show me the roi: the dynamic world of social advertising
DESCRIPTION
With today’s advertisers allocating more budget to digital campaigns, search and display are typically the go-to channels, but social advertising has been gaining momentum and marketers need to get on board. See how social media can serve as the catalyst for new opportunities to reach customers, create engagement, broaden brand awareness, and ultimately generate business results.TRANSCRIPT
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 3
Today’s Agenda
3 | Show Me What’s Ahead
1 | Show Me the Market Trends
2 | Show Me the Best Practices & the ROI
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 4
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 5
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
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.
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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.
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 9
Today’s Agenda
3 | Show Me What’s Ahead
1 | Show Me the Trends
2 | Show Me the Best Practices & the ROI
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 10
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
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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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
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
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Understanding the levers that influence ROI Success
Levers
Placement
Ad FormatTargeting
Optimization
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Understanding the levers that influence ROI Success
Levers
Placement
Ad FormatTargeting
Optimization
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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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 17
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 18
Understanding the levers that influence ROI Success
Levers
Placement
Ad FormatTargeting
Optimization
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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
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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
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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
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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.
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 23
Case Study – Audience TargetingLEAD GENERATION FOR EDUCATION CLIENT
Look-a-like audiences generated from custom audiences compared to core native targeting on Facebook
to standard Facebook campaigns
Website Custom audiences compared to core native targeting on Facebook
to standard Facebook campaigns
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 24
Understanding the levers that influence ROI Success
Levers
Placement
Ad FormatTargeting
Optimization
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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
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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 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
Ad 3Image: BlueLink: Landing pageText: Shop Now
Ad 4Image: BlackLink: Landing pageText: Shop Now
Campaign 1 Objective: Web Conversion
1
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 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
Ad 3Image: BlueLink: Landing pageText: Shop Now
Ad 4Image: BlackLink: Landing pageText: Shop Now
Campaign 2 Objective: Web Conversion
2
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 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
Ad 3Image: BlueLink: Landing pageText: Shop Now
Ad 4Image: BlackLink: Landing pageText: Shop Now
Campaign 3 Objective: Web Conversion
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 27
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)
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 28
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 29
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 30
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 31
Case Study – Creative Performance & OptimizationECOMMERCE CUSTOMER
Top performing creative included a mix of product, lifestyle benefits and motivational messages
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 32
Understanding the levers that influence ROI Success
Levers
Placement
Ad FormatTargeting
Optimization
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 33
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
*
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 34
Case Study – Measurement Online SalesEDUCATION CLIENT
Facebook delivers
scale compared to
other DR channels
Facebook can be even more cost-
efficient than Generic SEM
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 35
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 36
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 37
Case Study – Measurement and AttributionONLINE SERVICES CLIENT
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Today’s Agenda
3 | Show Me What’s Ahead
1 | Show Me the Trends
2 | Show Me the Best Practices and ROI
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 39
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 40
Leveraging Search Intent to drive ROI on Facebook
Ad 3
Ad 2
Ad 1
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Case Study: Search Retargeting on FacebookGAMING CLIENT
Search Retargeting on Facebook using Custom AudiencesResults vs. Generic SEM
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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?
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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
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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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 45
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• ……
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Web Analytics as Predictors CVR%TRAVEL CLIENT
USE EARLY SIGNALS WHICH POSITIVELY CORRELATE WITH CAMPAIGN KPI PERFORMANCE
R 2 = 0.59904
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Web Analytics as predictors of Revenue per click TRAVEL CLIENT
TEST WHICH METRICS ARE MOVING PROPORTIONATELY WITH CAMPAIGN KPI’S TO COUNTER DATA SPARSITY
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 48
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
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 49
MONICA LAYSENIOR MANAGER, PRODUCT MARKETINGAdobe601 Townsend StreetSan FranciscoCA, 94103
[email protected]@mnlay
Q&A