Fb ads-explained

Advertising on
Facebook: Products
How to drive action online, in-store and
in mobile app for measurable results
January 2017

People are spending more time on
mobile and this is changing how people
discover and connect with businesses,
products, and services.
Sixty percent of people on Instagram
say they discover new products on the
platform, while 75%
say they’ve taken
action after being inspired by a post.1
As people discover information,
products and experiences in this
fashion, advertising strategies have to
change to keep up. Businesses need to
understand the new ways people are
showing interest in a product. With
Facebook’s Family of Apps and Services,
advertisers can reach more people, to
achieve their objectives.
This guide will provide an overview of
our advertising products, and how to
get more out of them.
1 Instagram user survey, November 2015
Advertising on Facebook: Products 02

Contents
04 The Facebook Family of
Apps and Services
05 Planning your campaign
06 Getting started on Facebook
07 Choosing the right objective
08 Buying types
09 Auction and delivery
11 Targeting
13 Designing your ad
20 Measurement
23 Getting started with
advertising on Facebook

More places
Reach people on their favorite apps and websites with ads
across Facebook, Instagram and Audience Network.
Across devices
Show your ads on whatever device your audience happens
to be using, with ad placement options for mobile or desktop.
Fewer steps
Running ads across platforms and devices is easy.
Just build your ad once, then select Facebook, Instagram
and Audience Network under Placement. No resizing
or reformatting required.
The Facebook Family of Apps and Services enable you to run ads
across Facebook, Instagram or Audience Network, on mobile and
desktop. Our ad placement options—the places where you can
run ads—let you grow your reach with precision.
Facebook Instagram Audience Network
Reach 1.71 billion
Reach 500
million people
Reach people across
1000s of mobile apps
and websites
Reach people where they
spend a majority of their
time on mobile
Reach people off
of Facebook

Planning your
campaign
As you plan your campaigns on
Facebook and Instagram, start by
asking yourself a few questions
What are my business goals?
Match your goals to the objectives available to you, such as acquiring new
customers, driving in-store sales or increasing awareness for a new product.
How will I measure and track results?
Before launching your campaign, identify the key performance indicators
(KPIs), or what’s important to define the success of your campaign.
Who is my audience?
You can use existing segments, or build new audiences, based on your
campaign objectives so you can deliver the right message to the right people.
The answers to these questions will define your strategy and help you measure
the effectiveness your advertising campaigns across the Facebook Family of Apps
and Services alongside other marketing channels.
It’s not too early to set long-term goals for your program. Consider metrics
such as lifetime value (LTV), downstream value, average order value (AOV) and
share of new customers and how your media strategy could affect your long
term goals.

Getting
started on
Facebook
These are optional tools that
will help you access some of
Facebook’s advanced advertising
products designed to get the
most out of your campaigns
Leverage your 1st
party data
The best audience consists of people who know your brand.
• Implement the Facebook pixel on your website or our Facebook SDK
with App Events on your mobile app. These tools will help measure
conversions, optimize delivery, and build audiences based on actions
people take on your site or app
• Use an existing customer list to build audiences of people who have
already engaged with your brand
Determine your creative
Use any existing creative you have, like videos or product imagery, or
determine if you need to develop new creative for your Facebook campaigns.
Pull in your product catalog
To use dynamic ads, which targets users who have expressed interest in
specific products on your site or app, use your online product catalog to
build your ads.
Include your store locations
If you want to drive people to your store, make sure you can link your store
location to your ad.

Choosing the
right objective
Your campaign starts with choosing
an objective. The objectives you
choose depend on the needs of
your business, or the goal you have
for your campaign. For example,
during a growth phase, focus on
brand awareness and customer
acquisition. When thinking about
proﬁtability, focus on driving
transactions and conversions
Facebook and Instagram’s solutions can track actions across devices through
the entire purchase journey; from gaining top of mind brand awareness,
generating demand for a product, acquiring a customer who is demonstrating
intent to buy, and finally making the sale or taking an action.
When building your campaigns, map the objectives to your goals:
Awareness
Build top-of-mind-awareness, equity, affinity, and consideration
• Brand awareness
• Local awareness
• Reach
Consideration
Generate interest, demand and purchase intent for products, services
or promotions, both online and in-store
• Traffic
• Engagement
• App installs
Conversions
Encourage people to complete transactions with your business
• Conversions
• Product catalog sales
• Store visits
• Video views
• Lead generation

