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Retargeting on Facebook
1. Retargeting on Facebook
by the Numbers
The Analysis of Retargeting in the Center
of the Social Web
July 2014
2. Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
www.adroll.com 2
Executive summary
Over the past two years, advertisers have rapidly adopted retargeting on Facebook to drive key
metrics like conversions, app downloads, and lead generation. Recognizing how valuable it’s been for
advertisers, Facebook expanded their product line and now offers marketers two ways to retarget their
website audiences on Facebook: through the Facebook Exchange (FBX) and through Custom Audiences
from your Website (WCA).
At AdRoll, the introduction of WCA meant we could give our customers access to Facebook’s mobile inventory.
Advertisers who use Facebook on both desktop and mobile for retargeting are better equipped than ever to
reach customers where they spend their time online, whether that means smartphones, tablets, desktops, or
a combination of all three.
In order to produce the most comprehensive research currently available, we looked at over 800 million
impressions from 215 AdRoll advertisers running retargeting campaigns on three channels: FBX (on desktop),
WCA (on mobile), and web sources other than Facebook. Our findings show that, by continuing to release
high-performance targeted ad products, Facebook has become a proven direct response channel:
Our study demonstrated that the CPM cost of News Feed ad impressions on mobile is 57% lower than
News Feed impressions on desktop, and mobile ads generate a 10% higher CTR. This results in a 61% lower
CPC for ads in the News Feed on mobile compared to the News Feed on desktop.
As a complementary channel, mobile adds an average of 3.8% incremental conversions to an existing
retargeting mix of web and News Feed on desktop.
Much like News Feed on desktop, mobile is ideal for driving direct response through promotions and
content marketing. By adding mobile to an existing campaign mix of web retargeting and News Feed ads
on desktop, advertisers see on average 29% more clicks.
In our three-month study, mobile grew from 0% of impressions on the News Feed to 6.51%. In the sample
we studied, mobile ads through WCA now account for 8.25% of all News Feed clicks.
By layering News Feed campaigns on desktop onto web retargeting, advertisers serve on average 5.7%
more impressions and get an impressive 53% more clicks.
The apparel, beauty, and technology industries have had the quickest adoption of mobile ad sizes, while
media and entertainment serve the highest-performing mobile campaigns.
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
3. www.adroll.com 3
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
Retargeting lets advertisers selectively reach out to consumers who have already visited a company’s site
or mobile app with messaging tailored to the type of intent they’ve shown and their interaction with the
site. Personalized advertising keeps a company top of mind for the right customers, bringing them back
for critical repeat visits that add up to a conversion. According to a recent AdRoll customer survey, 76%
of marketers planned to increase their retargeting budget in 2014, bringing it in line with search engine
marketing and email marketing as a must-have tactic for reaching and converting potential customers.
What is retargeting?
“AdRoll’s campaign performance of 13.4x ROI is impressive. They’ve helped
us attract new customers that weren’t aware of our brands or our hotels,
while improving our conversion rate and lowering our costs per booking.”
—Casey Ueberroth, Senior Vice President of Marketing, Preferred Hotel Group
Customer
Your Site
www.yoursite.com www.relatedsite.comYour AD
Buy Now!
A customer comes
to your site.
The shop but leave
before purchasing.
AdRoll displays your ads on s
them back and keeping your
4. www.adroll.com 4
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
News Feed
Facebook’s News Feed supplies some of the most valuable ad real
estate online. By advertising in the News Feed, marketers have the
best possible chance of reaching over a billion monthly active Facebook
users. These highly engaging native ads combine a large image with
social elements (like, comment, and share). And because a single
insertion persists in the user’s News Feed, each placed ad gives an
advertiser multiple opportunities to reach the customer.
Facebook at a glance
Reach
1.28 billion monthly active users
Mobile reach
1.01 billion monthly active users
Desktop ad formats
News Feed and Right-Hand Column
Mobile ad formats
Page Post Link and Mobile App Install
Retargeting on Facebook
Message:
500 characters, including spaces
Title:
25 characters, including spaces
Image:
600x315px (displayed as 400x209px)
Body:
90 characters, including spaces
Social elements:
like, comment, share
5. “After a day of running ads on the Facebook News Feed with AdRoll,
we saw a 600% increase in conversions.”
