Here’s one from the archives of the Adobe Summit, where thousands of Adobe Marketing Cloud users get together annually for learning and partying. Fred Leach (not pictured), who leads Monetization Analytics of Measurement Research, Development and Partnerships at Facebook, spoke at the Adobe Summit 2013. Here’s a few takeaways from his presentation.
Most brands have built their fan base and are now wanting to measure and drive real-world value.
So how can Facebook help with purchase intent?
- Facebook is adding more retail partners to allow for more data. Datalogix has been the primary one, but you can access a bunch of others through the Agency Trading Desk. Check out the Acxiom Audience Operating System (AAOS), for example. But we have partner category data open to many countries via Epsilon, Acxiom, and DataLogix, without any special access. Datalogix has linked this in a privacy safe way. Other systems have done this in the past. But this has tremendous scale (70 million households in the US).
- Nielsen OCR/XCR—what’s the unique reach on TV and digital placements and the overlap between them?
- Holdout audiences — if you’re spending enough money (at least $50k a month), Facebook will run these tests for you to determine causal conversions, measuring the difference between folks exposed to ads versus randomly selected to not see your ads. We can break this out by custom audiences or any type of targeting.
Running Facebook ads doesn’t guarantee conversions, any more than silly cat photos drive auto insurance policies. We need to influence behavior. There are three factors of persuasiveness– Rewards, noticeability and points.
Because of people-based targeting, which goes beyond broken cookie tracking and cross-device measurement, we are closing the loop from online ad exposure to offline purchase. Based on a 2013 survey of brands’ experiences with Facebook ads:
- 70 percent saw a 3X of greater return on ad spend.
- 49 percent generated a 5X of greater return.
4 primary conclusions from these studies:
Only 0.7 percent of sales were from households that clicked on ads, yet 99 percent of sales from people who saw the ad never clicked on the ad. So focus on quality of creative content, not on the click.
Doesn’t reach create an incentive to go for a broader audience as opposed to microtarget better? You can buy on reach or use the new reach/frequency bidding — no longer a private feature.
Images — the first two impressions generate the highest ROI.
But the highest total profit is about 15 impressions — the “sweet spot”.
News Feed ads are 8X more likely to generate sales, compared to right hand side ads. Not just higher CTR, but being more prominent has something to do with it.
You want to reach everyone with the right message every time, as opposed to “reaching the right person at the right time with the right message”.
What do you see as the future of Facebook marketing?