Buying types Reach and Frequency
To run successful brand campaigns, you need to reach your audience
often enough to get your message across. Reach and Frequency buying
on Facebook and Instagram lets you accurately plan and deliver campaigns
with predictable reach and controlled frequency. You can control not only
the frequency, but also the order people see your ads. You can access the
sequencing tool in your Ad Set after you have created your ads. If your brand
or product has more relevance for people at certain times of day, you can
schedule your ads to reach them during the most impactful times.
Reach and Frequency buying gives you predictability and control over your ad
delivery when reaching audiences of more than 200,000 people.
Auction
The ad auction determines which ads should be shown, so advertisers can
reach audiences that are more likely to react to their content. The ad auction
takes into account your bid, the likelihood of driving a desired outcome, your
site performance, ad quality, and how relevant your ad is to the targeted audience.
TRP
For video ads, TV buyers can now extend and complement TV campaigns by
buying Target Rating Points (TRPs) on Facebook and Instagram. TRP Buying
gives predictable delivery of TRPs that are verified on-target by Nielsen.
08

Set the right bid
There are two options for bid setting:
• Automatic – our ad auction system will adjust your bid to generate the
most desired actions possible with your budget. If you don’t have a
specific value for the desired customer action, use this type of bidding
• Manual – you decide on the value of the desired action. Start with a bid
that represents how much you value the action you’re optimizing for.
Lower bids may reduce the number of people in your target audience
who see your ad
• If you’re optimizing for website conversions or mobile app installs
and want to specify a manual bid, you can choose to set an
“average” bid or a “max” bid.
Determine the right budget
To ensure smooth delivery, your daily ad set budget should be greater
than your bid. If you are using conversion optimization, your ad set budget
should be many times greater than your bid.
• Tip: If you’re not getting the [volume of] results you want, try increasing
your bid
• Note: Splitting your total budget across too many individual ad sets
will make optimal ad delivery more difficult
Choose the right audience
Choosing the right audience makes a big difference in delivery of your ad set.
Use a specific audience to reach people who will engage with your content.
The estimated reach numbers in the ads create tool will help determine if
the targeted audience is too broad or narrow.
Tips for choosing an audience:
• Use interest and/or behavior-based targeting categories
• Retarget website visitors or existing customers using Custom Audiences
• Build Lookalike Audience based on your high-value customers
Your audience range should match your ad’s objective. Use a broad
audience for brand awareness ads and a more specific audiences for direct
response. If your ad is not delivering as often as you’d like, expanding the
audience size can help.
Be mindful of audience overlap
Audience overlap means multiple ad sets are delivering to audiences that
contain the same people. The ad auction tries to avoid showing too many
ads to the same person from a single advertiser over a short time period,
so audience overlap might explain why some ad sets are not hitting the
full budgets.
• Tip: To avoid audience overlap, use the audience building tips from
the previous section. Another option is to consolidate your ads into
a single ad set with a larger budget
Auction and delivery

Select ﬂexible placement
options, such as Instagram
and Audience Network
When you set up your ads to run across Facebook, Instagram, and the apps
and sites in Audience Network, we’ll optimize the delivery of the ads according
to your objective and budget. This will help drive more of your desired outcome
with the same ad set budget.
Improve your relevance score
and feedback
If your ad gets little positive feedback or even negative feedback, its delivery
may be affected. If that’s the case, review your ad’s relevance metrics in ads
reporting and adjust the targeting so the ad reaches the right audience.
Test and iterate
The ad auction is a dynamic marketplace. The best campaign performance and
delivery requires testing and iteration. However, as you adjust any of the levers,
keep in mind that it takes our ad auction system some time to register changes.
Give the system time to update your delivery before making further changes.

