Build to
break:
The state of the
disruption
industry 2018
1
According to the World Economic Forum
in 20151, a lifetime ago in our industry,
disruptors invent the future they want.
They understand that the future is full of
possibilities, and they are driven by the
passion of imagining what this future might
be, rather than extrapolating the past.
What makes
a company a
disruptor?
Average companies focus on profit. Good
companies focus on value. But great
companies focus on building the future.
An idea is the first step, but transforming
that idea into an industry and building
a better future requires breaking things.
Breaking boundaries, breaking the
status quo, but above all, breaking new
ground. So the next time you’re thinking
of building something, don’t build to
innovate, new ideas are nothing new. If
you’re going to build—build to break.
So, have disruptors lived up to this promise?
Over 300 hours of research across
multiple Facebook teams was conducted
to compile this report. To gain insight we
have leveraged internal data and numerous
third party resources across marketing,
measurement, creative, products and sales.
This report highlights the upcoming
opportunities that come from imagining
a better future for business.
First we’ll look at today’s disruptive
customer and see how they stack up against
the traditional shopper—your area for
customer growth. What they are doing on
mobile, how they are watching video, and
whether disruptive businesses are able to
activate in the right ways to capture their
attention and keep appealing to them.
Next we look at how disruptive businesses
activate their marketing campaigns
across our family of apps and services
and uncover opportunities where they
can utilise their unique skills to drive
change across Facebook, Instagram,
Messenger and Audience Network.
And finally we’ll get down to the
fundamental principles: what more can
disruptors do to disrupt digital marketing?
There’s so much we can do together
to change the path of business.
This is only the beginning.
Source: 1. World Economic Forum in 2015, Vinod Khosla,
founder of Sun Microsystems and Khosla Ventures.
2
C H A P T E R 1
The
disruptive
consumer
If it always feels like we’re
playing a game of catch-up,
you’re right. While you’ve
diligently crafted your
business to sell a product
that helps fill a gaping hole
in the marketplace, there’s
this constant pressure that
you and your business
could be doing more.
And you’re not
alone. Why
does everything
feel so fast?
Researchers say smartphones are one of the
reasons why things feel as fast as they do.
Mobile phones have hardwired our brains
to move faster. In fact, there are countless
articles about the end of humanity’s
attention span, with some claiming that
Generation Z—your next customer—
can only pay attention for 8 seconds.1
But is increased mobile screen time to
blame for making us more easily distracted?
Perhaps not. Mobile has created an infinite
number of options to choose from on a
daily basis. Over 1,260 new products were
released last year in the Consumer Product
Goods category alone. 80% of those
products came from the disruptor category.2
It’s what we’ve called “The Microwave
Generation.” I want it hot, and I want it now.
People now expect on-demand, personalized
experiences, and they want them on their
phones. Mobile is setting a new standard
for capturing attention. Its connectedness
highlights all of the choices people have at
their fingertips. With this connectivity comes
an ever evolving need for personalized,
on demand, mobile-first experiences.
Moving forward, mobile will be at the
forefront of most if not all engagement.
Brands that take advantage of it will win.
Source: 1. Source: Forbes, “Generation Z:
10 Stats From SXSW You Need To Know”,
March 2016. 2. Nielsen, “What’s Next in
Emerging Markets”, February 2018.
4
It’s created a culture
where customers aren’t
“going shopping.” They’re
always shopping.
This is great news for the disruptor. You’ve
built your businesses online and on mobile,
and you were created to help get people
what they want and need more efficiently.
But everyone has become so spoiled by the
speed of technology that your customers
now want and expect your business to work
as fast as everything else does online.
So, who is
your customer
today?
5
Disruptive
consumers are
empowered
consumers
The smartphone has created an ability
for us to connect with millions of people
all over the world. Not too long ago,
Facebook researchers said everyone in
the world is now separated by only 3.5
degrees thanks to technology, down
from the previous six degrees.1
This means we’ve greatly expanded our
idea of what makes up a community, and
developed a new level of transparency
and openness from the company
we keep in person and online, to the
companies we buy from. Consumers
are now more empowered than ever.
Beyond empowerment through mobile
phones, disruptive companies have
redefined the empowered consumer thanks
to the unique and frictionless products
and experiences they’ve created. And now,
there is an opportunity to expand and find
new empowered consumers who may not
necessarily expect speed and efficiency, but
instead want an authentic experience and a
sense of community with the brands they
interact with.
Creating a world
of social good
Evidence shows that consumers engage
more with companies that have social
good integrated into their brand. It’s
estimated that 33% of consumers are
choosing to buy from brands that are
doing social or environmental good.2 But
this isn’t just a case of jumping on the
brand activism bandwagon. There has to
be a bigger, tangible connection between a
brand’s value and the messages it creates.
Companies need to genuinely believe in
the cause that they want to support. Only
if this is the case are consumers convinced
to support a brand for its stance. Take
Bombas for example. Socks are the single
most requested clothing item at homeless
shelters, so Bombas built their whole
company on the idea of of donating a pair
of socks to homeless shelters for every pair
sold. The more socks sold, the more that are
donated. To date, they’ve donated over 9
million pairs of socks.
Opportunities
How can disruptor services build community
to provide value to those who don’t mind
spending time on the things that are
important to them? For social good efforts
to inspire and be successful, it’s important
that businesses make it part of their charter,
and choose a cause that’s authentic and
important not just to consumers, but also to
their own business and its value system.
Source: 1. Facebook Research, February
2016 2. ClickZ, February 2018.
6
Evolved shopping experiences
are moving back in-store
Recently, Untuckit announced plans to open
50 retail stores in 2018 alone with another
50 by the end of 2022.1 E-commerce
brand Everlane has also dipped their toe
in this space, opening their own shop in
NYC.2 At the same time, many retailers
shuttered their doors this past year. So why
are disruptors moving into this space?
Research has shown that 90% of sales
still happen in store. E-commerce is
definitely growing, but disruptors should
tap into bricks-and-mortar opportunities
offline to find new customers. This is
an opportunity disruptors could use to
further disrupt the retail space thanks
to evolved shopping experiences.
Whether a disruptor plans to partner with
a traditional retailer or not, every marketer
needs to understand that technology
has changed consumer expectations
around the shopping experience.
The empowered consumer who
shops in retail relies on his or her
smartphone to help provide experiences
and information to help them make
the best purchase decisions.
In fact, when shoppers enter a retail
store today, 65% will actively avoid
sales associates and would rather turn
to a mobile device for help.3 Instead,
72% of shoppers use their phones in
store. The mobile phone is the new
sales associate, acting as a personal
assistant for everything from price
comparisons to user reviews.4
Sources: 1. Retail Dive, November 2017 2. Business
Insider UK, January 2018. 3. HRC Retail Advisory 2018
Consumer Survey of 3000 North American consumers
across Baby Boomer, Gen X, and Millennial shoppers. 4.
Salesforce Q4 Shopping Index, Feb 2018. 5. eMarketer,
“Hey Siri, Can You Ring Me Up?”, July 2018. 6. eMarketer,
“Many Shoppers Still Prefer Human Touch at Checkout”,
August 2018.
If you’re looking to partner for a real-world
shopping experience, here are other ways
shopping has changed:
Nearly 21% of respondents said they
would ask their voice assistant for instore help,5 while 17.6% would use their
voice assistant to self-checkout. And
that was a common theme. Out of the
five responses given, three indicated that
many would turn to their voice assistant
rather than a sales associate while
shopping in-store.
60% of US internet users worldwide
polled by MuleSoft in April 2018 said
they would prefer an Amazon Go-like
shopping experience, in which they could
simply walk out with what they wanted
and be charged automatically.6
Opportunities
So what are the immediate opportunities
for disruptors? Whether you’re looking
to partner with a retailer or not, it’s time
to take a look back to your roots and
consider how your online activities can
influence both online and offline sales.
Mobile phone use in-store provides
marketers a unique opportunity to connect
with a shopper while they’re avoiding
speaking with sales associates. This is
where disruptors can engage in the new
definition of omnichannel marketing.
Omnichannel marketing used to be
defined as having a product available
wherever, and whenever a person wanted
it. Today, omnichannel means giving the
right person the right experience in the
right space. If your potential shopper is
in the store about to buy something with
smartphone in-hand, what can you do
on mobile to help sway the decision?
7
Don’t wait for
purchase intent.
Create purchase
intent.
Think about experiences. Retailers have
already invested in unified commerce
technologies to reduce friction, and just in
the last year 54% intend to expand these
initiatives even more.1 Retailers, for example,
are also tapping into augmented reality
shopping. Zara recently bet on technology
to drive people to stores, as did Nordstrom,
Target and Walmart, just to name a few. 2
And almost 60% of shoppers would like to
see this technology in shopping apps to help
them make better decisions.3
Source: 1. eMarketer, “Technology Driven Strategies According to US Retailers”, Feb 2018. 2. eMarketer, “How AR
and VR Will Reshape Shopping”, May 2018. 3. Worldplay
Global Survey, 2017
What can disruptors
do to disrupt
this space?
Explosion
of choice
The things consumers can buy is
expanding thanks in big part due to the
innovative tactics of disruptive businesses.
And it’s creating a new era of shopping
experiences for customers. For example,
70% of US female beauty buyers said
they were overwhelmed by product
choices in an October 2017 Facebook
IQ Study, ‘Three shifts in food culture, as
seen on Facebook and Instagram’. And
63% of people are now choosing to eat
snacks instead of full meals at dinner time
because they have the option to do so.
But it’s not just the number of products on
the shelves that’s creating this explosion
of choice. It’s also the different ways
consumers can now choose to buy their
products. Many disruptors, and now
traditional companies, feel the best way
to answer this explosion of choice is
to help narrow down the choices in a
frictionless way—via a subscription box.
Subscription’s attempt to
break through the clutter
Subscription services provide customers
with a wide variety of curated items
from which to choose, and the business
model recently exploded into industries
outside of food, beauty and fashion. Even
more traditional companies are testing
the water with their own monthly boxes.
These were created to help solve the
overabundance of options. But there
have been a few hiccups along the way.
