Show Me the ROI: The Dynamic World of Social Advertising

Show Me the ROI: The Dynamic World of Social Advertising Monica Lay, Senior Product Marketing Manager

© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 2

Today’s Agenda

3 | Show Me What’s Ahead

1 | Show Me the Market Trends

2 | Show Me the Best Practices & the ROI


Today’s Agenda


1 | Show Me the Market Trends



The changing landscape of social advertising

1.790 Billion active social

media users in 2014*

227.5M worldwide will use Twitter in 2014*

1 Billionworldwide will use Facebook in 2014*

67% Mobile reach (February, 2014)*

70%of Marketers increasing social ad spend in 2014**

* eMarketer, Global Social Media report 2014; ** Gartner, CMO Spend 2014


Social advertising is quickly becoming mainstream

US leads with 45% ad share

Social ad share

will reach 15%

Social ad market

will reach

$25B by 2016

* eMarketer, Global Social Media report 2014

© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

(Millions)

6

Ad Spend Worldwide by Social Network

Facebook dominates with 68% in 2014

Social ad market

will reach $25B by

2016

Other

* eMarketer, Global Social Media report 2014


Advertisers are now having to pay for reach on Facebook

Source: Adobe Q3 Digital Index Report, 2014

Changes from Facebook to limit posts have led marketers to increase paid impression spend.


Growth of Facebook Posts

Source: Adobe Q3 Digital Index Report, 2014

A decrease in organic impressions has led to an increase in posts as marketers look to find a balance between paid and organic posts to reach their fans and beyond.

Proving ROI now more important than ever.


Today’s Agenda


1 | Show Me the Trends



Have a Plan

3 | Measure your data. A single source of truth to measure your performance

1 | Ensure you plan is aligned across the organization

2 | All teams must have the same ultimate business goal

4 | Use social media to drive word of mouth at scale, increase loyalty and customer growth


Think Business, not Social Goals

Social Objective:

• Acquire X number of fans

• Acquire X number of followers

• Achieve X engagement

Business Objective:

• Drive brand awareness

• Drive preference • Drive loyalty• Drive trial • Drive sales


CONVERSION Brand & Product-Specific Search Keywords

Product Listing Ads (PLA)Retargeting Lists for Search Ads (RLSA)

Display RetargetingProduct Retargeting

LOYALTY

PROSPECTING Generic Industry Search Keywords

Content Network – Image & Text Ads

Conquesting (Competitor KWs)Location Targeting

Sponsorships Premium Display

Private Marketplace Open MarketplaceLook-alike Models

3rd Party Behavioral Data

12

Business ObjectivesSearch DisplayDigital Advertising Channels


LOYALTY FansCustom Audiences

FollowersTailored Audiences

CONVERSION Facebook Exchange (FBX)Custom Audiences – CRM, Website

Right Hand Side - Domain Ad----------------------------------------

Offers Page PostLink Page Post + FB Audience Network

Mobile App Install + FB Audience Network

Website Card + Lead Gen CardWebsite tag for remarketing

Mobile App Installs----------------------------------------

KeywordTV Targeting

Search

PROSPECTING Logout Experience (LOX)Reach & Target Blocks

Local Awareness--------------------------------------

--Look-a-like Audiences

Photo Page PostVideo Page Post

Promoted TrendsPromoted Accounts

Promoted Tweets----------------------------------------

InterestLook-a-like Audiences

13

Business ObjectivesFacebook TwitterSocial Advertising


Understanding the levers that influence ROI Success

Levers

Placement

Ad FormatTargeting

Optimization



Levers

Placement

Ad FormatTargeting

Optimization


Placement & Ad Format - Facebook

Offer RHS Marketplace Link Post Photo Post - DR -

200

400

600

800

1,000

1,200

$-

$20

$40

$60

$80

$100

$120

$140

1,073

897

402

216

FB Ad Formats

CT Sign Ups CPAAcquisition

Offer Page Post (News Feed)

Domain ad (Right Hand Side)

Link Page Post (News Feed)

Photo Page Post (News

Feed)

Facebook Ad Format / PlacementsBest Practices

Shift placements to the news feeds as the primary real estate and capture growing mobile inventory

Using ads in news feed yields 3x conversion rate compared to Right Hand Side (RHS) Source: Facebook

Support with RHS (desktop only) to drive incremental scale

For an eCommerce client

65% of acquisitions were from news feed

Offer Page Post in news feed delivered a CPA that was 2.6 more cost-effective in driving acquisitions compared to RHS


Placement & Ad Format - TwitterLEAD GENERATION FOR EDUCATION CLIENT

Promoted Tweets had initial success but unable to scale and maintain efficiency

Launch of Twitter website card allows this campaign to double in size

to standard Facebook campaigns

Twitter Website Cards

vs. Promoted Tweets



Levers

Placement

Ad FormatTargeting

Optimization


Leverage data to target more of the right people

Past Web

Purchasers

CRM databas

e

Demo Geo

Interest /

Lifestage

Device O/S

Your Data Core Audience Data


Leverage data to target more of the right people

Gender Geo

Interest

Device O/S

Your Data Core Audience Data

TVKeyword

Past Web

Purchasers

CRM databas

e


Facebook & Twitter Audience Targeting

CoreAudiences

Lookalike Audiences

Custom Audience Tailored

AudienceLeverage native targeting options with Facebook &

Twitter with pin-point accuracy

Reach the people youalready know

Find more people like your best customers

Custom / Tailored

Audiences


Custom Audience & Tailored Audiences

FACEBOOK Email

Phone #Website, MobileUser ID

TWITTER Email

Website, MobileUser ID

Existing 1st Party Data Encryption & secure upload Match to Network Users Target ads against segments

* Not available via Facebook Power Editor. Available via Adobe Media Optimizer.


