Going global with Facebook

CROSS-BORDER BUSINESS HANDBOOK Going global with Facebook 2016 CROSS-BORDER BUSINESS HANDBOOK

Going global with Facebook People around the world are more connected than ever. In 2012, begins with basic demographic information, followed by notable there were only 2.7 billion people on the Internet. By 2018, that industry information that includes various business sizes, the 1 scale of online shoppers, the number of smartphone users and number is expected to be 3.82 billion – a growth of 30%. And last year, more than 900 million people around the world had at more. Then, consumer behaviours on Facebook are covered. 2 For example, you'll learn that the top categories discovered least one international connection on social media. These globally connected people are becoming global by Facebook users in France are entertainment, cosmetics, 6 consumers. 361 million people worldwide have participated tech and luxury fashion. And that 70% of Malaysians surveyed in cross-border e-commerce and 429 million are international have seen or searched for information on Facebook before 7 3 purchasing. travellers. 4 There's never been a better time to reach new customers and With 1.7 billion monthly active users – one-fifth of the world's new markets. We hope that you use this handbook to take population – Facebook is uniquely positioned to help you advantage of the opportunities your business has around the reach your customers, wherever they are. People on Facebook globe with the power of Facebook. and Instagram are at the centre of personal connection and discovery. They are open to learning about new products. 1 According to our research, around 50 million businesses use eMarketer Apr 2016 2 "Digital Globalization, The New Era of Global Flows", McKinsey Global Institute, Feb 2016 3 Facebook to find customers, and 30 per cent of their fans are "Digital Globalization, The New Era of Global Flows", McKinsey Global Institute, Feb 2016 4 5 Facebook 1st Quarter Report, 2016 from other countries. 5 Facebook Internal Data, Dec 2015 6 EMEA Country Profile Study, GfK (Commissioned by Facebook), France, December 2015, N=1000 7 This cross-border business handbook was created to help you Malaysian on Facebook, TNS Study (Commissioned by Facebook), 2014. N = 1069 discover how Facebook can help your business grow. You'll find a wide range of information to help you communicate effectively with potential customers around the world. Each country section

COUNTRY INSIGHTS FACEBOOK CASE STUDIES Australia ELEX Brazil TransferWise Canada NewBornTown France Modanisa Germany Air China Malaysia Hitwe Thailand Wix: Philippines LAN United Kingdom United States INSTAGRAM CASE STUDIES Absolut BEST PRACTICES Playdemic CHECKLIST Mercedes-Benz Qantas TARGETING CCTV News BIRCHBOX ADVERT TYPES How people see adverts INSTAGRAM BEST Video adverts PRACTICES Carousel adverts Profile adverts Link adverts Lead adverts Canvas adverts Slideshow adverts

Population: 24 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 18% 13.3% 41.8% 11.8% 15.1% 3 51% of men and 45% of women Facebook users are between 18-34 years of age AUSTRALIA TOP 5 CITIES by population 4 Sydney | Melbourne | Brisbane | Perth | Adelaide 5 Official language: English 97% Major religion: Christianity 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) $44,915 $48,674

OVERVIEW 2016 (projected) 8 3 E-commerce size 8 RETAIL SALES AND GROWTH FACEBOOK ACCESS 15% used Android 2016 (PROJECTED) % % % $21bn $330 billion 39 51 33 2020 (PROJECTED) accessed FB by using used both desktop used iPhone, iPod or $349 billion only mobile and mobile iPad 2018 (projected) 8 E-commerce size 10 11 FACEBOOK APP USAGE TIME SPENT $24bn DESKTOP MOBILE ONLY 1.5x more time spent on Facebook vs YouTube 9 INTERNET POPULATION 14 million monthly active users 13 million monthly active users 21 million 12 8 GAMING INDUSTRY DIGITAL TRAVEL SALES 8 DIGITAL SHOPPERS Average annual spend of $175.71 per gamer is 12.1 million well above regional average. GAMER SIZE ANNUAL ESTIMATE 40% of Australian PC/MMO players 2017 (PREDICTED) 9 12.1 million $2 billion use Steam to download games. $7.07 billion SMARTPHONE USERS 18% 13 14.6 million Time spent on Facebook compared to online media time spent CROSS-BORDER BUSINESS HANDBOOK

92% of students 7 7 15 below 25 years old access Facebook on a daily basis 7 % 83 of 16-24 year olds access 7 Facebook on a daily basis % % % 33 +70 +95 % 67 of mums access Facebook 7 on a daily basis of males 25-54 years discover new of Facebook users aged 25-44 of people in Australia use at least two films via Facebook dual-screen. Some, most or all of devices and a third use three. The 7 the time whilst watching TV majority of multi-device users are People check Facebook 14x per day aged 35-54 and half are parents. MULTIPLE DEVICES ENABLES AUSSIES TO:15 % Access more % Make smarter % Gain control over % Feel more aware 48 educational 32 decisions 28 their future 32 of the possibilities opportunities in their lives 1 out of 4 people say that wearables 66% of Australian multi-device users say they have used their smartphones by 9 am make them feel "advanced." Projected shipments of wearable devices will grow 20% by 2019, reaching ONLINE PAYMENT METHODS USED16 OTHER PAYMENT METHODS USED16 173 million units worldwide.14 BPAY 36% 35% 7 POLi On average, 60% of people who 14% 13% discover a business or product on 2% PayPal Facebook remain on Facebook to learn more and/or go to their website PayMate Visa MasterCard American Express PayPal POLi

Australia 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, June, 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 Australian Bureau of Statistics: Regional population growth, Australia, 2010-11 5 Wikipedia.org 6 Tradingeconomics.com 7 Aussies on Facebook 2015, Nielsen (Commissioned by Facebook), January 2015, N=1000 8 eMarketer, Dec 2015 9 eMarketer, Jun 2015 10 Based on Facebook data, March 2016 11 The comScore audience product suite, comScore, total minutes spent among adults age 15+, Facebook.com vs YouTube, Dec 2015 12 Newzoo Global Games Market Data, October 2015 13 Reach Study, TNS (commissioned by Facebook), 2015 14 "Fueled by Growing Demand for Smart Wearables, IDC Forecasts Worldwide Wearable Shipments to Reach 173.4 Million by 2019" by IDC, 14 Sep 2015 15 "Multi-device Study" by GfK (Facebook-commissioned study of people ages 18-54 who use a smartphone, tablet, desktop or laptop at least once a week in AU, TH and TW), Oct-Nov 2015 16 "Global-ecommerce-payments-guide", Adyen.com, 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

1 Population: 209 million Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65 years 2 23.8% 16.5% 43.7% 8.4% 7.6% 3 66% of male and 60% of female Facebook users are between 18-34 years of age BRAZIL TOP 5 CITIES by population 4 São Paulo | Rio de Janeiro | Salvador | Brasilia | Fortaleza 5 Official language: Portuguese Major religion: Christianity 5% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) $15,500 $18,793

OVERVIEW 2016 (projected) 8 8 8 E-commerce size 7 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising spending Percentage of total digital advertising spending 2016 (PROJECTED) $22bn $615 billion % % 16.6 28.1 2020 (PROJECTED) $628 billion 2018 (projected) $0.93 Average cost per install for FB mobile adverts 9 7 E-commerce size 12 GAMING INDUSTRY FACEBOOK APP USAGE $27bn DESKTOP MOBILE ONLY GAMER SIZE 62.5 million10 7 The top 10 grossing iPhone games INTERNET POPULATION account for 55% of all revenue earned by the top 1,000 games for the device in 105 million monthly active users 96 million monthly active users 11 113.7 million Brazil. DIGITAL TRAVEL SALES TIME SPENT15 7 DIGITAL SHOPPERS 45m people in Brazil are 13 2.2x more time spent on interested in travel Facebook vs YouTube 80 million 2015 2017 (PREDICTED) 38% intend to spend more on 14 travel next summer13 7 $12 billion $15.4 billion SMARTPHONE USERS 8:1 49.1 million 16 Ratio of Android vs iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

TRENDS IN CONNECTIVITY SHOPPING BEHAVIOUR 70% of people with 17 20 20 17 Internet access who wanted to buy something in Dec 2014 regard the 27% of those who shop 44% of men said they shop for 13% of women said they do 80% of Brazilians post Internet as the main means online already shop using less than a week for Christmas their Christmas shopping something related to their a smartphone before December shopping on Facebook of obtaining information 41% said they shop for less than a week for Christmas about purchases.17 17 WHILE USING FACEBOOK 18 stated that they pay % 99% stated that they read 93% attention to the 68% use FB to research new 60% have discovered brand 96 surveyed brands’ posts adverts products and brands information on FB follow brands on Facebook 17 SOCIAL PLATFORMS AND THE PURCHASING PATH % 86 surveyed follow brands on Instagram Before purchasing While purchasing After purchasing 79% look for information on the brand 37% interact with the brand 63% post information about the 79% look for information about 32% check in to get discounts product 3.3x more people say they have access products/services 30% ask friends and family for their 63% recommend the product to exclusive content on Facebook 18 76% look for recommendations and opinions about the product 61% recommend the retailer compared with other digital platforms. opinions of other consumers about the product 21 21 ONLINE PAYMENT METHODS USED OTHER PAYMENT METHODS USED 19 Most popular timing for Brazilians to do Christmas shopping: 43% Transferencia 24% | Beginning of November 32% Bancaria Local 18% | End of November 15% 28.4% | Beginning of December 4% 4% PayPal 14.6% | End of December Visa MasterCard Boleto Safety Pay / PayPal Bank transfer MercadoPago

BRAZIL USER SNAPSHOT 18 18 18 18 18 18 18 % % % % % % % 75 74 73 +70 68 67 64 want to receive want to receive news want to receive had increased their use social networks use social networks use social networks special offers about brands information about use of smartphones while they're when they go out on when they wake up new products the last two years watching TV at home their own 18 18 18 17 13 13 13 % % % % % % % 67 64 70 43 85 17 24 use social networks use social networks check social networks state that they watch post more photos more photos posted state they're going when they go out on when they wake up before they go to bed videos on products than text status via mobile phones to spend more their own they want to buy on updates in summer compared to the month on clothes and Facebook before/after summer accessories 17 17 HOW PEOPLE ACCESS FACEBOOK WHAT DO BRAZILIAN SHOPPERS DO AFTER FOLLOWING A BRAND ON FACEBOOK Smartphones are becoming increasingly important 69% | Smartphones 60% | found out more information about the brand 23% | Tablet 58% | bought products/services from the brand 62% | Laptop 50% | researched the brand/product 72% | Computer 43% | read or wrote recommendations for the brand CROSS-BORDER BUSINESS HANDBOOK