8
Meal kits
In the last few years, meal kits have
represented the bread and butter of
subscription models, and it’s prime time for
the industry to disrupt this market.
Why? The subscription model faces a
customer retention problem. And it’s mostly
centered on people’s experiences with
the product. The research firm NDP notes
the meal kit industry, for example, needs
to create new business models to face
the challenges of accessing distribution,
customers and ingredients, and also adjust
to how people shop for food.
Opportunities
One new business model sees meal kit
disruptors partnering with existing large
chain grocers to distribute meals one
at a time. This is because shoppers felt
uncomfortable about having numerous
meals delivered at once, or leaving boxes
unattended at their front doors. According
to Blue Apron’s own research, 68% of
consumers would be more likely to use a
meal kit if it didn’t require a subscription,
and 69% would be more likely to try one
if it was available in a supermarket.4
According to McKinsey & Company,
more than one-third of consumers
cancel within three months.1
Not receiving value for the money
was the leading reason for cancelling
a curation subscription box service,
cited by 29% of respondents in the
McKinsey & Company survey.2
General dissatisfaction ranked
highly for all three categories, and
more than tweaking the pricing or
changing the selection is needed
to mitigate this negativity.3
What’s your TL; DR?
For a long time, marketers operated
behind the belief that technology
makes everyone over stimulated and
looking to fulfill immediate needs. So,
they responded with advertising and
marketing that provided products
wherever and whenever someone may
need them. But it’s no longer about
giving people what they want, when
they want it, wherever they want it.
Marketing today is about capturing the
right experience for the right person in
the right space. Disruptors are already
uniquely positioned to create the
products people need. Now it’s time for
this industry to take it to the next level
and help future customers understand
the reasons why your product is the best
option out there, and in the right space.
Three tips
1
Find new customers to empower by
making it easy for them to connect
with you. Businesses can connect with
customers on a 1:1 basis with improved
customer service, or connect in a one-tomany case like with social good efforts.
2
Create curated experiences to help
reduce the amount of choice and noise.
3
Develop new business partnerships
to make experiences seamless and
learn from each other to grow.
Source: 1, 2, 3. eMarketer, “Subscription Box
Market Hasn’t Delivered Yet”, February 2018.
4. eMarketer, “Subscription Meal Kits May
Need Some Seasoning”, July 2018.
9
C H A P T E R 2
Mobile
experience
Mobile
By 2021, retail
domination ecommerce sales
will be majority
Mobile is with us at nearly
all times; from our morning
mobile.1
commute to the checkout
aisle to when we’re at home
watching TV. In turn, that
ever-present utility has the
ability to influence us along
every step of our consumer
journey—and it does.
The way we shop is no
exception—and increasingly,
mobile consumers aren’t
just browsing, they’re buying.
Source: 1. eMarketer, “Do Mobile
Transactions Dominate the Mix?”,
May 2018.
Insights on
mobile behavior
First and foremost, that means
understanding that people behave
differently on mobile and use it to fulfill
different needs than they do on desktop.
Most emerging disruptive companies have
taken advantage of this shift and are meeting
their customers where they spend their
time—on their phones. Today’s disruptors
have built their companies to be mobile first.
The most successful disruptors think
about mobile in its proper context.
They understand that mobile is
more than a device or channel, it’s a
behavior. And fundamental shifts in
consumer behavior require fundamental
shifts in business strategy.
To make the most
of mobile requires a
seamless experience,
built with a mobile-first
mindset, from the first tap
through to purchase.
Successful disruptors know that building
a mobile-first experience starts with
understanding mobile behavior.
Mobile
EVERYWHERE
SCAN
IMAGERY /
STORYTELLING
ONE ACTIVE
SCREEN
TAP
WHERE
CONSUMPTION
COMPELLED BY
SCREEN SIZE
INPUT
AT HOME
OR WORK
DIGEST
TEXT /
INFORMATION
WINDOWS / TABS
TYPE
Desktop
We have studied mobile trends among
disruptive companies across several
mobile-first industries to uncover
deeper insights. Through this, we have
observed five fundamental truths
about mobile consumer behavior.
Mobile share
of total website traffic
Mobile-only shoppers
EMERGING APPAREL
84%
80%
EMERGING APPAREL
1
Mobile is an
integral part of the
shopping journey
Looking at the share of website traffic across
industries, it’s clear that consumers have
made the shift to mobile.
70%
65%
OF SITE VISITORS NEVER
VISIT DESKTOP
FOOD DELIVERY
CONSUMER
TECH
87%
BEAUTY DISRUPTORS
85%
BEAUTY DISRUPTORS
54%
OF SITE VISITORS NEVER
VISIT DESKTOP
FINANCIAL
SERVICES
70%
Mobile shoppers that
make a purchase
Emerging apparel:
2.4% on mobile web
vs. 7.6% on desktop
Consumer tech:
0.5% on mobile web
vs. 0.5% on mobile app
vs. 1.2% on desktop
Beauty disruptors:
3.7% on mobile web
vs. 8.5% on desktop
Emerging marketplaces:
2.9% on mobile web vs.
21.4% on mobile app
vs. 8.1% on desktop
EMERGING
MARKETPLACES
75%
FASHION
As the data shows however, there’s still a
disconnect between higher traffic and lower
conversion rates of mobile vs. desktop.
Companies not pursuing a mobilefirst strategy are missing out on a huge
opportunity to drive sales. That’s because
pursuing a desktop-first strategy allows
for only a small percentage of their target
market to be captured and does not
align with, or embrace today’s consumer
behaviors and expectations—meaning the
full mobile opportunity is being overlooked.
Source: Facebook internal data, May-August 2018.
12
MULTI-PLATFORM
SHOPPERS
Emerging apparel: Buyers
are almost 7x more likely
to shop cross device
CROSS-CHANNEL
SHOPPERS
Consumer tech: 65%
of shoppers visit via
mobile web and apps
Consumer tech: Buyers
are almost 4x more likely
to shop cross device
Emerging marketplaces:
67% of shoppers visit
via mobile web and apps
Beauty disruptors:
Buyers are 7x more likely
to shop cross device
App shoppers
Consumer tech: 10%
of shoppers use apps
Emerging marketplaces:
Buyers are 4x more likely
to shop cross device
Emerging marketplaces:
23% of shoppers use apps
Opportunities
Consumers now use mobile seamlessly
throughout their day, so it’s important for
your business to meet consumers where
they are. This means that a holistic multidevice and multi-channel business strategy is
now more important than ever. Consumers
expect to be able to find the products and
services they are looking for regardless of the
device they are on. You should be looking to
create a seamless and consistent experience
across devices and channels, allowing
prospective customers to rejoin their
shopping journey where they left off through
recent product viewed reminders, saved
website search results, and favorites lists.
2
Mobile consumers
take the path of
least resistance
DROP-OFF RATES ON MOBILE WEB
Emerging apparel: Nearly
40% higher than desktop
Shoppers are abandoning without
purchasing at a higher rate on mobile web
Consumer tech: Roughly on par
with desktop
Beauty disruptors: Only a little
higher than desktop (42% on
desktop and 50% on mobile)
Emerging marketplaces:
Roughly on par with desktop
Source: Facebook internal data, May-August 2018.
13
ADD-TO-CART RATES
Emerging apparel: 18% on
desktop vs. 8.5% mobile web
Consumer tech: 2.5x more users on
desktop vs. mobile web. On app it is at
5.2%, almost at parity with mobile web
However, app drop-off rate IS higher
which could be a people using app cart
as a ‘wishlist’ or just that app users are
showing higher shopping intent as they’re
the most engaged and loyal customers
Beauty disruptors: 7.6% on
desktop vs. 3.4% on mobile web
Emerging marketplaces: 12% on
desktop vs. 6.6% on mobile web
Source: Facebook internal data, May-August 2018.
PRODUCT VIEWS OF AT
LEAST ONE ITEM
Emerging apparel: 54% of users on
desktop vs. 42% of users on mobile web
Consumer tech: 47% of users on
desktop vs. 40% of users on mobile web
Beauty disruptors: 32% of users on
desktop vs. 18% of users on mobile web
Emerging marketplaces: 65% of users on
desktop vs. 67% of users on mobile web
Opportunities
Across the board, there is an opportunity
for advertisers to create more frictionless
experiences on mobile. Mobile consumers
will take the path of least resistance when
making a purchase—most users are
visiting sites on mobile, but companies
are seeing poorer performance here
(higher add-to-cart drop off, lower addto-cart rates and fewer product views). It
is clear that companies have still not fully
optimized the consumer experience for
mobile behavior, presenting them with a
huge opportunity to win more on mobile.
Companies should look to decrease friction,
optimize landing page experiences, create
a sense of urgency, mitigate purchase
anxiety, and streamline the checkout flow.
14
3
The decision to buy is
a journey, not a sprint
Emerging apparel
Beauty disruptors
Users who buy average 2 sessions on
desktop and 2.1 sessions on mobile web
Users who buy average 1.7 sessions on
desktop and 1.4 sessions on mobile web
Users who ultimately don’t purchase
visit far less; 1.3 times on both
desktop and mobile web
Users who ultimately don’t purchase
visit far less; 1.2 times on both
desktop and mobile web
Consumer tech
Emerging marketplaces
Mobile app users who buy average
14.8 sessions compared to 3.5 on
desktop and 3.3 on mobile web
Users who buy average 3.3 sessions on
desktop and 3.9 sessions on mobile web,
and a staggering 10.2 sessions on app
Typically, we see that apps
drive high engagement
Typically, we see apps driving more visits
along the consumer path to purchase
Opportunities
Look to create a seamless
and consistent experience
across devices and channels,
allowing prospective
customers to rejoin their
shopping journey where
they left off through recent
product viewed reminders,
saved website search results,
and favorites lists. Product
information needs to be
easy to find and contextual
product recommendations
can be used to help
drive purchases.
Source: Facebook internal data, May-August 2018.
