The Shift to Mobile Commerce | AWeurope 2017


So first of all, thank you all for
sticking around. This is a strong group. You won’t regret it because I’ve
written down the account IDs of everybody that left and I’m gonna
disable their ecommerce ads even if they dip into my industry. So you’ve already
gotten your ROI here. So some of you were here for my panel earlier. I’m actually
gonna dive a little bit deeper into what it means to run ecommerce campaigns on
Facebook but first of all, I want to tell you why I actually deserve your
attention today. So my name is Darlene Thomas, I’m a client partner at Facebook.
I’ve been at Facebook for five years now. So I’ve been through the buying likes
phase, all the way through custom audiences and pixel implementation but
I’ve solely worked on ecommerce companies supporting direct businesses,
as well as a couple partnerships with venture capitalist firms like LDR and
Adreessen Horowitz. So I’ve worked with their portfolio companies as a whole and
then most recently, I actually transferred into this team called
Digital Disruptors. So we solely focus on people that are disrupting the industry
in which they’re in. So if you think of like the larger
scale customers like Uber disrupting taxi’s, Airbnb disrupting the hotel
industry. We work particularly now with partners that have that sort of business
model. So what I want to focus on today is mobile for the most part because I
feel like that’s the most important consumer trend if you’re gonna start an
ecommerce company and I want to talk through some of the
strategies and tactics that you should be thinking about today to get ahead of
yourself, if you’re going to start an ecommerce company. First, let’s take
a look at where Facebook’s family of apps is. So this is arguably the
number one discovery platform in the world for good reason. We give you
1.9 billion users now on the blue app, a billion users on whatsapp, a billion on
messenger and most recently, we announced that we’re up to 700 million on
Instagram. So there’s a lot of room to play around with here but we have a
saying at Facebook that says that we’re only 1% finished and that’s true,
when we talk about wanting to connect the world. We literally want to connect
every single person on earth to every other single person on earth and that
includes your ex-girlfriends, your ex-boyfriends. So get ready for that but
that’s that’s where we’re actually heading towards on our products and
in doing so, we’ve collected a lot of data, obviously. So one thing that we’re
learning is that the shift to mobile is happening faster than any other consumer
trend that we’ve seen in our time and it’s actually a key place for
people worldwide to connect with each other, share news and information, express
their opinions but it’s also a place for people to discover new products and
that’s happening more and more on mobile devices, and if you think about this
mobile world, today I can wear a watch on my hand that is twice as fast and has
twice the memory as the Cray-2, which was the world’s most powerful supercomputer
in the 1980s when I was growing up. So if you think about the phenomenon there,
although I do wear a MVMT watch, so as not to upset my partners but there is
like a crazy reality behind the technology that we’re experiencing in
the mobile world and we used to talk about the mobile web as kind of like a
cut-down version of the real desktop-based web, but today the opposite is the
case. I mean, if you look at the next generation of internet users, they might
not ever know what a desktop computer looks like, which is lunacy if you
ask me but what’s just as incredible as the scale the scale of mobile, is
the speed in which it’s taking over the world. If you look at television
over 60 years ago, before it could claim to be in a billion households. Smart
phones hit a billion users in just five years. Juice on that, but what I love about
mobile is it’s actually adding like an incremental amount of time spent on
digital. So before mobile, as you can see, computers helped a little bit but
we were always dealing with this problem of scarcity, like we’re going to hit a
ceiling in terms of where impressions lie with traditional channels like
television. Mobile’s actually increasing the amount of time people are spending
on digital. So if we look at 2011, we know that
people spent nine hours of their time on digital per day but now we’re talking
more like 11 hours. So it’s actually offering marketers more of an
opportunity and more impressions to connect with people and because people
are increasingly connected on mobile, the way that we communicate to our customers
as businesses is also changing. So I want to talk a little bit about the future of
communication and you heard Roland and I touch on this a little bit in our panel,
about how to use Messenger in order to communicate and sell to new prospects
and I think the most important thing here is there’s this expectation of
immediate communication. As attention spans tighten, so do our customer service
teams that we have to have and hire for our ecommerce partners and I call
this like the Snapchat phenomenon because that’s the app that
introduced like the 10-second audition to everybody in the world and now we’re
actually scaling it throughout all digital media because it’s what
consumers expect us to do. So there was an interesting case study that we ran
that 72% of the 34-year-old’s in the UK say they cannot leave their home without
their mobile phone. I guarantee you there isn’t a person in this room that
doesn’t have their mobile phone on them because it’s such a scary feeling.