Brazil 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, June, 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 "Brazilian Institute of Geography and Statistics" 2014. Retrieved 12 September 2014 5 Wikipedia.org 6 Tradingeconomics.com 7 eMarketer, June 2015 8 eMarketer, Dec 2015 9 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 10 Newzoo Global Games Market Data, October 2015 11 "US Mobile Games Market Makes 247 Companies More Than $1M a Year", Newzoo, April 2014 12 Based on Facebook data, March 2016 13 Facebook Internal Data, first quarter, 2015 14 eMarketer, Dec 2015 15 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 16 Facebook Internal Data, Jan 2016, accessed Jan 2016 17 Connected Shoppers, Study Commissioned by Facebook, December 2014/January 2015 18 Communications in a Digital World, Millward Brown Digital (commissioned by Facebook), July 2014, sample size =603, age 18-44 who own a laptop, desktop, smartphone and/or tablet and use at least once a month 19 Facebook Internal Data, Search on Facebook Brazil, August 2015 20 Internal Facebook Data, Based on an internal survey in October 2014 21 "Global-ecommerce-payments-guide", Adyen.com, 2015 CROSS-BORDER BUSINESS HANDBOOK CROSS-BORDER BUSINESS HANDBOOK

Population: 36 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65 years 2 15.5% 12.7% 41% 13.5% 17.3% 3 49% of male and 43% of female Facebook users are between 18-34 years of age CANADA TOP 5 CITIES by population 4 Toronto | Montreal | Vancouver | Calgary | Edmonton 5 Official languages: English and French Major religion: Christianity 85% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) $44,434 $46,310

OVERVIEW 2016 (projected) 8 9 9 E-commerce size 8 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising spending Percentage of total digital advertising spending 2016 (PROJECTED) $31bn $479 billion % % 2020 (PROJECTED) 34 34.2 $499 billion 10 2018 (projected) $3.89 average cost per install for FB mobile adverts 8 E-commerce size 11 8 FACEBOOK APP USAGE DIGITAL TRAVEL SALES $40bn DESKTOP MOBILE ONLY 2015 7 $11 billion INTERNET POPULATION 21 million monthly active users 18 million monthly active users 2017 (PREDICTED) $13 billion 28.9 million 13 12 GAMING INDUSTRY TIME SPENT 7 DIGITAL SHOPPERS Canada is the 8th largest gaming 1.3x more time spent on market in the world Facebook vs YouTube 21 million GAMER SIZE 33% of all Canadian gamers play a Mario game 7 19.1 million SMARTPHONE USERS .6-.8x 20.3 million 14 Ratio of Android vs iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

29% of all time spent on mobile On average, 4 out of every 5 desktop properties in 17 Internet users in Canada are on Facebook Canada happens on 15 Facebook 16 CANADIANS SPEND ON AVERAGE... IN OCTOBER 2014 % of Canadians said they used mobile to 40 min/day18 33 compare prices while in-store. on Facebook and Instagram That's 1 out of 4 Internet minutes % said they used mobile to make 29 purchases online to avoid crowded 18 24 hrs/month shops. on Facebook via mobile That's 1 out of 3 Internet minutes 3 HOW USERS ACCESS FACEBOOK ONLINE PAYMENT METHODS USED19 OTHER PAYMENT METHODS USED19 % 29 Only mobile 60% % PayPal 55 Desktop and mobile 30% % INSTADEBIT 28 iPhone, iPod, iPad 7% 3% % Interac 15 Android Visa MasterCard Interac American Express

CANADA 20 20 21 22 $1 billion 2.44x $150 million $311 million Estimated amount More Canadians are likely Estimated amount spent Estimated amount spent consumers spent on to post from a mobile on Valentine's Day gifts on Father's Day-related Halloween related items device on Halloween in 2015 items in 2015 in 2015 23 NEW MUMS IN CANADA POST MORE THAN NON-MOMS 4x more video 1.6x more status updates 3.4x more photos share 2x more 24 60% of households in Canada have men as primary or shared responsibility for grocery shopping in the household CROSS-BORDER BUSINESS HANDBOOK

Canada 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, June, 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 "Thomas Brinkhoff: The Principal Agglomerations of the World." 5 Wikipedia.org 6 Tradingeconomics.com 7 eMarketer, June 2015 8 eMarketer, Dec 2015 9 eMarketer, Sep 2015 10 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 11 Based on Facebook data, March 2016 12 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 13 Newzoo Global Games Market Data, 2015 14 Facebook Internal Data, Jan 2016, accessed Jan 2016 15 comScore Key Measures Beta, Mobile Metrix, May 2015 16 "Reasons for Using a Mobile Device", eMarketer, Oct 2014 17 Calculated based on comScore Key Measures, Canada, Desktop, May 2015 18 comScore Media Metrix Key Measures, Canada May 2015 19 "Global-ecommerce-payments-guide", Adyen.com, 2015 20 Facebook Internal Data, Oct 2015 (based on posts related to Halloween, CA aged 18+) 21 Facebook Internal Data, Feb 2015 (based on posts related to Valentine's Day, CA aged 18+) 22 Facebook Internal Data, Jun 2015 (based on posts related to Father's Day, CA aged 18+) 23 Facebook Internal Data, ages 18+, CA only, Jan 14-28, 2015 24 Canadian Grocer Report, July 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 64 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 18.7% 11.9% 38.6% 12.5% 18.3% 3 54% of male and 52% of female Facebook users are between 18-34 years of age FRANCE TOP 5 CITIES by population 4 Paris | Marseille | Lyon | Toulouse | Nice 5 Official language: French Major religion: Roman Catholic 39% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) $38,171 $38,811

OVERVIEW 2016 (projected) 8 9 9 E-commerce size 8 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising spending Percentage of total digital advertising spending 2016 (PROJECTED) $46bn $764 billion % % 2020 (PROJECTED) 23.9 22.2 $774 billion 10 2018 (projected) $2.25 average cost per install for FB mobile adverts 8 E-commerce size 11 8 FACEBOOK APP USAGE DIGITAL TRAVEL SALES $53bn DESKTOP MOBILE ONLY 2015 7 $23 billion INTERNET POPULATION 31 million monthly active users 26 million monthly active users 2017 (PREDICTED) $25 billion 48.7 million 12 13 GAMING INDUSTRY TIME SPENT 7 DIGITAL SHOPPERS France is the 3rd largest gaming market 1.8x more time spent on 42.9 million in Europe Facebook vs YouTube GAMER SIZE 7 30.7 million 37% of all French console gamers own a Nintendo Wii SMARTPHONE USERS 1-2x 14 29.8 million More Android vs iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

French smartphone users are constantly 42% surveyed claimed that the benefit of mobile was connected. "discovering new products and services" 15 USING MULTIPLE DEVICES % say they use Facebook whilst 39 watching TV 94% of teens own % multiple devices 66 say they dual-screen during % 73 the show use more than one device to Over half of surveyed teens in France % say they dual-screen during own all three: a smartphone, a tablet and 16 81 17 18 access Facebook advertisements a desktop or laptop. 18 BY OWNING MULTIPLE DEVICES… 64% of teens say it helps them 72% say it helps them to stay up 59% say it helps them to get easy communicate more easily to date with friends access entertainment % ONLINE PAYMENT METHODS USED19 OTHER PAYMENT METHODS USED19 61 56% ClickandBuy use FB daily, clocking up an 24% average of 16% Cofinoga 3 hours 58 minutes 3% 15 Aurone per day Visa MasterCard PayPal Carte Bancaire Card

FRANCE 20 = Smartphone = Tablet = Laptop/PC DEVICE USAGE THROUGHOUT THE DAY 70% 0% Early morning Late morning Lunchtime Afternoon Early evening Late evening Post midnight TOP CATEGORIES DISCOVERED ON FACEBOOK15 Tech Entertainment Cosmetics Luxury fashion and 10% 11% 10% accessories 9% 15 surveyed selecting Facebook as one of 25% their favourite platforms say it's the best to discover new content/ products or services 79% of French online watch video at least monthly While out and about, teens use their smartphones for of French surveyed plan to purchase more 15 18 15% and 33% at least daily. entertainment on the go… products online in the future 38% | Adverts 63% | Accessing social networks 38% | News 62% | Playing games of French social media users chose Facebook 37% | Films/TV programmes 71% | Listening to music 62% as their favourite social media network 36% | Comedy 69% | Taking photos (vs 21% for YouTube). CROSS-BORDER BUSINESS HANDBOOK

France 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, June, 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 Département of Paris, region of Île de France, Département of Bouches-du-Rhône, region of Provence-Alpes-Côte d'Azur, Département of Rhône, region of Rhône-Alpes, Département of Haute-Garonne, region of Midi-Pyrénées, Département of Alpes-Maritime, region of Provence-Alpes-Côte d'Azur. 5 Wikipedia.org 6 Tradingeconomics.com 7 eMarketer, June 2015 8 eMarketer, Dec 2015 9 eMarketer, Sep 2015 10 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 11 Based on Facebook data, March 2016 12 Newzoo Global Games Market Report, 2015 13 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 14 Facebook Internal Data, Jan 2016, accessed Jan 2016 15 EMEA Country Profile Study, GfK (Commissioned by Facebook), France, December 2015, N=1000 16 Facebook Audience Insights, France, January 2016 17 EMEA Country Profile Study, GfK (Commissioned by Facebook), France, December 2015, N=290 18 "Multidevice Study" by GfK (Facebook-commissioned study of people ages 13–54 in GfK's panel who use a smartphone, tablet, desktop or laptop at least once a week in France) May–Aug 2015 19 "Global-ecommerce-payments-guide", Adyen.com, 2015 20 EMEA Country Profile Study, GfK (Commissioned by Facebook), France, December 2015, December 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 80 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 13% 10.6% 41.7% 13.6% 21.1% 3 55% of male and 54% of female Facebook users are between 18-34 years of age GERMANY TOP 5 CITIES by population 4 Berlin | Hamburg | Munich | Cologne | Frankfurt Official language: German Major religion: Christianity 5 56% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) $46,090 $47,844

OVERVIEW 2016 (projected) 8 9 9 E-commerce size 8 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising spending Percentage of total digital advertising spending 2016 (PROJECTED) $69bn $866 billion % % 2020 (PROJECTED) 27.8 31.5 $879 billion 2018 (projected) 10 $2.51 average cost per install for FB mobile adverts 8 E-commerce size 11 8 FACEBOOK APP USAGE DIGITAL TRAVEL SALES $83bn DESKTOP MOBILE ONLY 2015 7 $30 billion INTERNET POPULATION 29 million monthly active users 25 million monthly active users 2017 (PREDICTED) $33 billion 63 million 12 13 GAMING INDUSTRY TIME SPENT DIGITAL SHOPPERS 7 GAMER SIZE Germany is the 5th largest 1.6x more time spent on 42 million gaming market in the world – Facebook vs YouTube 52.6 million the largest in Europe PC/MMO games attract most players, Only in handheld gaming are there more 7 followed by mobile phone games women than men (54%), most are under SMARTPHONE USERS 35 yrs old 1-2x 14 42.3 million More Android vs iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