15
Emerging apparel
4
Mobile shoppers have
a need for speed
Beauty disruptors
An average session that ends in
purchase is 14.7 minutes on desktop
vs. 13.2 minutes on mobile web
An average session that ends in
purchase is 13.2 minutes on desktop
vs. 11 minutes on mobile web
Fewer people view products on
mobile web, but those who do view
slightly more items than desktop
shoppers when overall, and the
mobile web sessions are shorter
In this case, where mobile web
sessions take more time, users look
at an average of one less product on
mobile web. By comparison, on app
users tend to look at significantly
more items and sessions are longer
Consumer tech
An average session that ends in
purchase is 21.9 minutes on desktop
vs. 17.6 minutes on mobile web
App sessions are typically over 27
minutes long, most likely because the
app drives high user engagement /
browsing / shopping behavior with the
most engaged and loyal consumers
Emerging marketplaces
Average session length ending in
purchase is 27.2 minutes on desktop
vs. 20.6 minutes on mobile web
App sessions ending in purchase are
relatively long at 26.7 minutes—possibly
users are evaluating the multitude of
options for those companies with an app
Opportunities
Based on the data, the
mobile experience is about
shorter, more frequent
visits whereas desktop is
about fewer visits but longer
sessions before converting.
This data supports the
notion of shopping on
mobile being an on-thego behavior. To capitalize
on this and echoing the
behaviors discussed in
the previous section, on
mobile, businesses should
be showing instead of telling
to drive action, needs must
be anticipated and shortcuts
provided, and services
should be created for the
one-hand mobile users.
Source: Facebook internal data, May-August 2018
16
Emerging apparel
5
Mobile shoppers should
be reengaged quickly
2.6% mobile retention vs.
2.7% on desktop
Consumer tech
12.1% mobile retention vs. 15% on
desktop vs. 53.5% mobile app
As is typical with apps, there is strong
retention driven by loyal users
Beauty disruptors
4.6% mobile retention vs.
8.6% on desktop
Emerging marketplaces
Opportunities
Don’t underestimate the importance
of focusing on customer retention.
Building a successful and sustainable
brand requires you to focus on repeat
customers—not just one-time buyers.
Establishing strong retention requires
brands to retarget shoppers with relevant
ads, show them products that they’ve
previously engaged with and make the
best use of contextually relevant landing
pages. Measures such as these increase
the likelihood of retaining shoppers.
5.2% mobile retention vs. 9.9% on
desktop vs. 22.8% mobile app
As is typical with apps, there is strong
retention driven by loyal users
Source: Facebook Internal Data, May-August 2018.
17
1
Master mobile
landing pages
Looking for a high-impact
area to improve first?
Consider your mobile landing pages.
They act as the bridge between
advertising and owned experiences—
and more importantly, between
discovery and purchase. If the post-click
experience isn’t seamless, however,
landing pages can instead become
barriers to action.
When evaluating a mobile landing page,
consider the “three Cs” for building
high-performance landing pages:
consistency, content and CTAs.
2
3
Consistency between
ad and landing page
Content that is optimized
for the mobile screen
Call-to-action buttons
that inspire action
Ask yourself, “Is there a clear, seamless
continuation from the ad that inspired
the click to the landing page experience?”
Products, visuals, pricing, promos and offers
should align. The landing page should pick
up where the ad left off.
Ask yourself, “Does the layout effortlessly
guide the eye to high priority section(s) and
look appropriately sized for mobile?”
Ask yourself, “Are landing page CTAs
guiding prospective customers
down the path to purchase?”
Opportunities
Opportunities
Opportunities
Incorporate deep linking, using
hyperlinks to drive to a specific,
generally searchable or indexed,
piece of web content on a website.
Put yourself in the customer mindset
to anticipate the desired next
step from ad to landing page.
Lead with a strong, attention-grabbing
headline and support with a unique value
proposition.
Maintain a prominent, contrasting,
and persistent (or “sticky”)
call-to-action button.
Couple large, compelling images with
short, easy-to-read messages.
Keep copy short and divided into
manageable, easy-to-read sections.
Keep the layout uncluttered and ensure
content is focused on the primary
purchase path.
Optimize for the thumb with shorter
forms, bigger buttons, larger copy, and
ample white space.
18
Load faster
experiences
Load fast. Having a slow-loading mobile
website creates a negative experience and
can drive interested customers to drop off.
More interactions, more
conversions. The more
a shopper can interact
with a website, the
greater the potential for
a conversion to happen.
Speed on mobile
matters
Businesses can optimize their
sites to load on mobile by:
OPTIMAL LOAD TIMES
FOR PEAK CONVERSIONS
RANGED FROM
Testing the mobile page speed on
multiple internet connections (2G,
3G, 4G, LTE, WiFi). Many on-the-go
mobile users will have an internet
connection that is lower than 4G
61%
1.8 to 2.7
SECONDS ACROSS
DEVICE TYPES 3
OF USERS ARE UNLIKELY
TO RETURN TO A
MOBILE SITE THEY HAD
TROUBLE ACCESSING 1
40%
Minimizing landing page
redirects and plugins
Formatting properly and
compressing images
Leveraging browser caching
40%
A 100 MILLISECOND DELAY
IN LOAD TIME HURT MOBILE
CONVERSION RATES BY 4
OF USERS WILL END UP
VISITING A COMPETITOR’S
SITE IF YOUR PAGE DOES
NOT LOAD QUICKLY 1
OF WEBSITE VISITORS
ABANDON A SITE AFTER
3 SECONDS OF DELAY 2
7%
Compacting Javascript,
HTML and CSS coding
Source: 1. Aufreiter, N. Julien Bouvet and Vivian Weng
(2014, January). Why Marketers should keep sending
emails. Retrieved September 25, 2017 from mckinsey.
com. 2. Rapoza, Jim (2016, August 18). The Very Real
Costs of Bad Website Performance. Retrieved September
25, 2017 from Aberdeen.com. 3. “The State of Online
Retail Performance Spring - 2017” by Akamai, April 2017.
4. The State of Online Retail Performance Spring – 2017”
by Akamai, April 2017.
PEOPLE CONSUME CONTENT
41%
FASTER ON FACEBOOK
MOBILE NEWS FEED VS.
DESKTOP NEWS FEED 4
19
Make it
mobile friendly
Clearly, consumers have
shifted to mobile for its
convenience. So delivering
a mobile experience that is
seamless, fast, and—quite
frankly—delightful is critical
to your bottom line.
Expectations and stakes are high, and
this is affecting your business every day.
$236B in sales
forgone due
to checkout
process friction
in Q1 20181
52% of users
say that a bad
mobile UX makes
them less likely
to engage with
a company2
Source: 1. “Checkout Conversion Index” analysis of 676
online merchants (including e-commerce and travel)
via mobile, apps and desktop by PYMTS.com, Apr 2018.
2. Google, “What Users Want Most From Mobile Sites
Today,” Survey of 1,088 US adult smartphone Internet
users (conducted by Sterling Research and SmithGeiger,
independent market research firms); July 2012. 3.
Source: Facebook internal data, May-Aug 2018.
Fortunately, the mobile experience
opportunity is even greater. And activating
it doesn’t have to be a heavy lift.
Opportunities
For example, design easy-to-navigate mobile
websites with compelling images and video.
Consider integrating a Facebook Connect
sign-in option on your registration page
to provide a streamlined login and verified
email addresses. Or provide digital payment
methods that may help expedite checkout
(e.g., Paypal, Venmo, Apple Pay, Android Pay).
You should also allow prospective
customers to rejoin their shopping journey
where they left off through recent product
viewed reminders, saved website search
results, and favorites lists. After all, those
who buy in the apparel category are
almost 7x more likely to shop cross-device
and those who buy in consumer tech
are 3.8x more likely to shop cross-device
than those who are merely browsing.3
Bottom line: The majority of consumers
are visiting websites via mobile, not
desktop. Successful disruptors design
for this unique consumer behavior—
by building for mobile first.
20
C H A P T E R 3
Video
The rise of mobile has caused a monumental
shift in the way we communicate with
one another. Before, communication
was essentially spoken, written, typed,
and printed. We’ve rapidly shifted from
desktop keyboards to mobile screens.
Content can now be pushed out, shared,
and consumed from this device. From
this, we’ve seen a democratization of
storytelling, ideas, and new ways of thinking.
We’re moving from a
culture of written words to
one of expressed ideas.
50%
Desktop
Text
of all mobile data traffic today is used to
watch video. Research predicts that by
2021, that number will increase to 78%.1
100
Information
MILLION HOURS OF
VIDEO ARE WATCHED ON
FACEBOOK EVERY DAY. 2
This shift in consumption behavior creates
new opportunities for advertisers to connect
with their audience and inspire action.
But capturing attention via video requires
creative that is both thoughtful and engaging.
Sources: 1. Cisco Visual Networking Index:
Global Mobile Data Traffic Forecast Update,
2016–2021 White Paper, March 2017.
2. Facebook internal data Q1, 2016.
22
Sound and
motion is key
When looking across the advertising
placements available, marketers who work
in both the traditional and disruptor space
allocate just under half of their investments
in video advertising1. This is great news as
Facebook research shows that people are
motivated to watch mobile video because it’s
convenient, creates a sense of community
and feels personally relevant and engaging.2
Why is this?
Engaging people with videos improves
experiences, which is helpful for those
marketeers interested in engaging in the new
omnichannel approach.
Whether you’re an emerging marketer
or seasoned professional, video ads
on Facebook and Instagram have fast
become indispensable. Video ads come
in a range of lengths and styles—from
short, feed-based ads you watch onthe-go, to longer videos watched on the
couch. But things get interesting when
we look at other video opportunities on
Facebook’s family of apps and services.
For example, marketers at traditional
businesses are more likely to rely on Instant
Experience (formerly known as Canvas) video
ads and Carousel video ads than disruptors,
whereas disruptors rely more on Slideshow
video ads than traditional marketers.
1
Instant Experience video
ads and Carousel video
ads provide an immersive
brand experience.
2
Slideshow video ads tend
to drive action for direct
response (DR) marketers.
3
Disruptors believe every
consumer touchpoint
drives both a brand and DR
outcome, and Slideshow
video ads help drive that
action, but Disruptors who
don’t consider Canvas video
ads might be missing out.