Case Study – Audience TargetingLEAD GENERATION FOR EDUCATION CLIENT

Look-a-like audiences generated from custom audiences compared to core native targeting on Facebook


Website Custom audiences compared to core native targeting on Facebook




Levers

Placement

Ad FormatTargeting

Optimization


Optimization – Bidding Best Practices

Bid Type

Paying For FB Optimization Goal

Best Use Case Guideline

CPM Impressions Impressions To maximize effective reach of your target audience

Target high value Custom Audience as traffic driver

CPC Clicks Clicks To drive high volume traffic to websiteWhen no FB conversion pixel on an action is

implemented

oCPM Impressions ConversionsWhen FB conversion pixel is implemented &

you want to show ads to those likely to convert. oCPM Influences effective reach with

DR in mind

CPA Actions Actions To encourage users to take action within your ad e.g. page like, link clicks, mobile app

install, offer claim

TEST & EXPERIMENT DIFFERENT BID STRATEGIES TO REACH THE RIGHT AUDIENCE & DELIVER ON KPI GOALS


Optimization – Bid and Budget Best Practice

Ad set #1Budget: $250Schedule:

MayTargeting:M 18-24Placement: News FeedBidding: OCPM

Ad set #2Budget: $250Schedule: MayTargeting: F 18-24Placement: News FeedBidding: OCPM

Ad 1Image: RedLink: Landing pageText: Shop Now

Ad 2Image: WhiteLink: Landing pageText: Shop Now



Ad 3Image: BlueLink: Landing pageText: Shop Now

Ad 4Image: BlackLink: Landing pageText: Shop Now



Campaign 1 Objective: Web Conversion

1













2













3 As social budget scale, number of campaigns will increase Infrequent, manual budget allocations between campaigns are sub-optimal Budget algorithms drive conversions with oCPM


Optimization – Bid and Budget Best PracticeRETAIL CUSTOMER

9/5/

2013

0:2

1

9/3/

2013

0:2

1

9/1/

2013

0:2

3

8/30

/201

3 0:

20

8/28

/201

3 0:

23

8/26

/201

3 0:

20

8/23

/201

3 0:

23

8/21

/201

3 0:

22

8/19

/201

3 0:

18

8/17

/201

3 0:

17

8/14

/201

3 0:

18

8/13

/201

3 0:

17

8/11

/201

3 0:

20

8/9/

2013

0:1

7

8/1/

2013

10:

42

7/31

/201

3 0:

17

7/29

/201

3 0:

17

7/27

/201

3 0:

17

7/25

/201

3 0:

17

7/24

/201

3 9:

00

7/23

/201

3 12

:13

7/22

/201

3 23

:16

7/21

/201

3 12

:12

7/15

/201

3 12

:47

5/20

/201

3 15

:07

0

10

20

30

40

50

60

70

Daily Budget Changes: Campaign 1C

am

paig

n B

udget

in $

oCPM + manual budget management

oCPM + algorithmic budget management

• 20 – 50 campaigns live at any time

• Infrequent, arbitrary, manual budget allocations between campaigns are suboptimal, e.g. 3 budget changes in 60 days on this campaign

• Optimized daily budget changes are calculated and posted, as needed to meet goals, e.g. 46 budget changes in 42 days on same campaign

TimeBudget optimizer via Adobe Media Optimizer (Facebook sPMD, Twitter MPP)


Optimization – Bid and Budget Best PracticeRETAIL CUSTOMER

A retail customer used budget algorithms with Facebook oCPM to drive mobile app intalls, resulting in both scale and cost-efficiencies


Optimization – Bid and Budget Best Practice

Manage manually with Facebook Power Editor

Do not change oCPM bid more than 3-4 times a day

Leave at least 2 hours in between changing bids for Facebook pacing to learn

Consider impact of budget changes on pacingAutomate with a strategic social ads API partner (Adobe)

Remove suboptimal manual bid and budget decisions, drive efficiencies

Optimize to best performing targets

Allow focus on creative and targeting definition


Optimization – Creative Best Practices

8x more Facebook creative sensitivity in news feed compared to Google AdWords

5 to 10creative combination per message to test

Better creative = Better CTRResults in lower CPC & CPA (10-30%) More clicks / actions for the same budgetMix product

with lifestyle messages

Promote prices, special efforts, discounts in text

Run news feed ads with great creative. Supplement with RHS ads if necessary for additional volume


Case Study – Creative Performance & OptimizationECOMMERCE CUSTOMER

Top performing creative included a mix of product, lifestyle benefits and motivational messages