Core Audiences
Created by location, demographics, interests and behaviors, Core Audiences
enable you to reach a broad audience with interests relevant to your
campaign objectives.
Custom Audiences
Custom Audiences enables you to connect with your most valuable
audiences. It is a key targeting capability to reach existing customers
and prospects. A variety of data sources can be used to power Custom
Audiences: CRM data, Facebook pixel, and the mobile SDK.
How to get the most out of your Custom Audiences
Mirror Custom Audiences segments to your existing audience segmentation:
Custom Audiences works best when specifically targeted to a particular
group of your customers. Leverage what you already know about your
customers, for example if they’re loyalty members or cart abandoners,
and tailor messaging to personalize the experience and encourage action.
Build Custom Audiences segments based on where your customers are
in the funnel: Custom Audiences provides a way to adjust your marketing
strategy depending on how familiar your audience is with your brand, and
where they are in the purchase funnel. With Custom Combinations, you can
build rules and layer on customization to only include visitors of specific
pages. Segment audiences by pages visited, time spent, frequency of their
visits, device used, and more.
Engagement Custom Audiences: identify and reach people who have
viewed a video, engaged with a Canvas ad, or started filling out a Lead
Ad form.
Enhance your email or direct mail campaigns: Use Custom Audiences
from a data file to complement a direct mail campaign. Reach customers
who don’t open email, or amplify your direct mail message by reinforcing
it on Facebook.
Search campaign: Find your customers before they search for you. Use
Custom Audiences from your website or mobile app to uncover intent
earlier in the purchase funnel to maximize search spend.
Target customers that have demonstrated intent to purchase: Implement
the Facebook pixel on your website and/or the Facebook SDK in your
mobile app to gain insight into customer intent. With that data, you can
target people based on the specific actions taken on your website or mobile
app, and reach them on Facebook. Advertisers can segment audiences by
pages visited, time spent, frequency of their visits, device used, and more.
Remarket to people who abandoned their shopping cart with messaging
that drives them back to purchase. Or cross- or up-sell to people who
recently purchased items on your website or mobile app.
Targeting

Target customers across devices: Facebook can target across device to drive
conversions. Consider cross-device conversions to ensure you’re sending
the right message to the right people on the right device based on where
they are in the conversion funnel. For example, if you know your customers
are more likely to convert on desktop, target with clear calls to action on the
web. You can view your cross-device conversions by enabling the cross-
device view in Facebook ads reporting.
Use quality data to build your Custom Audience: When using Custom
Audiences from a data file, you will have a better match rate with people
on Facebook when using higher quality data (e.g. complete email
addresses, newer data, etc.).
Lookalike Audiences
Lookalike Audiences allow you to reach new people who share similar
characteristics with customers that have expressed interest in your
business. You can use Lookalike Audiences to reach people similar
to your Custom Audiences and page fans.
How to get the most out of your Lookalike Audiences
Use your website visitors: Using data from a Facebook pixel, you can
find people who are similar to those that have demonstrated high intent,
recently visited, or converted on your website to drive more sales.
Use specific seed lists to build Lookalike Audiences: Use seed lists that are
specific to the objective you want to achieve, such as people who tend to
convert online versus offline and find people who look like them.
Use existing customer list: Build your Lookalike list based on existing customer
traits to reach new users.
Audience size slider: Start by optimizing your Lookalike Audience for similarity,
to understand how your ads perform with more precise matching. Keep in
mind: 1%
is optimized for similarity and top 5%
is optimized for reach.
INSTAGRAM TIP!
Instagram’s total audience is smaller than Facebook’s. Start
with broad targeting and refine over time as you learn which
audiences convert. For example, consider starting with a
5 or 10%
Lookalike Audience and narrow down to 1%
as the
system learns to deliver the outcomes you care about.
12

Designing your ad
Media
PHOTOS OR VIDEOS
Photo ads use compelling imagery to engage your audience on Facebook,
Instagram or the Audience Network.
Creative considerations
Use product imagery when targeting people who have viewed products
on your website.
Test different creative strategies such as product imagery or lifestyle imagery
to see which works best for your brand.
Platform tips
Across Facebook, Instagram and Audience Network, use high quality,
immersive images that are unique to your brand to capture attention.
Create a clear call to action to direct behavior.
For a complete list of specs and recommendations for each platform
please visit:
Facebook Page Post Engagement: Photo Ads Guide
Instagram Page Post Engagement Ads Guide
Audience Network Design Guidelines

Video ads are an engaging way to bring brands to life through sight, sound,
and motion in the Facebook News Feed, and on Instagram. Promote videos
that show behind-the-scenes footage, product launches or customer stories
to raise awareness about your brand.
Capture attention quickly with your visuals – start with your more captivating
content and incorporate your brand identity early
Design for sound off – tell your story visually and use text and graphics
to help deliver the message
Frame your visual story – explore different frames and highlight key elements
Play more – experiment with your content with types of creative and length
to see what resonates
Platform tips
Across all platforms, use strong visuals across to capture attention as people
scroll through their feeds.
FACEBOOK
Create a strong call-to-action buttons to drive action after they view your ad
Visit our Video Ads Guide for a complete list of specs and recommendations
If you do not choose a call-to-action, the Learn More call-to-action that links
to your website will automatically appear below your ad
INSTAGRAM
Visit our Instagram Video Ads Guide for a complete list of specs and
design recommendation

