An in depth look into the host of opportunities to embrace performance marketing beyond the desktop computer

1. © TBG Digital 2011 Demystifying Facebook (As a direct response channel)

2. > The challenge © TBG Digital 2011

3. > A quick intro… (You’ve heard of it, right?) © TBG Digital 2011

4. > From this (2004) © TBG Digital 2011

5. > To this © TBG Digital 2011

6. > You can’t ignore it … embrace it! 1,700,000,000 700,000,000 190,000,000 160,000,000 100,000,000 Internet users Facebook users Twitter users Blogs LinkedIn users © TBG Digital 2011

7. > It’s local too UK > 40m online population > 30m on Facebook > 14m visit for 25 mins daily > 5m aged 35 to 45 > 52% female 700m users < 250m on mobile < 30bn items shared every month < Average 120 friends < WORLD © TBG Digital 2011

8. > Users per country © TBG Digital 2011

9. > 30M+ UK users… How big is that? = = 13M 14M+ 13M 13M people watch the World Cup Final 13M people watchthe 1st episode of the X-Factor 14M+ people login to Facebook every day! © TBG Digital 2011

10. > Real people, real identities Real people, doing real things © TBG Digital 2011

11. >Real Life © TBG Digital 2011

12. Why is Facebook important to us as a direct seller?

13. > Listen, learn and engage © TBG Digital 2011 > Where do I start? Footfall Transactions Market Share Insight Loyalty Viral Global Efficiency

14. >People influence people Engagement creates your social network where friends meet and talk to you and each other about you © TBG Digital 2011

15. > The new word of mouth . 1.6X lift in brand recall VS 2X lift in message awareness 4X lift in purchase intent © TBG Digital 2011

16. > Laser-guided targeting Structured Unstructured Activities Interests Music TV Movies Books Groups Applications Connections Location Age/Birthday Gender Education Workplace Relationship Sexual Preference Language © TBG Digital 2011

17. > The volumes are there Gaming 1,000 – 1,500 bingo players a month Telecoms 1,000 – 4,500 mobile contracts a month Retail 8,000 – 12,000 sales a month AOV £65 Finance 22,000credit card applications a month Travel 5,500 internal flights a month (USA) © TBG Digital 2011

18. > Everyone’s doing it Contracts, Handsets and free SIMs Clothing e-commerce Chrome browser installs New customers Credit Card Accounts Spend = from €250k to €850k a month © TBG Digital 2011

19. > How’s it done? 2006 to 2010 = Premium ads and Microsoft’s Banners 2007 to 2009 = Premium ads and self-serve (manually) 2009 to 2011 = Marketplace ads via API > Exclusivelyreach your audience > Match Product, Promotion, Price and Place to individuals > Collect relevant fans > Fan conversion, social selling © TBG Digital 2011

21. Test and Learn

22. Advanced segmentation

23. A blue print for performancePoker Top Gear Manchester Single HBO Male 28-29 29-30 30-31 32-33 33-34 34-35 35-36 © TBG Digital 2011

24. > Cost vs. Volume? 2. Age: 30-36 Gender: Male Geo: NW k/w: Poker, HBO, Top Gear 1. Age: 32-34 Gender: Male Geo: Manchester k/w: Poker 3. Age: 22-40 Gender: Male Geo: UK Monthly e.g. 200 players @ £90 150 players @ £115 75 players @ £140 = 425 players @ £108 average © TBG Digital 2011

25. > Optical Express

27. Facilitates Multi Variant testing = Micro-targeting at scale

28. Saves time and builds efficiencies

29. 2 billion ads per day in 65 markets

30. Consistently top 10 Facebook spender, globally. © TBG Digital 2011

31. Is it sustainable? What’s next?

32. > 2011 - Social by design © TBG Digital 2011

33. > What’s “Social by design”? © TBG Digital 2011

34. > What’s “Social by design”? Don’t think about how you can fit social media into your business… Think about how your business can fit into social media… © TBG Digital 2011

35. >Some brands already started playing... © TBG Digital 2011

36. > 3 key aims Build = Collect relevant fans Amplify = Viral & Earned media Engage = Fan conversion & social selling © TBG Digital 2011

37. > 3 key aims Build = Collect relevant fans Amplify = Provide a great platform Engage = Fan conversion & social selling © TBG Digital 2011

38. >Acquire relevant fans using their shared info Location Age/Birthday Gender Education Workplace Relationship Sexual Preference Language Activities Interests Music TV Movies Books Groups Applications Connections © TBG Digital 2011

39. > Some simple guidelines > The ‘fan gate’ > A good reason to become a fan > Exclusive Facebook offers & content > Sensible user journey > Keep it simple > Content is King © TBG Digital 2011

41. 19,338 fans

43. 93% below CPF target!Fan Acceleration Final CPF was 93% Below Target!