—Gokce Cozen, Marketing Manager, Udemy
www.adroll.com 5
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
Right-Hand Column (RHC)
Facebook’s Right-Hand Column ads give advertisers more chances to reach the massive Facebook audience.
Though the ad unit itself is smaller and doesn’t have all the native social functions of its larger News Feed
cousin, its prominent placement, lower cost, and more readily available inventory make it an effective tactic
for driving results.
Title:
25 characters, including spaces
Image:
600x315px (displayed as 244x133px)
Body:
90 characters, including spaces
6. www.adroll.com 6
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
What is WCA?
Facebook’s WCA lets advertisers match visitors who came to a website with the Facebook audience in
order to retarget them with personalized ads in the News Feed on mobile, as well as desktop. Since
Facebook users are just as likely to check in from a phone, a tablet, or a desktop, WCA represents an
early opportunity for cross-device retargeting.
WCA also lets advertisers layer additional Facebook demographics, like age and relationship status,
onto their campaigns. This gives advertisers more options than ever for refining high-performance,
highly relevant retargeting campaigns.
WCA ad formats
Through WCA, advertisers have access to inventory specifically built to achieve mobile goals:
Page Post Link ads help drive traffic to an advertiser’s mobile-optimized site by targeting desktop
site visitors when they browse the Facebook News Feed from a phone or tablet.
Mobile App Install ads improve mobile app adoption with ads that send users to the Apple App Store
or Google Play where they can install the app with a single click.
Facebook’s Custom Audiences from
your Website (WCA)
Mobile App Install ad Page Post Link ad
7. Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
WCA vs. Facebook Exchange (FBX)
As retargeting on Facebook continues to evolve, the advertisers who get the best results are the ones
who understand the most effective ways to take advantage of Facebook inventory. Here are some of the
key differences between FBX and WCA:
For more information, visit
http://blog.adroll.com/deciphering-retargeting-on-facebook-fbx-wca
“At Jane, we’ve always been very active on social media and had a strong focus on
driving revenue in our social media marketing. After partnering with AdRoll to
leverage Facebook, we saw an ROI on our click-through conversions of over 200%.”
—JD Stice, Chief Operations Officer, Jane
Desktop News Feed and
Right-Hand Column
Desktop and mobile
User-level real-time bidding
optimized to any metric:
CPC, CPA, reach, etc.
RTB-level segmentation
based on products viewed,
time spent on site, pages
viewed, etc.
URL-based segmentation
Proprietary Facebook
bidding algorithms:
CPM, CPC, and oCPM
(for larger segments)
X
X
X
X
X
FBX WCA
Bidding
Segmentation
Inventory
Dynamic creative
Ability to layer on
additional FB data
Lookalike retargeting
Cross-device
conversion tracking
Granular conversion
tracking
8. To see how mobile retargeting on Facebook performs in relation to News
Feed ads on desktop and web retargeting, we looked at over 800 million
impressions from 215 AdRoll advertisers. We selected these advertisers
because they were running retargeting campaigns on Facebook on
desktop and mobile, and web sources other than Facebook from March to
July, 2014. The advertisers included in this analysis spanned all industries
and had budgets ranging from $20/month to over $5,000/month.
Click-through rates (CTR)
While we were impressed with News Feed ad performance on desktop, we
found that mobile had even higher average click-through rates. Mobile ads,
within the engaging Facebook app, are driving the highest response rates
we’ve seen yet.
News Feed campaigns on mobile and desktop show higher CTRs than web
retargeting, contributing to more efficient costs per click (CPC).
Cost per click (CPC)
Given the higher social engagement of News Feed ads, it’s no surprise
that both desktop and mobile campaigns performed strongly compared to
display inventory sources on the web.
Mobile ad sizes, with their larger display relative to screen size and
generally higher engagement than desktop, give advertisers a
cost-effective channel for reaching consumers.
“Our app installs
definitely improved
once we turned
on AdRoll’s mobile
retargeting product.
We’ve seen a 160%
spike in app installs
since starting.”
— Casey Kohner, Web Product
Manager, Trek
www.adroll.com 8
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
Key performance metrics
CTR over web retargeting
CTR over web retargeting
CTR over web retargeting
CTR over web retargeting
News Feed on desktop
News Feed on desktop
News Feed on mobile
News Feed on mobile
8.1x
24%
9.1x
70%
9. Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
Adding News Feed on desktop:
5.7%moreimpressions,53%more
clicks,58%moreconversions
AddingNewsFeedonmobile:
4%moreimpressions,29%more
clicks,15%moreconversions
NewsFeedis60%oftotalFacebook
advertisingspend,andmobileads
generate2xtheclicksofdesktop.
