insider’s guide to retargeting with facebook exchange · insider’s guide to retargeting with...

Insider’s Guide to

Retargeting with Facebook Exchange

Strategies, Case Studies, and Best Practices to Maximize Your FBX Campaigns

FEBRUARY 2014

PREDICTIVE LIFETIME VALUE™ FOR PERFORMANCE MARKETING AT SCALE

INTRODUCTION

Retargeting has become a must-have component of any performance marketing campaign as marketers have discovered the extraordinary value of reaching the 98% of consumers who didn’t convert on their first visit to a website. Brands across the majority of verticals have achieved exceptional results by leveraging behavioral data from their websites for ad targeting.

Concurrently, Facebook emerged as a powerful advertising channel boasting more than 1 billion users globally. Facebook won over advertisers with its innovative targeting capabilities and native ad units that perform exceptionally well because of their centralized location, ability to scale and high engagement rates.

To capitalize on its massive inventory, Facebook introduced Facebook Exchange (FBX) in June 2012. FBX lets advertisers purchase Facebook ad inventory that retargets users based on their browsing behavior or intent shown on websites.

Since then, FBX has grown to represent a significant portion of retargeting ad spend—it now accounts for about half of retargeted clicks on the web. Numerous studies have shown that FBX delivers an astounding return on investment (ROI). On average, we’ve seen FBX campaigns achieve an ROI (return on ad spend investment) of 546%.

However, there is some confusion about how advertisers can make the most of FBX to meet their ROI objectives at scale. In this latest eBook we explore:

INSIDER’S GUIDE TO RETARGETING WITH FACEBOOK EXCHANGE NANIGANS.COM

PREDICTIVE LIFETIME VALUE™

Details on how FBX worksStrategies and approaches for your FBX CampaignsCase studies on FBX performance

A comparison of FBX to other exchangesBest practices for maximizing your FBX campaigns

http://www.l2thinktank.com/facebook-growth-for-prestige-brands-lies-in-emerging-markets/2013/blog

http://www.nanigans.com



A consumer visits a product page on a brand’s website and a cookie is set on their browser. A request is sent to the Facebook servers to notify the DSP of when the user is on Facebook. Next, Facebook notifies the DSP of the users presence, with what is commonly called a bid request. The DSP responds to Facebook with a bid and an ad creative, within 100ms of the initial request. Facebook holds an auction and if the ad wins the consumer sees a product ad retargeted uniquely to them on Facebook. The user clicks on the ad and purchases a product after seeing the FBX ad.

Real-Time Marketing

FBX powers time-sensitive advertising because ads are bid on and delivered to users in real time as people browse Facebook. This allows marketers to drive performance by targeting a user who for example, has recently browsed a hotel room on an online travel agency website with personalized ads immediately when they open their Facebook page. FBX is ideal for displaying the right product at the right time to the right user, increasing not only clicks, but more importantly consumer purchases.

1 2 3

Customer sees a product ad retargeted uniquely to them on Facebook

Customer visits a product page for a specific brand

Customer clicks on ad and purchases a product after seeing FBX ad

HOW FBX WORKS

Real time bidding (RTB) helps media buyers find audiences at scale with automated or programmatic buying that allows advertisers to bid on each ad impression as it is served. Facebook entered the RTB market with Facebook Exchange.

FBX gathers data data from people’s interactions on external websites. Advertisers can then retarget Facebook ads to potential customers who previously browsed their site. Consumer behavior with FBX often works as follows:




FBX Ad Formats

Advertisers have multiple options for FBX ad placement which include:

News Feed

Unpublished Page Post Link Ads

Creative can be dynamic or static.

Right Hand Side

Domain Ads on the right hand side (RHS)

Creative can be dynamic or static.


