SOCIAL MEDIA INSIGHTS Part 3


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SOCIAL MEDIA INSIGHTS

Part 3

MEN ARE CHEAP Efficient Gender Targeting with Facebook Ads

SEPTEMBER 2012 1

INTRO Per eMarketer, almost four billion dollars in advertising budgets were spent on Facebook ads during the past year, and that number is expected to grow to more than six billion in 2014.

Facebook ad Revenue (Billions usd) $8.00 $6.00 $4.00 $2.00 Facebook Ad Revenue

$0.00

2012

2013

2014

Source: eMarketer

Meanwhile, Facebook continues to grow its user base as more people join the world’s largest social network and spend more time within its walls. ComScore reports that the average Facebook user spends more than 6 hours on Facebook each month.

FACEBOOK Average Minutes per visitor 405 400 395 390 385 380 375 370 365

Average Minutes per Visitor

March 12

April 12

May 12

June 12

Source: comScore

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Advertising on Facebook has become a very important channel for major brands, but successful social media campaigns require a deep understanding about how the Facebook population engages with ads. This report is the third in a series of Social Media Insights from digital marketing leaders Resolution Media and Kenshoo Social. Our first report, “Metrics that Matter,” revealed key performance indicators to measure performance of Facebook Ads – Exposure Rate and Frequency. Our second report, “Social Media Advertising Global Games,” broke down Facebook ad performance by country.

This report answers important questions about how women and men engage differently with ads on Facebook.

which gender…

is more prevalent on Facebook?

dra w s more ad dollars ?

sees more ads?

clicks on more ads? costs less to target? delivers unique audience exposure?

sees the same ad more times?

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Women outnumber men on Facebook... Available Target Audience for Facebook Ads Females 58%

Males 42%

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

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...but marketers spend more money targeting men on Facebook. Budget Allocation for Facebook Ads Females

Males

47

53

%

%

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

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As a result, men are served more ads on Facebook, and they respond by clicking more often.

Impression Volume for Facebook Ads

CLICK Volume for Facebook Ads

males

males

Females

Females

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

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Men are also less expensive to reach with Facebook ads.

Cost-­Per-­Thousand (CPM) Impressions for Facebook Ads $0.25 $0.20 $0.15 $0.10 $0.05 $0 Female

Male

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

Cost per Click (CPC) Impressions for Facebook Ads $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0

Female

Male

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

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Therefore, you can reach more of a unique audience when targeting men. Exposure Rate for facebook ads 9% 8% 7% 6%

Joe’s Shoe Shop

5% 4%

Buy heels, flats, and sandals at deeply discounted prices! Free Shipping!

3% 2% 1%

Buy shoes, shoes, and more shoes at deeply discounted prices! Free Shipping!

Becky’s Shoe Shop

Like

Like

0% Female

Male

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

And you can afford to show them the same ad more often. Sometimes men just need to be reminded :)

Frequency of facebook ads 14 12 10 8

Joe’s Shoe Shop Buy heels, flats, and sandals at deeply discounted prices! Free Shipping!

6 4 2

Buy shoes, shoes, and more shoes at deeply discounted prices! Free Shipping!

Becky’s Shoe Shop

Like

Like

0 Female

Male

Source: Social Media Insights Part 3 - Men Are Cheap | © 2012, Kenshoo, Inc. and Resolution Media

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Key Takeaways for Advertisers 1. Create very finely-targeted ad segments. Separate men and women. Segment by age and other demographic selects, too. Smaller, highly-targeted ad segments enable more relevant and cost effective Facebook advertising. 2. Methodically expand the number of highly-targeted ad segments to effectively scale campaigns by extending this improved relevance and performance to larger audiences. 3. Use custom text and images for targeting men vs. women. Different messages will get the attention of different genders. 4. Adjust bidding strategies based on segment attributes, including gender. Don’t overspend trying to reach males given the glut of inventory and lower rates available for targeting men. 5. Monitor Frequency. We learned in “Metrics that Matter” that an ad Frequency of six is optimal. Beyond that point, people tune out and fresh creative is required to drive engagement. 

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METHODOLOGY This report reflects aggregated global data across a wide range of brands whose Facebook ad campaigns are managed by Resolution Media using Kenshoo Social. Industry verticals represented include entertainment, finance, retail, and insurance, among others. Brands represented include HBO, Hewlett-Packard, Monster, ING, Visa and Activision among others. The dataset examined for this report spans nearly 65 billion Facebook ad impressions and 20 million Facebook ad clicks during the 12-month period beginning March 1st, 2011 and ending February 29th, 2012. Facebook® is a registered trademark of Facebook, Inc.

ABOUT RESOLUTION MEDIA Headquartered in Chicago, Resolution Media, an Omnicom Media Group company, is a leading digital agency with operations in 40 countries. Resolution provides client services in the areas of paid search, search engine optimization, digital behavior analysis, conversion path optimization, behavioral targeting, social media, mobile, local and other complementary services. Resolution is a division of Annalect Group, Omnicom Media Group’s digital analytics company. Annalect specializes in Media Analytics, Business Intelligence, Tools and Dashboard Systems, Econometric Modeling, Search Strategy and Digital Investment Platforms.

ABOUT KENSHOO SOCIAL Kenshoo Social is a global social marketing technology solution for brands and agencies to achieve tangible business goals as effectively and efficiently as possible. The Kenshoo Social Ad Manager enables the creation and optimization of sophisticated social ad campaigns in a simple and scalable manner. Built on the Kenshoo Universal Platform, Kenshoo Social delivers nearly 1 billion Facebook ads per day while empowering marketers with cross-channel reporting, tracking, integration, and attribution. Visit Kenshoo.com/Social or Facebook. com/Kenshoo for more information.

CONTACT Viji Davis, Vice President of Marketing, Resolution Media [email protected] Ariel Rosenstein, Director of Marketing Research, Kenshoo [email protected]

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