Coincidentally 72% say that they like to be connected to the internet wherever
they are, the result is just that people are constantly connected and this is
especially true for young people in a survey of millennials that Facebook
commissioned in 2014. We found that millennials were the most likely
group to go back to their homes if they forgot their phone,
no matter where they were. So if anybody has teenagers in the
group, you understand what that means. And this goes beyond just our family of
apps. So if anybody is a Mary Meeker fan in the room like I am and you read her
most recent internet trends report, she did say that 6 out of the 10 top
downloaded apps are all messaging apps and that trend
continues to grow as people in countries with less connectivity are
flocking to find low data usage ways to communicate with each other. My favourite
slide, so behind me we’ve made this graphic for you to understand. So
if you look at this, the yellow dots is the adoption of smartphones in the world.
Started it in Europe on purpose this time and you could see that it’s
growing. So this is actually data taken over the last 30 years and in the US, as
I mentioned earlier, people on average have three devices now. So pretty soon
you’re actually gonna see blue dots appear on the map and what those are, are
pages messaging people. So you could see that the trend follows the trend of
people adopting smartphones. Yeah, I see people smiling. Thank you because this
shit took me a long time to do and then you could see the blue circles and those
are specifically businesses communicating with people about products.
So one step further there, the importance here is that messaging with
people is gonna be the next trend that people have not started at adopting yet
today. So if you’re gonna staff up an ecommerce business, you definitely want
people that are there to answer questions for your customers, for your
perspective customers as messaging has grown though between individuals, it’s
also it’s also growing rapidly between businesses in a way that’s shaping the
way people expect messages. So I have a few examples here, so you could see the
Everlane created this awesome bot experience, where if you were to purchase
a product you can actually track your package, order in different colours
different sizes, transact right there in Messenger and some some people have
asked what is a good example of building a Messenger bot and this is
probably it. So this is all automated so that you don’t have to ask your customer
service team to stay until midnight but this is probably my
favourite integration of Messenger bots so far. So the shopping experience is
becoming more and more demanding I’d say and we’ve proven that messaging is good
for business. So 67% of people say that they’ll message more with businesses
over the next two years but more importantly over half of the people we
surveyed, who message with a business say that they’re more likely to buy from a
business that they can chat with. That translates to LTV right. So you’re not
having to buy people over again as long as you service them correctly, but
there’s other evidence as to how important this new consumer habit has
become. So just look at the phone in your pocket. If some of you remember five
years ago, the hot phone was like the Motorola Razor because people were
demanding for phones to get smaller and smaller and sleeker and recently, it’s
been the opposite. So now the phones are getting larger and larger and coined the
term phablets because people are consuming more media,
watching more video, expecting a little bit more, excuse me,
crisper images and then my personal favourite thing that they’re doing more
is shopping on these devices. So they can see like full web pages of products. So
I’m gonna switch over from messaging to imagery right because imagery is becoming
important as the phones get bigger. So we’re gonna do a little experiment here.
We’ve done a study with MIT that we only need to see an image for 13
milliseconds in order to identify it. So eyes up here, I’m gonna show you an image
for 13 milliseconds and you can see if you can identify it.