Display
SINGLE
Use a single image with minimal text to capture attention
Use your branding or imagery unique to your brand to increase
brand recognition
Use bold photography or art to take advantage of the real estate
on the news feed
Create a strong focal point in your image to clearly communicate
what you’re selling or providing to people
Platform tips
FACEBOOK
Across Facebook, Instagram and Audience Network, use high quality,
immersive images that are unique to your brand to capture attention
Use a clear call to action to direct behavior

CAROUSEL
The carousel format can showcase up to 10 clickable images or videos in a single ad unit – can go
up to 30 images when using Dynamic Ads in the carousel. This format gives you more creative real
estate in Facebook, Instagram or the Audience Network to showcase your brand and products.
Create a theme for images in your carousel to tell a story
Test different creative strategies such as storytelling, product imagery, or lifestyle imagery
to see which works best for your objective
Platform tips
FACEBOOK
Include an optional offsite site link, or call-to-action (CTA) button, to drive action after they’ve
scrolled through your products. Option to use video or multiple CTAs. You can also create cards
automatically by providing the URL of your website – this will allow you to run multiple campaigns
will little effort in set-up
INSTAGRAM
Tell deeper stories and share more images with your audience. People who see carousel ads can
swipe to the left from the initial image in feed to see additional images and a link to your website
with a button

Formats
CANVAS
Canvas is an immersive
creative format that creatives
a native experiences within
the Facebook app
LINK ADS
Direct people off of
Facebook from any
device to a specific
location on your website
LEAD ADS
Capture intent from
people interested in your
product or service within
the Facebook app
MOBILE APP ADS
Reach mobile users to drive
quality installs for your app,
feature products, and to
create app engagement to
increase revenue and lifetime
value of your customer base
DYNAMIC ADS
Dynamic ads enable you to
automatically promote one or
more relevant products from
your catalog to drive people
to your website,
app or store

CANVAS
Call to Action
Shop Now, Book Now, Learn More, Sign Up, Download, Watch More,
Contact Us, Apply Now, Donate Now, Request Time
Tips
Storytelling comes to life: build your Canvas using a combination of videos,
still images and call-to-action buttons.
Designed for mobile: Leveraging the same technology used to display
photos and videos quickly in the Facebook app, Canvas was built to bring
content to life in a fast-loading and seamless experience
on Android and iOS.
Flexible for any objective: Have complete creative control to achieve
any objective like telling your brand story, promoting a new movie,
showcasing products or installing your app.
Platforms
LINK ADS
Call to Action
Contact Us, Apply Now, Donate Now, Request Time
Tips
Take advantage of the large, clickable real estate to attract attention and
show your brand
Link ads are great for driving offsite conversions because the entire image
is a click target, rather than one small link
Use video, carousel or an image to showcase your product or service
Platforms
LEAD ADS
Call to Action
Apply Now, Download, Get Quote, Learn More, Sign up, Subscribe
Tips
Pre-populate the form with relevant contact information like name
and email address
Useful for e-commerce, education, local, elderly care, financial services,
auto, B2B tech, CPG, professional services, and telco advertisers
Platforms

MOBILE APP ADS
Call to Action
Install Now, Book Now, Download, Learn More, Listen Now, Play Game,
Shop Now, Sign Up, Watch Video, Watch More
Tips
Include visuals of mobile devices
Demonstrate the value of the app with statistics (i.e. how many songs they
can access on your music app)
Showcase what the app does
Platforms
DYNAMIC ADS
Call to Action
Contact Us, Apply Now, Donate Now, Request Time, Get Directions,
Send Message
Tips
Advertise all of your products – import your entire product catalogue
to Facebook so you can automatically promote any product from your
inventory
Reach people interested in your products – reach audiences on Facebook,
Instagram or the Audience Network who have already expressed interest in
your brand, and send them back to your website or app
Cross-sell and up-sell – cross-sell by promoting complementary products
to people who have recently purchased on your website or mobile app.
Up-sell by promoting similar products they expressed purchase intent in,
but have higher conversion values
Access the pixel through your eCommerce platform – if your website
is powered by an e-commerce platform like Magento, Shopify or
BigCommerce, Facebook makes it easy to install the Facebook pixel,
create a product catalog and run dynamic ads. Learn more
Platforms

