Deconstructing Facebook For ROI Success

1. Deconstructing Facebook For ROI Success

2. Agenda Introductions Deconstructing The Facebook Algorithm How Does It Work? Leverage It To Support Your Goals Tactics For Success Targeting Strategies Creative Strategies Optimization Strategies Question and Answer Session

3. About Vincodo

4. Company Background Founded in 2010 Industry veterans with multi-channel experience both on the client and agency side Over $180MM in active media management Three time recipient of Inc. 5000 fastest growing companies Bing Search Agency Awards Finalist Recognized partner with media providers & tech platforms Core in-house expertise channels: Paid Search, Programmatic Display, Paid Social, OTT, Direct Mail and Email Lists Top serviced industries: Fortune 500 Retailers, Home Service providers, Personal and Business Insurance, Higher Education, Boutique Luxury Retailers, Financial Services, Legal Services

5. Who We Are David Waldman, VP Client Strategy & Development 20+ year Direct Mail & Internet Marketing veteran Spent entire career on agency / marketing service provider side of the business Worked with a wide range of Fortune 1000 clients Primary focus of work has been on customer acquisition with focus on lifetime value Joined team in 2018 Assists Vincodo clients with developing prospecting databases and onboarding audiences to social and display platforms

6. Who We Are Tim Daly, CEO 20+ year Internet Marketing veteran Began career on Advertiser side, held executive marketing roles at Hanover Direct and Office Depot Shifted to Agency side 15 years ago, with multiple agencies that serve Fortune 1000 clientele Founded audience targeting company in 2008 which was recently sold to Claritas Founded Vincodo in 2010 Continues to stay actively involved in client strategy work on a daily basis with our agency clients

7. Deconstructing Facebook

8. Deconstructing Facebook The Algorithm Like other media providers and RTB buying platforms, Facebook touts the algorithmwith buzz words like: Automation Machine Learning AI Optimization Regardless of the buzz words, Facebook cannot change the reality that the algorithm is a publisher yield management tool Generates the highest CPM for Facebook possible Maximizes the sale of unwanted and unsold inventory Prioritizes Facebook’s goals over that of Advertisers

9. Deconstructing Facebook The Detailed Targeting Have you ever asked yourself what Facebook knows about you and how it chooses to serve an ad to you? Click on the triple dot “Why Am I Seeing This?” associated with any ad. Underlying, you will find all the data Facebook has harvested about you. While controls exist to delete this information by the user, concerns exist among many that it doesn’t necessarily go away.

10. Deconstructing Facebook The Detailed Targeting Who Facebook Thinks I Am Tony Romo fan, LeBron James fan, Tom Brady fan That I am both a Democrat and a Republican That I am married with a Newlywed status That I have children at home, ages 10 and above That I like surfing Who I Really Am Tony Romo hater, LeBron James hater, Tom Brady hater I am an Independent I am married, but have been married for 20 years I have children, two girls ages 11 and 16 I am a beach goer that won’t wade more that 20 yards from shore

11. Deconstructing Facebook The Facebook Pixel The Facebook Pixel replaced the legacy pixel approximately 3 years ago, forever changing the Facebook advertising landscape. The biggest component of the update was Facebook shifting from Custom Conversion setup for all actions to pre-defined buckets such as Page View, View Content, Add To Cart, Purchase and Leads. Facebook data collection went from 30 MPH to 90 MPH over night, with deep insights about user behavior happening off Facebook. This information is not only used to help your advertising efforts, but is also leveraged to help your competitors.

12. Deconstructing Facebook The Optimization Tools With user acceptance of the Facebook Pixel, the ability to target past behaviors of users was unveiled. Options today include: Link Clicks Landing Page Views Impressions Daily Unique Reach Conversions With each selectable optimization option, Facebook will deliver your ads to different users based on its past data collection…while leveraging The Algorithm to generate the highest eCPM possible per user.