There are 10m 20 21 17 18 soccer fans on FB % % % % in Germany15 82 51 15 76 of German social media users of German social media of German retail sales of laptop/PC usage at home is chose one of Facebook family users see WhatsApp as volume will be from Internet for shopping online. of apps as their favourite the preferred platform for transactions by 2025 FIFA is the second most played game messaging people 8.5% of German retail sales franchise in Germany – more than 1 in 4 volume is from Internet of all German gamers play it.12 transactions 16 18 IMPACT OF MOBILE USING MULTIPLE DEVICES % 48 say that their life has improved through % say it helps them communicate having access to a mobile device 78 more easily % % 45 98 feel more connected to friends and % say it helps them stay up to 71 date with friends family outside of the household 94% of teens own More than 4 in 10 teens own all three: % say it helps them get easy 42 % a smartphone, a tablet and a desktop or shop for brands and services multiple devices 71 access to entertainment laptop. % 34 discover new products or services 16 85% of German Facebook users access Facebook through mobile (38% access it on their mobile only) % 32 19 19 stay informed about political issues ONLINE PAYMENT METHODS USED OTHER PAYMENT METHODS USED 74% of Germans use their 35% Elektronisches Lastschriftverfahren smartphone daily, spending an average of 16% 15% Klarna 14% 2 hours 29 minutes per day16 SEPA Direct Debit Sofort/Giropay Open Invoice Visa Sofort Uberweisung

GERMANY 20 = Smartphone = Tablet = Laptop/PC DEVICE USAGE THROUGHOUT THE DAY 70% 0% Early morning Late morning Lunchtime Afternoon Early evening Late evening Post midnight TOP CATEGORIES DISCOVERED ON FACEBOOK16 16% of Germans plan to purchase more products online in the future Tech Entertainment Cosmetics Travel % % % 10 9 9 8% MOBILE ENTERTAINMENT TEENS LOOK FOR18 16 81% of Germans watch online video 32% | of Germans say they use 22 content at least once a month. Facebook while watching TV 38% | Films/TV shows and adverts 78% | Taking photos 37% | News 64% | Accessing social networks 73% | do so during a show 35% | Comedy 63% | Listening to music 84% | during the advertisements 29% | Product reviews/"How-to" videos 48% | Playing games CROSS-BORDER BUSINESS HANDBOOK

Germany 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, June, 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 "Largest German Cities", statistics, retrieved 14 November 2015 5 Wikipedia.org 6 Tradingeconomics.com 7 eMarketer, June 2015 8 eMarketer, Dec 2015 9 eMarketer, Sep 2015 10 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 11 Based on Facebook data, March 2016 12 Newzoo Global Games Market Report, 2015 13 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 14 Facebook Internal Data, Jan 2016, accessed Jan 2016 15 FB Internal Data, Q2 2014 16 GfK EMEA country profile study, Germany, December 2015, N= 1003 17 "eCommerce: Germany's online share of groceries and drugstore items to double", GFK GROUP, Aug 2015 18 GfK Multi-Device Study (report commissioned by Facebook), September 2015 19 "Global-ecommerce-payments-guide", Adyen.com, 2015 20 EMEA Country Profile Study, GfK (Commissioned by Facebook), Germany, December 2015, N= 710 21 EMEA Country Profile Study, GfK (Commissioned by Facebook), Germany, December 2015, N=547 22 EMEA Country Profile Study, GfK (Commissioned by Facebook), Germany, December 2015, N= 946 CROSS-BORDER BUSINESS HANDBOOK CROSS-BORDER BUSINESS HANDBOOK

Population: 30 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 28.8% 16.9% 41.2% 7.6% 5.5% 70% of male and 68% of female Facebook users are aged between 18-34 3 MALAYSIA TOP 5 CITIES by population 4 Kuala Lumpur | Johor Bahru | Ipoh | Shah Alam | Petaling Jaya Official language: Malay Major religion: Islam 5 20% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) USD 25,920 USD 28,562

OVERVIEW 2015 10 E-commerce size 7 FACEBOOK APP USAGE USD 1.3bn DESKTOP MOBILE ONLY 18 million 17 million monthly active users monthly active users 11 GAMING INDUSTRY GAMER SIZE Third-largest gaming market in southeast Asia; more than 1 in 2 players are also payers 9 14.6 million INTERNET POPULATION (above average for southeast Asia) 20.6 million TIME SPENT 17 7 DIGITAL SHOPPERS % 1.4x more time spent on Facebook than YouTube 19 16 million of total online media time spent is on FB 9 SMARTPHONE USERS 10.1 million CROSS-BORDER BUSINESS HANDBOOK

13 Malaysia ranks TYPES OF ADVERT CONTENT THAT WILL MOST LIKELY RESONATE third in the rate of growth of mobile shopping in Asia 16 Competitive 15% Over 20% growth from 25.4% in 2012 High-energy/action 21% to 45.6% in 2014 Humorous 36% HOW USERS ACCESS FACEBOOK 3 % Family-oriented 47% 64 Mobile only % Real-life situations 51% 31 Desktop and mobile % Value-oriented 49% 11 iPhone, iPod, iPad % 41 Android Health-themed 43% Aspirational 36% Child-centred 21% Sentimental 20% ONLINE PAYMENT METHODS USED14 OTHER PAYMENT METHODS USED 14 Average time spent on 42% MayBank2U Facebook (roughly 2x 34% more than TV) 18% 6% 2 hours 35 minutes CIMBClicks 12 per day Online banking Visa MasterCard PayPal

MALAYSIA 15 FACEBOOK ACTIVITY % % % % 75 87 81 70 of Malaysians have liked a business' of Malaysians have liked a brand's of Malaysians have liked a brand's have seen or searched for Facebook Page Facebook Page to find out useful Facebook Page to get exclusive information on Facebook before information information or sneak peeks purchasing % % % % 47 63 58 40 have searched for product have first heard about a new have first heard about a new film, of Malaysians have first heard about information on Facebook product, brand or service album, book, festival, event or show a new mobile app on Facebook on Facebook on Facebook % % 63 56 of Malaysians have played have first heard about a game on Facebook a new game on Facebook CROSS-BORDER BUSINESS HANDBOOK

Malaysia 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, Jun 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 List of cities, Malaysia (2010), Department of Statistics, Malaysia, retrieved 28 Nov 2013 5 Wikipedia.org 6 Tradingeconomics.com 7 International Telecommunication Union, ComScore via UBS, Nielsen's global survey of e-commerce (Q1 2014), eMarketer, Trend Marco, MasterCard, Paypal, VECITA, A.T. Kearney 8 "2016 e-Commerce Outlook by 11street: Mobile, Infrastructure & More Overseas Products", ecommercemilo.com, Dec 2015 9 eMarketer, Jun 2015 10 Based on Facebook data, Mar 2016 11 Newzoo Global Games Market Report, 2015 12 Reach study, TNS (commissioned by Facebook), 2015, N = 1069 13 Nielsen, "Global Trust in Advertising" as cited by Marketing Interactive, 28 Sep 2015 14 "Global-ecommerce-payments-guide", Adyen.com, 2015 15 Malaysian on Facebook, TNS Study (commissioned by Facebook), 2014, N = 1069 16 Mobile Shopping Survey, MasterCard, 2015 17 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 68 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 17.6% 15% 46.9% 10.9% 9.5% 70% of male and 69% of female Facebook users are aged between 18-34 3 THAILAND TOP 5 CITIES by population 4 Bangkok | Nonthaburi | Nakhon Ratchasima | Chiang Mai | Hat Yai 5 Official language: Thai Major religion: Buddhism 27% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) USD 14,888 USD 15,892

OVERVIEW 2013 9 E-commerce size 7 FACEBOOK APP USAGE USD DESKTOP MOBILE ONLY 40 million 38 million 0.9 billion monthly active users monthly active users 10 GAMING INDUSTRY 55% payer-to-player ratio. GAMER SIZE Largest gamer market in southeast Asia 8 INTERNET POPULATION 19.3 million 31% of Thai mobile gamers play five days a week or more 26 million 10 FEMALE GAMERS 7 DIGITAL SHOPPERS Women are over-represented in mobile phone and tablet 14 million games, which women aged 21-25 are most likely to play 8 SMARTPHONE USERS 3-4x 9 10.1 million More Android users than iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

12 FACEBOOK ACTIVITY % % % % 68 77 48 45 1 out of 4 say that they saw/ have liked a brand's have bought something search for information people in Thailand searched for information Facebook Page on Facebook about products or services on Facebook before on Facebook say that wearing buying something wearables makes them feel % % % % 57 53 +56 92 11 "advanced". have first heard about have first heard about a have first heard about a new have liked a brand's Page It's projected that deliveries a new product, brand new film, album, book, game on Facebook because they're interested of wearable devices will have or service on Facebook festival, event or show in its products grown 20% by 2019, reaching on Facebook 11 173 million units worldwide. % % % % 90 83 45 70 have liked a brand's Page have liked a brand's Page to have first heard about a new of Thai FB users play games to get customer service get exclusive information mobile app on Facebook on Facebook help or find out useful or sneak peaks that are only information available on Facebook 3 13 13 HOW USERS ACCESS FACEBOOK ONLINE PAYMENT METHODS USED OTHER PAYMENT METHODS USED % 52% 60 Mobile only PayPal % 36 Desktop and mobile 29% % 15% One-2-Call Cash 14 iPhone, iPod, iPad 4% % 123 Zest 37 Android Visa MasterCard (Over-the-counter payment method) Online banking

THAILAND 14 USING MULTIPLE DEVICES % Over 95 of people in Thailand use at least two devices, and a third use three: a smartphone, a tablet and a desktop or laptop. % 39 3 out of 4 1 out of 4 have gone from one to many devices multi-device users are are students just in the past couple of years millennials MULTIPLE DEVICES ENABLE THAIS TO: 14 79% of Thai multi-device users say that they have used their smartphones from 9 am access more make more gain control over feel more aware prefer % % intelligent % % of the possibilities % smartphones over 67 educational 52 41 their future 42 61 opportunities decisions in their lives laptops/desktops CROSS-BORDER BUSINESS HANDBOOK

Thailand 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, Jun 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 Division of Research and Development System, Office of Development and Structure, Department of Local Administration, accessible: (1) 2014. Searched 6 Feb 2015 In Thailand 5 Wikipedia.org 6 Tradingeconomics.com 7 International Telecommunication Union, ComScore via UBS, Nielsen's global survey of e-commerce (Q1 2014), eMarketer, Trend Marco, MasterCard, Paypal, VECITA, A.T. Kearney 8 eMarketer, Jun 2015 9 Based on Facebook data, Mar 2016 10 Newzoo Global Games Market Report, 2015 11 "Fueled by Growing Demand for Smart Wearables, IDC Forecasts Worldwide Wearable Shipments to Reach 173.4 Million by 2019" by IDC, 14 Sep 2015 12 Thais on Facebook, TNS (commissioned by Facebook), Jun 2014. N = 1005 13 Global-ecommerce-payments-guide", Adyen.com, 2015 14 Multi-device Study" by GfK (Facebook-commissioned study of people ages 18-54 who use a smartphone, tablet, desktop or laptop at least once a week in AU, TH and TW), Oct-Nov 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 102 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 33.7% 19% 37% 5.8% 4.5% 75% of male and 72% of female Facebook users are aged between 18-34 3 PHILIPPINES 4 TOP 5 CITIES by population Quezon City | Manila | Caloocan | Davao City | Cebu City Official language: Filipino Major religion: Catholicism 5 78% SPEAK ENGLISH 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) USD 7,644 USD 9,307

