Effectively Leveraging Facebook Advertising (Part 1)

This is part one of a two-part series on Facebook ads. There was just so much to say about Facebook advertising that we couldn’t fit it all into one post!

We just started another Facebook advertising campaign for one of our clients, and we wanted to share some of the results of the first 10 days:

What do those graphs mean? The first graph shows the number of people that clicked on our ad. The second picture is a spreadsheet of some of the numbers behind the results. At The Cyphers Agency, we are always measuring our results so (1) our clients know that their money is being used effectively and so (2) we can measure our success against benchmarks, and adjust strategy as needed.

If the graph above is somewhat confusing, no worries. Here is an explanation of each term and how it plays into the bigger picture:

Impressions

This simply shows how many times your ad was displayed to the audience you are targeting. In this example, we are targeting a very specific group of people, with only a modest budget, so the impressions are relatively low. Some of our Facebook advertising campaigns see tens of millions of impressions.

Clicks

This shows how many people clicked on your Facebook ad. As you can see in the graph, with under $32 in media costs, we garnered almost 300 clicks to our client’s website! (Debbie Downer Disclaimer: the costs described here are misleading as they don’t reflect all the planning and strategy that came before this ad’s execution)

Click Rate

This shows the percentage of people that saw your ad (impressions) divided by the number of people that clicked on the ad (clicks). This gives you a benchmark to compare to other ads and other campaigns. Although each industry and audience produce different average click rates, we tend to see an average of %0.02 – %0.04 click rate. This might seem low, but when you see how cheap it can be to reach 1,000,000 people in your target audience, those 200-400 clicks can be a huge boon for business. Combine that with several different ads, or with the rest of your campaign, and you’ve got some serious traction. Of course we’d like to take this opportunity to point out our stellar .22% average click rate!

Actions

“Actions” explains how many people interacted with your Facebook ad and decided to “like” whatever you are advertising. These are powerful numbers, because they (1) show affinity for your product/service/brand, and more importantly (2) are people whom with you now have direct communication. Similar to an email list, people that “like” your Facebook page will see your regular status updates. Often “actions” can be just as important as clicks; although sending people to the website (clicks) often drives immediate revenue, “actions” drive customer lifetime value, and help stimulate word of mouth marketing. What would you rather have, 10,000 people to your website or 10,000 people that will each tell 5 people that you are having a sale? Good thing you don’t have to choose, because we can deliver both. With under $32 spent, we’ve garnered over 180 subscribers to our client’s Facebook page! (not to mention the 294 visitors sent to the website!)

Cost Per Click (CPC)

This is a way to bid on the delivery of your Facebook ad. If you choose this option, you pay every time that someone clicks on your ad. When is this method best? When you (1) can’t target your audience or (2) your audience isn’t succinctly defined. This way, you can show your ad to 1,000,000 people, but if only one person clicks on your ad, you only pay for that one click. With Cost Per Thousand (CPM), you would need to pay for each 1,000 people to show your ad to all of those 1,000,000, just to get that one click. We did not use CPC bidding for the campaign in the graphs above, but Facebook still shows us our average CPC, based on what we are paying and how many clicks we have.

Cost Per Thousand Impressions (CPM)

Another way to get your ad in front of an audience is to bid a certain amount to show it to 1,000 people in your target audience. If you’ve narrowed down your audience to those that you know might be interested in your product/service, this can be a great way to leverage your budget. For example, if your audience size is 1,000,000 people, it will be expensive to show your ad to all of them, just to get to the 10,000 people that might be interested in your product/service. However if you use the targeting options (see “strategic targeting” and “tweaking and maintenance” below) you can start out just showing your ad to those 10,000 people. That way, you make sure that they see it, and can even show them multiple ads multiple times. We used CPM bidding in the example above, and it delivered a very good return on investment. When we created the campaign we could have paid for each click (see “CPC” above), which would have cost approximately 50-80 cents per click. But because we chose CPM, our cost per click is approximately 12 cents. This leverages our client’s budget so that we can get maximum exposure and results.

Spent

Simply put, this is the money spent for each day of results. As you can see, we earned this client an average of over 8 clicks for every dollar spent. That’s 8 people sent to the client’s page for every dollar spent, 8 people that interact with the brand, 8 people that are saying “I want to know more.” This is a strong example of how much your budget can work for you if you know how.

