Increase awareness and sales from Dec. 1-24

• Christmas Ad campaign included TV-Facebook media plan mix

• Purchased Reach block ads

• Campaign directed people to like/follow page, and try out “Advent calendar” app “There was a positive

cross-media effect between TV and Facebook.

“

Results

• Reached 30% of German online population (3.8M Unique Impressions)

• Facebook ads accounted for 15% of sales over Christmas

• 2.8 m who saw Facebook ad did not see the TV campaign (29% exclusive reach)

- Rep from Nutella’s parent company

Confessions of an ad man

Agency set up • Premium ads continue to be purchased via digital teams• Self-serve is largely handled via APIs

this is handled by digital or search. A few agencies have set up ‘social response’ teams whose sole responsibility is the purchase of social media ads using APIs

Agency use cases for Premium vs Marketplace • The split is not always as straight forward as brand vs. DR but this offers a

fairly good steer• Premium ads are primarily for engagement; E.G. drive people to watch a

video, to an event, answer a question etc.. • Marketplace ads are primarily used for traffic

Confessions of an ad woman contd

Fan acquisition • This is nearly always done via self serve (although there is a Premium offering)• Targeting is an option however this in itself does not affect cost

• They use an auction model so price is according to demand Field Sales approach • The Facebook reps talk about the full suite of products. They give feedback and

advice on both Premium and Marketplace offerings. • They see them as complimentary and generally suggest both to achieve an

advertisers objective. Management of pages • Real variety in terms of who has ownership of the status updates. Sometimes the

client does this directly, others are managed by PR or media specialist agencies.

Key Takeaways

• 74% of UK internet audience use Facebook; 68% access via mobile

• Users spend 27% of their time on the news feed

• Facebook offers Self service & Marketplace Advertising platforms

• 4 product offerings- pages, ads, sponsored stories & open developer platform

• Only Sponsored Stories are pushed onto their mobile platform

• Social ads expected to account for 50% of ad budget

Links to learn more

• Facebook news room

• Demographics data- Facebook UK

• Road to IPO- Milestones in Facebook’s history

• Best Practice Guide- Marketing on Facebook

• Notes of slides

urther Questions?