Source: 1. Source: Facebook internal data, Q3 2018.
2. Sight, Sound and Mobilization Facebook IQ Study, July 2017.
23
Opportunities
Forward-thinking
disruptors can
elevate the customer
experience with Instant
Experience video ads.
Instant Experience video ads help drive
brand and direct response outcomes at
every consumer touchpoint.
Instant Experience video ads showcase
products in a grid layout so people can
browse more products in one place,
and drive conversions with a mobile
landing page that encourages action.
Dollar Shave Club used Canvas and the
Collection ad format to create a highly
engaging, full-screen experience.1
Sephora brought new features to its holiday
catalog by using tabs for Canvas powered by
the Collection ad format.2
32% higher return on
ad spend than previous
digital campaigns
1.5X increase in new
subscriptions and
30% decrease in cost
per subscription
1.6 million people
were reached
30% increase in
reach over the
campaign’s goal
41% higher
click-through
rate than
previous digital
campaign
Source: 1. Dollar Shave Club - https://www.facebook.com/
business/success/dollar-shave-club 2. Sephora - https://
www.facebook.com/business/success/2-sephora
24
I NDUST RY
BR E AKD OW N
Let’s take a look at how disruptors and traditionals across
several major industries are leveraging video today.
Emerging apparel
vs. accessories and
traditional retail
Current state
Apparel disruptors allocate 1.77x more placements
to videos ads than traditional companies and
focus 21x more on slideshow video opportunities
than bricks and mortar retailers.
Beauty disruptors vs.
traditional health
FinTech vs. financial
services
Current state
Traditional financial services marketers invest 1.2x
more of their marketing spend on Facebook and
Instagram video ads than those in the FinTech space.
Disruptors, however, are 35x more likely to advertise
using a Slideshow video ad experience over their
counterparts in traditional spaces, who focus 9.9x more
on Instant Experience video ads over disruptors.
Current state
Traditional beauty marketers invest 1.34x more in
video advertising within Facebook’s family of apps and
services than beauty disruptors in the same industry.
They lean 1.25x more heavily on video ads and 22x more
on Carousel video ads than newcomers in the field.
25
Emerging apparel example
Stitch Fix, a fashion subscription
box for women and men, wanted to
jumpstart their ad performance and
sales by remaking their creative and
investing in mobile-first video creative.
Strong results informed Stitch Fix that
Facebook is driving performance across
the board. It has also given them a
broader view of how all their channels
work together for their consumers. Stitch
Fix now dedicates far more resources to
mobile-first creative, and has increased ad
spend on Facebook video ads overall.
80% of the
composition of
their spend is now
in video ads.
Stitch Fix collaborates well, their creative
development is quicker—allowing for
better testing and learning—and their
Facebook investment continues to grow.
26
I NDUST RY
BR E AKD OW N
Food tech vs. restaurants
Current state
Food tech companies rely on video advertising on Facebook
as much as restaurants do, but food tech disruptors are
26.7x more likely to invest in Slideshow video ads, while
traditional restaurant marketers favor Carousel video ads by
10.6x more—indicating a preference for differing formats.
Health disruptors vs.
traditional health
Current state
Health disruptors and traditional health marketers are
equally invested in video but they show up differently.
Health disruptors lean into Slideshow video ads 1.76x more,
and traditional health marketers use Carousel video ad
placements 6.21x more in this space.
Live events and tickets,
Emerging marketplace vs.
traditional entertainment, traditional E-commerce
Current State
and streaming
Emerging marketplace is 3.4x more likely to use video
ads than non-emerging marketplaces. In fact, traditional
entertainment
Current State
Across the board, traditional entertainment and streaming
entertainment rely 1.5x more heavily on video placements
than live events and ticketing marketers. Traditional
companies invest in Instant Experience video ads and
Carousel video ads, 6x and 6.58x more, respectively, than
disruptors in this space.
Emerging tech vs.
traditional tech
E-commerce invests less in straight-up video ads than any
other traditional industry we studied.
That said, enterprise E-commerce and Pure Play are the only
group of more traditional marketers, other than traditional
tech companies, that use Slideshow video ads more than
disruptors in this space.
Why Slideshow ads, vs. Instant Experience or Carousel?
Disruptors are all about speed. Slideshow video ads are
much quicker to implement since they transform still images
into lightweight video, enabling disruptors to quickly create
video ads that are simple yet effective.
Current State
Traditional tech marketers are 1.7x more likely to
use video placement advertising than disruptors
in this space, and 42.5x more likely to use Instant
Experience video ads than emerging tech.
27
The new medium Instagram Stories
Why is Instagram Stories
an opportunity?
Finally, let’s dive into why Instagram Stories
is such a huge as an opportunity for both
disruptors and traditional business and how
to harness this opportunity effectively.
Stories have more capabilities and features than the regular
feed—they speak an emotional language.
The shift from
feed to stories
The move towards stories from Instagram
feeds is happening rapidly. In under two
years, there has been 4x growth in daily
story users and the adoption of Instagram
Stories, from 100M in October 2016 to
400M in June 2018.1
Instagrammers like Stories because they are:
1
Full-screen—you can share
more and create larger,
more captivating images.
4
Playful—by the very nature
of these stories being shortlived they can be more fun.
Source: 1. Instagram Internal Data,
Oct 2016 – Jun 2018.
2
Ephemeral—each post lasts
only 24 hours so they are
short-lived and allow people
to engage with the idea of
living in the moment.
3
Authentic—you can
be more real with your
Instagrammers as you share
series of moments as they
happen and spend less time
editing these updates.
5
Interactive—with the
inclusion of polls, emoji
slider polls and questions—
this is also an invaluable
marketing tool as you can
get direct feedback from
followers on their likes and
dislikes in real-time.
People are engaging with businesses on
Stories even more due to the creative
and immersive full screen format and
the ability to use Facebook’s targeting,
audience reach and measurement
solutions.
It’s yet another way for disruptors to
drive brand and performance results.
28
Birchbox, the mail-order cosmetic company
that delivers products straight to its
customers via a subscription model, used
Instant Experience ads in Instagram Stories
to create a more immersive experience
for its existing audience in France and to
grow its audience around the world.
Needing to combine two different messages
in its campaign—one focusing on brand
awareness, and another highlighting a
promotional offer, it decided to use Instant
Experience ads in Instagram Stories to do
so, and give its audience a seamless and
immersive viewing experience. This format
allowed them to create eye-catching videos
that showcased the brand and what it stands
for, along with examples of the products
available. Instant Experience ads in Stories
also made it easy for people to click through
to the Birchbox website to find out more
about the special promotion and move
them towards purchase. The decision to
experiment with Instant Experience ads in
Instagram Stories proved a successful.
50% lower CPM (cost per thousand)
compared to other platforms
Already well-known for its unique
accommodations, Airbnb wanted to boost
awareness of its latest offering: Experiences
on Airbnb. The company decided to use
Instagram Stories to generate buzz and build
awareness around the unique product.
13-point lift in ad recall, with more people
selecting Airbnb as the platform that
enables travelers to book experiences
They targeted its Stories to a broad
audience of men and women aged 25–44
living in the US and developed a series of
15-second videos made specifically for
Instagram Stories. The videos were shot
in the vertical video format and featured
the unique experiences that people
could enjoy through Experiences on
Airbnb. One video, for example, featured
people canoeing, hiking and enjoying a
campfire — all experiences offered by
real hosts on Airbnb which resulted in a
double-digit point increase in ad recall.
5-point lift when it came to
Airbnb enabling travelers to book
experiences among 25-34-year-olds
3-point lift when it came to Airbnb
enabling travelers to book experiences
4X higher click-through
rate to the website
Sources: Facebook Instagram Stories
Report Presentation, July 2018
Facebook for Business, September 2018.
29
C H A P T E R 4
Platform
strategy
When we look at investments across
Facebook’s family of apps and services
between disruptors and more traditional
businesses, we’re surprised to see that some
emerging, disruptive industries are investing
in more conventional desktop advertising
than their non-disruptor counterparts.
More people
spend their online
time on mobile.
There’s a unique opportunity here for
disruptors to further disrupt the ad industry.
Omnichannel marketing used to mean
making sure your product is available across
all platforms. Today, businesses that market
across Facebook, Instagram, Messenger
and Marketplace need to consider how
customers will experience marketing
across these platforms as well as ensuring
they’re promoting the right product for
the right person in the right space.
Opportunities
across the board
As more traditional
businesses apply their
marketing to Instagram,
it’s time for the disruptor
industry to move into this
space more thoughtfully.
Over one billion people
worldwide come to
Instagram to be inspired
and discover things they
care about. You can tell a
more immersive business
story to the 400 million
people who use Instagram
Stories every day.
Whether you’re talking
to a loyal customer or
someone brand new,
Messenger lets you make
suggestions, assist sales and
offer support—all in one
automated conversation.
Learn more here
Marketplace is a place for
people and businesses to
discover, buy and sell items
listed on Facebook within
their local community.
Connect with the 800+
million users who are
looking for relevant
products each month.
Learn more here
Learn more here
31
Emerging apparel and accessories tech
vs. traditional retail
Current state
Disruptors in the apparel and accessories
tech world are investing 1.34x more
into Facebook Ads than traditional
businesses in the same industry, with
1.07x more on mobile feeds.
Opportunities
That said, traditional companies are
1.23x more invested in Instagram feeds,
with 2.89x more spend on Instagram
Stories than apparel and accessories
tech. Emerging apparel and accessories
in tech can shine on Instagram Stories
and Instagram because people come to
these channels to get inspired. Tap into
people’s passions about fashion and use
Instagram to tell an immersive story about
your line. Further opportunities will appear
down the line as shopping becomes
a native experience within all apps.
Traditional retail examples
Gap ran Carousel video
ads in Instagram Stories to
create more buzz, boost
brand awareness and reach
new customers for the
Logo Remix collection.1
17-point lift in ad recall
4-point lift in message
association for
Instagram Stories
73% higher click-through
rate than their previous
Instagram campaign.