Measurement
Facebook helps marketers see
results clearly by providing
people-based tools tomeasure
your audience, brand and
sales outcomes, allowing you
to connect the dots between
your online advertising and true
business results.
Measure campaign performance and understand results with people-based
measurement solutions that help you:
• Measure based on real people
• Measure the metrics that matter to your business
• Measure across everything
Measurement Solutions
AUDIENCE OUTCOMES
Use these measurement solutions to:
• Understand how many people you reached with your ads
• How many times you reached them
• Determine if your ads reached the right people
• Determine if your ads reached people across devices
Facebook ads reporting
Use Facebook ads reporting to measure people-based metrics for ads served
on Facebook, Instagram and Audience Network. Create and export reports via
Ads Manager, Power Editor and Ads Insights API to see your most important ad
metrics and learn how you’re reaching your business goals.
Split Testing
If you want to understand how different aspects of your ads affect campaign
performance across Facebook, Instagram and Audience Network, try a split
test. Run controlled A/B tests with no audience overlap; get clean, single-
variable tests; easily measure results and optimize ad performance.

Audience Insights
Learn more about your target audience on Facebook with Audience
Insights, including demographics, lifestyle, interests and purchase behavior
of your target audience. Find out what’s unique about your audience, so
you can create more relevant content.
Reach reporting:
Measure how many people were reached by your ads, how often they were
reached across devices and how much each publisher contributed to your
campaign’s unique reach.
Nielsen DAR/TAR
Measure and compare audiences reached for online and TV campaigns with
Nielsen Digital Ad Ratings (DAR) and Total Ad Ratings (TAR).
Viewability and verification partners
Measure and verify viewability and attention metrics for Facebook and
Instagram inventory through best-in-class viewability partners.
BRAND OUTCOMES
• Determine if your ads generated awareness for your brand
• Understand if your ads shifted the perception of your brand
Brand Lift
More accurately measure the effect of your ads on your brand, through
Brand Lift on Facebook and through partners including Nielsen and
Millward Brown. All three solutions use the same underlying gold-standard
methodology: experimental design, comparing poll responses from the
audience exposed to your ads to a holdout group who didn’t see your ads.
SALES OUTCOMES
• Determine if you caused a customer to take a desired action, such as
buy a product, sign up for a service or download your app
Facebook conversion reporting
Use Facebook’s conversion reporting to measure online and offline conversions
based on people-based metrics for ads served on Facebook, Instagram
and Audience Network. Create and export reports to see your most
important ad metrics and learn how you’re reaching your business goals.
Facebook Conversion Lift:
Facebook’s Conversion Lift enables you to measure the true impact
Facebook ads have on real people. Using conversion lift, you can determine
the additional business driven online, offline or in their mobile app from
people reached by Facebook ads across devices.
Partner lift
Facebook’s partner lift integrations leverage best-in-class vendors to
measure lift in sales using partner-based ROI measurement solutions.

Attribution
Use rules-based attribution and results-driven multi-touch attribution to help advertisers understand
how their campaigns drive online, offline and cross-device conversions across their entire digital media
spend.
Multi-touch attribution (MTA) partners
Facebook enables MTA partners to provide people-based MTA reporting across publishers, including
Facebook. Gain a better understanding of the ROI across publishers, including on desktop and mobile
and make more accurate investment decisions across all media and channels.
Marketing mix modeling (MMM) partners
Facebook enables partners to better measure and compare the effectiveness of your marketing channels by
contribution to sales, efficiency and ROI.
Mobile Measurement Partners (MMPs)
Working with Facebook’s Mobile Measurement Partners (MMPs) will help you more accurately measure
your Facebook mobile app ad campaigns, making it easier to understand how Facebook drives installs
and revenue for your app compared to other ad networks.

Getting
started with
advertising
on Facebook
Checklist
Identify your advertising objectives (page 6)
Review their existing data and assets (page 7)
Optional: Implement the Facebook pixel, SDK, or offline conversions
to capture actions and conversions across your website, app, or store
Determine your Facebook ad objectives, and how you want your
ads delivered (page 8-10)
Define the audience you want to target (page 12-13)
Design your ad (page 14-19)
Measure performance (page 20-22)

We hope you found this guide informative and actionable. Facebook is uniquely
positioned to help you reach your audience, no matter how broad or speciﬁc.
With our catalogue of powerful direct response tools, we look forward to
helping you reach your campaign objectives. Now that you’ve completed this
guide, use our Advertising on Facebook by Business Objectives to learn
how to leverage our products for your speciﬁc marketing objectives.
For more information, please visit https://www.facebook.com/business

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