OVERVIEW 2015 E-commerce size 7 USD GAMING INDUSTRY % 10 % 9 % 10 64 61 73 have first heard about a of Philippine PC/MMO gamers of those surveyed new game on Facebook only play downloaded games have played a game 1 billion on Facebook 9 Gamer size 11 FACEBOOK APP USAGE 29.5 m DESKTOP MOBILE ONLY % 95 8 10 INTERNET POPULATION of Filipinos using social media are on 51 millionmonthly active users 47 millionmonthly active users 53.7 million TIME SPENT 12 7 DIGITAL SHOPPERS 2.5x more time spent on Facebook than YouTube 1.2x more time spent on Facebook than TV Totalling up to 2 hours and 25 minutes 12 6x more time spent on 25 million Facebook than Twitter 8 18% | Time spent on Facebook compared to all other online media SMARTPHONE USERS 6-7x 26.2 million 11 more Android users than iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

Women outnumber men in mobile segments 52% of mobile 40% | have first heard about a new mobile 10 phone gamers app on Facebook and 56% of tablet gamers are female9 10 10 % 87 of those surveyed have 3 liked a business' Facebook Page % have first heard about a new film, album, 62 book, festival, event or show on Facebook 10 % 86 46% | accessed FB by using mobile only have liked a brand's Page to get exclusive 44% | used both desktop and mobile information 10 10 70% | have seen or searched for product % 96 information on Facebook have liked a brand's Facebook Page to find out 51% | have discovered a new product useful information ONLINE PAYMENT METHODS USED 13 OTHER PAYMENT METHODS USED 13 43% PayPal 27% 17% Smart Money 7% GCash MasterCard Visa E-Wallets Online banking

Philippines 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, Jun 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 Philippine Statistics Authority, 4 Apr 2012. Retrieved 6 Nov 2015. 5 Wikipedia.org 6 Tradingeconomics.com 7 International Telecommunication Union, ComScore via UBS, Nielsen's global survey of e-commerce (Q1 2014), eMarketer, Trend Marco, MasterCard, Paypal, VECITA, A.T. Kearney 8 eMarketer, Jun 2015 9 Newzoo Global Games Market Report, 2015 10 Filipino on Facebook, TNS Study (commissioned by Facebook), 2014, N = 1021 11 Based on Facebook data, Mar 2016 12 Reach study, TNS (commissioned by Facebook), 2015, N = 1069 13 "Global-ecommerce-payments-guide", Adyen.com, 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 65 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 17.3% 12.6% 41% 11.5% 17.5% 49% of male and 46% of female Facebook users are aged between 18-34 3 UNITED KINGDOM TOP 5 CITIES by population 4 London | Manchester | Birmingham | Leeds-Bradford | Glasgow 5 Official language: English 97% Major religion: Christianity 6 6 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) USD 37,959 USD 38,564

OVERVIEW 2016 (projected) 8 9 9 E-commerce size 8 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising Percentage of total digital advertising spending USD 110 bn 2016 (PROJECTED) spending USD 702 billion % % 2018 (projected) 2020 (PROJECTED) 49.6 40.5 E-commerce size 8 USD 729 billion USD 3.87 average cost per install for FB mobile adverts 10 USD 132 bn 11 8 FACEBOOK APP USAGE DIGITAL TRAVEL SALES DESKTOP MOBILE ONLY 2015 7 USD 37 billion INTERNET POPULATION 2017 (PREDICTED) 37 million monthly active users 34 million monthly active users USD 43 billion 51.3 million GAMING INDUSTRY TIME SPENT 14 7 The UK is the sixth-biggest games market DIGITAL SHOPPERS in the world and the second-largest games 1.2x more time spent on 12 market in Europe. Facebook than YouTube 12 42.9 million Payer-to-player radio of 61%, highest in Europe GAMER SIZE 13 7 12 14% of gaming time is spent on mobile devices SMARTPHONE USERS 35.3 million 0.6-0.8x 38.3 million 15 more Android users than iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

53% of UK social media users chose of shoppers already use say that they use smartphones 18 daily, clocking up an average of Facebook as their % their mobile in store % 2 hours 2 minutes per day 16 68 67 favourite16 % FACEBOOK WITH MILLENNIALS 21 17 European country where the personal screen has the largest market share (mobile screens altogether own 31% of 2.2x 2x 2.4x 1.7x 12 the market) % more likely than average to more likely to say that they more likely to say that they more likely to go online to 17 discover tech on Facebook will spend more time on will spend more time watching stream/download music of Brits plan to purchase more online their mobile in the future videos on their phone (23% for Facebook and Instagram 16 users) 30% who have access to a smartphone 44% expect advertising to be relevant say that it has enabled them to to them, particularly Facebook and "discover new products and services" Instagram users (58%) APP SHOPPERS ARE BIG SPENDERS 17 ONLINE PAYMENT METHODS USED19 OTHER PAYMENT METHODS USED19 2.6x | app compared to a 55% mobile site Skrill e-wallet 1.5x | app compared to a 32% desktop device 10% Mopay 3% Revenue generated by shopping by the average Visa MasterCard PayPal American Express ClickandBuy person in the UK.

UNITED KINGDOM 23 = Smartphone = Tablet = Laptop/PC DEVICE USAGE THROUGHOUT THE DAY 70% 0% Early morning Late morning Lunchtime Afternoon Early evening Late evening Post midnight EVERY DAY ON AVERAGE...20 TOP CATEGORIES DISCOVERED ON FACEBOOK 16 VS Facebook can reach four times more people than national newspapers in the UK combined Entertainment Cosmetics Tech 90% use a mobile to access Facebook 10% 8% 8% (43% mobile-only access)16 22 16 16 ONLINE CONTENT TYPES OF VIDEO CONTENT BRITS LOOK FOR 29% | of Brits say that they use 38% | Films/TV programmes Facebook while watching TV 16 34% | Comedy sketches 1 hour 12 minutes a day 84% | do so during a show 33% | Product reviews/"How to" videos is spent watching online videos 16 32% | News 79% | during the advertisements 73% watch online video content at least 25% | Sport once a month CROSS-BORDER BUSINESS HANDBOOK

United Kingdom 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, Jun 2015 3 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 4 World Urban Areas Report, Jan 2015 5 Wikipedia.org 6 Tradingeconomics.com 7 eMarketer, Jun 2015 8 eMarketer, Dec 2015 9 eMarketer, Sep 2015 10 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 11 Based on Facebook data, Mar 2016 12 Newzoo Global Games Market Report, 2015 13 “The UK Goes Mobile", comScore, Jun 2015 14 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 15 Facebook Internal Data, Feb 2016, accessed Feb 2016 16 EMEA Country Profile Study, GfK (commissioned by Facebook), United Kingdom, Dec 2015, N = 1048 17 App Annie Mobile App Forecast, Global, Q1 2016 18 eMarketer UK, Sep 2015; Research Now, Multi-channel Shopping, UK, 2014 19 "Global-ecommerce-payments-guide", Adyen.com, 2015 20 Facebook Internal Data Based on Stated and Inferred Data, Average for June 2015 Compared to ABC, National Newspapers, Mar 2015 21 EMEA Country Profile Study, GfK (commissioned by Facebook), United Kingdom, Dec 2015, N = 768 22 Facebook Audience Insights Tool, UK, Jan 2016, N = 1048 23 EMEA Country Profile Study, GfK (commissioned by Facebook), United Kingdom, Dec 2015 CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Population: 324 million1 Age structure 0-14 years 15-24 years 25-54 years 55-64 years 65+ years 2 19.4% 13.7% 39.9% 12.6% 14.5% Race structure Asian Other ethnicities African-Am. Caucasian 3 4.7% 10.3% 12.6% 72.4% 49% of male and 43% of female Facebook users are aged between 18-34 4 UNITED STATES TOP 5 CITIES by population 5 New York | Los Angeles | Chicago | Houston | Philadelphia Official language: English 95% Major religion: Christianity 6 7 TOP TWO FOREIGN LANGUAGES: SPANISH AND CHINESE 8 8 GDP PER CAPITA PPP 2017 (projected) GDP PER CAPITA PPP 2020 (projected) USD 53,347 USD 53,976

OVERVIEW 2016 (projected) 11 12 12 E-commerce size 8 RETAIL SALES AND GROWTH DIGITAL ADVERTISING SPENDING MOBILE ADVERTISING SPENDING Percentage of total media advertising spending Percentage of total digital advertising spending USD 385 bn 2016 (PROJECTED) USD 4.8 trillion % % 2018 (projected) 2020 (PROJECTED) 31.6 52.4 E-commerce size 8 USD 5.1 trillion 13 USD 3.11 average cost per install for FB mobile adverts USD 482 bn 14 11 FACEBOOK APP USAGE DIGITAL TRAVEL SALES DESKTOP MOBILE ONLY 2015 10 USD 168 billion INTERNET POPULATION 2017 (PREDICTED) 201 million monthly active users 182 million monthly active users USD 190 billion 259.7 million 15 17 GAMING INDUSTRY TIME SPENT DIGITAL SHOPPERS 10 The US is the second-largest gaming market in the world with expected revenues of 1.3x more time spent on 205 million USD 22 billion. Facebook than YouTube GAMER SIZE SMARTPHONE GAMERS Candy Crush is the most popular game in 10 16 the US, with 45% of all gamers playing it. SMARTPHONE USERS 189.5 million 115.2 million 1:1 18 190.5 million Ratio of Android users to iPhone users on Facebook CROSS-BORDER BUSINESS HANDBOOK

CHRISTMAS SHOPPING Facebook is the number one of people access mobile of people will do most of their platform for while shopping 22 shopping in November 19 % % sharing Christmas 65 42 experiences19 SHOPPERS19 67% of millennials aged 18-34 51% of people aged 35-54 say that Facebook is somewhat or very influential say that Facebook is somewhat or very in their Christmas shopping influential in their Christmas shopping TOP ONLINE SHOPPING DAYS 21 for people on Facebook who were 19 19 20 served an advert with a conversion pixel 23% of people seek Christmas gift 30% of people would use Facebook 65% of people plan to shop across during the festive season (2014) advice on Facebook to share Christmas greetings multiple channels 28 Nov 2014 (Black Friday) 1 Dec 2014 (Cyber Monday) 19 19 20 of people find Christmas gift of people would use Facebook of Christmas shoppers plan 15 Dec 2014 26% inspiration on Facebook 38% to share their Christmas 62% to shop differently to the experiences previous year Top days people tagged themselves at 21 a shopping centre during the festive season (2014) ONLINE PAYMENT METHODS USED 23 OTHER PAYMENT METHODS USED 23 28 Nov 2014 (Black Friday) 6 Dec 2014 (Saturday) 57% Secure Vault Payments 13 Dec 2014 (Saturday) 24% Google Wallet 20 12% 5% 2% 41% of people plan to shop more online next year than last year Zong Visa MasterCard American Express PayPal Discover