Disruptor example
Michael Kors ran Carousel Ads in
Instagram Stories to boost awareness of
its Michael Kors Access smartwatches
among a wider audience.2
20% higher online return on ad
spend (versus other ad formats)
8-point lift in ad recall (versus
other ad formats)
3X higher click-through rate
(versus other ad formats)
60% lower cost per click
(versus other ad formats)
FabFitFun subscription
box and media company
boosted its customer
base by running ads in
Facebook Marketplace.3
2.2X return on ad spend
16% lower cost per
acquisition than the
campaign’s goal
Source: 1. GAP - https://business.instagram.com/success/gap?locale=en_
GB 2. Michael Kors - https://business.
instagram.com/success/2-michael-kors?locale=en_GB
3. Fab Fit Fun - https://www.facebook.
com/business/success/2-fabfitfun
32
Beauty disruptors
vs. traditional health
Current state
Beauty tech is leaning
into omnichannel across
Facebook’s family of apps
and services, investing
1.05x more in Facebook’s
mobile feed than traditional
beauty businesses.
Opportunities
Traditional beauty
businesses are focused
more heavily on Instagram
investing 1.74x more on
Instagram and 1.33x more
on Instagram Stories.
Disruptors take note
Beauty is made for the
Instagram space.
Facebook IQ research
revealed that 60% of people
on Instagram are learning
about new products on
the platforms, and twothirds take action after
being inspired by a post.1
The businesses that
balance both Facebook and
Instagram as part of their
campaigns achieve results.
Traditional health example
Disruptor example
CoverGirl achieved a
significantly higher boost
in message association
than industry norms
for its major rebrand
awareness ad campaign on
Facebook and Instagram.2
Benefit Cosmetics
brought its distinctive
and recognizably cheeky
brand personality to
life with Instagram and
Facebook video ads
featuring popular beauty
influencer Patrick Starrr.3
7-point lift in ad recall
5-point lift in message
association for
the new tagline
5X higher lift in
message association
than industry norms
30.1 million people
reached on Instagram
and Facebook
A whopping 19-point
lift in ad recall
13-point lift in
message association
7-point lift in
purchase intent
13 million people
reached
Source: 1. Facebook Internal Data, September
2016. 2. Cover Girl - https://www.facebook.com/
business/success/covergirl 3. Benefit - https://www.
facebook.com/business/success/benefit-cosmetics
33
FinTech vs.
traditional financial
Food tech
vs. restaurants
Current state
When comparing FinTech
and traditional financial
marketers, we can see that
both verticals leverage
Facebook’s family of apps
and services in similar ways.
Disruptor example
Current state
Food tech companies are investing 3.4x
more in Audience Network and 4.5x
more in Messenger than traditional
food companies like restaurants.
Disruptor example
Mint used ads in Instagram
Stories to reach and inspire
millennials in the US to
download its financial
money management app.1
Given that most people make up
their minds about what they want to
eat within two hours of a mealtime,
taking advantage of these platforms
helps people feed their cravings.
Home Chef took an iterative
approach to rapidly building
and testing mobile-first
Facebook video ads to
increase online sales.3
Opportunities
In addition to tapping into
Dynamic Ads, disruptors
in this vertical invest in
Instagram slightly less than
more traditional financial
companies. Relationships
with finance are very
personal so disruptors can
benefit from the immersive
storytelling experience
on Instagram to create
strong relationships with
potential customers.
Some disruptors are
already doing this.
A massive 4.97X
increase in app installs
60% decrease in
cost per install
45% lower cost per
post-install engagement
Opportunities
Traditional restaurants are placing 1.48x
more of their marketing investment on
placements for Instagram, with 1.94x more
on Instagram Stories. Instagram Stories is
a great place for food marketing because
it’s a fun, fast and flexible format that not
only tells a story while playing to a food
craving but they also help people make
quick decisions about what to eat.2
13% increase in total
website conversion rate
23% lower cost
per acquisition
Source: 3. Home Chef https://www.facebook.com/business/
success/home-chef
Source: 1. Mint - https://business.instagram.com/success/
mint?locale=en_GB 2. “Dig In! A Deep Dive to Dining Out”
by Smarty Pants (Facebook-commissioned survey of
1,602 people in the US ages 13-44), Mar 2018.
34
Health disruptors
vs. traditional health
Current state
Health tech companies in the disruptor
vertical focus 3.67x more of their marketing
efforts on Instagram than traditional
health companies, and 5.77x more on
Instagram Stories. Health tech companies
are also more inclined to spread the word
on Audience Network and Messenger,
letting people experience products across
Facebook’s family of apps and services.
Opportunities
Traditional health businesses are 1.47x
more likely to advertise on Facebook’s
mobile feed than disruptors in health.
Don’t forget more people are on
Facebook’s app than any other.
Use this
opportunity to
reach as many
people as possible.
Disruptor example
Noom created mobile-friendly video GIFs
to reach a multilingual audience worldwide,
leading to an increase in members.1
5X increase in members
Over one million new leads
80% lower average cost per new trial
member for short-form video ads in
Spanish to a Latin American audience,
compared to English to the US
Source: 1. Noom Coach - https://www.facebook.com/
business/success/noom
35
Emerging tech vs.
traditional tech
Entertainment*
Current state
Live event and ticketing disruptors are
investing in omnichannel marketing
across Facebook’s family of apps and
services at about the same rate as
businesses in TV, Film and streaming.
Opportunities
Traditional companies invest about 1.74x
more into Audience Network than disruptors.
When it comes to ticket buying and live
events, Audience Network is a great platform
to help boost awareness. Use Audience
Network to deliver ads on apps and sites
beyond Facebook where people spend
their time. Ads in Audience Network can
be delivered across devices into a variety of
video and display placements, including native,
interstitial, rewarded, and in-stream video.
*(Includes live events and tickets,
and traditional entertainment and
streaming entertainment)
Current state
Traditional tech businesses
invest 1.26x more of their
omnichannel marketing
in Facebook’s mobile
feed and 1.2x more on
their Instagram feed than
emerging tech businesses.
But overall, the placement
balance is similar across
Facebook’s family of
apps and services.
Opportunities
Investing more in mobile
placements will ensure
marketing is seen by key
consumers. Right now,
there is an over-reliance
on RHS (Right-Hand Side)
desktop ads. As we’re always
improving our video tools,
embrace them to leverage
machine-learning and
connect with your audience.
Traditional tech example
Disruptor example
HP adopted a rigorous
testing approach to
optimize video ads for
its new pocket printer.1
Mailchimp ran Facebook
and Instagram video ads
to boost and measure
brand awareness.2
15.7X lower cost per
order between the start
and end of the campaign
26.6 million people
reached
18-point lift in ad recall
10-point lift in
brand awareness
26-point lift in
association of
MailChimp with
marketing automation
Source: 1. HP - https://www.facebook.com/business/
success/hp-success 2. MailChimp - https://www.facebook.
com/business/success/mailchimp
36
Emerging marketplace vs.
traditional E-comm
Current state
Both emerging and
traditional businesses in this
industry are heavily invested
in Facebook placements,
and both are far less
invested in Instagram
than any other vertical.
Emerging Marketplace
businesses are 3.78x more
invested in Audience
Network, and 7.87x more
invested in Messenger,
meaning these emerging
businesses are focusing
on emerging advertising.
Opportunities
Getting back to basics will
drive more opportunities
in the omnichannel space,
particularly in mobile.
Emerging marketplace
businesses are 2.3x more
likely to invest in placements
on the desktop feed than
traditional businesses.
But traditional businesses
are more mobile-first on
Facebook’s family of apps
and services, being 3.42x
more likely to invest in
Instagram Stories than
disruptors in this industry,
and 1.45x more likely to
invest on Facebook’s mobile
feed than disruptors in
emerging marketplaces.
Traditional example
Overstock ran video ads in
Instagram Stories to acquire
new customers and increase
sales, resulting in an 18%
higher return on ad spend.1
Beats by Dre tested different creative
strategies for ads in Instagram Stories,
which significantly increased click-through
rates compared to Instagram Link Ads
and other advertising channels.2
18% increase in
return on ad spend
15% higher click-through rate
compared to other channels
20% decrease in cost
per acquisition
29% increase in purchase lift
20% decrease in
cost per click
11X lift in traffic to its website
16X lift in unique user engagement
Source: 1. Over Stock - https://business.instagram.com/success/overstock?locale=en_GB 2. Beats by Dre - https://business.instagram.com/success/beats-by-dre?locale=en_GB
37
Conversion
optimization
Across the board, disruptors are
more inclined to incorporate
conversion optimization than
their traditional counterparts.
9%
TRADITIONAL TECH
6%
81%
TRADITIONAL BEAUTY
HEALTH TECH
96.7%
We work with over 120 of the world’s best
DR marketers, and we see what works and
what doesn’t. We consider the below as the
core five DR tactics, and as absolute must
dos for disruptors to ensure the best CPA:
EMERGING BEAUTY
58%
Facebook delivers ads to the right
people to help businesses get the most
out of these delivery optimization
goals, for the lowest cost. Leveraging
our automation and machine-learning
algorithms drives better results in realtime and helps disruptors focus on more
important aspects of their business.
FINTECH
31%
FINSERV
Advanced Auto Matching
90%
7%
RESTAURANTS
Must dos for
Disruptors to
ensure best CPAs
EMERGING APPAREL
AND ACCESSORIES
84%
Advanced Liquidity (PO)
Dynamic Ads
43%
FOOD TECH
Simplified Account Structure
Campaign Budget Optimization
TRADITIONAL
FASHION RETAIL
84%
EMERGING
MARKETPLACE
33%
ECOMM ENTERPRISE
AND PURE PLAY
47%
33%
CONSUMER AND
TRADITIONAL TECH
These are battle-tested and if you’re not
doing these, you’re likely falling behind.
EMERGING TECH
TRADITIONAL FILM,
TV AND STREAMING
32%
46%
LIVE EVENTS
AND TICKETING
Source: Except where otherwise stated, all
sources based on Facebook data dated or
accessed June 2017-June 2018
38
C H A P T E R 5
Measurement
Disruptors focus on peoplebased measurement across
devices, and they’re continuing
to outflank competitors who
are slow to adapt. Here are
some tips on how to make an
even bigger push in this space.
