B2C

Facebook*
Ads
Become a Top 1%
Facebook Advertiser
Based on Research
Byron Sharp & Ehrenberg-Bass Institute
Facebook & LinkedIn
McKinsey
Nielsen
Harvard Business School
Columbia Business School

2 Types of
Facebook
Advertising
Narrow
99% of Facebook marketers & their gurus only
focus on this!

Broad
The real key to long-term growth
Why ads?
Why not posts,
stories, reels,
etc? 1. Super Narrow (low impact)
2. Hidden Costs (expensive)
Advertising>Organic
 Broad
Facebook
Advertising
Why am I calling
it "broad"?
TARGETING
*All Product Category Buyers* Light Buyers
Future Product Category Buyers Heavy Buyers
Out-of-Market Buyers Competitors' Customers
In-Market Buyers
Current Customers
 Reach is King.

Your biggest problem is that most

buyers never heard of you as you
never reached them. Next, worry
about them remembering you.
You can reach thousands &
millions of people without
a lot of money!

Cheaper than
a blog post!
Marketers are
obsessed with
positioning,
messaging &
differentiation.
But the bigger issue that almost no one has heard of you. How
do you expect to grow if you're not even on people's radar?
It starts with the right
objective
MEMORY is the immediate
goal of your ads, not ROI
Does your brand come to mind in E.g., "My muscles are
specific contexts? sore from running and
I need something for
Triggers (McKinsey) the pain."
Category entry points (Sharp)
Jobs to be done (Harvard)
Use cases
The customer journey
starts with the trigger
Memory is key because most of your
growth will come from people who buy
far into the future. You can start
influencing their future decisions TODAY.

Most of your opportunity lies in getting

people to think of you in the future when
some trigger occurs that puts them "in
market."
Most sales today
are the result of
marketing done
far in the past
Launching a
new brand
The first, most essential memories to build are simply what this brand
is and what it looks like (so that it can be found). Often this is a case
of saying 'we are an(other) accounting service' or 'we an(other) soft
drink'— and this is our name, this is what we look like, and this is
where and how you can buy us...People aren't looking for difference.
—How Brands Grow Part 2
Unfortunately, context-
specific memory is not
easily tracked without
conducting your own
research. Reach is
perhaps the best KPI
available in Facebook.
Clicks are not that
important
 Ads influence people
without engagements
such as "likes" and clicks
How broad
advertising
works
Slight increase in probability
Spread out over time & space
No immediate increase or decrease
in sales

Reference: How Brands Grow

The key to growth is
customer acquisition
Profit = revenue - expenses
Profit = (price-cost)*quantity
Quantity = more customers, more frequency,
larger transaction size
More customers = acquistion or retention

Above average profitability = economies of

scale or customer captivity
Economies of scale = market share
Keep your frequency low.
Big Facebook mistake.

Better to spend
additional money on
reach rather than
frequency
Your broad advertising
should be always on.
Your budget should be
spread evenly (except
with entertainment &
seasonal products)

Recency
 What are we
optimizing for?
Reach
Memory associated with triggers/CEPs/use
cases/jobs to be done
Mental Availability
Market Share
Economies of Scale
Focus on distinctive
brand design
& potentially emotions
Facebook
Targeting is
not that accurate
Facebook is
probably
even
less accurate!
Many clicks but
no conversions?
Culprits:
1. Placements
2. Interest Targeting
3. Global Targeting
1. Placements
2. Interest Targeting
2. Interest Targeting
3. Global Targeting

Leaked internal email at Facebook:

“interest precision in the US is only 41%—that means more than half the time we’re showing ads
to someone other than the advertisers’ intended audience. And it is even worse internationally.
We don’t feel we’re meeting advertisers’ interest accuracy expectations".
Broad Facebook advertising
has asymmetric advantages
over narrow advertising
Short-term & long-term revenue
Affects current & future buyers

Broad Marketing
Related Terms Target KPIs
Awareness Out-of-Market Memory
Brand In-Market Market Share
Reach Mind Share
(Mental Availability)
Reach
Facebook Objective Time Frame
Awareness Long-Term
Short-Term