Old Spice Guy Wins the Hearts of Many, Including Ours

Do you remember the off-the-wall Superbowl ad featuring a suave, manly man describing the manliness of Old Spice? (If you don’t, the ad is embedded below.) At that point the advertising campaign was good – witty, memorable, and on-brand. But this week, the campaign evolved into one of the best advertising campaigns we’ve seen in a while.

The now-famous “Old Spice Guy” begun answering questions and comments from users that were submitted via Facebook, YouTube, and other social networks. The videos were hilarious, personal, and on-brand. See an example below. Most importantly, it wasn’t just one or two videos – over the course of two days, the team created over 100 video responses, which ended up generating well over 4 million views (and they are continuing to rise!).

Here are a few facts about the campaign:

According to Google, there have been over 7,000 blog posts written in the past week that contain the words “Old Spice Guy.”

The Old Spice Channel is now the #2 most-viewed sponsor channel on YouTube, with over 61 Million views.

The online campaign strategically responded to influencers online. The Old Spice Guy responded to celebrities such as Ashton Kutcher, Alyssa Milano, and Kevin Rose. But he didn’t forget about the little people either, and made sure to answer plenty of comments from average joes. This made sure that the messaging was authentic and engaging, but also sure to reach millions of people.

Here are some impressions from our team about the campaign:

“The pure volume of videos (183 in two days!) is astounding!” – Lucas

“The consistency of hilarity in the videos is amazing.” – Jocelyn

“The frequency of videos, at times, was mind-boggling – as fast as a video every 5 minutes. When you think about the fact that each video required finding an appropriate comment to respond to, thinking of a response, filming a take (probably several), some quick edits, and uploading the video, this is a very impressive statistic. And they kept it up hour after hour, for two days straight.” – Bailey

“I know it’s subjective, but I honestly want to go buy Old Spice body wash now. I don’t know why. Maybe it’s because I feel like I owe the brand for all the laughs they gave me over the past few days. Maybe it’s because I want to be like  that guy Isaiah Mustafa. Maybe it’s because I’ve always liked Old Spice, and this will just push me over the edge. Either way, this is great advertising – not because it is entertaining or well-produced, but because at the end of the day, it makes me want the product being sold.” – Andrew

“Blatant Old Spice promotion. The videos are anything but subtle, and the blatant promotion fits with the personality of the campaign. As a viewer, I was content with the promotion because it was a small price to pay for such hilarity.” – Anna

If you are interested in exactly how this was orchestrated, here is a blog (from ReadWriteWeb) post that explains how Wieden and Kennedy (Old Spice’s Agency) created such a phenomenon: http://www.readwriteweb.com/archives/how_old_spice_won_the_internet.php

Changing the World, Web 2.0 Style

It is pretty easy to say that the Internet is becoming a portal for a different kind of life: new communication, networking, news and journalism, shopping, you name it. And after the earthquakes in Chile and Haiti, the web became a haven for cause: donating money to help, reading stories of miraculous heroism and survival, and sharing opinions of how we as a people could help.

Noting the response and power to utilize and leverage social networks and Web 2.0 to help make change, Facebook’s co-founder Chris Hughes had an idea. He founded Jumo, a web site intent on in bringing people together for a common good: to change the world. Jumo looks to “connect people to the issues, organizations, and individuals relevant to them to foster lasting relationships and meaningful action.”

I don’t know if I am brave enough to call it “Facebook for Social Good,” but its a close call. From everything I’ve read about it, Jumo’s intent is really to open discussion about helping, doing it in a way that is relatable to people who “live” in the web 2.0 world. And while it won’t be fully up and running until Fall 2010, Jumo will give its’ users the ability to take part in change that is meaningful, yet comfortable to them; an tailored or individualized giving effort, if you will.

What do you think? Would you help try to change the world if you could do so from your computer? Is charity more appealing if the opportunities are individually tailored to you?

How To: Create a Viral Video

This past weekend the internet was abuzz about a certain workout video, featuring UFC fighter Chuck Liddell and his girlfriend exercising. Why was the video so popular? Maybe people want work out tips from a UFC fighter? Or maybe it’s because Chuck and his girlfriend are completely naked.