News Feed costs: desktop vs. mobile
Demand hasn’t yet fully ramped up for the newly available mobile ad sizes.
Perhaps because advertisers are not yet bidding as aggressively for these
units, we noticed a 57% drop in CPM for mobile compared to desktop.
Incremental reach and performance
News Feed inventory introduced advertisers to a new way to retarget
customers. By layering News Feed on desktop onto web retargeting
campaigns, advertisers in our study generally saw 5.7% more impressions,
53% more clicks, and 58% more click-through conversions.
Adding Facebook
results in 73%
increase in conversion.
Impressions ConversionsClicks
News Feed on mobile is proving to be a strong direct-response channel.
News Feed accounted for 60% of the Facebook advertising spend in our
study, with mobile ads generating twice the clicks of ads on desktop.
These strong results may be the result of the improved ratio of ad unit
to screen size: the highly visible, highly engaging mobile ad unit is ideal
for driving performance-based goals.
We wondered: since the News Feed audience is the same on
mobile and desktop, would mobile campaigns still drive additional
traffic and conversions? As our advertisers launched retargeting
campaigns on mobile, we confirmed that it does. When adding
mobile ad sizes, advertisers saw approximately 4% more
impressions, 29% more clicks, and a 15% increase in
conversions—and that’s from early test budgets. As budgets grow,
we expect incremental impressions and conversions to increase.
“News Feed ad
impressions cost
57% less on mobile
than on desktop”
10. www.adroll.com 10
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
AdRoll inventory analysis
Mobile: 6.51% of News Feed insertions, but 8.25% of clicks
News Feed insertions News Feed clicksNews Feed insertions
Based on the success of our mobile pilot program, we rolled out mobile ad sizes on Facebook across our entire
customer base. The apparel, beauty, and technology industries have been the quickest adopters; meanwhile,
businesses in the media and entertainment industry have run the highest-performing mobile campaigns.
Mobile is still growing, and it’s already off to a very promising start—as we’ve seen with the advertisers
included in this analysis. Although only 6.51% of ad insertions in the News Feed came from mobile, they have
driven an impressive 8.25% of clicks across all advertiser News Feed campaigns.
News Feed clicks
6.51%6.51%
93.49%93.49%
8.25%8.25%
91.75%91.75%
FBXFBX WCAWCA FBXFBX WCAWCA
11. www.adroll.com 11
Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
We’ve seen growth in retargeting everywhere, but the steady increase of retargeting on the web has
been surpassed by an even more rapid adoption of targeted advertising on Facebook. Though still a
comparatively small percentage of total clicks, the introduction of mobile ad sizes will only increase
advertisers’ efficacy and reach.
The key takeaway for marketers is that most successful advertisers take advantage of all available options for
retargeting, maintaining cross-device reach. Although mobile is still a growing channel, retargeting across
desktop and mobile through Facebook is becoming part of every always-on marketing strategy.
Clicks by channel (month over month)
Facebook
Web
Conclusion
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12. Retargeting on Facebook The Analysis of Retargeting in the Center of the Social Web
About the authors
Kexin Chen
Associate Marketing Manager, AdRoll
With a background in customer advocacy and international communication, Kexin manages integrated
marketing for AdRoll’s global expansion. She pioneered AdRoll’s customer marketing program, Power
Brands, and today drives our advocate marketing programs.
Priya Gopalakrishnan
Solutions Analyst, AdRoll
Priya is a data analyst on the Solutions team, conducting in-depth reporting and analysis around our full
stack of products. She uses her background in business intelligence, big data, and data visualization to
illuminate industry trends in AdRoll’s campaign and customer data.
About AdRoll
AdRoll is the world’s largest retargeting platform, with over 15,000 active advertisers worldwide and a
97% customer retention rate. AdRoll provides unmatched transparency and reach across the largest
display inventory sources, including Google AdX, Twitter, and Facebook. For more information, please
visit http://www.adroll.com.
Facebook®
is a registered trademark of Facebook Inc.