Levers

Placement

Ad FormatTargeting

Optimization


Measurement Best Practices – By Objective

Brand building

Nielson OCR for online reach, XCR with TV

Nielson BrandEffect for Resonance

Online Sales

Network Conversion Pixels, View through lift tests and Cross-device

Unify digital ads management, tracking and use consistent attribution rules

Track all activities through a Web analytics platform

In-store Sales Datalogix CPG, Marketing Mix Modelling for CPG and Retail

Mobile Apps Facebook SDK and 3rd party mobile SDK partner

*


Case Study – Measurement Online SalesEDUCATION CLIENT

Facebook delivers

scale compared to

other DR channels

Facebook can be even more cost-

efficient than Generic SEM


Case Study – Measurement for Online SalesECOMMERCE CLIENT

0

10,000

20,000

30,000

$0 $5 $10 $15 $20

Email Leads

Facebook delivered >1600%

more leads vs. Generic

SEM

Facebook delivered 92% lower Cost per leads vs.

Brand SEM

0

5,000

10,000

15,000

$0 $20 $40 $60 $80 $100

SignUps

Facebook delivered

182% more acquisitions, 21% lower

CPA vs. Generic SEM

Facebook delivered

scale even compared to

Display channels


Case Study – Measurement and AttributionECOMMERCE CLIENT

FB_Offer

Search_Brand

Display_Retargeting

Display_RON_VT

FB_f_fof_and categories_Custom Audiences

Search_Generic

Introducer Influencer Closer

Strong Influencers

Strong Introducer

Strong Closers

54% of conversIons involved multiple

touch points

Facebook Offers Page Post was the strongest ‘closer’ after Brand SEM

Other Facebook activities played equal importance in top, middle &

end of funnel


Case Study – Measurement and AttributionONLINE SERVICES CLIENT


Today’s Agenda


1 | Show Me the Trends

2 | Show Me the Best Practices and ROI


What’s Ahead – Enhancing Social Marketing

Leverage more data signals to drive Social ad performance• Cross Channel – digital advertising data• Cross Platform – marketing analytics data

Search Intent

Web Analytic

s

Past Web

Purchasers

CRM databas

e

Your Data


Leveraging Search Intent to drive ROI on Facebook

Ad 3

Ad 2

Ad 1


Case Study: Search Retargeting on FacebookGAMING CLIENT

Search Retargeting on Facebook using Custom AudiencesResults vs. Generic SEM


The value of web analytics in the digital ad eco-system

Tracked by sPMD, MPP, Network Pixel

Data from Social Networks

Ad Impression

Clicks

Conversions (optimized)

Is optimizing against conversions enough? What is your online conversion rate?


Middle of the funnel metrics address data sparsity

Tracked by sPMD, MPP, Network Pixels

Data fromSocial Networks

Web Analytics (Adobe Analytics)

Ad ImpressionClicks

Conversions (optimized)

Post click on-site engagement behaviours e.g.• Page views first visit• Total time spent onsite multiple

visits• Bounces• Total page view across multiple

visits• Time spent onsite first visit

Find the right analytics data and make it work for you


Let's see how the right analytics data can influence decisions Q: Which Facebook Ad Set has a higher revenue per click

prediction?

Ad Set #2Ad Set #1Ad Set Name

Conversions

Site Behavior

1

Clicks

1

1010

Not Available

Not Available

TopFunnel

Bottom

Funnel

Middle

Funnel


Middle funnel metrics aid bidding decisions

Q: Which Facebook Ad Set has a higher revenue per click prediction?

Ad Set #2Ad Set #1Ad Set Name

Conversions

Site Behavior

1

Clicks

1

1010 TopFunnel

Bottom

Funnel

Middle

Funnel

Adobe Analytics

Looks More

Promising

• Less than one page view per click• 2 bounces out of 3 clicks• No video watch• No revisit• ……

• Visited 5 pages per click in average• No bounces• Watched video twice• Revisited the website later after closing the browser• ……


Web Analytics as Predictors CVR%TRAVEL CLIENT

USE EARLY SIGNALS WHICH POSITIVELY CORRELATE WITH CAMPAIGN KPI PERFORMANCE

R 2 = 0.59904


Web Analytics as predictors of Revenue per click TRAVEL CLIENT

TEST WHICH METRICS ARE MOVING PROPORTIONATELY WITH CAMPAIGN KPI’S TO COUNTER DATA SPARSITY


Key Takeaways

Re-assess Social

strategies based on

market trends• Social is not

slowing down and role of paid advertising is more important than ever

• Experimental budget

• Plan Social based on common business objectives

Focus on the main levers of

Social ad performance

• Test, learn, iterate • Scale through

automation• Adopt consistent

tracking and attribution X-Channel

Always explore new data signals to

enhance Social performance

• Search intent signals

• Web analytics data is gold. Assess how you can leverage in ad buying and optimization

• Break down silo’s in teams and technology


MONICA LAYSENIOR MANAGER, PRODUCT MARKETINGAdobe601 Townsend StreetSan FranciscoCA, 94103

[email protected]@mnlay

Q&A