13. Deconstructing Facebook The Ad Creative Types Facebook has major issues dealing with Reach and Frequency that are unique. To create freshness with advertising units, a range of creative options exist. Options today include: With each selectable creative option, Facebook will gear ads toward users based on past ad types they preferred to interact with. • Static Image • Video • Slideshow • Product Carousel • Lead Ads • Stories • Dynamic Product • Canvas • Collection • Offer Ads

14. Tactics For Success

15. Tactics For Success Fresh Ad Content Facebook and Instagram platforms are struggling with a proper balance of Reach and Frequency with their users while they are achieving Wall Street targets. The Facebook algorithm gives positive relevancy improvements to Advertisers who provide a combination of variety and frequent updates. Keys to keeping your eCPM lower include: • Update creative monthly if possible, quarterly at a minimum • Have a minimum of 4 ad creative units running at all times • Leverage various creative types liberally Forego traditional A/B split testing as it will more likely impair your relevancy Follow up and appeal all rejected ads as many are accidentally rejected Consider using Persado to help with creative variation replications

16. Tactics For Success Leverage Various Ad Creative Types Facebook’s data collection on its users has allowed them to identify which types of Ad Creatives they prefer to interact with. Single Image Ad Creative continues to still be the best performing option available for the majority of advertisers. Consider having a minimum of at least three creative type options running in your campaigns at all times. Keep in mind that each ad type has its pros and cons, leverage what is best for your business

17. Tactics For Success Test Out All Placement Types Facebook now offers 15 different platform targeting options for Advertisers. Each has their own unique performance characteristics and associated CPMs predicated on Advertiser demand. Lesser used platforms such as Instant Articles and Messenger offer highly interactive ad types at significantly lower CPMs. Be cognizant that certain platforms work better for different objectives • Right column usage on Remarketing campaigns can result in excessive frequency delivery • Audience network paired with the wrong Ad Delivery optimization can provide very poor results • Marketplace and Stories are not really productive avenues for performance-based advertisers doing Customer Acquisition.

18. Tactics For Success Segment Ad Sets By Placement Type Be careful using Automatic Placements as this option provides Facebook the authority to choose where they desire to maximize their yield Use of Automatic Placement can result in over delivery of poor performing ads Consider Segmenting To Control Your Ad Delivery • Breakout Mobile News Feed, Desktop News Feed, Right Panel and Stories • Breakout Product Carousel and Dynamic Product Ads • Breakout Instagram from Facebook • Breakout Remarketing from Prospecting efforts

19. Tactics For Success Build Larger Audience Targets While Facebook and Instagram offer amazing hyper targeting, utilization of such targeting can result in significant CPM spikes. CPM increases of 200% to 300% are common place when an audience target is too refined. A more lax audience target that includes 2M or more people in your Prospecting efforts will often prove more ROI efficient. Let the Facebook algorithm identify users that have a higher affinity rather than trying to identify those users yourself.

20. Tactics For Success Refine Audiences With Exclusions Facebook Ad Manager offers robust reporting to aid in helping make refinements to targeting to excise poor performing elements of your campaign. Leverage Age and Gender options to improve performance Consider Geotargeting if prudent for your business if there are regional or Urban/Rural considerations Do not rely on Detailed Targeting Inclusion alone: • Facebook data targets are imperfect • Backup your inclusions with appropriate exclusions to eliminate situations where Facebook may have recognized a user incorrectly.

21. Tactics For Success Segment Remarketing Audiences By Recency Remarketing campaign setup can be tricky • Facebook wants large audiences • Advertisers want hyper targeted audiences • The more hyper targeted by recency, the higher the CPM Facebook will charge • Seek a proper balance between ROI efficiency and audience targeting • Depending on your audience size test, performance differs • 0-30 Days versus 0-3 Days, 4-7 Days, 8-14 Days, 15-30 Days • Allocate your budget to recency groups accordingly • While Facebook algorithm has logged the recency of a website visit, too wide of a range can lead to Facebook ad serving to optimize its yield, not the Advertiser’s ROI.