HOW TO GET THE MOST OUT OF YOUR FBX CAMPAIGN

When using FBX, it’s important to consider the following strategies to yield maximized return:



Leverage dynamic creative for better ad relevancy

Use FBX in combination with native Ads API ads

Target specific audience pools using rules-based logic

Create your retargeting groups around the goal you are trying to achieve

Dynamic Creative

By leveraging dynamic creative, advertisers have the option to dynamically display creative at an individual SKU, or product, level. With intent already shown, dynamic creative promises to provide greater relevancy for consumers and better performance for advertisers.

Nanigans’ FBX solution supports dynamic SKU based creative for both domain ads on the right hand rail, Page post link ads and unpublished Page posts in News Feed.

With support for hundreds or thousands of creative versions, advertisers can make frequent changes to an ad, target a specific creative message to a select audience and optimize the best performing creative elements.




A Nanigans study highlighted the importance of leveraging dynamic creative through FBX:

FBX Dynamic creative resulted in a 5.1.X higher ROI (return in sales revenue on the cost of ad spend) than evergreen creative

Case Study

5.1X

Evergreen FBX Creative

Dynamic FBX Creative

Compared to more evergreen creative delivered through FBX, dynamic creative resulted in:

66%lower CPA for new customers who purchased on the same day they viewed ads

43%lower CPCs

7Xhigher CTRs

68%higher day-1 purchase rates




Product Feeds

A product feed is a file that includes a company’s full product list and all information tied to each individual product, such as the price, an image, and a description. This allows the contextual creation of ads based on the copy or image associated with a particular product.

Product feeds make it easy to remarket and dynamically display product ads at the individual SKU level, providing increased ad relevancy for targeted consumers. A best practice is to update your product feeds based on the rate of product changes on your website.

To set up a product feed, you’ll need a feed (.csv, .txt, or .tsv) that includes:

Product SKU

Product Category

Image URL

Product URL

Product Title (optional)

Product Description (optional)

When setting up dynamic creative, make sure to keep creative image sizes in mind. For example, when using unpublished Page post link ads in News Feed, the creative image should be in a 1.9:1 ratio (1200x627) pixels.

Ad headline changes depending on product or product category featured.

Image dynamically rotates depending on product or product category.

Ad body/message rotates depending on product feed.




Benefit from “The Assist”

For advertisers seeking to achieve ROI objectives at scale, it’s essential to use FBX in conjunction with prospecting and Custom Audience targeting through the native Facebook Ads API. Complementary advertising channels, a mix of FBX and Facebook Ads API lets you maximize reach and achieve a strong return on your ad spend.

The Facebook Ads API provides access to Facebook’s rich targeting data (demographics, connections, interests, and more), while FBX allows marketers to bring their own fist party data to Facebook. Facebook API ads are effective for driving users to landing pages who can then be retargeted with FBX ads. This will help you grow the pool of people in your remarking groups.

While DSPs typically only have access to FBX, Nanigans is one of three Facebook Strategic PMD’s with access to both the native Ads API and FBX. Advertisers choosing a to run a combination of the two benefit from “the assist”—by leveraging the Ads API to discover audiences and generate demand, and FBX to close individual customers.

Demand Generation

Demand Fulfillment

Standard Facebook Ads

FBX Ads




Case Study

Facebook Ads API and FBX Boost eCommerce Sales by 89%

In a study of $1.2M in ecommerce sales, Nanigans found that customers who entered FBX remarketing pools after first viewing a standard Facebook ad purchased 89% more in sales revenue than those who entered FBX remarketing pools from other channels, such as organically or through search.

The study also found that coupling FBX buys with prospecting through the native Facebook Ads API drove 39% additional customers into FBX remarketing pools.

The results underscore that without using native Facebook audience targeting with the Ads API, the retailer would have seen a smaller pool of potential customers to retarget. Filling the remarketing funnel with high quality candidates is critical for a successful FBX campaign.

In addition, customers acquired through native Facebook audience targeting were much better qualified than those acquired through other channels. This can be attributed to the deep targeting capabilities and social context of Facebook’s native ad types, available through the Facebook Ads API.

Based on the results, it’s clear that if an advertiser is not leveraging Facebook Ads API buys alongside FBX retargeting, they are not only missing out on new customers, but they are missing out on their highest quality customers and significant incremental revenue.

