Today’s post is by Christina Park, Director of Marketing at Triggit. Christina joined Triggit after six years at Google, where she led the charge in creating data-driven insights and marketing campaigns for large advertisers and agencies. Christina graduated with a journalism degree from Northwestern University.
Since the Facebook Exchange launched two months ago, the data analytics team here at Triggit has been finding more and more evidence that proves the Facebook Exchange is the biggest opportunity for direct response marketers since paid search. In case you’ve missed it, let’s recap the reasons Facebook is breeding a retargeting landrush:
#1) Scale: Over one billion people – including most of your customers – are literally parked on Facebook and browsing on the site all day long.
#2) Recency: A majority of the people who visit your site see your ad on Facebook in the first hour – sometimes in the first five minutes.
#3) Efficiency: Right now, the CPAs on FBX are 20-80% lower compared to other major exchanges.
#4) Viewability: FBX outperforms above-the-fold-only ads on other exchanges at ⅓ the cost. At that price, advertising on guaranteed brand-safe pages where you’re sure your ads will be seen makes this opportunity the biggest bargain on the internet.
Our next series of experiments focused on ad relevance to specific users. If the above signs are innate to Facebook as a retargeting platform, what happens when marketers optimize on it to create relevant, dynamic ads with their 1st-party data on FBX?
We compared campaign data for six different retailers with similar conversion goals over a two-month span. Half of the retailers were advertising only static ad formats on Facebook, and the other half were only running dynamic creatives – that is, retargeting people with ads of the products they expressed interest in. If, for example, a user went to a retail site and checked out a pair of shoes, we’d then show them an ad with not only an image of that exact pair of shoes, but also the name and price of that pair of shoes in the body copy of the ad.
Compared to static ads, dynamic creatives on Facebook saw:
- 5.12 higher CTRs
- 9x more efficient CPAs, 5.5x more efficient CPCs
- 1.56x greater conversion rate
In plain English, the clicks on dynamic ads jumped over 500% compared to static ads, and the costs for those valuable clicks dropped off a cliff. Not only did these relevant ads generate clicks more cost-effectively, but the users who clicked those relevant ads were also converting at a rate that was 1.5 times greater than the more generally targeted ads! This dramatic return on investment makes ‘relevancy’ point #5 on our ever-growing list of reasons for why direct response marketers should take advantage of the valuable surplus inventory on Facebook Exchange now.
– Christina Park