22. Tactics For Success Custom Audiences / Offline Conversions Facebook offers terrific tools that allow you to upload first party data for use in both your marketing campaigns and performance tracking. Custom Audiences allow you to upload your customer file for: Customer remarketing and/or renewal Dormant customer reactivation Lookalike model development w/o Facebook pixel Exclusion audiences for all campaigns Direct Mail / Online multi-channel targeting Offline Conversion Uploads If you leverage Facebook for leads, uploading backend performance metrics is a must. Matching on email addresses and phone numbers, along with an action timestamp and ability to see revenue generation associated with ads is possible.

23. Tactics For Success Limit Information You Share Via Facebook Pixel Facebook is harvesting deep intelligence about your website visitors with each click they make given the omnipresence of its pixel. • Time Spent • Page Views While this information is often intended by the Advertiser for its use on Remarketing, Facebook utilizes this information to formulate Lookalike Models and Ad Delivery Optimization for your competitors. Diligently determine what you actually share and where you decide to embed your Facebook pixel Place on necessary pages important for Remarketing Limit sharing of critical actions such as add to cart Use custom conversion to obfuscate Facebook’s understanding of your website events • Content Viewed • Purchase Intent

24. Tactics For Success Apply The Most Prudent Ad Optimization Functionality Following the rollout of the Facebook Pixel three years ago, Facebook collects rich user behavior in predefined action buckets This deep data collection allowed for Facebook to improve the optimization logic underlying ad serving. It is important to choose the right optimization option for your objectives • Determines who in the Facebook universe will see your ads • Selection of Impressions and Daily Unique Reach typically targets the least engaged users on Facebook • Selection of Conversions and Landing Page Views will significantly increase the CPM you are charged • Link clicks can serve your ads to accidental clickers on Mobile • 3-Second Video Views may reach people that are just slow scrollers

25. Tactics For Success Limit Use of Bid Caps As CPMs have risen over the past two years, Advertiser complaints over waning ROI led Facebook to introduce the Bid Strategy functionality. While the tool effectively limits some risk for the Advertiser, its utilization often results in dramatic volume reduction. It is always recommended to launch your campaigns w/o bid caps applied to allow the Facebook Algorithm to learn. If results are marginal or below goal, consider applying bid caps, but do so in a step wise drawback rather than hard pullback to allow the Facebook Algorithm continued learning opportunities.

26. Tactics For Success Test Spanish Campaigns One of the hidden gems of Facebook is targeting individuals whose language preference is Spanish. Due to a lack of Advertiser demand for these users, CPMs are significantly lower than English language. For best change of success consider: • Custom Spanish language landing pages • Uniquely custom ad creative • Testing various ad types to determine differences in performance We have found that Video ads work significantly better with Spanish speaking audiences as compared to static ad creative.

27. Tactics For Success Implement Boosted Posts Due to backlash regarding Fake News, Facebook made significant changes in Q1 2018 to organic posting visibility in the News Feed Numerous content marketers, particularly blogging websites, saw a dramatic reduction in their organic posting reach. As a result of the change, traditional Advertisers saw their reach impaired significantly. To increase your organic reach, it is imperative to boost posts periodically to your followers to keep them engaged. For just a few hundred dollars per post, organic reach can improve by over 100% and get your followers re-engaged with your social media efforts.

28. Summary

29. Summary Key Takeaways Pay attention to how the Algorithm works with as much investment of time as you can place into the marketing elements. Recognize that Facebook is harvesting your website data for its internal usage, most of which is not to your benefit. Understand how each of the technical functionalities work and in what scenarios they are most prudent for implementation. Feed the system what it needs (fresh creative, versioning, substantive audience counts, conversion events) and provide the flexibility (optimization choices, limiting bid caps) to allow for the system to learn and be successful. Prepare for system changes and how they will affect your campaigns. Adapt quickly and recognize the system is evolving tremendously every 9 months.

30. Q&A

31. Thank You David Waldman dwaldman@vincodo.com 516-946-9113