It turns out that this is a viral video created by Reebok to showcase their new ZigTech shoes. We really like the video (for marketing reasons only!) and think that several lessons can be learned from Reebok:

1. Be controversial, but not offensive – the video has the private parts blurred out, but besides that doesn’t leave much to the imagination.

2. Seed the video with influencers – in this case, TMZ was the perfect outlet for the viral video. It gave the paparazzi-like video some credibility, and was a huge catalyst for reactions and the spread of word of mouth.

3. Don’t push the product too hard – the video doesn’t focus on the shoes, which makes it more entertaining for the viewer and less likely to be an obvious contrivance. Rather, let the buzzers (like us)  speak about the product afterward.

We think that Reebok successfully garnered buzz around the brand and the product (ZigTech shoes). The video might offend some, but those aren’t the people that Reebok is trying to please. All considered, we think this was a great execution. However, we’re going to have to watch the video a few more times just to be sure

The Reach of Social Media: From Runway to Twitter

This past weekend, I had the privilege of attending a little known thing called New York Fashion Week, which started last Friday and runs throughout this week. Because of some amazing friends and once in a life time opportunities, I attended the Christian Siriano Fall 2010 Collection, as well as Naomi Campbell’s Fashion Show for Haiti Relief. But aside from shoes and dresses, everyone seemed to be armed with something that, until now, was unrelated to fashion: tools for social media.

Once inside the tents, I was amazed to see how much the fashion industry has grasped the digital era. Forget digital cameras: girls in stilettos snapped pictures on their iPhones, instantly uploading to Twitter. Members of the press were interviewing fashion celebs, recording  questions and answers on their cell phones instead of tape recorders, shooting emails to their editors simultaneously. I had a friend Google a celebrity’s name to see his picture, to ensure she was taking a picture of the right guy. There was even a section dedicated to fashion techy gurus, sitting on benches with their Mac books open, balanced on their thighs. Above them, a screen displayed a real time feed of tweets featuring the New York Fashion Week hashtag (#nyfw), constantly updating and changing.

But the fashion industry goes beyond just the diffusion of fashion week news through social media. This was the first year that typically industry exclusive shows like Marc Jacobs or Rodarte were being shown digitally, bringing access to anyone with a computer. Even more than that, designers are embracing social media on an entirely different level. As mentioned in this recent Mashable article, the industry has begun to accept “outsiders” by inviting them in, whether it be on Facebook, Twitter, or the blogosphere. They’ve become more open, tapping an a huge audience that had, until recently, been completely ignored and unheard.

Like in all other industries, some have chosen not to adopt social media as a new and influential practice. And just like in all other industries, they are going to be left behind. Those that adapt will stay relevant, and ultimately, in front of consumers.

Oh, 2009, You Were Good To Us…

Well, 2009, we bid you adieu. This past year has been many things for us as an agency. We’ve survived a recession, gained some new clients, and celebrated our 20^th anniversary as a force in the industry. We’ve also continued to think outside of the box, living and breathing creativity.

Now that this hectic year is over, we’re taking a moment of reflection, thinking about the things we learned (or re-learned) in 2009 and applying them to our future in 2010, which we welcome with open arms. So now that 2010 is officially here, we wanted to countdown 5 of the most essential lessons that our clients learned this year. (OK, so maybe we learned a couple things too)

5. Interaction and Participation: Actually Do It.

Both interaction and participation are important for social media to really work. It doesn’t help just to sign up for a Facebook account. Yeah, that may mean that you are technically using on social media, but it doesn’t mean you are using it the right way. To gain all the benefits of social media, you’ve got to be ready to participate, plug in, and converse with others. That is just the way it is. You’ve got to give to get.

Comcast is a great example. They have taken the time to embrace social media, allowing it to help their company connect with its consumers

4. Tools & Strategy that Work.

Lately, we have noticed a lot of social media obsession. Basically, we have experienced a lot of this: “I want a Facebook!” or “Can you create a Twitter page for me?” We call it Facebook-itis and Twitter-itis, and it is a serious, serious affliction.