UNITED STATES COMMERCE 24 25 25 24 % % % % 61 61 66 52 of Internet users have friended of online consumers are more likely of smartphone users say that of smartphone users want to get companies/brands on FB or Twitter to purchase products and services mobile-friendly sites make them product/service info to get deals/discounts from companies that use customised, more likely to buy companies' real-time marketing content products or services NEW PARENTS 26 FACEBOOK STATS They are active on Facebook mobile as early as 4 am and peaking at 7 am More than 1 in 5 minutes on mobile is spent on Facebook more time spent by new They post and share photos Their posts about their and Instagram. 30 1.3x parents on Facebook mobile 2.9x more often and videos 5x babies get 37-47% more compared to non-parents more often than non-parents interactions 34 TARGETING ACCURACY Global 65% | Facebook 85% 27 28 TOP HOLIDAY TRAVEL DESTINATIONS 29 TRAVEL IN 2016 While Americans are on holiday, mobile accounts for... 51.8% of travellers who book trips 1. Mexico 6. India 54% of all time spent on digital is via digital means will use a mobile with mobile apps. 32 74% Facebook logins device. 2. France 7. Germany 78% of Facebook posts IN 2019 3. Italy 8. Spain Americans uploaded 5.91x more 4. UK 9. The Bahamas content via mobile than desktop 33 The number is predicted to be 80% of photos posted 69.8% 5. Canada 10. Puerto Rico CROSS-BORDER BUSINESS HANDBOOK

United States 1 Worldometers, accessed Feb 2016 2 CIA World Factbook, Jun 2015 3 Overview of Race and Hispanic Origin: 2010, Census Briefs, retrieved 2013 4 Facebook Audience Insights Tool, 6 Dec 2015 – 6 Jan 2016 5 Thomas Brinkhoff: The Principal Agglomerations of the World, City Mayors.com 6 Wikipedia.org 7 2011 Census Bureau Report, Aug 2013 8 Tradingeconomics.com 9 eMarketer, Jun 2015 10 eMarketer, Jun 2015 and Jul 2015 11 eMarketer, Dec 2015 12 eMarketer, Sep 2015 13 Salesforce Marketing Cloud, "Salesforce Advertising Index Q2 2015", 25 Nov 2015 14 Based on Facebook data, Mar 2016 15 Newzoo Global Games Market Data, Oct 2015 16 "So Many Apps, So Much More Time for Entertainment", Nielsen, Jun 2015 17 The comScore Audience Product Suite, comScore, Total Minutes Spent Among Adults Age 15+, Facebook.com vs YouTube, Dec 2015 18 Facebook Internal Data, Jan 2016, accessed Jan 2016 19 Facebook Internal Data, Poll of 500 respondents, ages 18+, selected as representative sample of US online population, Jul 2015 20 Facebook Internal Data, Poll of respondents ages 18+, US only, Jul 2015 21 Facebook internal data for people ages 18+ in the US, Nov-Dec 2014 (accessed Sep 2015) 22 "From One Screen to Five", in conjunction with Millward Brown Digital and Firefly Millward Brown, (commissioned by Facebook IQ). US only, N = 500 23 "Global-ecommerce-payments-guide", Adyen.com, 2015 24 USC Annenberg School Center for the Digital Future, "2015 Digital Future Project", 9 Dec 2015 25 "An Introduction to Cross-Device Customer Journey Mapping", SIGNAL, Jan 2016 26 Facebook Internal Data, based on reported and inferred data, US only, Jan-Apr 2015 27 Facebook Internal Data, based on reported and inferred data, US only, May-Sep 2014 28 eMarketer, Nov 2015 29 Facebook Internal Data, ages 18+ in the US, 15 Nov – 31 Dec 2014 (accessed Jul 2015) 30 Nielsen Mobile Netview, Sep 2015 31 Nielsen Digital Ad Ratings, Facebook Norms through July 2015, US only 32 The U.S. Mobile App Report, comScore, Aug 2015 33 National Retail Federation, Jan 2015 34 (1) Nielsen Digital Ad Ratings, Feb 2015; Facebook 85% source: (2) Nielsen OCR Norms, Mar 2015 CROSS-BORDER BUSINESS HANDBOOK CROSS-BORDER BUSINESS HANDBOOK

NOTES Digital shoppers (millions) Mobile advertising spending Aged 14+: Internet users who have browsed, (% of total digital advertising spending) researched or compared products digitally via Includes displays (banners, videos and rich any device during the calendar year but have media) and search; includes advertising not necessarily bought digitally. spending on tablets; excludes SMS, MMS and P2P messaging-based advertising. Retail e-commerce sales (millions) Includes products or services ordered using Digital travel sales (millions) the Internet via any device, regardless of the Includes leisure and unmanaged business travel method of payment or fulfilment; excludes sales booked via any device travel and event tickets. Internet users (millions) Gamer size Individuals of any age who use the Internet All people that play games on a PC, console or from any location via any device at least once mobile device. per month. Digital advertising spending Retail sales (millions) (% of total media advertising spending) Excludes travel and event tickets. Includes classifieds, displays (banners/static displays, rich media, sponsorships and videos) Smartphone users (millions) and search (contextual text links, paid inclusion and paid listings); includes advertising that Individuals of any age who own at least one appears on desktop and laptop computers as smartphone and use the smartphone(s) at well as mobile phones and tablets in all formats least once per month. mentioned. CROSS-BORDER BUSINESS HANDBOOK

Best practices checklist

CROSS-BORDER BUSINESS HANDBOOK

It's never too early to start planning your cross-border campaigns. Make sure you have the right tools in place, test your creative for different countries and understand your customers' behaviour before the campaign launch. Leverage Facebook's strategic insights about your customers Use this handbook or Audience Insights to better understand retail brands and live in the suburbs of specific geographic locations. your current and potential customers. These insights – including Armed with this information, you'll be able to tailor your message demographics, location, interests, psychographics and purchase more effectively when targeting these potential customers. behaviour – can help inform your creative strategy when targeting https://www.facebook.com/ads/audience_insights people in different countries. You may discover, for example, that high lifetime value (LTV) customers are 70% female, like high-end Identify key audience segments Determine which audience segments you will want to reach members and email subscribers. By segmenting your audience as well as how best to connect with them. For example, you into distinct categories, you can build different advertising might want to build different advertising campaigns for campaigns and target each segment with tailored creative that your potential new customers, high LTV customers, loyalty is most likely to resonate with them. Design for mobile More and more people are expected to shop on mobile and creative on mobile and optimise your mobile web and more than ever. Advertisers should adapt their marketing, app purchase experiences. Ensure your creative aligns with measurement and purchase experiences for mobile. an audience on the go. In addition, test separate mobile and While consumers opt for smartphones, tablets or even desktop campaigns and set specific bids for each one. feature phones, advertisers have greater opportunity and more creative spaces to drive discovery and purchases of their products. Take time to test your advertising campaigns

Add the Facebook pixel to your website and the Facebook SDK in your mobile app To leverage all of the capabilities Facebook has built for mobile app on Facebook across all devices. For example, if a retail and e-commerce advertisers, such as dynamic product shopper browsed for watches on your mobile app but didn't retargeting, conversion optimisation and cross-device purchase, you can automatically retarget them with an advert measurement, make sure that your website is set up with the for that watch when they visit Facebook on their laptop. Facebook pixel. If you have a mobile app, make sure it is set up https://developers.facebook.com/docs/app-events with the Facebook SDK with App Events. With these items in place, you can target people who visit your website or use your Test different creative formats in different countries One creative does not apply for all markets. Set aside some be more responsive to price. Consider communicating clearly time to test the different creative formats for your audiences about your unique selling point and testing strong call-to- in different countries. For example, German customers may action copy so that you identify the best-performing creative be more responsive to quality, while American customers may prior to the campaign launch. Know your customer's conversion path After implementing the Facebook pixel, SDK and standard Get started with the Facebook pixel here: events, you can review cross-device conversion paths in https://www.facebook.com/business/a/online-sales/ adverts reporting. Using this data, you can identify typical conversion-tracking conversion paths and tailor your marketing to accommodate Get started with the Facebook SDK here: your customers' behaviour. For example, if your customers https://developers.facebook.com/docs/app-events tend to browse on their mobile device and purchase on desktop, you can draw their attention with video on mobile https://www.facebook.com/business/news/cross-device- and use an advert with a strong call to action on desktop. measurement https://www.facebook.com/help/510910008975690 CROSS-BORDER BUSINESS HANDBOOK

Targeting Creative targeting to move real people Reach the right people who are going to consider your brand, buy your product or visit your shop. Here are some of the native targeting options available in the Facebook Adverts tools: Location Behaviours Target by country, region, postcode or even Find your best customers based on shopping the area around your business. behaviour, the type of phone they use or if Demographics they're looking to buy a car or house. Choose the audiences that should see your Connections adverts by age, gender, interests and even Reach the people who like your Page or your the languages they speak. app – and reach their friends too. Interests Connection speed Choose from hundreds of categories such Reach people in low-bandwidth areas, ideal as music, films, sport, games, shopping and for delivery of slideshow adverts. much more to help you find just the right people for your brand and message.

More ways to reach the right people Custom Audiences You've got a list of people who already know your business. With Custom Audiences, you can easily target those people on Facebook with specific messaging and creative. Lookalike Audiences Build an audience on Facebook with the same characteristics as the people who already like your business. It's like cloning, but without the scary implications. Audience Network Facebook's Audience Network is a collection of mobile apps where you can serve adverts using the same targeting and measurement tools as on Facebook. So you can extend your advert reach beyond News Feed, to everywhere that your people are. Placement optimisation Reach your target audiences and optimise performance in real time across Facebook, Instagram and the Audience Network. It's a great way to add reach and improve performance. Buy better on mobile Reach and frequency buying Taking inspiration from traditional broadcast buying, Facebook reach and frequency buying lets you predictably manage audience sizes and the number of times they'll see your advert. TRP buying In partnership with Nielsen's Digital Ad Ratings division, we now allow you to buy adverts on Facebook by the same target rating points with which you buy TV. CROSS-BORDER BUSINESS HANDBOOK

New targeting features International targeting made easy with our enhancement to Lookalike Audiences Simply upload a list of your existing customers or high potential leads, then Facebook will find customers who are most likely to convert in foreign markets for you.

Find the best market to thrive with Facebook's worldwide regions in location targeting Select Worldwide, Region (e.g. South America) or trade group (e.g. European Economic Area) in location targeting when creating mobile app install, website conversion or mobile app engagement campaigns. Facebook's delivery system will then deliver to all countries within that grouping and will optimise delivery to the countries that are seeing the best return. CROSS-BORDER BUSINESS HANDBOOK

How people see adverts People use Facebook to discover what's new with their friends, family and the things they care about. And your adverts are shown alongside these stories – seamlessly – on both desktop and mobile.