Adapting to valuable
business growth metrics
To fully scale their businesses and create
a sustainable return on advertising
investment, disruptors shift their digital
advertising success from cookies, clicks
and Cost Per Action (CPA) to lift multiple
touch attribution. Facebook’s peoplebased measurement solutions can help
advertisers understand the true impact
of their marketing spend, and how to
optimize campaigns for more growth.
Focus on
people-based
measurement
across devices
Why?
To customize your
messaging, and refine your
targeting.
People-based measurement
People-based measurement is a solution
for unifying insights from real people,
with real behaviors across devices.
40
Shifting from
observational
reporting to
true business
impact with lift
Why measure lift?
Lift uses Facebook measurement
solutions, giving you the ability
to understand your performance
with consumers across
environments.
The ability to accurately measure the
incremental impact of advertising on
Facebook, Instagram and Audience
Network is key for disruptors who want to
continually grow their business. To address
this need and build on our gold-standard
Lift methodology, Facebook has developed:
Measure people, not cookies
37% of conversions are missed by cookiebased measurement. Because our lift
solutions measure people, not cookies
alone, our solutions help you understand
performance across devices and
conversion events, regardless of whether
they happen online, offline or in-app.
Conversion lift solutions to determine
the incremental conversions Facebook
has driven for your business.
Brand lift solutions to help you measure
brand performance metrics such as
brand awareness and ad recall.
Facebook + search = better together
We found that cross-channel campaigns
that include search and Facebook can
create complementary effects on marketers’
campaign objectives. On average, Facebook
ads were responsible for 19% more
organic search-referred site visits and 10%
more for paid search-referred visits vs.
when people didn’t see Facebook ads. On
average, 1 of every 2 incremental search-
referred site visits driven by Facebook ads
led to an incremental action on the site.1
Gain holistic performance insights
Last-click attribution, common in the
industry today, can often miss important
touch points along a consumer’s
journey to conversion. Our internal
data shows that 91%2 of people who
could buy your product don’t click on
your ads. By measuring ad exposure and
conversions across devices, Facebook is
able to give you a more holistic view of
performance and help you understand
the full path to conversion—without
forcing you to exclusively rely on clicks.
Prove incremental value
Facebook’s lift solutions are based on
our gold-standard methodology that
helps you prove the causal impact of
your digital advertising across Facebook,
Instagram and Audience Network.
Learn if your attribution
model is accurate
Conversion lift enables you to calibrate and
improve your existing attribution models.
Source: 1. How Facebook Ads Drive Online
Search, July 2018. 2. Facebook internal data.
41
Lift partnerships
Facebook understands the importance
of meeting advertisers where they
are, which is why we’ve established
lift partnerships with several leading
research companies, including
Nielsen and Kantar Millward Brown.
Every first-party solution and partner solution we offer
utilizes the same gold-standard, experimental-design
methodology of exposed and control group testing.
While there are product differences in terms of question
style, the number of questions offered, and required
campaign minimums, every brand lift solution available
through Facebook utilizes this same methodology.
Success with lift
Even with 2 billion people, Facebook can’t
guarantee lift results, but Facebook can run
controlled lift studies better than anyone else.
Our competitors have fewer users, less control over
clean-exposed and control groups, and rely on “cookies”.
Even if the main purchase event does not show
a lift, we can see if upper-funnel events such as
“Add to Cart” or “Learn More” do show a lift.
Facebook has tools to quantitatively evaluate
creative, which can be used diagnostically to evaluate
a lift study. Moreover, we are able to see how
close a study is to showing significant results.
42
Attributing
business
results beyond
the last click
Cross-device has its limitations, and
disruptors need a holistic approach
to reach consumers and measure
where they shop and engage.
Facebook offers a number of
sophisticated attribution solutions.
These help disruptors understand how
their campaigns drive online, offline
and cross-device conversions across
their entire digital media spend—all
based on insights from real people.
This data tracks and measures
conversion path metrics and
models to accurately value touch
points via different methodologies.
There are two different types of
attribution models: Rule-based
models vs. Statistical models.
UNDERSTAND
BUSINESS GOALS
EVALUATE METRICS
AND METHODS
GET STARTED ON
MEASUREMENT
TEST AND COMPARE
RESULTS
1
2
3
4
Determine audience, brand Evaluate the metrics and
and sales goals.
methods you currently use
for measurement. Do they
accurately measure
your audience brand
or sales goals?
Work with your Client
Measurement Lead to
understand the right
measurement journey for
you based on vertical, goals
and current partnerships.
Test the people-based
measurement journey
and compare results with
expected outcomes.
OPTIMIZE SPEND
5
Optimize and reallocate
spend to better achieve
your goals.
43
Statistical models
Last-click models can miscalculate return
on investment (ROI) by attributing credit to
only the last click before a conversion. The
model works as if the consumer doesn’t
see or click any other ads along the way.
It’s based on algorithms that determine
how ad touch points should be
credited for driving conversions.
The resulting outcomes are
dynamic, and based on historical
advertising and conversion data.
SITE A
SITE C
SITE D
SITE E
Rule-based models
SITE A
This is the way that it really looks for an
advertiser as people spend more time online.
People interact with many channels. They
see video online, interact with rich media,
view and click on display and search ads, etc.
SITE B
SITE B
SITE C
SITE D
SITE E
Where a “rule” governs how conversions
should be allocated to ad touch points.
Based on a selected model of choice,
typically: last-click, even credit, time
decay and positional analysis.
44
Understanding last touch
There are two models that when
studied together can illustrate how
arbitrary last touch actually is.
1
Multi-touch attribution
(MTA) models
Take into account all of the touch
points in the path to conversion.
2
Rules-based models
By comparison, statistical MTA models
analyze the correlation between ad exposure
and conversion, teasing out the effect of
advertising to the various touch points.
These models leverage your historical ad
serving data to build a more realistic picture
of the complex journey to purchase.
While implementing MTA takes
some effort, there are real costs to
inaction for disruptors. Continuing to
optimize for the last click can misguide
campaign strategy and media spend.
Simple to implement and they provide a
useful check on your understanding of
value (like even credit and time decay).
45
C H A P T E R 6
Agile
marketing
principles
Building agile
marketing organizations
Increasingly, speed is at the core of
every successful business. As things
can and do happen faster than ever
before, you need to be able to adapt
to change quickly to capitalize on it. It
is the companies that move fast and
that execute well that are the ones
that will succeed in the long term.
Disruptors are acutely aware of and
understand the need for speed, and
build their organizations accordingly.
“Staying in Day 1 requires you to
experiment patiently, accept failures,
plant seeds, protect saplings, and double
down when you see customer delight.
A customer-obsessed culture best
creates the conditions where all
of that can happen.”
Jeff Bezos
Amazon Founder and CEO
47
1
2
In our work with
Control vs.
Unified goals
disruptors, we’ve seen five In an agile marketing organization, there is loose portfolio
clear alignment, on all fronts, when it comes
A large difference between larger
to business objectives. This alignment can
critical success factors
advertisers and disruptors is the ability for
be developed in a number of ways. With
across their organization. disruptors, we have seen extremely strong leadership to allow employees to function
C-level advocacy when it comes to building
a mobile-first organization. For others, it
is having clearly trackable metrics that all
campaigns and strategies evolve around.
In both scenarios, there is one thing
in common: the hunger for success is
embedded within their culture. Even if there
was ever misalignment within a company,
this cultural undertone is a fail-safe—
pushing employees to do anything in their
power to help their company succeed.
C-Level advocacy for mobile-first
Measurable goals to rally around
in autonomy, or in other words, having a
loose portfolio versus a controlled one.
Contrary to larger advertisers where
many decisions require leadership signoff, disruptors trust and empower their
employees to make their own game-time
decisions with certain guardrails. As a result,
decision-making and turnaround time for
disruptors often fall within 24-48 hours. With
clearly defined business goals, and a cultural
emphasis on success, disruptor leadership
understands the importance of moving fast,
and trusts employees to make decisions that
will lead the company in the right direction.
Hunger for success
48
3
Freedom of
information
Within disruptor organizations,
communication flows freely throughout,
no matter which level you are at whether
you are part of the C-suite or you
are a new hire—information is easily
accessible to anyone at the company.
This type of transparency is brought
on by two main characteristics: the flat
hierarchy, and the collaborative relationships
between employees. Many disruptor
companies typically only have 2-4 layers
between the lowest level and the executive
team, allowing them to operate in a flat
organization with easy access to leadership.
With a flat hierarchy, employees can
not only easily gain access to leadership,
but leadership can easily disseminate
information throughout the organization,
resulting in faster decision making and a
clear understanding of company goals.
Additionally, the definition of layers
within disruptor companies is very lax—
while their titles may indicate they are at
different levels, many of them maintain
collaborative relationships where, for
example, strategy and budget decisions
are structured as discussions rather than
directives from leadership. This sort
of collaborative relationship ultimately
empowers employees to make their own
decisions for their projects, as long as they
operate with the company’s goal in mind.
Access to Leadership
Leadership’s proximity to the daily work
Reduced chance of miscommunication
While LOLA’s marketing strategy is headed
by their marketing lead, Becca Freeman,
her collaborative relationships with her
colleagues Jeff Magida and Nicole Parker
power LOLA’s marketing strategy. Given
their small-sized team, Becca and her team
tackle everything. For example when Becca
and Jeff are optimizing their media buying
and planning across channels, Nicole is
brainstorming new ways to tell LOLA’s
story through their creative. Their tight
partnerships with each other only fuels the
ability for marketing to influence creative
production, allowing LOLA to have a truly
iterative approach. More importantly, it has
enabled them to constantly experiment
within assets to find the perfect fit for
the audiences they are targeting. While
their organization structure will evolve
as they grow, LOLA has found a way to
make their organization work for them,
and in return, has created a powerhouse
marketing team that is able to drive huge
amounts of growth for this digital business.