Show of hands, who knew what that was? That’s almost all of you right. So it
wasn’t difficult to see that there was a VW camper van, a little dinged up. If I’d
written a list of attributes on that slide, you’d probably have no idea what I
was trying to describe but because it was an image, it was easy for you to
consume. The study with MIT also concluded that the human brain processes
images at 60,000 times faster than words. So what does this mean for marketers
right? If you guys are trying to dip into ecommerce that means that we’re in the
past, as affiliate marketers, copy in offers have been very important. The
opposite is mostly important for ecommerce partners, where a crisp image
or video of the product is really gonna convert new customers for you. Right now,
I advise all my partners to use Instagram as a springboard for testing
because it is the app within our family of apps that was built on the
premise of rich beautiful imagery and it’s generally a place to like find
inspiration. So I have a partner that I work with that will send like a bag of
products to influencers for free, in exchange for photos right. Kind of a cool
and free way to get your first set of photo assets because photography is
expensive and videography is even more expensive. So I would say that if you’re
trying to start a business, you can scour Instagram for a young up-and-coming
photographer and get them to just curate and send you some photos that will
convert. Down the line, you’re also gonna have to think about things
like Instagram Stories, which we’re happy to say that we’ve globally rolled out
the optimisation for website conversions for, but this is one of the fastest
growing placements in the Facebook family of apps and at the same time,
Instagram is proving to be like hugely effective place for people to connect
with new brands through the use of our consumer apps built on Instagram. So
hopefully, some of you have heard about Hyperlapse, which you can see Lowe’s
taking advantage of in the middle of the slide here but they have run this really
successful campaign and getting people to convert on their website, by hyperlapsing a home project. We also have launched carousel ads, as you can see in
the Banana Republic example here and then photos are still,
for my book of business, the most successful converters on Instagram and
there’s a reason why. That is because we are still frequency capping photos on it,
or sorry, ads on Instagram right now and photos are the cheapest
placement and it actually like offers some perspective about the product
you’re buying. So having a photo on Instagram, the most common denominator
to convert is actually having the focal point be a
product. So as you can see on the ad here on the left, the sunglasses are what you
should expect to convert. I want to also share a success story with you, insert
client name is a typo but this is Cara Delevingne for Zalando, which is a
German company. So I thought it would be extra relevant but we ran a case study
with Zalando to launch their new line of clothing here in Germany and it was a
35-point lift in ad recall. It was a pretty impressive metric to achieve for them
running exclusively on Instagram. I also love that this campaign scaled 300
videos across different target groups. So they obviously have deeper pockets than
I’m asking you guys to test out with, but it did have an effect on the results and
as you grow, you’ll actually have learning’s after you test and
iterate with video that will allow you to do things like this but using video
with Cara Delevingne was a really successful launch for them
and they’ve since, actually globalised that campaign. So now that you know a
little bit about the background about the products that we have at your
disposal on mobile, let’s talk about a little playbook that I wrote for you
guys for a success strategy. So step one, get a mobile strategy. This is not
the most obvious thing. I think we live in a world where we’re still sitting on
CPC, last click, desktop, Google Analytics measurement because those are easy tools
and they’re free tools but mobile website optimisation is arguably the
most important thing that you can do as new ecommerce clients.
There’s a few reasons why. Once somebody leaves the Facebook
experience, once we send that traffic to your website, if a site doesn’t load
within 3 to 5 seconds we’re gonna lose them and you get a bounce rate and
then our algorithm will penalise you. So for those of you that know how the oCPM
algorithm works, there are both negative and positive components to how we score
an ad set or a campaign. The positive ones are things like click-through rates,
like comments, social context. That’s good conversion rate right. So how many
people that I actually sent to your site go through and make a purchase. There’s
also things like shares that will get you your score boosts it up. On the
negative side, there’s negative feedback. So there’s a couple ways that people can
express that. One is by x-ing out your ad or bouncing back before a page load. So
those are the things you want to avoid. What can you do to actually like,
massage people into the idea of going to your site. Well one thing is taking
advantage of some of the organic products that we’ve launched this year.
We’ve actually updated pages to help businesses communicate in a mobile world.