CROSS-BORDER BUSINESS HANDBOOK

Video adverts Stop thumbs with moving images Nothing moves hearts quite like moving pictures. And video on Facebook and Instagram gives you a powerful way to tell stories that make people stop, watch and care. USEFUL BITS Catch attention Consider sound Lead with Target quickly on and off your brand creatively 360 VIDEO Give viewers a more immersive experience that changes how they interact with video. Learn more at 360video.fb.com

VIDEO Tourism New Zealand used a series of three videos, cinemagraphs SUUMO, a popular property portal, became the first advertiser and atomised storytelling to bring their story to life and push people in Japan to run a single-day campaign that reached a broad through the funnel. audience up to three times a day. SUUMO successfully reached out to the younger generations on Instagram and raised its brand favourability. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Carousel adverts Tell your visual story If every picture tells a story, imagine the story you can tell with five of them. With carousel adverts, you can feature multiple products or photos, or walk people down a creative path. It's your visual playground in Feed. USEFUL BITS • Use images of products when targeting • Create a theme for the videos and images people who have visited products on in your carousel link adverts. your website. • Test different creative strategies such as • Reach more people through video. Follow storytelling with video, product imagery, up with images that give more information or starting with a brand video followed by about the product, service or brand you're more specific product or brand information. advertising. • Consider stitching your images together to create one panoramic visual.

CAROUSEL THE ICONIC successfully used Instagram to lift advert recall Sony Xperia HK The smartphone and tablet brand used and increase purchase intent, while Facebook helped to drive Instagram to create mass awareness of a new product in Hong online sales. Of the audience who saw posts on both Instagram Kong and communicate key features to its target audience. and Facebook, there were 23% more conversions and 25% more basket adds than of those who saw only the Facebook adverts. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Photo adverts Move people with a single still If you've got lots of images to play with, Facebook can help you find the best-performing shots to make sure your campaign is bound to stop thumbs. USEFUL BITS • Use the wide creative canvas to display large, prominent images. • Build a consistent brand voice with a unique photographic style. • Focus copy on your brand message.

PHOTO Red Bull teased summer and new packaging with a bespoke Instagram campaign ahead of other media. Aspirational imagery and 15-second videos used subtle branding and product placement, along with a yellow filter to align with the colour of the new can and the feeling of summer. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Link adverts Drive an immediate response Whether it's making a purchase, finding out more about a product or visiting your site, get people to act and respond with Facebook link adverts. Link adverts allow you to create big, bold and beautiful posts that fit into News Feed. Add a call-to-action button to drive immediate action. USEFUL BITS • Easily add a strong call-to-action button straight from the adverts tool. • Showcase multiple products from your inventory using a carousel link advert. • Get more engagement with video creative.

LINK ADVERTS DECIDE WHICH ACTION YOU WANT Choose from five actions that best align with your business goal Skyscanner applied what it had learned from previous Add more creative spaces with the carousel format. studies to develop clean, inspirational adverts that Carousel link adverts give you more creative spaces in News invited people to "Travel smarter". Appearing in desktop Feed to showcase compelling imagery for your brand and and mobile News Feed in July 2015, the adverts were products, driving people to your website to convert. You targeted at 18 to 65-year-olds and featured clear calls can showcase up to five clickable images or video within a to action to 'Learn more'. single advert unit and Facebook can optimise the order of the images based on relevance to each targeted individual. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Lead adverts A simpler way to complete forms on mobile No one likes to fill out forms, especially with thumbs on a tiny screen that likes to autocorrect. Lead adverts help make the process faster and easier by automatically populating contact information such as email addresses. Combine lead adverts with Custom Audiences to boost your CRM strategy. USEFUL BITS • Spice up your lead adverts with video. APPLY NOW • Choose a call-to-action button to suit DOWNLOAD your advert: GET QUOTE LEARN MORE SIGN UP SUBSCRIBE

LEAD ADVERTS MINI Australia targeted people in different income brackets who weren't necessarily in the market. They captured customer information to help identify those most interested in their message. CROSS-BORDER BUSINESS HANDBOOK CROSS-BORDER BUSINESS HANDBOOK

Canvas adverts A new space for big ideas on Facebook Tell your stories and showcase products in an immersive mobile experience that doesn't require a separate microsite. Canvas gives you all the space you need to move hearts with panoramic images, carousel, video and an experience built for mobile.

CANVAS Carnival Cruise Line ran its first Canvas campaign to target a broad audience of potential newcomers to cruising. The advert takes over the whole mobile screen so that users can scroll through the rich imagery, showing off the cruise ship, the ports of call and holiday activities. REALLY, REALLY USEFUL BITS TELL A STORY Adverts with the Canvas experience perform better when the creative both tells a story and promotes a product. For example, feature a collection or attributes of a product rather than a long list of products. MAKE IT INTERACTIVE With Canvas, you can also include horizontal scroll elements so people can explore your story more deeply. This lets people engage with the products or attributes that resonate most with them. EXPERIMENT This is a new in-app experience. Marketers are exploring innovative new ways and using creative elements to achieve their business objectives. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

TILT TO PAN In Canvas, people can swipe through a carousel of images, tilt to view panoramic images and zoom in to view images in detail. 50 percent of people who opened the advert scrolled through until the end. Also, the average time spent with the advert was between 135 seconds and 174 seconds longer than the advert's running time of two minutes.

CANVAS FLEXIBLE FOR ANY OBJECTIVE With Canvas, you have complete creative control to achieve any objective, such as telling your brand story, promoting a new film or showcasing your products. See more at canvas.facebook.com CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Slideshow adverts Create moving adverts from still images Create the thumb-stopping impact of video with still images. Combine up to seven photos to play as a simple yet captivating video. It's ideal for delivering a smooth video experience for feature phone users and markets with low bandwidth or for anyone who wants a faster and easier way of building a video advert. USEFUL BITS • Build your slideshow from 3-7 images. • For feature phone delivery, slideshows • Adapt video to suit low-bandwidth must be created in Power Editor's Page markets by combining video screenshots. Post Engagement objective. • Control the video speed to create videos • Available on Facebook and Instagram up to 15 seconds. • Videos play without sound. • Combine slideshow with targeting by bandwidth or device for optimal efficiency.

SLIDESHOW Tang Argentina To help drive brand lift and advert recall, Tang ran a slideshow campaign targeting feature phone and low-bandwidth users in rural areas of Brazil and Argentina. CRCROSOSSS-BORDER BUSINES-BORDER BUSINESS HANDBOOKS HANDBOOK

Facebook case studies

CROSS-BORDER BUSINESS HANDBOOK

GAMING Success story Going global, the cross-platform way The Chinese developer acquired highly engaged players in new markets after taking its successful mobile game Clash of Kings cross-platform, integrating it into Facebook.com. % 50 million 80 4x players globally higher player engagement rate than increase in average playtime before going cross-platform

THEIR STORY THEIR SOLUTION Real-time strategy Reaching gamers where they are Founded in 2007, ELEX is a Chinese company As part of its "go global" strategy, ELEX rolled separated its audience by gender, targeting out Clash of Kings sequentially. Starting with each group with customised creative. For with global ambition. Its popular social games Southeast Asia, it launched the game in one example, female players saw adverts featuring include Happy Harvest, City Life and Clash of market at a time, fine-tuning its marketing female characters and copy that addressed strategy along the way, applying lessons them as "Queen" and "my lady", while male Kings, a cross-platform real-time strategy game. learned in each region to the next. In this way, players saw male characters, scenes of the company ensured it was better prepared warfare and images of weaponry, with copy to enter more mature markets, such as North that addressed them as "warriors". America. ELEX ran an awareness campaign to inform existing mobile players that they could now play Clash of Kings on desktop. The company THEIR GOAL THEIR SUCCESS Cross-platform experience Highly engaged fans worldwide Recognising gamers' preference for a seamless Since integrating Clash of Kings into • 50 million players globally experience across devices, ELEX created a cross- Facebook.com in March 2015, ELEX has • 80% higher player engagement rate than acquired players in brand new markets and before the game became cross-platform platform version of its successful mobile game, achieved these results: • 4x increase in average playtime Clash of Kings, by integrating it into Facebook. • Top 10 grossing game in over 80 countries com. The company wanted to take the game global by making it accessible to gamers on their gadgets of choice. CROSS-BORDER BUSINESS HANDBOOK

TECH/TELCO Success story Wising up with conversion lift A conversion lift test showed the online money transfer service that combining direct response adverts with video can produce even better results than video alone. % % % 24 90 18 higher lift in registrations lift in incremental lower cost per incremental registration (video adverts + direct response link registrations (video adverts + direct response link adverts versus video only) adverts versus video only)

THEIR STORY THEIR SOLUTION Fee-free transfers Testing a new combination Developed by the people behind Skype and Conversion lift tests accurately capture the The adverts featured TransferWise's impact of Facebook adverts by comparing usual fee-slashing messaging and used PayPal, and described by Richard Branson as conversions in a randomised test group to the Facebook conversion pixel to track a "disruptive innovation in financial services", those from a control group. In this study, which adverts directly generated leads people in the test group saw both video and registrations. TransferWise targeted TransferWise allows people to send money adverts and DR link adverts, while those in experts living in Australia and used Lookalike abroad without incurring hidden fees. the control group saw only the video adverts. Audiences to identify additional potential customers. THEIR GOAL THEIR SUCCESS Better together? Right on the money TransferWise wanted to understand if using a Overall, Facebook drove significant lifts • 24% higher lift in registrations direct response (DR) approach alongside video in incremental leads, registrations and (video adverts + DR link adverts versus new users. And the results showed that – video only) adverts would work better than video alone in compared to video alone – combining video • 18% lower cost per incremental driving leads and registrations. and link adverts was far more successful at registration (video adverts + DR link generating new leads and registrations, as well adverts versus video only) as a lower cost per incremental registration. • 90% lift in incremental registrations Key numbers from the campaign, which ran • 2x higher lift in new leads (video adverts for four weeks from August 2015, included: +DR link adverts versus video only) • 2.5x lift in mobile app installs CROSS-BORDER BUSINESS HANDBOOK

TECH/TELCO Success story Going global with Facebook The China-based mobile internet company used Facebook and Instagram to reach an overseas audience – especially people living in the US – on mobile. % % % 38 22 6.7 more app installs came from lower cost per acquisition higher retention rate using Facebook than all other digital from Facebook than other Instagram adverts than other channels combined digitals channels digital channels

THEIR STORY THEIR SOLUTION Personalising mobile Targeting and personalisation Based in Beijing, NewBornTown creates mobile To reach its mobile audience, NewBornTown Instagram in particular allowed the company ran mobile app install adverts across both to reach a younger, mobile-savvy audience. technology that allows people to customise Facebook and Instagram, targeting people NewBornTown personalised its content to their mobile experience. 300 million people globally (with a focus on people living in the suit this group's tastes and their desire for US) who own an Android device (because visual inspiration. around the world use its Solo System apps, Solo Launcher is only available on Android). including its flagship mobile app, Solo Launcher. The company also used location and interests targeting to personalise the adverts. This strategy ensured it efficiently allocated its budget to reach precisely the right people. THEIR GOAL THEIR SUCCESS Crossing borders Boost for installs NewBornTown wanted to grow its business NewBornTown's integrated mobile campaign • 38% more app installs came from by expanding globally and reaching young, (which ran from 1 October to 31 December Facebook than all other digital channels 2015) produced efficiencies and helped the combined mobile-savvy Android owners who live in the company achieve these results in brand-new • 22% lower cost per acquisition from company's priority markets. It wanted to drive overseas markets: Facebook than other digitals channels app installs and lower its cost per install. • 6.7% higher retention rate using Instagram adverts than other digital channels CROSS-BORDER BUSINESS HANDBOOK