49
4
Connoisseur
of failure
Risk-taking is a key behavior that sets
disruptors apart from larger advertisers.
Often at times clients don’t want to be
involved with betas because they are risky.
On the other hand, disruptors are constantly
jumping at beta opportunities—they are
willing to try anything as long as there is
potential to provide them with an advantage
over their competitors. Taking risks does
not simply end at being open to betas—this
extends to simple day-to-day situations
where decision-makers are eager to try
a new solution, ad format, or platform.
Of course, failing is one thing, but being
able to extract learning insights is another.
With our disruptor teams, many of them
are pushing our partnerships to help them
direct learning agendas. They understand
the need to be proactive in order to stay
ahead, and while these bets may not always
equate to success, disruptors understand
that taking risks reaps the greatest rewards.
Adoption of betas
Day-to-day risk taking
Learning from failures
In the past, Rover.com reached potential
new customers by using the Traffic Ad
Objective which focused heavily on direct
response (DR). To reach even more people
who were ready to book a service, Rover.com
decided to test the conversions objective—a
drastically different approach to the one they
used before. Rover.com used the Facebook
pixel to track certain events, or actions that
people were taking—specifically—“view
content” (to track awareness) and “complete
registration” (for direct response). The
company then used this data to find more
people similar to the audience taking
these actions and targeted additional ads
to them. By targeting potential prospects
with location targeting and lookalike
audiences—and focusing on a top-of-funnel
awareness event—Rover.com ensured it
was reaching people who were most likely
to book services after clicking on its ads.1
With its awareness-focused conversion
campaign, Rover.com found more
people searching for its pet services
and more than doubled bookings.
Using the Conversions Ad Objective,
the campaign achieved:
2.2X increase in bookings
50% increase in sitter inquiries
48% decrease in cost per booking
Source: 1. Rover.com - https://www.facebook.com/business/success/rover-dot-com
50
5
Managing a
living thing
For disruptors, continuous learning is a key
undertone to all of their day-to-day business.
They understand that the market is a living
thing, so it is important to gather as much
insight as possible and change alongside it.
Whether that is focusing on how to
drive more conversions, increase ROI,
experimenting with betas, or participating
in partnership programs, disruptors are
eager to learn as much as possible, and
immediately act on these insights. By
constantly learning and using these insights
to inform their campaigns, company mission,
or product, disruptors guarantee that they
are armed with the most informed strategies
possible. With these learnings comes the
ability to adapt and shift. We noted that the
majority of these companies had this innate
ability to adapt and pivot their businesses
both internally and externally - whether it was
caused by industry shifts, consumer behavior,
or even the realization that their own internal
processes were broken. So the ability to
change their strategy is what has kept them
afloat in this competitive environment.
Ultimately, learning and adaptability have
allowed disruptors to maintain their
competitive edge, enforcing the need
to be proactive rather than reactive.
Campaign/Messaging
Company mission
Product development
Strategy
Despite its global footprint, HelloFresh
marketing still very much acts like a
disrupting start-up. In the U.S, HelloFresh
gained market leadership for the
subscription meal kit category in late 2017
by adapting to market conditions and quickly
adjusting its marketing budgets to gain
consumers quickly. HelloFresh is constantly
monitoring consumer trends, industry shifts,
and competitor moves. When they see an
opportunity, they do not hesitate to jump
in and take action. When monitoring their
competitors, HelloFresh noted that many
of the dominant players had begun to dial
back their marketing initiatives. Although
it was a huge risk, HelloFresh knew they
had to take advantage of this opportunity,
and jumped in head first and ramped up
their marketing strategy. Because of this,
HelloFresh was able to pick up increased
revenue earnings for the second half of
2017, and hit the ground running for 2018.
51
These may seem like simple ideas,
but they’ve proven to be difficult
to achieve in larger, more complex
organizations. Disruptors are uniquely
positioned to succeed in this space
because there’s a clear alignment on
all fronts, and across your teams, when
it comes to business objectives.
Here are some
small steps into
agile marketing
for those who feel
they’d like to do
more in this space:
Clearly define roles and responsibilities
Outlining who is responsible for deliverables,
and who will hold who accountable,
allows for clear paths of communication
to be established. Instead of creating
internal bottlenecks where teams are
unsure about who is pushing what part
of the project, teams will have a clear
understanding of who they should be
approaching for specific deliverables.
Ensure access to key decision-makers
It is also crucial to have the key decisionmakers looped into our conversations.
Instead of relying on the chain of command
to surface new strategies and ideas to
leadership (and potentially lose the ability
to communicate the ideas effectively),
having key decision makers in the room
will helps to get decisions immediately on
what can and cannot be implemented.
Create low friction and
constant feedback loops
Disruptors understand the importance of
constant change and iteration. While they
have their own way to discover insights,
larger advertisers can begin within their
organization and look at the feedback loops
within their company. In order to be able
to make mid-flight changes—whether it’s
a campaign, internal processes, or larger
product shifts—it is crucial to build feedback
loops that are constantly refreshed so
you can act on new, immediate insights.
Get comfortable with small-scale change,
and then focus on larger-scale shifts.
Democratize information and education
From top to bottom—an organizational
level of understanding builds trust and
empowers employees to make informed
decisions. Create a culture of collaboration
and transparency to speed up decision
making and allow new ideas to flourish.
Make flexibility a strategic imperative
Agile marketers place more value on
adapting and optimizing than sticking
to a plan. This flexibility enables quicker
decision making and the ability to coursecorrect when things don’t go as planned.
52
Develop learning agendas
Learning agendas can provide valuable insight
to questions you are trying to answer about
your campaigns, products, or consumers.
By focusing on learnings, brands can gain a
stronger sense of their business goals, and
begin testing based on these questions.
Framing each objective as a way to learn
more will focus businesses to become
comfortable with risk and opportunity
costs. By understanding the importance
of learning, companies should become
more comfortable with the idea of Alphas/
Betas as an opportunity to test and learn.
Fewer but better tools and resources
Implement tools that are actionable
and scalable in the long-term. Global
platforms (such as Workplace or Slack)
encourage cross-functional collaboration,
and ensure that communication is
consistent across the organization.
Empower employees by changing
the decision-making structure
Empowering the people who know and
understand the business to activate new
strategies and experiments will push you to
move fast. Currently, decision turnaround
and working in parallel is hindered due to
the need for sign-offs by leadership. If more
people within the layers are empowered
to make decisions, and leadership trusts
them to do so, then people who actually
understand the core product offerings
will be the ones dictating strategy, and
not leadership who may be situated four
layers away from the actual campaigns.
Cultural shift (outcome vs. function)
Agile marketers have found ways to
embed a collective hunger for success
within their own company culture. Growth,
profitability, and conversions should drive
decisions over actions such as launches,
campaigns executed and studies.
53
Agile content
development
However, there are two
emergent opportunities:
Agile marketing is more than the
organizational setup though. This ensures
the best flow of information, but just as
important is the ability to quickly develop
and distribute content.
Data availability
Better than ever before, we know how people react to
advertising, and we know what is working and what isn’t.
Today’s marketing
environment, however, is a
testing one and
there are two key challenges
that need to be overcome:
Channel fragmentation
The number of marketing and
communications channels continues to
grow. Knowing what works, and what
doesn’t work for each channel is an evergrowing challenge for organizations.
Reduced marketing budgets
Increased fragmentation means that
marketers need their advertising spend
to work harder than ever before.
There is a need to develop ever more
content to keep up with increased
rates of consumption and also remain
relevant on each different channel.
40% of US marketers expected
a quarter-over-quarter increase
in their data-driven marketing outlays
in Q4 2016.1
Marketing technology
The rise in technology to support scaled creative
production and marketing automation presents is
presenting a raft new opportunities for marketers—
including personalized creative delivery.
The bottom line is that more needs to be created with less,
and data, feedback and emerging technologies need to be
leveraged. Advertisers need to become more agile and nimble
in the way creative development is approached—it is a must.
Source: 1. eMarketer Study: “Number of Marketers Who Still
Don’t Use Data Now Just One in 10” , February 2017.
54
In our work with
disruptors, we’ve
seen several critical
success factors
across content
development
strategy.
Increased
spectrum of
potential creative
solutions
Disruptors adopt a test, learn, iterate
approach to creative development. They’ll
produce a large number of ideas, quickly,
test them to see what works on which
platforms, and feed these insights back
into an overall campaign strategy. To
make this possible, budget is shifted from
traditional concepting to production.
Our research shows that “the fastest
growing advertisers created 11x more
creative assets (45 vs. 4)”
when compared to the average.1
1
2
3
RAPID
CONCEPTING /
PROTOTYPING
TEST AND
LEARN
INFORMS
ONGOING
ITERATION
Test, learn, adapt
Agile creative teams continually monitor
performance during campaign cycles to
inform immediate creative changes.
Changes include copy adjustments, callto-action changes, image refreshes or
pausing delivery on underperforming ads.
Headspace shifted from a generalist
to a specialist approach for their 2018
New Year’s Campaign. The specialist
team quickly developed and produced
a spectrum of creative solutions for the
brief. The team monitored performance
throughout the campaign and adjusted
creative to maximize performance.
Source: 1. Facebook internal data, 2017.
55
Post-campaign
post-mortem
Agile teams conduct a post-mortem on
past campaigns and use this information
to inform future creative development.
Teams look for patterns of strong performance (e.g. a certain format type or creative
approach that consistently worked well.)
Multi-disciplinary teams
ThirdLove tested low-effort video
initially (GIFs, etc.) before making a big
leap with video. When they saw this
strategy working they increased video
investment and continued to test and
iterate to find the right video strategy.
Agile teams bring multiple specialties and
disciplines together in the same team. This
includes media (planning and buying) and
creative (strategy, ideation, production).
These teams exist within large
agencies, as stand alone agencies/
companies, and within brands.
Focused on direct response marketing goals
for its mobile videos, ThirdLove wanted to
find a balance between building an emotional
connection and urging a sale. Testing and
iterating allowed the team to find the most
effective equilibrium between catching
attention in mobile News Feed, storytelling
and describing the product or offer.