44. > Case Study Insight Adding Incentive Resulted in a 24% Lower CPF!

46. Males between 18-36 yrs.

48. 112,000 fans

49. Advanced profile targeting and Sponsored Storiesreduced total CPF to 550% below target.© TBG Digital 2011

50. > Find and grow Brand Advocates © TBG Digital 2011

51. > 3 key aims Build = Collect relevant fans Amplify = Viral & earned media Engage = Fan conversion & social selling © TBG Digital 2011

52. >Create a platform where friends meet © TBG Digital 2011

54. 51,278 fans

56. 92% below CPF target!Fan Volumes Were 1282% Above Target!

57. > Case Study Insight Sponsored Stories CPF 31% better than Standard Format

58. > 3 key aims Build = Collect relevant fans Amplify = Viral & earned media Engage= Fan conversion & social selling © TBG Digital 2011

59. >Value of a Facebook fan > On average, fans spend an additional $71.84 on products for which they are a fan, compared to those who are not fans. > Fans are 28% more likely than non-fans to continue using the brand. > Fans are 41% more likely than non-fans to recommend a fanned product to their friends. Source: SocialTRAC™, Value of a Facebook Fan. ©2010 Syncapse Corp. www.syncapse.com © TBG Digital 2011 © TBG Digital 2011 © TBG Digital 2011

60. >Fan Conversion & Social Selling Social wish lists Allow your fans to create a social gift list. Facebook shop Shop within Facebook. Promote top-selling items, and learn from user comments. Gift vouchers Select your amount, select your Facebook friend and pay. Easy! Redeem online or in shop. Check in and reward Increase footfall. Reward fans for checking-in into your store, or taking friends along. © TBG Digital 2011

61. >Walmart - listening to customers LISTEN LEARN ENGAGE ASK Deliver the deal if it’s popular among customers Does this deal appeal to you? Number of ‘Likes’ determines if the deal will become a reality © TBG Digital 2011

62. >ASOS – bring the shop to your audience © TBG Digital 2011

63. >Sainsbury’s – Exclusive Facebook offer > Drive Facebook ad traffic to offer in custom tab £15 off £75 shop for new users > CPA dropped from 400% above target to 60% below target © TBG Digital 2011

64. >Victoria’s Secret - Gift vouchers © TBG Digital 2011

65. >Babies R Us - Gift list / wedding pool © TBG Digital 2011

67. Generate buzz among friends online

68. Build loyalty© TBG Digital 2011

69. >Convert fans offline Conversion rate for people who actually walk into a store is 20% for retailers and 40%-60% for electronics. . 20% 60% Source: Businessweek, August 2010 © TBG Digital 2011

70. >Convert fans offline See who’s checked in nearby And tell your friends where you are and who you’re with © TBG Digital 2011

71. >Convert fans offline Conversion rate for people who actually walk into a store is 20% for retailers and 40%-60% for electronics. . 20% 60% Source: Businessweek, August 2010 © TBG Digital 2011

72. >Individual: check in to claim deal © TBG Digital 2011

73. >Charity: check in and we’ll donate © TBG Digital 2011

74. >Digital loyalty card: collect and claim Starlight bar & grill © TBG Digital 2011

75. >Social: tag friends with you © TBG Digital 2011

76. > What’s the plan? Planned roadmap of engagement Shops Gift vouchers Give away promo Competition Celebrity Page Deals & Places Deals & places Poll Win Video Celebrity Poll Brand Wall posts Seasonal promo Christmas Brand Sale Charity Brand Win Christmas Social ads © TBG Digital 2011

77. Still not sure? © TBG Digital 2011

78. >It’s only just begun… Decca Records rejected the Beatles in 1962 with the comment: "Guitar groups are on the way out” Social Media has only just started… © TBG Digital 2011

79. > About TBG > One of three Facebook “alpha” Advertising API Partners; Launched ONE Media Manager in 2009 - a Facebook-specific bid management platform > One of the largest purchasers of Facebook Marketplace inventory in the world with more than 2 billion daily impressions at peak > 60 specialists in London working exclusively on Facebook campaigns > Currently running campaigns for nearly 90 clients in 40 countries > Global coverage - offices located in: > London > Paris > Amsterdam > Hamburg > New York > San Francisco > Chicago © TBG Digital 2011

80. > Some Clients © TBG Digital 2011

81. > Need some help? Lee Griffin – Lee.Griffin@tbgdigital.com Siebren Roorda – Siebren.Roorda@tbgdigital.com © TBG Digital 2011