E-COMMERCE Success story Fashioning a new strategy for growth Facebook's enhanced Lookalike Audiences tool helped the Turkish e-commerce brand continue its impressive global expansion, producing a return on investment that was 4x higher than previous campaigns. 4x 30% higher return on advertising investment than higher customer acquisition keyword targeting campaigns rate than rival platforms

THEIR STORY THEIR SOLUTION Turkish chic Different countries, similar traits Turkish start-up Modanisa was launched in In previous campaigns, Modanisa had used Modanisa used Facebook Marketing Partner simple keyword-based targeting to identify Adphorus's advert creation tool to produce 2011 with a mission to give "choice in style" its audiences. To make its German campaign its own adverts. The simple interface allowed to 400 million Muslim women globally. The even more successful, the e-commerce the retailer to easily create multi-image company decided to test Facebook's newly carousel adverts featuring clothes and other online retailer was named the most popular enhanced Lookalike Audiences feature. Using items that were suitable for Germany's Islamic conservative fashion site in the world by State this, Modanisa could take a group of existing community and climate. This combination customers in Turkey and identify people of lookalike-based targeting and powerful of the Global Islamic Economy Report 2015/16. with similar characteristics in Germany: i.e. advert creation helped Modanisa efficiently women who were likely to be interested in its showcase its products to a highly receptive message and products. audience. THEIR GOAL THEIR SUCCESS Cracking the German market Delivering in style To maintain its growth rate, Modanisa Modanisa's experiment with Lookalike • 4x higher return on advertising investment continually looks to expand into new markets Audiences was a great success, delivering a than previous keyword-based campaigns high return on advertising investment and an in Germany around the world. It turned to Facebook to impressive acquisition rate. Highlights of the • 30% higher customer acquisition rate than support its growth in Germany, aiming to bring 11-day campaign from March 2016 included: rival platforms new customers to its site and drive online sales. CROSS-BORDER BUSINESS HANDBOOK

TRAVEL Success story Soaring high with Facebook Air China used Facebook's Custom Audiences targeting tool to attract overseas customers to fly to China with the airline, resulting in a 109x return on its advertising investment. 27x 109x 1.28x return on advertising return on advertising sales profit generated investment overall investment after using compared with other Custom Audiences digital media

THEIR STORY THEIR SOLUTION We go beyond Precise advert placements Air China is China's national flag carrier for civil This was the first time that Air China used Its eye-catching adverts also drew attention Facebook for direct response advertising to discounts and offers. These adverts were aviation and the country's leading civil airline. to promote ticket sales, with the aim of precisely targeted to reach different target As a member of Star Alliance, Air China offers improving Air China's brand awareness in audience groups, using Custom Audiences overseas markets and generating greater for frequent flyers and website Custom flights to 90 domestic cities and more than return on investment. Audiences for online visitors. To achieve even 50 cities worldwide. Air China used creative images and text better results, Air China took the extra step that showed scenic destinations in China, of pinpointing Chinese customers living or its extensive network coverage and its new staying abroad. aircraft. THEIR GOAL THEIR SUCCESS Come fly with me Greater returns Air China not only wanted to enhance its brand Air China's return on investment has turned • 27x return on advertising investment image via Facebook, but also to use Facebook out to be up to 6x greater with Custom overall Audiences than with standard target settings. • 109x return on advertising investment Adverts to drive international ticket sales and As a result of the campaign, which ran after using Custom Audiences make Air China the first-choice airline for flying between August – September 2014, Air China • 1.28x profit generated compared to other achieved: digital media to China. • 55% of people who saw the advert on their mobile phone went on to complete transactions on their computers CROSS-BORDER BUSINESS HANDBOOK

TECH/TELCO Success story Sharing the love in new markets Facebook's range of creative advert formats, audience analytics and monetisation tools helped the social discovery app successfully expand into over 50 emerging Asian and African markets. % % Over 3 million 33 27 app downloads in first four months decrease in cost per install uplift in eCPM (effective cost per mille)

THEIR STORY THEIR SOLUTION Connecting people Test, optimise, love The social discovery app Hitwe was launched Facebook's advanced suite of tools allowed Custom Audiences and Lookalike Audiences Hitwe to take a flexible approach to its app – allowed it to select and run relevant, in December 2015 and is aimed at emerging launch. With up to 300 active campaigns high-impact advert creative for each cluster. markets in Asia and Africa. The free app driving thousands of app installs across its Hitwe took advantage of the wide range of various markets each day, the app developer advert formats available on both Facebook connects people with others they find attractive had plenty of opportunities to test and and Instagram, including carousel and video. and earns revenue through native adverts, optimise its adverts. An emotive video drove awareness of the app Each culture and social group required its own and delivered the brand line, "Hit it off with including those placed via Facebook's Audience tailored approach, so Hitwe used Audience Hitwe". A range of locally relevant mobile Network. Insights to understand the complexities and app adverts invited people to find singles in nuances of its multiple audiences. This deep their area, with clear calls to action to 'Install level of insight – coupled with Facebook's Now'. This flexible template allowed Hitwe sophisticated targeting options, including to automatically tailor the creative to each region. THEIR SUCCESS From zero to hero Close collaboration with Facebook helped • 33% decrease in cost per install THEIR GOAL Hitwe reach over 3 million app downloads in • 27% uplift in average eCPM (Audience More markets, more installs the first four months, making it a huge hit in Network versus other native advert over 50 countries. Accurately targeted, highly networks) With the aim of getting large numbers of people relevant Facebook adverts also led to a huge • Top 10 social app in over 50 countries 33% drop in Hitwe's cost per install compared to install the app in multiple countries, Hitwe to other major sources of traffic. • 10 million people reached by daily posts turned to Facebook for its ability to reach The campaign, which launched in February • Over 500,000 video views a massive audience and the opportunity to 2016, produced the following results: customise its marketing approach across diverse cultural, social and behavioural groups. CROSS-BORDER BUSINESS HANDBOOK

PROFESSIONAL SERVICES Success story For more effective direct response, just add video The leading web development platform used Facebook to help accelerate its growing business and become an industry leader by complementing a successful direct response campaign with brand-building video adverts. % % % 95 8-point 6.8 7.4 target accuracy increase in advert recall incremental uplift in incremental uplift in premium subscriptions in premium subscriptions in DR DR-only test group + video test group

THEIR STORY THEIR SOLUTION Getting ahead in the cloud Putting video to the test Founded in 2006, Wix.com is a cloud-based Wix created a highly engaging video Partnering with Facebook, Wix then launched campaign that demonstrated the simplicity a comprehensive Reach, Resonance and web development platform that provides of its interface, using advert creative that Reaction study to compare the impact of drag-and-drop website building tools to over imagined a world in which reality itself could DR adverts combined with video adverts be 'dragged and dropped'. By creating a versus DR adverts alone. The measurement 70 million people in 190 countries. With Lookalike Audience based on its highest-value framework included Nielsen Digital Adverts Wix's powerful and easy-to-use tools, anyone US-based customers, Wix effectively targeted Rating (DAR) and Nielsen Brand Effect 15 million customers to test its campaign studies, as well as a conversion lift study with can build, manage and grow their online creative. two test groups and two control groups that presence – with no coding required. used conversion pixel tracking to identify what was driving registrations on the site. THEIR GOAL THEIR SUCCESS How can video help? Super-charged subscriptions Wix wanted to measure the business impact The message was clear: building your brand • 95% target accuracy of its Facebook campaigns. Specifically with Facebook video delivers hard business • 8-point increase in advert recall results. With unique reach of 6.7 million • 6.8% incremental uplift in premium it wanted to find the best way to optimise people and 95% targeting accuracy, Wix's test subscriptions in DR-only creative its digital campaigns and drive return on campaign successfully delivered its message campaign (versus control) to the right audience and significantly investment by complementing its direct increased advert recall. There was notable • 7.4% incremental uplift in premium response (DR) advertising with the brand- growth in new premium subscriptions thanks subscriptions in sequenced creative to the DR-only creative campaign, and adding (DR + video) campaign (versus control) building power of video. video to the mix produced even better results. As a result of the 40-day campaign that ran starting in March 2015, Wix enjoyed: CROSS-BORDER BUSINESS HANDBOOK

TRAVEL Success story Travellers flock to Cyber Monday sale The South American airline used Facebook to promote its discounts on Cyber Monday and in just two days, posted its biggest sales of 2014, thanks to a retargeting strategy focussed on audiences who were interested in its offer. % % 3.4x 81 14 return on investment in just two days total sales from display campaign savings on cost per acquisition compared with other online media

THEIR STORY THEIR SOLUTION Direct route to a great passenger service Talk to people who want to listen In 2012, LATAM Airlines Group was created LAN had a great offer to share, but also a audiences: people who liked the LAN good media strategy that took advantage Facebook Page, people who were interested through a merger between two of the industry's of Facebook's Custom Audiences to talk to in travelling to Latin America, and frequent leading companies: LAN and TAM Airlines. The people with an interest in travelling. flyers from the US to South America. group connects the region to the rest of the From 27-29 November 2014, the company The link adverts took visitors to the LAN launched a teaser campaign consisting of website, with audiences segmented by world through a flight network covering North link adverts in News Feed, which sought to country, so that they would find offers for and South America, Europe, the Caribbean capture a database of responses to its initial the destination they were interested in. discount offers. LAN also carried out a retargeting campaign and Oceania. Each year, LAN and TAM carry LAN then activated its Cyber Monday offer focussed on people who searched for a flight, about 66 million passengers to 135 destinations on Facebook on 1-2 December 2014 with a but did not buy one, during the five days in 24 countries and transport cargo to 145 message that spoke to three different target leading up to Cyber Monday 2014. destinations in 27 countries. Together, LAN and THEIR SUCCESS TAM operate approximately 1,500 flights per day, Beyond the target carrying one in two passengers in South America. Facebook Custom Audiences and During the two-day, offer the return on THEIR GOAL registrations accounted for 81% of the investment doubled, achieving a 3.4x Next stop: Latin America total sales from display. Thanks to these return. During the teaser phase, 25% of the tools, LAN was able to reach people who registration forms came via Facebook. And The main goal was to increase the sale of air had visited the website but abandoned the platform's cost per acquisition was 14% their purchase, people who were interested cheaper than with other media. tickets from the United States to Latin America in flying with LAN, and people with during the biggest online sale of the year, Cyber similar profiles who were attracted by the destinations being promoted. Monday: a special day of online discounts taking place on the Monday after Thanksgiving Day in the United States. CROSS-BORDER BUSINESS HANDBOOK

