marc poirier - facebook exchange case studies - interactivity digital
DESCRIPTION
Facebook Exchange - FBX - is generating a lot of hype. But do the results live up to the promise? This presentation explores how FBX compares to other forms of retargeting for display advertising, we discuss dynamic creatives and tactics for retail, as well as situations where FBX just doesn't deliver the types of results observed in display.TRANSCRIPT
Marc Poirier@marcpoirierAcquisioCo-Founder, EVP Business Development
Retargeting on Facebook ExchangeSome Case Studies
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1 BILLION USERS
1 TRILLION MONTHLY PAGE VIEWS
VS
800 BILLION IMP / MONTH ON AD eXCHANGES
FBX IS HUGE!
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RETARGET USERS WITHIN SECONDS!
According to Triggit, for those who are on Facebook:
•15% will see the ad within the first 5 minutes of leaving the site.
•60% will see the ad within the first hour.
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4 RUMORS ABOUT FBX:
1 – FBX Yields the Lowest eCPMs Ever Seen
2 – FBX Yields Higher CTRs
3 – FBX Yields Higher Conversion Rates
4 – FBX Yields Lower CPAs/CPOs
BUT DOES IT LIVE UP TO THE HYPE?
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The Acquisio Trading Desk (ATD) ran over 40 campaigns since the FBX launch
Across 3 continents, 15 countries and most verticals
3We selected 3 campaigns for their variety, different goals and executions, here are the results:
THE DEVIL IS IN THE DATA
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EXHIBIT 1 – General Retail Test
BUSINESS TYPE – Huge E-commerce site which sells a large range of products both online and offline. For this test, product range covers small electronics, home appliances, and pet products.SIMILAR TO – Wal-Mart, Target. GEO executed – Russia (Note: Facebook is 3rd largest social network in Russia but growing rapidly)BUSINESS MODEL – Retail, need to generate direct profit from each saleCAMPAIGN GOALS – CPO = $12STRATEGY USED – 7 Day test – Only FBX retargeting using 3 segments: •Site-Wide Visitors•Shopping Cart Abandoners (DCO)•Converted users
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CAMPAIGN 1 – Retail – RESULTS – 7 Day RunImpressions won Clicks Cost eCPM CTR Conv. rate CPA
Site-Wide 4,051,473 2,066 $5,969 $0.38 0.05% 1.3% $209.6
Shopping Cart 758,162 1,831 $1,158 $1.30 0.24% 8.3% $7.6
Converted Users 220,387 570 $329 $1.28 0.26% 5.1% $11.3
Key Findings:•Average of $0.53 eCPM . • $0.38 CPM for site wide • $1.30 for high quality audiences – why?
• Small audience. Bid high to win more frequently and gain volume.•Site-wide drives volume but is about 17X our CPO!
Comments:•Huge difference between performance of audiences•DCO for shopping cart abandoners delivers orders at $7.60 (target was $12)
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CAMPAIGN 2 – SPORT CLOTHING RETAILER
BUSINESS TYPE – Sport clothing retailer selling sport apparels: t-shirts, polo’s, hoodies, jackets, caps, jerseys, duffle bags etc.. as well as customizable items.
SIMILAR TO – Foot Locker, Nike
GEO executed - UK
BUSINESS MODEL – Retail, generate direct profit from each sale
CAMPAIGN GOALS – CPO = $15
STRATEGY USED •Retarget Cart Abandoners• Display exchanges• FBX
•First party Search Ad Retargeting on Display Exchanges•No DCO and only generic branded creatives
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CAMPAIGN 2 – Clothing Retail - RESULTS
Impressions Bid On Impressions won Win rate Clicks Cost eCPM CTR Conv. rate CPO
FBX 4,4345,233 3,272,311 75.3% 1,990 $3,466 $1.06 0.06% 3.3% $21.00
Display 6,120,709 2,576,843 42.1% 2,471 $5,561 $2.93 0.10% 4.0% $24.40
Search RT 1,075,098 452,857 42.1% 421 $1,390 $3.07 0.09% 4.3% $20.50
•Key Findings:•CPO is between 40% and 60% too high on all efforts•FBX had the lowest CPM, almost 3 times lower than those on regular Ad Exchanges,•Despite low CPM, we had the highest impression win rate, twice as high as Ad Exchanges•BUT CTR was also much lower than on Ad Exchanges, in fact half the expected Ad Exchange average (which usually stands at about 0.1 – 0.15% for non-DCO campaigns)
Comments:•Having a proper creative strategy in place would have allowed us to deliver better CTR and probably hit the target CPO.
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CAMPAIGN 3 – SHOPPING COMPARISON SITE
BUSINESS TYPE – Shopping comparison website. Their mission is to offer the most comprehensive list of products anywhere on the web with thousands of new products added daily.
SIMILAR TO – Shopping.com
GEO executed - US
BUSINESS MODEL – Razor thin margins. Paid for Click-Through to Retail Websites (Arbitrage)
CAMPAIGN GOALS – CPA = $0.52
STRATEGY USED – Pure FBX re-targeting concentrating on 6 high value products (for the shopping site) : iPhones, Car Batteries, Mattresses, TIres, TVs and Samsung Galaxy Phones
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CAMPAIGN 3 – RESULTS
Impressions Bid On Impressions won Win rate Clicks Cost eCPM CTR Conv. rate CPA
FBX re-targeting 8,134,250 4,777,257 58.7% 3,525 $3,980 $0.83 0.07% 33.9% $3.30
•Key Findings:•Tightly optimised for frequency and recency due to the very low CPA target, we managed to achieve very low CPM of $0.83•CTR about 3X lower than their display retargeting campaigns•At 33% conversion rate, FBX delivered a much lower Conversion rate than the Display average for the client which stands at 63%.•Comments: •Clearly the FBX is not suited for very aggressive CPA campaign and affiliation/arbitrage is probably not a good fit•We had no leeway to optimise using different creative as no assets where available from the client.
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1 –Lowest eCPMs Ever Seen -- TRUE!!!
2 –Higher CTRs – MYTH!!!
3 –Higher Conversion Rates – MYTH!!!
4 –Lower CPAs/CPOs -- ABOUT THE SAME!!!
BUT DOES IT LIVE UP TO THE HYPE?
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SOME EXTRA CONCLUSIONS & Recommendations
• Low Competition = Low eCPM• Facebook Ad Formats = Low CTR• Low CPM not equal to Low Avg CPA/CPO
Because of Low CTR and Low Conversion Rate• Not suitable for really low Avg CPA targets• Narrow Audiences Win• DCO Wins, especially for travel and retail• Non-DCO Require Frequent Creative Changes• Align Audience and Creative for Best Results
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