Living Direct Austin, Texas Pinterest vs. Facebook What s the best source of traffic?

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1 Living Direct Austin, Texas Pinterest vs. Facebook What s the best source of traffic?

2 Living Direct overview Founded in 1999 Manage network of brands that focus on building communities that support specialty appliances Direct source own lines of products to sell direct to consumer Currently manage Kegerator.com, Winecoolerdirect.com, CompactAppliance.com, Allergy&Air.com brands Headquarters in Austin, Texas

3 Overview of Facebook Strategy Launched strategic vision almost 12 months ago Program consists of three facets Branding / Community Lead Generation / List Building Transactional new customer acquisition and retargeting Large focus on community and education Separate campaigns around genre for each brand: Beer lover, Wine lover, Healthy living, Small home/space saving Foundation for success includes: Merchandising teams supporting through ideation Heavy need for creative involvement on continuous basis Analytics are and testing are key

4 Transac?onal Facebook: Search Profile Drive Custom Audiences Opportunity: Create rules within Kenshoo and Facebook to group custom audiences by searcher s intent. Examples of this are: Exact and phrase match wine cooler keyword ad clicks get associated to a PPC Wine Cooler Target High funnel display ad clicks for compact appliances get associated to a Display CA Target Search or Display remarkecng ad clicks get associated a Search remarkecng Target Execu?on Create a website traffic custom audience to sniff out the utm (or other tracking codes), and group searchers intent. Create aggressive FB bidding strategies for Cme period immediately following the search ad click Results: CTR rates in the high 3% s (over 200X our average CTR) ROAS 27% higher than average custom audience targets Measured a 38% increase in search conversion rate of traffic that viewed a FB Ad.

5 Transac?onal Facebook: Kenshoo Social Personas Strategic Advantage: Personas allow us to define a proven target audience group in Facebook one?me, and quickly apply that target to future campaigns without having to recreate the target group each?me we create a new campaign or Ad Set We are able to edit this persona in one place and have the changes applied to all ads using that persona. We are able to aggregate performance quickly at the persona level to get an understanding how the target group is effec?ng performance vs the ad crea?ve Prac?cal Insights: On average interests and demographics outperform geo with higher CTR, and CVR Older personas have higher CPC rates, but much higher CTR Mobile ad crea?ve fa?gues quicker than desktop, (higher rate of crea?ve rota?on is necessary)

6 Transac?onal Facebook: Life Event Targe?ng to drive interest at the right?me Strategy / Setup: Apply life event targe?ng: recent home buyers to pair down reach of category specific lookalike custom audience Revise ad crea?ve to reflect messaging that speaks towards the specific life event Results: 12X Increase in CTR (from.15% to 1.8%) 50% reduc?on in CPC (from $0.81 to $0.43) 347% increase in CVR (from.19% to.85%) 8X sales month over month within segment Post Analysis Itera?ons / Expansion: Newlywed (targe?ng annual anniversaries of) Recent mortgage borrower New Mover

7 Transac?onal Facebook: Ad Crea?ve Rota?on to Avoid Ad Fa?gue Performance Issue: Ad Crea?ves become stagnant in as short at 2 weeks, poten?ally causing CTR to drop in half and even as much as 2/3 within a month. Ad Crea?ve Rota?on: Create 3-4 unique ads within each Ad Set. Set up schedules. We currently run one ac?ve ad each week and rotate every Sunday night. Post Analysis Itera?ons: CTR holds steady throughout month, at most seeing a 5% decrease MoM. With ad rota?on, we keep all social ac?ons on our ads, we have found that ads with more social ac?ons create a stronger brand awareness and CTR.

8 Transac?onal Facebook: Ad Crea?ve A/B Tes?ng General Awareness vs Call to Ac?on: CTA crea?ve produced a 15% higher Conversion Rate with a 5% higher CTR While the CTA ad performed marginally beier in ecommerce metrics, we found that when highligh?ng a sale, it generated 40% more Ac?ons (likes, shares, comments, etc.) 1.39% CTR 0.65 CPC 1,392 Ac?ons 1.29% Conversion Rate 1.46% CTR 0.74 CPC 1,946 Ac?ons 1.48% Conversion Rate

9 Transac?onal Facebook: Cross Channel & Cross Device Airibu?on Because Facebook Custom Audiences overlap significantly with other low funnel marke?ng channels such as remarke?ng and affiliate, it is impera?ve to measure and op?mize on according to influence. Findings: At scale, social par?cipated in significantly more conversions than previously expected Custom Audience s had a significantly higher causal effect on the conversion than display remarke?ng. When a social ad was seen conversions were 15% more likely to occur. When a social ad interac?on was first in the path, the net ROAS of that sale was 36% higher than if there was no social interac?on at all.

10 Transac?onal Facebook: Revenue To- date / 12 month Projec?ons January February March April May Rev $12, $60, $75, $102, $124, May Vs February: 104% increase in revenue At the beginning of the year our July forecast was $93,750 (we beat that by 32.5% in May) High level es?mated projec?ons for May 2016 are $500,000 ROAS is 30% higher than we forecasted Currently hiqng 4 ROAS

11 Facebook Lead Genera?on Strategy Target key segments of communi?es for list building Use high quality content to build lists Leverage content in drip marke?ng to convert leads to buyers Currently managing campaigns targe?ng: Kegerator.com - Beer enthuasiasts WinecoolerDirect.com Wine enthusiasts CompactAppliance.com RV and BoaCng; Small home living

12 Kegerator.com Case Study Free Dras Magazine Giveaway Social Campaign Strategy

13 Kegerator.com Case Study Free Dras Magazine Giveaway Offer and Sign Up Tes?ng

14 Kegerator.com Case Study Free Dras Magazine Giveaway Learning Center Portal linked to and social campaigns

15 Kegerator.com Case Study Free Dras Magazine Giveaway Systems and Data Leads are loaded into Agilone customer data warehouse and then linked to Silverpop Use rules based campaigns to auto send s specifically targe?ng lead topics Use deal of the month promo?ons to convert already engaged subscribers Match back addresses to actual transac?ons in order to get more accurate revenue numbers

16 Kegerator.com Case Study Free Dras Magazine Giveaway Campaign has generated over 100,000 new leads in nine months Cost per lead is $1.50; Revenue per lead is $7.00 Branded site traffic has increased over 500% YOY revenue has more than doubled since launch of program Facebook followers have grown to over 80,000 Secondary SEO benefit of content engagement

17 Facebook Key Takeaways Facebook is a viable channel for profitable customer acquisition activities It needs to be treated like a traditional media channel Those that take the easy road will not be successful It requires an investment in content and community in order to be successful Multi step process to execute either transactional or lead generation activities Lead generation is easier to start internally with smaller budget. Investment in the subsequent communication process key Future of retail will require more merging of commerce and community in order to be relevant Tools of the trade: Kenshoo Social; Effective Spend; Lead Pages; Agilone; Silverpop