Facebook Ads API Non-Facebook Channels

Customers Entering FBX Remarketing Pools from Ads API Buys Purchase 89% More in Sales Revenue

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Purc

hasi

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Origin of Customer in FBX Remarketing Pool

$354.11

$187.70


http://www.nanigans.com/2013/02/15/why-advertisers-cant-leverage-fbx-alone-study/



Target Specific Audiences Using Rules Based Logic

Marketers have achieved FBX targeting success with highly targeted user segments by defining a set of behavior rules to create and automatically update retargeting groups. Some examples include:

A best practice is to use inclusion or exclusion rules on a combination of events that occur within a designated timeframe to design targeted messages for greater ad relevance and performance.

People who have added an item to their cart but didn’t purchasePeople who viewed a product but didn’t purchasePeople who have visited the website but didn’t purchasePeople who have registered or logged in but didn’t purchase

eCommerce

Gaming People who have made a purchase but not in the last 3 or 7 daysPeople who have fired a DAU pixel but not in the last 3 or 7 days

Travel People who searched for a flight but didn’t purchase within a specific time period (e.g. 3, 7, or 14 days)People who searched for a hotel but didn’t purchase within a specific time period (e.g. 3, 7, or 14 days)




Case Study

Facebook Exchange - News Feed Increases ROI 197%

FBX Page post link ads in News Feed delivered an average 17.1 times higher CTRs and 51 percent lower CPCs versus the RHS.

ROI was 197% higher as a result.

ROI RHS, Domain Ads

ROI News Feed, Page Post Link Ads

FBX in News Feed

Initially FBX ads were only delivered in the right hand side, and while, advertisers were already seeing great performance compared to other exchanges, Facebook’s News Feed inventory brought FBX to a whole new level.

Located prominently in the center of the News Feed, FBX Page post link ads are highly visible and engaging. The News Feed is the place people go when they come to Facebook and where they spend the majority of their time. Plus these ad units have all of the Facebook social elements—Likes, shares, and comments—for additional viral distribution.




FBX vs. Other Exchanges

Through exchanges, advertisers can find specific audiences across the web and retarget specifically to behavior patterns and purchase activity. Advertisers can bid in real time for these users, meaning that inventory can be sold to the most qualified bidder via an auction-based bidding model. Yahoo, Google, Microsoft, and other major players on the web all have exchanges, but with one in five U.S. page views being on Facebook, the social network is the heavyweight in the crowd.

+Lower costs-per-acquisition and ads that appear above the fold and on brand-safe pages

With News Feed inventory, FBX ads are in the large Page post link format and get prime real estate among posts from people’s friends and pages

FBX ads include options for Likes, comments, and shares, which can lead to other types of engagement

A combination of FBX and Ads API can fill your remarketing groups with high value prospects—a critical element for any successful FBX campaign

Benefits of FBX compared to other exchanges

CPA

FBX+

API


FBX BEST PRACTICES

Since FBX went live, Nanigans has worked with hundreds of the world’s largest ecommerce, gaming, and travel companies to help them remarket on Facebook. We’ve found that there are a variety of factors that help advertisers boost conversions and have created a list of some best practices to help you get the most out of FBX.



Keep creative for non-dynamic creative gender neutral so it is appealing to a wider audience

Differentiate your FBX ads from your API Ads to avoid serving the same ads over and over to the same people

If you are not using dynamic creative, push new creative often to keep ads fresh

Customize your creative to specific categories and subcategories and analyze performance across the entire category to optimize results

Test, test, and test some more—changing colors, images, and CTAs can make the difference between a low CTR and a high one

Tips for Compelling FBX Creative




Tips for Increasing Volume with FBX

FBX remarketing segments are limited by the number of people who visit your website so volume can be more challenging with FBX as compared to acquisition campaigns with the Facebook Ads API. Here are some best practices for reaching a bigger audience on Facebook.