So understandable that it’s not the easiest task in the world to have a
mobile optimised website that will render effectively on different screen
sizes and within different data access levels. Anywhere from like 2G all the way
up to LTE to Wi-Fi connected. So definitely use the tools that we give to
you. So we renovated pages this year to actually accommodate for different types
of businesses and ecommerce is one of them. So you get a clear call-to-action
at the front of the page and you can add things like a like a shop feature or
have a product catalogue listed on your page and you should certainly set all
those things up because frankly, there are free tools that you can use for
your business. Click. We’ve actually added this feature for people to
communicate directly with you for new products as well and I wanted to give
you guys a preview of what that looks like. This keeps freezing. There we
go. So having somebody message your business directly and be able to get
information about a product is really revolutionary. I mean, you don’t have
another platform at scale that allows you to do this right. Unless you build a
chat live feature on your website and then staff your team up, this is kind of
impossible at this point. What I love about it, is you can actually
upload all of your products feed on to our pages now for this shop feature to
which you can go as far as to add the cart without a Shopify integration here
and then after this step, we obviously lead the person to your website for
payment information but these are all tools that you can use if you don’t have
a very talented mobile website designer at your disposal. This second thing I want to talk about
is personalisation. So we touched on this a little bit earlier. The most successful
partners that are working with us in Silicon Valley are people that have an
algorithm on their end and collect data to personalise a shopping feed for
people or determine the next decisions on how to expand their product line. So
I’ll give you two examples. We’ll talk about a company I manage called Stitch
Fix first. So Stitch Fix, you go through a 63
question quiz about your style and your body type before they actually allow you
to convert, which seems like a lot. It took about 35 minutes for me to do it
but that allows them to actually nail it on the first try.
They have a very meticulous mobile optimisation engine that will
study where people drop off. They also employ a company called Sail-Through
that algorithmically will return emails to people, depending on their user
behaviour, their open rate, click-through rate. So there’s an algorithm in everything
but more importantly, when you send items back that you don’t like, they actually
remind you to come back and give feedback. So that that way their stylist
can learn more about you and that you stay on for a longer time to
be a subscriber. So that’s one example. They’re just like a data company that
sells fashion basically and the other one that I mentioned earlier is Wish and
Wish is one of the largest digital media spenders in the world and they go
as far as to scrape data from their family of apps, which clients are unaware
that actually exists to introduce products into the feed of their new apps or
sorry, the current app and Maria was joking around earlier about them
using ads to put crack pipes on the feed but that’s just how good they are at
recognising what people like, is they can actually predict that you want to crack
buy it, before you know that you want a crack pipe. So Wish is also something
that I would recommend you downloading as an example of a clean conversion
funnel and they’ve made it really easy to purchase and also easy to comeback, as
they save all of your credit card information. So personalisation is the
second trend that we’ve identified in ecommerce. Here’s the example of Cara
Delevingne from Zalando that I was alluding to earlier and this is
personalisation at the introductory level right. So they ran different
iterations of these videos on both feed and Instagram, tested them to see which
one performs better and they found that there wasn’t really an answer but there
was common denominators of video A performing against audience A. So they
studied all that and they actually had the global launch was curated towards
the audience. So as you can see, personalisation is important amongst
like all steps of the funnel from introduction and ad creation starting at
ideation of the video, all the way down to converting at the end of the funnel
on your website. We also talked a lot about storytelling on ecommerce. So we
know that our brains are programmed to remember stories better than their
program, remember statistics and we want to use this in our advertising strategy
somehow. So we came up with sequencing strategies that have worked. So my
industry manager always says don’t try and kiss someone on the first date. So
that’s like that’s my analogy to sequencing.
