Presentation to Direct Marketing Association, October 2009. Thanks to Facebook, people are sharing more about themselves online than ever before. Not only is this affecting personal relationships, marketers too can use this information to better target their messages. The ultimate holy grail for marketers is a 100% response rate for their campaigns. The data shows unequivocally: response rates go up dramatically when the communication feels personalized or is endorsed by a friend. With hypertargeting, news feeds, and retweets, Facebook and Twitter give us the opportunity do both. Marketers need to be where their customers are and communicate via the channels preferred by their audiences. Increasingly, this is on Facebook. To be successful in the Facebook Era, marketers need to master the new skillset and consumer psychology of the social web. In 2007, Clara Shih developed Faceconnector, which integrates Facebook with Salesforce and was the first business application on Facebook. Shih is CEO of Hearsay Labs and author of the business bestseller "The Facebook Era."

1. Marketing in the
Facebook Era
How hypertargeting, broadcast referrals, and
new methods of measurement are yielding
higher response rates and lift
“Clara’s book recognizes that
we’ve come to a place where
people can represent their real
identity—and use the social filters
on the Web to connect with the
Clara Shih (@clarashih) world around them.”
Author of The Facebook Era & —Sheryl Sandberg
Chief Operating Officer, Facebook
CEO, Hearsay Labs

2. Learn more about Facebook marketing
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3. Tweet along
@clarashih

4. The trends and numbers

5. Welcome to the Facebook Era
Over 300M active users
6 billion minutes spent each day
1M developers
from 180 countries
is email dead?

6. PUBLISH
everybody-to-
everybody
many-to-many
1-1 1-many
CONSUME

7. Facebook’s growth is staggering
300 mm
250
200
150
100
Sept 06 Sept 07 Sept 08 Sept 09

8. Winning mainstream audience appeal
Source: Nielsen Online Global Index, Dec 2008

9. CMOs are shifting dollars to social media
CMO Council – March
2009
“ Digital marketing and new
media dominates demand
generation and advertising
spend allocation priorities for
the coming year, with budgets
aimed at online and Web 2.0
initiatives almost 50% higher
than spend earmarked for
traditional media. ”

10. Four Pillars of Facebook Marketing
Facebook Apps Facebook Pages Facebook Ads Engagement Ads

11. The new consumer pyschology

12. (short video)

13. Why Facebook was different

14. Facebook as a forum for online identity
Photos and interests
Demographic info
Employer, school, city
Friends
Socially acceptable to share

15. Facebook Connect extends trusted identity to
any website

16. As a result, user expectations have changed
Due diligence expected
Personalized interactions
Transitive trust

17. Facebook and Twitter invented new modes
of communication
Casual
But emotional
Foster weak ties
Capture long tail

18. Transitive trust in marketing: the power of
referrals
Word of mouth automated
Michael Jones
and implicit
is a fan of
Bonobos Existing customers = your
volunteer sales force

19. eMarketer: Consumers trust their friends

20. Recalculating Customer Lifetime Value (CLV)
Social CLV = CLV
+ Level of influence x Size of network

21. Direct marketing through
hypertargeted ads

22. What is hypertargeting?
Photos and interests
Demographic info
Employer, school, city
Friends
Wealth of information from
Facebook profiles

23. On Facebook, ads are a form of direct
marketing
“ Fifty percent of my
advertising is wasted, I Define your idea
marketing list attributes
just don’t know which
Minimize “wasted” ads
fifty percent” Test and iterate

25. Tip: Start campaigns with a broad audience,
then hone in on segments
You may be surprised who
is converting
Bid differently for different
“lists”

26. Think global, act local
CASE STUDY
Bonobos Pants Company
Targeted men ages 25-50
Geo/college-specific
Timed with sporting events
Pay more for premium audiences

27. The Facebook “landing page” tab

28. Try it yourself
Limited Time Offer
Receive free Facebook advertising
credit with book purchase
Buy on

29. New Facebook-Nielsen ‘Brand Lift’ tool
measures ad impact
Polls to measure sentiment and
purchase intent
No personally identifiable
information
General availability in early 2010
Must be a Nielsen customer

30. New Facebook ‘Engagement Sampling Ad’
Home page campaigns start at $50K
CASE STUDY: Texas Pete hot sauce
5000 samples in 2 days
Facebook starting to store mailing
addresses
Mailing addresses shared with
advertisers for sample only, not as
for list use after the fact

31. Tip: Use Facebook’s ad tool to check your
audience size
Analogous to the size of
your marketing list

32. All about Facebook Pages

33. The ultimate opt-in marketing channels
CASE STUDY
Dell Outlet moved $2M in inventory over
Twitter last year

34. Tip: Create drip campaigns for your Facebook
Page
Campaign calendars provide
brand consistency, build trust,
and are more easily
measured
Tip: link your Facebook Page
to your Twitter handle

35. Drive and measure response with special
offers

36. Tip: Test which days/times yield highest
response rates for your audience

37. Tip: Target messages to fans
Eg, Social Networking
Conference in London
More targeting options
coming soon

38. Facebook and CRM

39. Faceforce: Bringing Facebook into Salesforce
(2007)
Developed by Todd Perry and
me in summer of 2007
First business app on Facebook
platform
Faceforce pulls real-time
Facebook profile and friend
information into Salesforce lead,
contact, and account records
Cannot permanently store
Facebook data
Updated version now available
in private beta

40. Thank you
twitter clarashih
email clara@hearsaylabs.com
fan http://facebook.com/thefacebookera
RELEASED APRIL 1, 2009
http://thefacebookera.com

41. Learn more about Facebook marketing
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