Increase your bids to reach a broader audience

Utilize Facebook API ads to fill your remarketing pool by bringing more traffic to your website

Create more retargeting groups based on user behaviors to increase the amount of people in your remarketing pools

Push more dynamic creative ads to new categories to increase relevancy

Adjust your frequency limits to increase the amount of impressions a user sees in a given time period


What to Expect After You’ve Launched Your First Campaign



Higher CTRs for dynamic creative ads—Dynamic creative is more personalized which improves CTRs and ultimately, ROI

Higher CTRs for Page post link ads in News Feed—News Feed ads are more engaging with large native ad formats and a more centralized location than the RHS

Higher purchase rates with dynamic creative in comparison to static FBX—Dynamic creative is more engaging and more relevant in comparison to static creative

Lower volume for FBX ads in comparison to regular API Ads—This is because the audiences targeted only includes people who have visited your website

Lower volume on News Feed ads in comparison to RHS ads—News Feed ads have a limited number of impressions per user per day

Lower volume for dynamic creative rather than static creative—Static ad creative is not limited by SKU matching


CONCLUSION

With only 2% of web traffic converting on the first visit, ad retargeting will only continue to grow in importance during 2014. Retargeting not only helps to remind consumers of the product they may have recently viewed, but it takes the next step to reengage them for specific purchase events.

Facebook Exchange has driven significant impression volumes since launch. With 20 billion user minutes spent on Facebook per day, the ability to serve dynamic ads based on known user preferences will be a key contributor to driving conversions.

As Facebook continues to see strong demand for FBX ads in both the desktop News Feed and RHS, some, such as a J.P. Morgan analyst, suspect they will look to capitalize on their mobile momentum and roll out retargeting to mobile later this year.

Today, just as you wouldn’t run advertising campaigns on desktop without buying on Facebook, you certainly shouldn’t be retargeting consumers without FBX. Facebook’s extensive reach combined with its high quality ad inventory provide exceptional results for advertisers. When planning your campaign, be sure to leverage the Facebook Ads API to discover and FBX to close individual customers to maximize the return on your retargeting campaign.



“We believe FBX will become an increasingly important part of Facebook’s ad platform as retargeted ads move further into the Desktop and Mobile News Feeds.”Doug Anmuth, J.P. Morgan Internet Analyst


ADDITIONAL RESOURCES



Articles

Why Advertisers are Flocking to Facebook Exchange

Facebook Exchange: 10 Steps to Boosting Conversions

Facebook Exchange: Driving FBX Results with Dynamic Creative

Introducing Dynamic Creative in the Facebook News Feed

Case Studies

Dynamic Creative Increases ROI of Facebook Exchange by 5X

News Feed Increases ROI of Facebook Exchange by 197%

Why Advertisers Can’t Leverage FBX without Native Facebook Ads API Buys


http://www.nanigans.com/2014/01/14/why-advertisers-are-flocking-to-facebook-exchange/

http://www.nanigans.com/2013/08/28/facebook-exchange-10-steps-to-boost-conversions/

http://www.nanigans.com/2013/09/04/facebook-exchange-driving-results-with-dynamic-creative/

http://www.nanigans.com/2013/05/20/introducing-dynamic-creative-in-the-facebook-news-feed/

http://www.nanigans.com/2013/05/15/dynamic-creative-increases-roi-of-facebook-exchange-by-5x-case-study/

http://www.nanigans.com/2013/05/08/news-feed-roi-facebook-exchange-study/



NANIGANS.COM

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BOSTON, MA 02109

[email protected]

Nanigans offers the only SaaS platform that optimizes to Predictive Lifetime Value™. Our technology empowers over 250 performance marketers to find, acquire and retarget their most profitable customers at scale across social and mobile. With over $350 million running through our platform annualized, Nanigans provides in-house marketers a significant cost savings due a publisher-direct relationship model. Backed by Avalon Ventures with over 140 employees, Nanigans has offices in Boston, New York, San Francisco, London, Sydney, and Singapore.


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