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Retargeting Audiences Across Facebook and DisplayAFExpo - June 2011

Confidential

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The Trade-off

Keep Users Inside Facebook or Outside of Facebook?

FacebookFacebook

RetargetingRetargeting

LookalikesLookalikes

Fans + Friends of 

Fans

XA.net is the first company to operatereal-time bidding audience-targetedcampaigns (including retargeting) andalso be a Facebook Ads API approvedvendor and social media expert

Confidential

Web Retargeting

Every Site Visit Should Initiate Retargeting Pixel(s)

Google AdMeld

AdBriteYahoo!

Rubicon ContextWeb

Landing Page 1

Landing Page 2

Landing Page 3

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XA.net on Facebook

Optim.al: Integrated Multivariate Facebook Ad Buying

4

Multivariate text ad optimization

XA.net built one of the first direct Facebook Ads API integrations.

Platform creates evolutionary variations of your ad components, to find top performing “DNA” / variations.

Multivariate testing can produce the optimal ad combinations, often yielding 7x lift or more in performance.

Proprietary methodology tests more variants with fewer ads (3,888 ads compressed to <20).

72 text/image variationsX

9 geo/interest combinationsx

3 different age rangesx

Male or Female=

3,888 possible combinations

Only 18 test ads

Confidential

XA.net Technology

Real-time Bidding and Audience Infrastructure• Real-time bidding (RTB) is ad inventory being put out to “bid” by a bidding server to

a number of client servers:

SystemA

Bid requests

BidderServers

Each bid request has basic data about theimpression and user about to see it:-IP address-Unique UserID-URL-Referring URL etc….

The bidder server looks at the data and decides whether to bid on the impression, and how much:Often this is a static “rules-based” decision

If the bidder wins the impression auction, their creative is sent and displayed to the user

User

Confidential

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XA.net Technology

XA.net Approach to Audience-level Infrastructure• Audience-level real-time infrastructure is useful not just for making media buying

decisions, but for optimizing throughout the funnel• Think of individual creatives and landing pages just as other pieces of media where

audience- and context-based decisions are being made in real-time:

Media

Creative

Lander

18-24 25-34 Clicker

Each product has its own modeland “likely conversion tree”

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XA.net Technology

Impressions are Not a Commodity: Sessions Matter

Confidential

$3.80$3.80

$3.05$3.05

$2.50$2.50

$2.10$2.10

$1.50$1.50

1 2 3 4 5+

1 2 3 4 5+Purchase Direct Direct Direct Mix Exchange(s)

CTR 0.31% 0.28% 0.24% 0.22% 0.16%

eCPC $0.32 $0.36 $0.42 $0.45 $0.63

Figures based on actual publisher/exchange observed data (2009-2010)

Impressions at different points in the session queue usually have differing performance characteristics

Confidential

XA.net Technology

Evolutionary Optimization: Proven Success

‐100%

0%

100%

200%

300%

400%

500%

1-Mar 4-Mar 7-Mar 10-Mar 13-Mar 16-Mar 19-Mar 22-Mar 25-Mar 28-Mar

Ad V

aria

tion

CPC Down 50%

CTR Up 400%

• New generations of ad variants are built from the strongest of the previous generation, driving performance and lowering cost.

Source: XA.net Customer (2011)

3rdGe

nera

tion

3rdGe

nera

tion

2ndGe

nera

tion

2ndGe

nera

tion

1stGe

nera

tion

1stGe

nera

tion

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XA.net Technology

Case Study: Evolutionary Optimization

Source: XA.net Customer (2011)

Confidential

Creative Learnings on Facebook Translate to Display

• Large advertiser’s best performing image on Facebook Ads worked very well on general display. Facebook ads were much cheaper to test (less design costs!).

• Copy and headline don’t translate as effectively – but images are very powerful

Confidential

XA.net Audience Data

How To Use Social Data (Example): Brand X on FB

Strong WeakDelaware, New Jersey, RhodeIsland, West Virginia, Kentucky

Utah, Idaho, Minnesota, Hawaii, Montana

129

100

63

Index

Source: optim.al, Facebook n=3,874,140 US people interested in Brand

Brand wanted to understand overlap between markets wherecertain affiliates have coverageand fans of the series.

Confidential

XA.net Audience Data

Brand X on Facebook: Sample Data Detail

Facebook Users Brand Fans % Fans Index

All US 142,537,020 3,874,140 2.72% 100

Delaware 375,260 13,180 3.5% 129

Virginia 3,362,380 102,500 3.0% 112

California 18,747,780 409,020 2.2% 80

Jacksonville, FL 532,540 20,500 3.9% 142

Louisville, KY 531,080 17,180 3.2% 119

Indianapolis, IN 716,420 16,160 2.3% 83

Source: optim.al, Facebook n=3,874,140 US people interested in Brand

Cities

States

Confidential

Building a Portfolio Approach

Audience Analysis: Understanding Impact by Demo• Social data needs to be looked at in the right context: Example data: Male, 19-24, US• Sample, test & minimize cannibalization of “earned media” efforts

Mafia Wars56.8%

Mafia Wars56.8%

Cityville11.6%

Cityville11.6%

Frontierville19.9%

Frontierville19.9%

1.1%

2.2%

2.1%

6.2%

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Turning Data Action

Starbucks Fans Younger than Dunkin’ Donuts

- 50 100 150 200 250

1315171921232527293133353739414345474951535557596163

StarbucksDunkin' Donuts

Indexed to 100 (vs. US Facebook population)

