Introducing “Flex Block”

1. Introducing “Flex Block” • Key Contributors: • DSO: Matt Jacobson, Colleen Sullivan, Julie Laudon, Jeremy Lewis, Matty de Castro • Analysis: Maradi Mer • DSO Marketing: Trista Handisides, Mike Randall • AdOps: John McKeeman • MCCM: Eva Hung, Katie Hotchkiss, Helen Min, Laura Gaffney

2. 1 2 5 4 3 • Introducing the new brand • Product overview • Messaging & use cases • Value proposition • Product positioning Agenda

3. Why are we re-branding heavy-up ads? To communicate that this ad type is a core stand-alone product. To drive consistency in nomenclature for Facebook ad products. To capture the key value proposition of the product in the name. 1 2 ? 3

4. 1 2 5 4 3 • Flex Block • Flex Buy • Base Buy • Target Block • Target Buy Names at the top of the list Brainstorm document here

5. Introducing… Flex Block

6. Flex Block– value proposition Extends REACH because impressions run for 3 days1 instead of just 1. Provides more TARGETING options: Demographic & geographic . (“Friends of Connections” in testing) Increases ENGAGEMENT because the more targeted nature of the ad drives more interaction by people who see an impression. This leads to more posts on friends’ walls. Early aggregate studies show Flex Blocks can drive MORE FAVORABLE RESULTS for Reach, Social Impressions and Action Rates. Same study shows Flex Blocks drive comparable results for Brand Awareness, Ad ReCall, Message Association & Purchase Intent. 1. Upon special approval, clients can run for 1 or 2 days.

7. Premium Product Positioning • Facebook’s premium products are positioned to drive 2 key business objectives for brand marketers: 1. Launching new products 2. Driving constant awareness of brand/product with an always-on strategy 1. On Profile Page in January 2011.

8. Premium Product Positioning Flex Block Sustained Media Highly Targeted by Demographics or Geographies Target Reach Block Low Targeting, Broad Reach Concentrated & Prioritized Delivery across 1-3 Days Extended, Constant Delivery across 6 weeks, 1 month Duration

9. Flex Block vs. Reach Block • Early aggregate studies show Flex Blocks driving more favorable results on Reach, Social Impressions and Action Rates. Generally comparable results for Brand Awareness, Ad ReCall, Message Association & Purchase Intent. Clients should consider Flex Blocks when they have: 1. Very specific targeting needs in Premium inventory 2. Limited budget but would still like to leverage premium inventory and reach a broad audience * Analysis performed by Monetization Analysis Team, September 2010

10. Flex Block– key selling point Flex Blocks allow advertisers to market their brand / product on premium inventory with effective reach & engagement and flexibility in terms of budget, inventory & targeting options. Marketers are always seeking to advertise their products at the right place & time for the right audience.

11. Internal FAQs • Should DSO be actively selling Flex Blocks? • Yes. Flex Blocks address 3 critical concerns in the market: • Targeting: Client can run massive premium inventory and target by demographic and geography. “Friends of Connections” in testing now. • Budget: Clients have a limited budget and wish to pick from a pricing schedule that shows overall budget spend + correlated CPM. • Inventory: Clients have much more flexibility on inventory vs. just first 5 impressions of the day. • Where are Flex Blocks available? • Only in the US for now • Only for IO accounts • What kinds of campaigns should be flighted via a Flex Block? • Products / Services targeted for certain demographics or geographies • Special offers with limited time • Campaigns that need premium inventory and extensive reach in a more targeted way • What is the pricing? • [Insert Rate Card when ready from pricing team] • Will these ads appear as impressions 6-10 after Reach Blocks? • No. Flex Block impressions are not guaranteed in spots 6-10 but they are given “highest priority delivery right after Reach Blocks” to ensure that the full set of impressions are completed during the 3-day time frame. • What are the frequency caps? • 5 across all ads. So if the client has >5 creatives, frequency cap should be 1 for each. If client has <5 creatives, need to make sure total imps add up to 5.

12. Messaging – intro to Flex Block • Hello {Client},I’m excited to tell you about a special product offering.  Many of our partners have asked for more advertising options and we listened. To that end, we’re introducing Flex Blocks. Flex Blocks are blasts of targeted media lasting three continuous days. Early studies have shown that this ad type can drive stronger results in terms of reach, social impressions and action rates when compared to other similar campaigns. • Flex Blocks were developed to help you with promotions that require premium ad space and accurate targeting. Flex Blocks are perfect for product launches or promotions to a specific demographic in a certain location. These are just a few of the many uses for this product. Let me know if you’d like to discuss more specific opportunities in person. • Here are three reasons you might want to consider a Flex Block: • Optimize engagement with your ads by showing them for three days on premium locations on Facebook. This gives more time for users (and friends of users) to engage and interact with your ad. • Allow more flexibilityin targeting compared to the broad approach offered by Reach Blocks.  Flex Blocks allow you to target a certain demographic (e.g., females, 18-24) or geography (e.g., CA + NY).   • Drive increased Reach, Social Impressions and Action Rates through more precise targeting and increased engagement. • I’d love to talk to you more about this product and discuss the possibility of trying this for your upcoming marketing efforts. • Please let me know when is best for us to connect on Flex Block opportunities. • Thanks,[Your name]

13. Messaging – new info for current advertisers • Hello {Client},Thank you for advertising with Facebook’s Flex Block (previously branded the Heavy Up). We are excited to report that early studies show Flex Blocks can drive stronger results for reach, social impressions and action rates when compared to other similar campaigns. • In summary, the key advantages to using Flex Blocks are that they: • Optimize engagement with your ads by showing them for 3 days on Facebook’s premium locations. This gives more time for users (and friends of users) to engage and interact with your ad. • Allow more flexibility in targeting compared to the broad approach offered by Reach Blocks.  Flex Blocks allow you to target a certain demographic (e.g., females, 18-24) or geography (e.g., CA + NY).   • Drive more Reach, Social Impressions and Action Rates. • Flex Blocks were developed to help our advertisers with promotions that require premium ad space and accurate targeting. Flex Blocks are perfect for product launches or a promotion to a specific demographic in a certain location. • I’d love to talk to you more about this product and discuss the possibility of trying this for your upcoming marketing efforts. • Thanks,[Your name]

14. Flex Block – actual client examples

15. Use cases for premium assets Client examples are all for use-case purposes. No real data used here.

16. Proposed communication plan

17. Premium Product Overview • Facebook offers a portfolio of premium products that offer marketers a variety of advertising options based on different needs in terms of budget, duration and targeting. 1. On Profile Page in January 2011.