You know that saying “there is a time and place for everything”? Well, this rings true here. Yes, Twitter and Facebook are powerful tools and can work, but they aren’t always the right option for our clients. We have developed our ability to assess clients individually, giving them the social media tools that match their specific strengths and that they need to achieve their goals. Sometimes this will include Facebook and Twitter, sometimes it won’t. Either way, we have learned to remain focused on tailoring social media strategy that is specific to each of our clients.

3. Campaign Integration

In 2009, we learned a lot about integration. Social media tools are great, but rarely stand on their own. We knew this was important, but after taking a look at some pretty integrated campaigns (like this one), we came to appreciate integration in that it must go across all platforms, whether that be between social media tools or fully integrated strategies, from creative to marketing to social media. In 2010, we are sure to see more campaign integration, which makes us happy.

2. Relationships = End All, Be All

Social media is about listening to people. Conversation monitoring and participation is at the center of this emerging industry, and we have really learned to listen this year. We now have a tool that allows us to gather discussions from all social media based on the keywords and parameters that we set. That means our clients can gather and sort through larger amounts of relevant conversations, and use them to expand their footprint and find their target audiences.

Take the Comcast example (again). You have a problem with them? Router not working? Tweeting about it will help get your problem solved. They may even tweet step-by-step directions at you. We call that strategic tweeting; fielding and solving consumer complaints has gotten the Comcast brand name pretty far in the minds of consumers on Twitter.

1. Social Media is Legit: It’s the Real Deal, Folks!

We wouldn’t say it’s something we learned, because we knew it all along. But we are thrilled that some of the largest companies are embracing and verifying it; social media is more than a trend and a hot topic. It has officially arrived as a moveable force in the advertising industry. New technologies, like Google Wave, have been created to take advantage of social media. Big time companies like Starbucks or Wachovia are embracing it as part of their marketing strategy. Even the government has acknowledged its influence. Take Obama’s Twitter page or his recent public address on YouTube as an example of this. The FTC also took a part by creating laws and consequences for misuse, which talked about here.

So overall, we feel great. We love what we do and are excited for a very social 2010. Happy New Year!

Uh Oh, It’s the FTC!

It looks like the time has come for the government to have their say in the phenomenon that is social media, and they are doing it in a big way.

The Federal Trade Commission brought the whip down! For the first time since 1980, they revised the “Guides Concerning the Use of Endorsements and Testimonials in Advertising” by requiring bloggers and other word of mouth advertisers to disclose when they are being paid to review products. And by “other word of mouth marketers”, they mean Facebook and Twitter, too. Not including disclosure means more than just a warning or a slap on the wrist; it can mean a nice $11,000 fine. Ouch.

Luckily for us, we have always put an emphasis on honest and openness, following the WOMMA Ethics Code. From the get-go, it has always been our policy to ask bloggers to disclose their relationship with our clients. But for others who many not have been quite squeaky clean, the WOMMA code is no longer just a mere suggestion; it must be obeyed.

These new rules seem like pretty serious stuff if you ask me. But to be honest, we couldn’t be happier about this. It means that companies are actually relying on bloggers and tweeters to promote their products. Even more so, it means that people are listening to what these social media participants have to say, and taking it seriously. 

Ultimately, FTC’s recognition of the power of word of mouth as a legitimate means of advertising and communication moves social media above being just “trendy”. This is the real deal, people! And we couldn’t be more excited to be a part of it.

Faithful Readers–We Need Your Help!

Recently, The Cyphers Agency has been nominated for two blog awards. Both of our blogs were nominated for the Baltimore Sun’s “Mobbies,” an award for Maryland’s Outstanding Blogs. We also received a nomination for Fuel Lines’ “Blog of the Month” for September. In both competitions, the voting is up to our readers.

Whether you have stumbled upon this blog by chance, or you’re a faithful reader of The Cyphers Agency Push-n-Pull blog and Deep Ad Thoughts, take a minute to cast your vote for our blogs.

To vote for us in the Mobbies, there are a few hurdles to jump (creating a Baltimore Sun user name and password), but the whole process will take less than two minutes. You’ll see our blogs listed under “Business + technology” and “Misfits: defying categorization.” You can vote for our Push-n-Pull blog and our Deep Ad Thoughts Blog in the Mobbies here.