Average ages:

US (Facebook): 31.4

Starbucks: 24.6

Dunkin’ Donuts: 26.4

Confidential

Audience Similarity

Don’t Buy Data Yet: First Determine Your Best Users

23.69%

39.89%

10.43%

20.37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Seg#

041

Seg#

071

Seg#

145

Seg#

170

Seg#

038

Seg#

020

Seg#

119

Seg#

150

Seg#

082

Seg#

132

Seg#

070

Seg#

059

Seg#

124

Seg#

022

Seg#

094

Seg#

046

Seg#

034

Seg#

030

Seg#

101

Seg#

126

Seg#

129

Seg#

003

Seg#

025

Seg#

108

Seg#

159

Seg#

067

Seg#

005

Seg#

166

Seg#

092

Seg#

050

Seg#

024

Seg#

118

Seg#

104

Seg#

165

Seg#

053

Seg#

045

Seg#

151

Seg#

114

Seg#

008

Seg#

160

Seg#

154

Seg#

103

Seg#

091

US PopulationProduct Buyers

Source: XA.net Analysis, 10/2010, n=5302 Consumer Product online buyers

% of conversions

20.4% of the audience = 39.9% of client’s buyers

Cumulative distribution by segment

Confidential

9.99%

20.00%21.52%

40.35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Seg#

071

Seg#

145

Seg#

020

Seg#

144

Seg#

141

Seg#

130

Seg#

124

Seg#

123

Seg#

058

Seg#

059

Seg#

121

Seg#

085

Seg#

048

Seg#

030

Seg#

135

Seg#

017

Seg#

127

Seg#

025

Seg#

005

Seg#

100

Seg#

101

Seg#

126

Seg#

073

Seg#

009

Seg#

047

Seg#

050

Seg#

166

Seg#

029

Seg#

054

Seg#

113

Seg#

161

Seg#

075

Seg#

152

Seg#

055

Seg#

057

US PopulationSocial game ad clickers

Source: XA.net Analysis, 1/2011, n=1,013,271 social gaming ad clickers

Audience Similarity

Server-Side Data Integration Allows Targeted Buys

% of ad clickers

Confidential

Sponsored Stories are Complicated • Page like story

Facebook description: When people like your Page, their friends see a story about it• Trigger: Page Like by User

• Audience: Friends of Fans (of Page)

• Value: Acquiring new Fans

• Page post story Facebook description: When you post an update to your Page, your fans see a story about it• Trigger: Page Post by Admin

• Audience: Existing Fans (of Page)

• Value: Re-engaging Fans, not effective for acquiring new Fans

• Page post like story Facebook description: When people like your Page post, their friends see a story about it• Trigger: Page Post Like by User (includes new updates, photos, videos)

• Audience: Friends of Fans (of Post)

• Value: Unclear - may not be effective for acquiring new Fans (of Page)

• Check-in story Facebook description: When people check-in to your business using Facebook Places, their friends see a story about it• Trigger: Check-in by User

• Audience: Friends of Users (who've checked in)

• Value: Acquiring new Fans

Confidential

Sponsored Stories are Complicated (cont’d) • App used & game played story

Facebook description: When people have recently used your App or played your game, their friends see a story about it• Trigger: App Install / Interaction by User

• Audience: Friends of Users

• Value: Acquiring new Users

• App share story Facebook description: When people share from your App, their friends see a story about it• Trigger: Shared Interaction w/App by User

• Audience: Friends of Users

• Value: Acquiring new Users

• Domain story Facebook description: When people like or share information about your Domain, their friends see a story about it• Trigger: Interaction with Facebook content on a 3rd party site (e.g. Like or Share button) by User

• Audience: Friends of Fans/Users

• Value: Acquiring new Fans/Users

Confidential

$0.79 

$0.60 

$0.50  $0.48  $0.47  $0.49 $0.46  $0.44 

 $‐

 $0.10

 $0.20

 $0.30

 $0.40

 $0.50

 $0.60

 $0.70

 $0.80

 $0.90

 ‐

 5,000

 10,000

 15,000

 20,000

 25,000

6/15/11 6/16/11 6/17/11 6/18/11 6/19/11 6/20/11 6/21/11 6/22/11

The Friend of My Fan is My FriendDecreasing Cost of Fans Discovered‐>Acquired through "Ads with Friends" 

Fans Cost‐per‐Fan

But Can Be Very Effective and Improve Quickly

Confidential

Testing is Key: Facebook Changes Rapidly• Consider how frequently you are engaging fans on your pages – possible

cannibalization of paid vs. earned media efforts• Do you have an ecommerce site, trying to capture a transaction directly?• How hard is it to find your audience (pet owners, Cisco employees?)• How likely are your fans to be customers; and how likely are friends of fans to

become fans and become customers• What is the legacy of your fan base – did you “buy” a lot of untargeted fans?• How viral is your product or offer?• Can you track multiple conversion events including inside of Facebook apps• Look at lead generation such as email gathering in addition to fan capture

•In the future, lines between what is/not social will be more blurred but testing will always be vital

Confidential

Thanks and Contact Us!Rob Leathern (rob@xa.net) / Founder and CEOSasha Ziman (sasha@xa.net) / Director of Sales

http://be.optim.al/about

http://the.optim.al - our blog with data insights!