FUTURE OF FACEBOOK ADSTrends on the social platform:

Video, Offline conversionsand the future

ADVANCED ADVERTISINGPLATFORM FOR FACEBOOK

TODAY’S AGENDA

1. Facebook in numbers

2. A shift in consumer behaviour

3. Video as the new mobile advertising format

4. Measuring offline conversions

5. Retail incubator workflow

6. A retail case study

7. Key takeaways

FACEBOOK FAMILY OF APPS IN NUMBERS

2 Billionon Facebookeach month

1.3 Billionon WhatsAppeach month

1.3 Billionon Messenger

each month

800 Millionon Instagrameach month

MOBILE IS DRIVING GROWTH

global smartphone users

follow a business learn about product take action

2,4B 80% 60% 75%

CONSUMERS HAVE SHIFTED THE ATTENTION TO MOBILE VIDEO

of time spent on digital is watching a

video

of digital video views are on a smartphone

hours of video are watched every day

on Facebook

20% 39% 100M

THE INDUSTRY HAS NOT YET FULLY UNDERSTOOD THIS SHIFT

8T E L E VI SI ONCI NE MA DE SKT OP

16:9

9

Consistent screens and viewing

experiences allowed for consistency in

advertising

:15s:30s:60s

10

Today, people are watching video here

9:16

C U S T O M I Z A B L E F R E Q U E N T F A S T

Source: Why Creativity Matters in the Age of Mobile, Facebook IQ February 2017

3 out of 4 smartphone users

choose to customize the apps on their

home screen Almost Halfof US Adults say they check their

phone

30x per day

41% fastercontent

consumption on mobile than

desktop

Mobile behavior is non-linear

VIDEO AS THE NEW MOBILE ADVERTISING FORMAT

Building video ads to match how people

watch

NEW WAYS FOR PEOPLE TO WATCH, CREATE & SHARE VIDEOS

Feed Video Stories Live BroadcastingEphemeral Messaging

CREATIVE CONSIDERATIONS FOR VIDEO

Does the film capture attention and deliver full message in less than 15s?

Is the core message clear without sound? Does it delight when sound is on?

Is the asset framed for mobile as a vertical ratio?

Did you test and play with variants to find out what works best with your target audiences?

C A P T U R E P L A YD E S I G N F R A M E

OUR BRAINS ARE FAST.REALLY FAST.

0.013

process a thought from an image (2014)M.I.T. 2014 “In the Blink of an Eye” Study

0.00 0.25 0.50 0.75 1.00 sec

process a thought (2014)M.I.T. “In the Blink of an Eye” Study

0.030.00 0.25 0.50 0.75 1.00 sec

0.30

process a thought (2001)St Andrew’s & Parma universities study

0.00 0.25 0.50 0.75 1.00 sec

0.00 0.25 0.50 0.75 1.00 sec

The eternity of 1 second

Source: Spritz inc.

SPEED OF FEED

Our brains are fast

People scroll through 150 feet of content every day

Younger people scroll faster, older people scroll slower

Feed is designed at the speed of people

A video in feed captures attention in the first few seconds

150 feet

Majority of cumulative brand impact createdwithin first 10 seconds of the video view

Source: Facebook commissioned Nielsen to analyze its database of BrandEffect studies, n=173 studies included video worldwide, mid-December, 2014 through mid-February, 2015. Test/control design measured attitudinal impact of an ad campaign.

0 10 20 30

AD RECALL BRAND AWARENESS PURCHASE INTENT

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

0 10 20 30

Cum

ulat

ive

Impa

ct(L

ift x

Rea

ch)

0 10 20 30

65%72%74%

2 10 2 10 2 10

38%23% 35%

seconds viewed seconds viewed seconds viewed

Time needed to recall mobile News Feed

content

0.25seconds

Source: “Advertising Exposure Time and Memorability” by Forsh Marsh Group, Oct 15, 2015

If I had more time,I would have

written a

letter.shorter

-Winston Churchill

The way people consume video on mobile is evolving

LONGERSHORT

23Source: Ooyala Global Video Index, 2015

E P H E M E R A L O N - T H E - G O C A S T T OC O N N E C T E D T V V R L E A N B A C K

are watching videos longer than 10 minutes on mobile 1/32/3

of all videos watched on mobile globally were under 10 minutes

MATCHING CONTENT LENGTH AND AD FORMATS TO BUILD YOUR BRAND

IMMEDIATE(on-the-go)

INTERACTIVE(lean-forward)

IMMERSIVE(lean-back)

Cinemagraphs & GIFs

Short, vertical video

Video carousel Canvas

CollectionHorizontal

video

In-stream on Facebook

video

REACH OBJECTIVE BRAND AWARENESS OBJECTIVE VIDEO VIEWS OBJECTIVE

VIDEOCONTENT/ AD FORMATS:

OBJECTIVES:

LiveIG Stories

Messenger Bot

360° video

Video ads tailored to the way people watch

LONGER, LEAN BACK SHORT, ON-THE-GO

Short Video

FEED VIDEO: ON-THE-GO1

Canvas

FEED VIDEO: LEAN FORWARD 2

In-stream

IN-STREAM VIDEO3

MEASURING OFFLINE CONVERSIONS

MOBILE SHIFT IS IMPACTING THE ENTIRE VALUE CHAIN

PEOPLE STILL MAKE MAJORITY OF PURCHASES IN STORESWHILE E-COMMERCE IS GROWING FASTER, IN-STORE SALES STILL DOMINATE

Source: US Census, Quarterly Retail Ecommerce Sales, 2nd Quarter 2017

HOWEVER, DIGITAL INTERACTIONS ARE INCREASINGLY INFLUENCING SALES

of those interactions are on mobile

57%49%of purchases in stores are

influenced by digital interactions

Measure true valueTie ad spend to cross channel

conversions

CONNECTING OFFLINE DATA TO FACEBOOKTO SUPERCHARGE DIGITAL EFFORTS WITH REAL WORLD INSIGHTS

Target more of the right people

Generate audience insights for better targeting

Optimise your performance

Make better decisions based on timely insights

Your Facebook Campaign audience

MATCHING OFFLINE CONVERSIONS WITH FACEBOOK DATATO MEASURE HOW FACEBOOK ADS INFLUENCE IN-STORE PURCHASES

Your Facebook Customers

Your customertransactions

CRM, PoS systems, customers identified by email or phone number

ATTRIBUTEDTRANSACTIONS

Furthest possible attribution event is 28

days

Transaction upload

MATCHING OFFLINE CONVERSIONS WITH FACEBOOK DATATO ATTRIBUTE OFFLINE CONVERSIONS TO CLICKS AND VIEWS

TRANSACTIONS CAN BE UPLOADED90 DAYS AFTER THE ATTRIBUTION EVENT

(click / view)

Click / view Conversion

Advertiser should upload transaction

within 62 days of the conversion

IMPROVEMENTS MARKETERS CAN TAKE ADVANTAGE OFTHANKS TO OFFLINE DATA INTEGRATION

● Retention: Better Custom Audiences

○ Including people who purchase in stores to reach them on Facebook (with relevant cross-sell or up-sell offers)

● Acquisition: Value-based Lookalike Audiences

○ Reaching people who look like your most valuable customers

● Messaging: More relevant messages

○ With better insights from offline transactions

● Results: Improved performance

○ Higher ROAS by reaching more valuable people with better messages

FACEBOOK DIRECTLY OR WITH A MARKETING PARTNER?

NO PARTNER

PROS CONSDESCRIPTION

FACEBOOK MARKETINGPARTNER

Manual uploadsDirect API integrationData partners (in progress)

Managed servicePartner API integrationAutomation

It’s in your hands

Partner takes care of the technical setupSaves timeTechnical skills not neededSupport included

Either manually heavy or IT resource heavy

Fee

OUR ROLE IN THE ECOSYSTEM

Your online data view/add-to-cart/purchase data (Facebook Pixel)

Your offline data(offline conversion events)

3rd party data (Google Analytics)

Product catalog

Performance goals

ROI HUNTER

Dashboard

Performance optimisation

Automation

Dynamic Templates

Support

1. Facebook ads shown to the right people (using more signals)

2. Better looking (advanced dynamic ads)

3. With higher ROI

EXAMPLE OF RETAIL INCUBATOR WORKFLOW

ROI HUNTER TEAM:

CLIENT TEAM:

Professional onboarding (paid program, 4 weeks) Innovations

Facebook pixel

Google Tag Manager

Feed (Crawler) Google Analytics(integration)

Co-managing of campaigns

DPA UP AND RUNNING

Upload of Branches

Self-managing of campaigns

Offline data connect

EVALUATION OF PILOT, AD COUPON

25kIn Conversions

MAX FASHION - RETAIL CASE STUDY26x ROI WITH FACEBOOK OFFLINE CONVERSION

CASE STUDY

26xROI

$564kIn Revenue

Max Fashion: the FIRST retailer in MENA to Utilize Conversion with Incredible Results!

$0.84Cost per Conversion

TECHNICAL SOLUTION

User Converts in Store – User data

sent to CRM

Hashed data transfer to protect

buyer identity

ROI Hunter bridge to Facebook - offline

conversion API

Omnichannel Facebook ads report to evaluate campaign

performance

STEP 1: USER CONVERT ON STORE

● Trade reports are generated

● Including:

○ Customer‘s e-mail and/or mobile number.

○ Transaction value

○ Conversion event ‘Purchase‘

○ Deal time stamp (data / time)

○ Store ID (optional)

User convert on store & user information collected

CRM

CSV / XML / XLS export with deal and user info

STEP 2: HASHED DATA TRANSFER (BY ROI HUNTER)

● User’s data are hashed

● Using Secured Hash Alghoritm 256.

● Facebook doesn‘t accept unhashed data.

● Facebook matches hashed data with real users (~70% match-rate).

STEP 3: ROI HUNTER BRIDGE TO FACEBOOK API

● Connection between client‘s FTP and Facebook API

● Only hashed reports are transferred

● Keeping API connection up to date

● Enables real-time campaign optimisation

STEP 4: OMNICHANNEL REPORTS FOR FACEBOOK ADS

● Online and offline results in one chart

● Seeing offline impact of online campaigns

We help retailers get the most out of Facebook Ads.

Our unique technology allows retailers to integrate more (conversion) signals, online and offline, giving Facebook better

insights for optimisation and achieve higher ROI as a result.

PETER PODOLINSKY

HEAD OF SALES EUpeter@roihunter.com+420 724 157 334

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