You can vote for Push-n-Pull in the Fuel Lines contest here. Underneath the graph visual, you’ll see “Cast your Vote by Clicking Here.” Click that link, then vote for “PUSH-n-PULL.”

Thanks for your readership and for taking the time to vote. Use all the WOM skills we’ve taught you along the way to spread the word and get your friends to vote!

Our WOM Director is Bound for Blog World Expo

While I’m sure he’s excited about the enormous buffets, casinos, shopping and millions of other things to do Vegas, our WOM Director, Andrew Krebs-Smith, may not have any time to do those things while he’s there October 15 – 17.  I’m not sure that he’s too upset about it either. He’ll be completely satisfied because he’ll be engrossed in social media the entire time, and learning from the industry’s biggest names at Blog World Expo.

Blog World Expo is a conference, trade show and media event for all new media. As the Word of Mouth Director, Andrew manages the strategic planning and implementation of our clients’ social media efforts. Seriously, Andrew is a guy who lives and breathes social media, so attending the Blog World Expo is like three days of Christmas morning to him. The best part about going to Blog World Expo? He won Mashable’s Comment Contest and will be going to the conference for free. (The picture on the left is Andrew before winning the tickets, and the picture below is Andrew finding out he won the tickets).

The Expo won’t be all about blogs. It’s covering all things new media from podcasts to online videos to gaming and online communities. With more than 50 seminars, panel discussions and keynotes, it’s the largest new media conference in the world. Andrew will have the opportunity to see presentations from tons of experts in the field. Last year, Steve Rubel, Guy Kawasaki and Tim Ferriss were speakers, so let’s just say everyone back at The Cyphers Agency is just a little jealous of our WOM Director.

Some of the sessions Andrew plans to attend include: Measuring and Building Online Influence, The Blog as a Community Springboard, Get Rich With the Niche: How to Leverage Niche Communities for Maximum Blog Growth, Crossing Boarders: Use Blogs to Reach a Multicultural Audience and How Twits Lay Golden Eggs–The Art of Social Engagement for Business.

Social media is ever-changing and complex, so it’s important that our team stay on the cutting edge of it. We’re excited for Andrew’s opportunity to attend Blog World Expo, and can’t wait to hear about everything that he learns while he’s there!

Mayors and Celebs Use Status and Social Media to Inspire

Many celebrities and public officials use Twitter to communicate with their fans/constituents. While some celebs use it to simply promote themselves (ehhem, Britney Spears), others use it to inspire their millions of followers.

Last week, celebrity Twitter-user, Ashton Kutcher joined New York City mayor Michael Bloomberg and many other celebrities and U.S. mayors in Times Square to talk about power of community service. They were meeting to unveil “I Participate,” an initiative that calls upon Americans to participate in community service.  I Participate was started by the Entertainment Industry Foundation, an organization that leverages the “power of the entertainment industry to advance charitable causes.”

Recruiting people for community service isn’t something new. Recruiting in a kick-a#s way…is.

I Participate is solid because it has celebrity endorsements. And it’s not just another “I do this, so you should too,” kind of endorsement. I Participate is leveraging  social media-using celebrities to get people to contribute to their communities. Ashton Kutcher has 3.5 million followers on Twitter. Through a series of  tweets last week, he invited his followers to meet him in Times Square, directed them to video streaming live from the unveil of I Participate and encouraged them to join-in the Twitter conversation. He also streamed video of a conversation with he and the Mayor of Newark, NJ, Cory Booker, who is also an avid Twitter user.

The I Particpate Twitter profile has accumulated more than 600 followers since the launch, the #iparticipate hastag has picked up some momentum, and the Facebook Fan Page has nearly 2,000 fans. Although it’s not a social media phenomenon, it still has some pretty impressive numbers.  (I did honestly expected more from something Ashton Kutcher and so many celebrities  endorsed). But, they’re trying to get people revved up about COMMUNITY SERVICE. Don’t get me wrong, it’s an awesome effort–but a really tough sell.

Although it may be hard to get people excited about doing community service, I Participate is going about it the right way. They are reaching their audience through a medium that enables them to watch and participate.They give their audience the tools to search for volunteer opportunities, post opportunities and  share the site with others. Kudos to everyone involved in the I Participation initiative.