Agile teams complete all tasks involved in the
full development of a paid social campaign
(from planning through to execution).
This allows teams to move quickly without
having to constantly ‘pass the baton’.
ThirdLove A/B-tested ad messaging on
concepts such as bra fit, style and valueoriented offers to see what its target
audience responded to best. Using
these insights, the team created its
Mobile-Optimized Video Ad strategy.1
25% decrease in cost per user acquisition
20% decrease in cost per click
27% increase in click-through rate
Source: 1. Third Love - https://www.facebook.com/business/success/thirdlove
56
Getting started
Test, early and often
Make more
Make mobile
central to briefs
Increase the final number of
ads produced for FB to take
advantage of the system’s
ability to optimize delivery
of the highest performing
ad to the right person.
Consider different versions,
edits, cuts and consider a
mix of long, mid and short.
Embed building for
mobile into briefs at
the very beginning.
Test a range of creative
solutions early on in the
creative development
process—as early as the
strategy stage. Explore
and test a spectrum of ads
to learn about different
messages, ideas, concepts
and implement the
learnings from this phase
into the development of
final executions. Leverage
Creative Facebook
Marketing Partners (FMPs)
for support with scaled
creative production.
Post-campaign
learning
Analyze results from
past campaigns and
use this information to
guide upcoming creative
development. Observe
patterns in performance
(e.g. photography with
close-ups of product shots
tend to perform better)
and ensure creative teams
are ideating based on
this past performance.
Ensure your
media team and
creative team are
actively working
together
To find the best combination
of media placement and
creative message. This
duality unlocks the greatest
amount of value. Build
project found create assets/
mock-ups collaboratively.
57
Agile content
delivery
The primary concern of
agile content delivery is
connecting with consumers
in the most effective way
possible, such as through
good targeting, to drive
performance. Disruptors
adopting an agile content
delivery approach typically
follow a principles-based
plan. This approach entails
looking at user’s needs
and seeks to deliver
a content model that
focuses on the parts which
matter the most first.
1
Through our
Collapsing
research and
the funnel
The lines between branding and DR are
partnerships with
becoming increasingly blurred and disruptors
agile organizations, are bringing an optimization mentality to
brand building, and brand building to sales
we have observed conversion campaigns. Disruptors typically
start from a place where they are focused
on conversions, and they start building
certain behaviors
their brand from a small user base. As
they need to grow their user base, they
relating to agile
start investing more on brand building
activities. What they are uniquely doing
content delivery.
The biggest brands
of tomorrow will be
the performance
brands of today.
when they move into brand, is trying to
understand a complete picture of how
people move through their consumption
journeys, so they can drive the right, most
meaningful interactions with their brands.
58
2
3
Signal-driven
delivery
Content delivery
at high speed
Relevance is also increased by telling your
brand story in a sequence that makes
the most sense for each consumer.
Having creative pieces is the beginning of
the journey. Disruptors run their campaigns
based on clear objectives vs. based on a
set budget. With these objectives in mind,
they adjust budgets and execution based
on real-time performance. These changes
allow them to improve performance both
during a given campaign and over time.
It is not only about one-piece of creative
but how you sequence pieces of creative
based on consumer behaviour, such as
visiting a website or viewing a video.
Signals provide these triggers to build a
story for each consumer. At the same time,
they allow agile marketers to use Facebook’s
machine learning to improve delivery of
their ads on our platform. Over time, with
more and more data, the system improves
with finding the best people to show an
ad to, depending on your objective.
The beauty retailer used a test and
learn approach to understand what
kind of Facebook Mobile video ad
creative results in obtaining the
most new subscribers and sales.1
35% increase in mobile sales
70% of all Birchbox now
comes from mobile
Improve performance
during campaigns by
shifting to higherperforming strategies.
Improve
performance over
time by learning
which strategies
don’t work.
Source: 1. Birchbox - https://www.facebook.com/business/success/birchbox
59
4
From Cost-out
to Value-in
In traditional companies, brand teams
are chartered to drive growth, while
media teams are asked to drive costs
down. This lends itself to a more static
media environment where these variables
could be maximized with manageable
negative impact on one another. In agile
marketing teams, the organizational
boundaries are erased and every marketer
is responsible to drive the most value—
the cheaper impression is not necessarily
the best, so variables can’t be isolated.
5
Success is defined
by the ability to
drive value and
overall business
performance,
versus getting
maximum value
from a marketer’s
profit and loss
The leading online marketplace to buy
and sell women’s clothing and children’s
second-hand apparel in “like new”
condition. ThredUP sold over 10M items
in 2017, and 70% of new customers
are first-time resale shoppers.
“The left brain and the right brain on the
organization are constantly talking to each
other, so our teams that are looking at
conversion and funnel data on the site are
constantly talking to the product team
who’s looking deeper into the funnel, who
are talking to customers. I think one thing
that we talk about a lot at thredUp is the
type of culture we build as a marketing team.
And again I think it’s so easy to get focused
on the data. But without the culture that
understands how to think about that data
and how to make decisions on it, you’re
really kind of lost.”
Anthony Marino
CMO of thredUP
60
Getting started
Audience planning
Stay on top of
execution
Campaign design
Scenario
planning
Know what signals you
are going to read, and
what actions you will take
depending on outcomes.
Review campaign
performance more
frequently (one to two
weeks target) to see if
changes might make sense.
Generating signals
If you have some online
or mobile conversions,
implement the Software
Development Kit (SDK)
throughout a brand website
and/or app. If your in-store
transaction information
can be linked to specific
consumers, implement
offline conversion
measurement and test
out the optimization.
Structure campaigns to
tackle the different stages
of the consumer journey/
marketing funnel.
Test out different ways of
using your data alongside
Facebook data for targeting.
For example testing
exclusion custom audiences,
inclusion custom audiences,
and lookalike audiences
using Customer Relationship
Management (CRM) data
vs. original targeting for a
mid-funnel or smaller-scale
upper funnel campaign.
CRM capabilities
CRM and Customer
lists enable you to build
audiences on Facebook
based on your existing
consumer knowledge.
You can either generate
capabilities yourself or
consider partnering
with a FMP to generate
such capabilities.
61
SU MM A RY
The
disruptor
business
profile
Over time, we’ve seen
digital marketing evolve
from simple search engines
and banner ads into a rich
and complex ecosystem.
The tools, targeting, and ad
experiences available today
allow businesses to connect
with consumers and drive
commerce in new ways like
never before.
The disruptor team
at Facebook has the
privilege of working
with over 120 of the
world’s best direct
response marketers.
Over the course of our
partnerships, we have
seen an evolution in how
disruptive businesses
mature both on and off our
platform to leverage signal
data, maximize volume, and
drive better business results.
Through observing these transformations,
we have codified the phases of direct
response maturity into four different
stages. Take a look and evaluate where
you are as a DR marketer today. If you
want to maximize efficiency while driving
scale in your business, think about
what actions need to be taken next,
both on our platforms and within your
organizations. If you’re ready to take
your DR marketing to the next level, your
Facebook team can help you get started.
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The evolution of
DR marketing
Scale it
Signal & Ad Product
Signal & Ad Product
Prove it
Claim it
Signal & Ad Product
Pixel & SDK implemented
Optimize for conversions
Product catalog
Measurement
Last click measurement
Intra-company data sharing
Signal & Ad Product
Simplified account structure
Auto advanced matching
Leveraging automatic
placements across channels
Measurement
Sending product information/cost details
Dynamic ads for remarketing
Dynamic ads for broad audiences
Value optimization (ROAS bidding)
Measurement
Multi-touch attribution (MTA)
Brand lift tests
Data sharing
View-through attribution
Measure incrementality
through Conversion lift testing
Internal publishing of individual
employee performance
Creative
Data sharing
Team specific reporting within company
Instagram stories
Modular video
Siloed individual results
Creative
Creative
Videos
Static images
INCREASED SIGNAL HEALTH
Measurement
MTA calibrated by Lift +
Offline/CRM LTV model +
full funnel attribution
FB + TV
Data sharing
Complete data democratization
Creative
Dynamic Creative Optimization
Creative Rules via API
MAXIMIZING VOLUME
Sell it
Campaign budget optimization (CBO)
Dynamic Ads w/ Vertical-specifi
optimization (e.g. Dynamic Ads
for Real Estate)
Optimization towards LTV
Server to server campaign automation
1:1 consumer messaging
So where are you
as a DR marketer?
As an organization what can you do to
be more agile? What steps can you take
to be a better marketer and be more
disruptive? Well, here’s the good news.
There’s never been a more exciting
time to be in this industry.
As this report shows, we are in the
company of a lot of innovative, forwardthinking business leaders who are
changing the way industries operate.
But this disruption has to be
maintained. Now is the time to
prove we have skin in this game.
I’ve recently come up with some
Tenets of Disruption that I think will be
paramount to showing the world that
we’re here, and we’re the future.
Data democratization: Everyone
from the janitor to the CEO should
get access to all of the same daily
revenue/KPI reports. Just as important,
is that every line-level employee is
empowered to improve those results.
The most disruptive companies usually
have empowered software engineers at
the center of their differentiation (data).
Next to talent, speed is the next-most
important asset that disruptors have
against their larger competitors.
Always-on testing mentality:
Every great Disruptor company has
the mentality to “test everything!”
Testing isn’t something that only
lives in the analytics department, or
a few select people. It’s woven into
the culture of every single team.
Move quickly into new areas—
test constantly and shift into new
placements (like Stories) much
faster than non-disruptors.
Hold each other accountable
and use healthy competition
to drive performance.
The best performing companies
find ways to remove steps in policies
and procedures until they “find
the breaking point” to ensure it
creates the least friction possible.
You can’t be first and have best
practices—you have to be willing to
take risks to reap outsized rewards.
You must have a willingness to break
dishes in order to reach scale. Rewrite
your product roadmaps by committing
early and helping shape your product.
Thank you for being part of this exciting
journey with us. We look forward to
working side-by-side with you as you
continue to disrupt the world.
Yours sincerely,
Jake Bailey
Head of Industry,
Emerging Disruptors, Facebook
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