Some of our partners have found really great success working with influencers
initially to introduce their brand to the world and allowing people to get to
know them. So there is a little bit of work that you have to do on the
brand equity side, which I know is not music to everybody’s ears but it
definitely is important. It’ll also save you down the line if you become
successful and copycats emerge. People will be loyal to your brand and they’ll
comment on copycats, like hey get out of here, why are you trying to kill Snapchat,
Facebook. It’s not fair. So the sequencing product was actually
launched last year in which now you can schedule ads and retarget people that
have viewed three seconds to completion of a video, with a static ad or another
video ad to tell a story. I also want to talk about speed. So this is a
lot right. You have to get the video right, you have to sequence it, you have to
feature your product, you have to have good products and customer service and
messenger but then you also have to tell the story fast because people’s
attention spans are shrinking and we know that people are moving faster than
businesses now. So the percentage of time spent in media versus the percentage of
advertising spend in digital is actually the largest gap, if you compare it to
other channels. So we know that that’s where the opportunity is and the fast
movers here are the ones that are going to be rewarded, When we say feed equals
speed, if you think about how fast you scroll through feed now, we know that
people will either consume or bypass a story within 1.8 seconds on
mobile feed and that number goes up slightly to 2.6 seconds on desktop
mobile but what does that mean for you as marketers? That means that we’re going
to have to come up with stories that are that are fast, that have a hook, that are
sound off, they feature the product and that ask for people to go to your
website and actually buy the stuff that you’re selling right. Trying to fly through these.
We’ve also done a study to find that only takes a quarter of a
second to recall mobile newsfeed content. So that’s like the VW wagon that I
showed you guys earlier that you saw in less than a second, we know that when
people are on mobile devices, they will remember you in less than a second as
well and the younger you get, the faster your ability gets to actually
consume data on mobile devices. Don’t even want to think about how fast the
next generation is going to be because of all the iPad babysitters that I see
these days, and kids are gonna be able to predict
what’s on feed before it actually shows up. So the fifth element or strategy that
I wanted to share with you today is called the 3-second audition. So we
know video ad value is generated very quickly and we know that because we did
we partnered with Nielsen for a study here to figure out when people can
recall a brand that was new to them. So we did not use like Coke or Pepsi or
something that everyone already knows for this study but we found that within
three seconds, there is like an exponential rate that people will
remember your products and within 10 seconds it starts to plateau. So then we
did this experiment with a handful of advertisers. We were like okay, how much
information can we get into 10 seconds or less that’ll be effective towards a
conversion? Longer duration views can be earned but the value of that tapers off
after a while. So here’s what we learned like if we could do, if I could just
leave you guys with one slide, this would probably it because people that are in
the ecommerce space tend to actually over complicate creative considerations.
So the four things that you have to do when you’re creating creative are
capture attention quickly, design for sound off, frame your visual story
correctly, do not make 16×9 video and put it on Facebook and then
play more is essentially a way to tell you to test and iterate and continue to
learn. So let’s talk about capturing attention quickly. Start with your
captivating moment. I always advise my partners to get a product shot within
the first two seconds here because I don’t want people to consume the video
for three seconds and dilute your retargeting audiences, if they’re not
serious about actually being interested in the product right. So that has
residual benefits towards it if you put the product in early. I also advise to
get the logo in there if you’re a new product. MVMT watches is my
favourite example of this. We have about 10 to 15 watch companies
that will just copy the every single design they do at this point because
they’re doing well. So you do have to work on brand
recognition early on just in case your business becomes a success and it’s not expensive to make video to
test. So as you can see here it just takes a little bit of animation coupled
with your logo and a call-to-action in order to run a successful campaign on
Facebook. The second element of creating creative is actually designing for sound
off. So we’re actually testing some ways to advertise with sound on because we
realise it’s really hard for marketers, especially those that are familiar with
a video to create effective creative with sound off but until then, we’re kind
of stuck in this limbo of sound off. So things like just using music in the
background like hand motions within feed and if you have to talk, using
subtitles are going to be best practices to make video a success.
I love these text overlays that are not subtitles because they pop and I’m easy
to read on a mobile device. A commonly made mistake is that because creative is
curated and made on a desktop or on a large screen and then presented to the
CEO on a large screen, you don’t realise how small the text looks on a mobile
device. So always test your creative on a mobile device first. There’s some really
cheap like $5.99 consumer apps that make it easy to build stuff like this. My
favourite one is called VidLab and they make it easy for you to just like create
flyovers, put price bubbles or add music in the background so that you can test
for a very in a very cost-effective way. It’s a great example of how to make
noise without sound here, in terms of adding subtitles. So we found that
subtitles were so effective we actually built our product in order to do this.
