How To Make Money Using Facebook in Q4. Presented By Jason Roussos Living Direct

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1 How To Make Money Using Facebook in Q4 Presented By Jason Roussos Living Direct 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 1

2 Overview of Facebook Strategy Launched strategic vision almost 12 months ago One phase of Facebook advertising used to drive Direct Revenue Second phase uses content to build list and convert interested browsers into buyers (Lead Generation) Foundation for success includes: Merchandising teams supporting through ideation Heavy need for creative involvement on continuous basis Analytics are and testing are key Four Tactics To Monetize Facebook Building Custom Audiences Ad Creative and A/B Testing Process Attribution Impact on Other Channels Lead Generation 2

3 Opportunity: Building Custom Audiences Create rules within 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 remarketing ad clicks get associated a Search remarketing Target Execution 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 time period immediately following the search ad click Social Personas Using Audience Insights Personas allow us to define a proven target audience group in Facebook one time, and quickly apply that target to future campaigns without having to recreate the target group each time 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 effecting performance vs the ad creative 3

4 Custom Audience 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. Leverage Event Targeting In Ad Creative Apply life event targeting: recent home buyers to pair down reach of category specific lookalike custom audience Revise ad creative to reflect messaging that speaks towards the specific life event 4

5 5

6 Ad Creative Freshness Key To Engagement Ad Creatives become stagnant in as short at 2 weeks Create 3-4 unique ads within each Ad Set. Set up schedules. We currently run one active ad each week and rotate every Sunday night. Ad Creative Testing Offers While the CTA ad performed marginally better in ecommerce metrics, we found that when highlighting a sale, it generated 40% more Actions (likes, shares, comments, etc.) 6

7 Impact of Social Revenue has scaled to $467,000 in July 2015 with 4 ROAS When a social ad was seen conversions were 15% more likely to occur across any channel. When a social ad interaction was first in the path, the net ROAS of that sale was 36% higher than if there was no social interaction at all. Facebook Lead Generation Target key segments of communities for list building Use high quality content to build lists Leverage content in drip marketing to convert leads to buyers Currently managing campaigns targeting: Kegerator.com - Beer enthusiasts WinecoolerDirect.com Wine enthusiasts CompactAppliance.com RV and Boating; Small home living 7

8 Kegerator.com Draft Mag Case Study Kegerator.com Draft Mag Case Study Offer and Sign Up Testing 8

9 Kegerator.com Draft Mag Case Study Leveraging Content Kegerator.com Draft Mag Case Study Systems and Data Leads are loaded into Agilonecustomer data warehouse and then linked to Silverpop(Can use any database or platform) Use rules based campaigns to auto send s specifically targeting lead topics Use deal of the month promotions to convert already engaged subscribers (We run monthly deals up to 25% to leads only). Running A/B test we show 30% higher conversion when we run this sweep up discount than when we don t. Match back addresses to actual transactions in order to get more accurate revenue numbers 9

10 Kegerator.com Draft Mag Case Study The Numbers 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 Facebook Key Takeaways Facebook is a viable channel for profitable customer acquisition activities Treat like traditional media channel 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 Program can be managed effectively using native tools Future of retail will require more merging of commerce and community in order to be relevant 10

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