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Where’s my Facebook ROI?
Matt Owen @AllThingsFacebook2013
@[email protected]/EconsultancyEconsultancy.com
Is Facebook failing marketers?
In October 2013 the Forrester Company released research which ranked how satisfied senior marketers were with various digital advertising channels.
These figures showed that many senior marketers were unsatisfied with the value Facebook ads provided.
“[Facebook] focuses too little on the thing marketers want most: driving genuine engagement between companies and their
customers.
Your sales materials tease marketers with the promise that you’ll help them create such connections. But in reality, you rarely do.
Everyone who clicks the like button on a brand’s Facebook page volunteers to receive that brand’s messages — but on average, you
only show each brand’s posts to 16% of its fans”
The figures prompted Forrester to pen an open letter to Mark Zuckerberg expressing these concerns:
See http://blogs.forrester.com/nate_elliott/13-10-28-an_open_letter_to_mark_zuckerberg for full details.
While I respect these concerns, I think the problem lies elsewhere...
Are marketers failing Facebook?
What does Facebook offer marketers?
*Figures for end 2012. Current figure approx 4.4M http://www.socialbakers.com/facebook-statistics/greece
1 in every 3 Greeks is on Facebook, so it can connect us with a diverse range of users
How much bigger can Facebook get?
Much bigger!
*2012-2013. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24461213
Developing markets account for approx 67% of growth. Territories such as India have already seen mobile traffic outstrip desktop and trend continues globally. See http://econsultancy.com/uk/reports/reducing-customer-struggle for more.
http://econsultancy.com/uk/blog/63603-facebook-ads-roi-and-conversions-increase-in-q3
Leaving… Or just logged out?
https://medium.com/i-m-h-o/53ea514c9ec0
How is your / your clients’ social advertising budget split between the following properties?
http://econsultancy.com/uk/reports/quarterly-digital-intelligence-briefing-managing-and-measuring-social
Which types of social advertising do you (or your clients) invest in?
http://www.wordstream.com/blog/ws/2013/11/05/twitter-versus-facebook-ad-performance
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45% Higher CPC
30% higher CTR40% Lower CPC
Ad performance varies widely by sector.
• Gaming ads require users to complete a social, in-platform action
• Alcohol ads require an off-platform action, are of limited interest.
• No story attached to the ad, just a purchase.
http://econsultancy.com/uk/reports/marketing-budgets
Are marketers (and their ad models) failing Facebook?
Shows clicks sources of Bit.ly links posted on Econsultancy Facebook page – social links move around as people share them, making accurate tracking difficult.
We’re thinking about social the wrong way
What does
‘good’ look like?
Why does this work? Because everybody likes free things. But it’s no guarantee of engagement or brand loyalty.
Advertising tactics:
1: Like our page. Which is fine, but again, that just means you’ve got a bunch of people who are willing to say ‘yes, I like my toaster, and free things’ occasionally.
It doesn’t follow that they’re willing to give you money.
Advertising tactics:
2: Buy something. Well, I might do, assuming I like what you sell. But then what happens if I see that ad while I’m at work, and I’m more interested in the ad for a social media management system that is above it?
Or my sister just got married and posted a hundred pictures I want to see?
Facebook is cluttered. Users look at the news feed. Sidebar ads have to contend with genuinely interesting content from friends and family
Which ads work... and why?
Facebook doesn’t ‘hide’ your ads, but users are distracted – no one sees everything posted.
Facebook’s design focuses on news feed content. Focus ad efforts here. Sidebar ads are for continual brand exposure. NOT for direct responses.
Test campaign showing difference in results from sidebar and news feed ads.
News feed ads connect to deeper content and carry more interesting, relevant messages.
Why do Google ads work?
Google ads rely on need. Facebook ads rely on interest.
Building engaging content, attributing results
Measuring Facebook ads across multiple touchpoints shows a
higher return than last-click alone.
How much are we undervaluing ads?
• First Only (first click receives all credit): Facebook was undervalued 30%.
• Prefer First (first click gets most credit, subsequent click get decreasing credit): Facebook undervalued 20%.
• Divide Equally (credit is shared equally across all clicks): Facebook undervalued 16%.
• Prefer Last (credit given increases from first to last – last click gets most credit): Facebook undervalued 12%
• U-Shaped (first and last clicks get majority weighting with middle clicks getting less): Facebook undervalued 15%
Last-click measurement
Attributed measurement reveals 13X higher returns for period.
Think about:• Content and storytelling• Multichannel impact and measurement• Agile optimization
Econsultancy.comThank you!