So if you do have a video that you want to run with or talk over, we have a product
empower editor that you can use to add the subtitles. Arguably the most
important thing here is framing your visual story. So I wanted to put a
side-by-side up here to show you guys the difference between a 16×9
story and a square story. The most important thing is that within
the 16×9, you’re always going to be competing with Renee Doyle.
Currently Facebook does not serve two add impressions in a row. So inevitably,
your advertisement is gonna be followed by one of my friends probably saying
something that’s more interesting to me and whereas with this square format or
more recently, we introduced 2×3, which is vertical video, it’s a complete screen
takeover. So you’re more easily able to capture the attention of your
prospective new customer. Now, I’ve worked with some production teams here that
tell me like, okay Darlene, but we can only shoot one video and we have to put
it on YouTube, which is 16×9 as well as TV that’s 16×9 and
we found that if you just position your camera differently, like a little further
back and have some gray space to cut out, that you can use them the video for
multiple channels. And lastly, there’s this concept of playing more. You have to
experiment to learn and I know the margins become tighter when you’re
shipping a physical product because you’re probably sitting in debt from
ordering it, but testing and reiterating it is very important on Facebook. Some pieces
of advice there are keep the audiences open and test for at least four days. The
reason that I’m telling you this is because our oCPM algorithm does take
three to four days to learn and that’s at a rate of about 25
conversions per ad set right. So if you’re not getting that volume of
purchases on your website, you’re really not giving our delivery algorithm enough
space to learn and be able to deliver effectively. So those are, I’d say like
my two bits of information there. And remember that there’s no recipe for
creativity. So sometimes the oddest things work on Facebook.
Everybody said fidgets spinners today. I’m kind of tired of that example. For
the women in the audience, I’m sure you’ve seen the pre-heels ad rolling
through your feed these days and that’s another good example of square formatted
video that’s doing well, but testing different concepts, there’s
always like a safe way to do that on Facebook. I want to finish with one of my
favourite stories and with a challenge. So it’s a story about this remarkable
guy called Pat Weaver and Pat was an ad man who joined Y&R in New York and was
running their entire radio operation by the age of 29. He was purchased by the
American tobacco company and in order to revitalise Lucky Strike and within three
years, it was the number-one cigarette brand in America and then he enlisted in
the navy in 1942 and spent some time in the war in the Pacific but in 1947, he
rejoined Y&R at age 39 and was appointed to be an executive on the board, running
the company. The thing is that like two years later, he joined NBC and then this
is where the story gets a little interesting. In the late 40s was this era
of something called the soap opera, which is a 30-minute radio sponsored
spot and that was standard. 30 minutes was a standard commercial. It had been
popularised by a Colgate but when TV came along and kind of took over radio,
advertisers took the 30-minute format, which was pioneered by Weaver and nobody
was used to that. Like everything, all the pricing models were built for 30
minutes and all of the creative agencies knew how to create 30-minute videos and
this was kind of revolutionary. This is one of the only examples I can access of
a 30-second TV spot. During the time of this change, the
entire US advertising market was worth only $12.3 million but by 1955,
when the 30-second spot actually came to light, it had grown to over a
billion in annual billings. So why am I giving you all a history lesson right now? Pat’s foresight, in my opinion, and his
understanding of people, created this awesome revolution and sparked like a
new art form for advertisers and the 30-second TV spot is still around in the
20th century but it’s kind of like jazz and Andy Warhol’s era and it
changed television and cinema forever but the lesson that I’m trying to teach
everybody here is that, without fear of contradiction, mobile’s going to reward
the Pat Weaver’s of today. So I would like to encourage you all to think like
Pat Weaver did back in the mid centuries. So I hope that you’ve all gotten a sense
of where Facebook’s taking this journey for ecommerce and that you’ve learned
at least something today and I’d like to thank you all for sticking with us for
the presentations today. Thank you.

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