TESTIMONIALS "To take your game global, cross-platform games are the future. From pre-launch to post-launch, Facebook was a true strategic partner. We have such a close and collaborative working relationship with them that I see them as an extension of my own team. Facebook's Developer platform, advertising solutions and worldwide reach allowed us to find new fans in brand new markets." Xie Xianlin, President, ELEX "Ultimately, every pound we spend on marketing is a pound we could have otherwise invested in our product or spent elsewhere. We need to be confident that we spend wisely and that it accelerates our growth. Facebook's conversion lift tests have revolutionised how we measure performance and given us that confidence to a significantly greater degree than any other channel." Russell Smith, Performance Marketing Manager, TransferWise "Facebook and Instagram helped us build a loyal user base on a massive global scale. Solo Launcher's mission is to let 'information find you', and it's important that we find people who share our brand values. People who use Instagram tend to be young, innovative and curious, so there's a natural affinity between them and the Solo brand." Harry Liu, CEO, NewBornTown "Facebook's international lookalike campaign helped us to reach niche audiences and customers all around the world. The focus on niche audiences led to significant increases on our acquisition ratios and supported our overall acquisition strategy." Sami Güzel, General Manager & Partner, Modanisa

"Facebook allowed us to connect with our frequent flyers and provide the right information based on the characteristics and needs of our target audience. As a result, we have been able to effectively identify and convert some potential customers while also reducing some of the losses associated with our online sales." Lei Jing, Senior Associate Manager, e-Commerce, Air China "Facebook is a real superstar when we are talking about app installs. It offers a huge suite of opportunities with constantly evolving advert formats. I'm sure this is just the beginning of an exciting journey with Facebook." Bohdan Moroz, Head of Social and PR, Hitwe "With the new testing capabilities, we were able to prove for the first time how video on Facebook can improve our performance-driven marketing efforts and increase our return on investment." Shani More, Digital Media Director, Wix "The excellent results are a reflection of LATAM Airlines working hand in hand with Ariadna to build highly relevant audiences, which allowed us to benefit from Facebook's tools and maximise revenue." Denise Ruiz, Digital Marketing Manager for USA, Canada and the Caribbean, LAN CROSS-BORDER BUSINESS HANDBOOK

Instagram case studies

CROSS-BORDER BUSINESS HANDBOOK

CPG Lighting up the nightlife with brilliant creative The prestige vodka producer, Absolut, used captivating video creative in a Facebook and Instagram campaign, lifting favourability and advert recall. 4pt lift in favourability via Facebook 5pt lift in brand awareness via Instagram 33pt lift in advert recall via Instagram Marquee

THEIR STORY THEIR SOLUTION A singular spirit Creative timing Created in Sweden in 1879, Absolut Vodka is Absolut teamed up with Facebook's Creative Absolut selected the best videos to run as Shop to design a video series that played to Instagram adverts, timing them to run on famously dedicated to its single-source heritage a trendy crowd, while celebrating the brand's Labor Day weekend to capture the end-of- and purity. Today, the brand is a global leader, iconic past. summer celebration crowd. known for its iconic bottle and its artistic Each Friday, Absolut launched a new As the campaign came to a close, the team Facebook video advert linking to the Spark ran an Instagram Marquee advert, which marketing for its spirits. Absolut's Spark bottle is a bottle eCommerceportal. The team used created a single-day sensation with multiple limited edition multi-faceted bottle featuring a light Facebook's targeting tools to reach people high-reaching prime-slot posts. Absolut aged 21 to 49 in 18 focus states, who typically reached a mass audience of mobile users in the bottom that creates a glittering night out. buy alcohol and drink on-premises, are aged 21+, ensuring maximum impact for the interested in distilled spirits and typically Spark bottle finale. order specific brands. Absolut's campaign sparkled, prompting a To drive more interest and reach a younger 5-point lift in brand awareness with Instagram demographic at the campaign's mid-point, and a 33-point lift in advert recall with the THEIR GOAL Instagram Marquee advert. Sparking interest "We turned to Instagram because we wanted the launch of our limited edition Spark bottle to Looking for a way to cause a sensation in the stand out and drive digital and real-world love for the product and brand, by connecting the high-end spirits category, Absolut wanted product with the occasion. Using Instagram's dynamic platform has helped us build a direct path to the consumer, and entice drinkers to engage both digitally and at retail. Maintaining edge is to drive awareness and interest in its Spark key to engaging, recruiting and retaining millennial drinkers, and Absolut strives for this through illuminated bottle, encouraging people to "spark all of our communication efforts." up your night" – whether they're entertaining Nick Guastaferro and enjoying time at home or out with friends. Brand Director, Absolut Vodka CROSS-BORDER BUSINESS HANDBOOK

GAMING Game on Playdemic, one of Europe's biggest mobile gaming companies, used Instagram to raise awareness and drive installs of its popular title, Village Life. % higher CTR compared with other social 60 platforms % lower CPI compared with other platforms 50 % increase in yield 25

THEIR STORY THEIR SOLUTION Mobile gaming for the masses Creative cut through and clear messages Playdemic is one of Europe's biggest mobile Using the single image App Install adverts, The campaign saw significant results, Playdemic used optimised bidding (oCPM), a including a 50% lower CPI compared to gaming companies. It started entertaining call to action and a combination of targeting other platforms, along with a 60% higher the world's players with casual strategy titles options. These included Lookalike Audiences click-through rate and a 25% increase in created from its own game and player yield. These excellent results prove that a including Village Life and Gang Nations in databases, along with the exclusion of people combination of strong creative and careful 2010, and it has been growing ever since. The who have already downloaded. targeting is the key to reach, low cost per Alongside the sophisticated use of ad tech, install and a strong return on investment on company focuses on delivering innovative and the strategy used for the creative execution Instagram. meaningful titles to mobile gamers everywhere. ensured that the core themes of the game Playdemic is now keen to scale its advertising were communicated in a clear, entertaining efforts on Instagram and expand with other and intriguing manner – in the case of Village titles in its stable. Life, that meant romance and family. This helped to quickly and powerfully convey the THEIR GOAL value proposition of the game and help it Test, target, install stand out in people's feeds. After carrying out a successful branding "Since launching adverts on Instagram, we have seen CPI undercut other platforms' adverts by campaign on Instagram, Playdemic was keen more than 50% whilst maintaining a high quality of user. CTRs are almost double of what we see to test mobile App Install adverts on a newly on similar social platform adverts with 7-day yield currently above any other user acquisition channel on the plan." minted, DR ready Instagram. Playdemic wanted James Woodmansey to reach a new audience and convey the value of User Acquisition Director, Playdemic LTD their innovative titles, in this case, Village Life. CROSS-BORDER BUSINESS HANDBOOK

AUTO A compact SUV for the millennial lifestyle Mercedes-Benz USA launched the GLA, the automaker's first compact SUV, through a distinctive campaign that used Instagram and Facebook adverts together to achieve strong brand and direct response results. 14pt Lift in advert recall of Mercedes-Benz Instagram adverts % Increase in website visits from Instagram and 54 Facebook branding adverts % Increase in website visits when Facebook 580 and Instagram adverts were combined with Facebook direct response adverts

THEIR STORY THEIR SOLUTION A history of making history Fuelling the launch Since inventing the first car in 1886, Mercedes-Benz put imagery at the centre of Mercedes-Benz saw a 54% increase in website their campaign, pulling inspiration from the visits by serving branding adverts to the same Mercedes-Benz has never stopped reinventing it. #ThingsOrganizedNeatly hashtag, creating people across Instagram and Facebook. They By leading with innovation in safety, performance whimsical and engaging adverts highlighting also saw a 580% increase in website visits the versatility of the GLA. The brand tapped when Instagram and Facebook branding and design, the brand is now the biggest selling photographers and brand ambassadors to adverts were paired with Facebook direct luxury car manufacturer in the US. answer the question, "What would you pack response adverts. By using the two platforms in your GLA?" and used their photos of neatly to complement each other, Mercedes-Benz arranged items photographed from above on a effectively moved people from awareness to custom GLA cargo mat to portray the versatility action and sparked further discovery among of the vehicle for various weekend trips. their target audience. "Using Instagram as part of our digital advertising mix means we can meet young buyers on their THEIR GOAL home turf. With branding advertising on both Instagram and Facebook, site visits jumped more The car for a multi-dimensional than 50%. Combine that with our direct response Facebook campaign and the impact on lift generation was tenfold, driving users to our GLA model page to further interact with the product." Eric Jillard Mercedes-Benz USA set out to build excitement GM, Marketing Services, Mercedes-Benz USA for the GLA among millennial drivers who admire the brand, but may not have considered it to be part of their lifestyle. CROSS-BORDER BUSINESS HANDBOOK

TRAVEL Home is where the heart is Qantas used a combination of Instagram photo and video-sponsored posts to reach a new, younger audience and rekindle the emotional connection with its customers. 30pt lift in advert recall 4pt lift in message association

THEIR STORY THEIR SOLUTION Flying high for almost a century Home for a new generation Founded in the Queensland Outback in 1920, As the first Australian brand to run both a home: surfing with friends, a day at the photo and video campaign on Instagram, cricket or setting off for a road trip – while Qantas has been awarded the title "world's Qantas developed creative that would the 15-second videos featured raw and safest airline" and has become Australia's largest resonate with the Instagram community of emotive scenes of real people reuniting at the travel-savvy millennials. airport with loved ones. domestic and international aviation company. Qantas crafted imagery that was tailor-made The two-phase campaign successfully drove a for the platform and depicted quintessentially significant lift in advert recall (over 30 points) summer moments – the pastimes that the and a four-point lift in message association target audience enjoy when they return between Qantas and "feels like home." "Integrating Instagram into our media plan allowed us to reach millennials on their mobiles with bespoke photo and video creative that effectively added emotive layers to our core brand THEIR GOAL message." Reconnecting with the "Red Roo" Jo Boundy Head of Digital and Entertainment – Brand, Marketing and Corporate Affairs Qantas used Instagram as a part of its "Feels Qantas Airways Limited Like Home" campaign, to further drive positive sentiment and message association between the brand and travelling home, with a younger 18 to 34-year-old audience. CROSS-BORDER BUSINESS HANDBOOK

ENTERTAINMENT A news flash for youth China-based broadcaster CCTVNEWS was the first news brand in the world to advertise on Instagram and used the power of video to connect with its international audience and lift brand awareness in the US by 4 points. 3.7m people in the US reached 6pt lift in advert recall among 25 to 34-year-olds 4pt lift in brand awareness

THEIR STORY THEIR SOLUTION A window into China 15 seconds of fame Broadcasting in English, CCTVNEWS is a The two-week campaign targeted 18 to CCTVNEWS' campaign reached over 34-year-olds living in the US, who use 3.7 million people from the target audience division of China Central Television (CCTV) Instagram as a source of discovery. The and achieved a 6-point lift in advert recall – China's largest television station. Through broadcaster created two pieces of 15-second among 25 to 34-year-olds. The videos had content that featured memorable moments powerful cut through on Instagram, and a combination of news stories and in-depth from its documentaries and international in the highly competitive entertainment commentary, it offers a global audience the stories. These dramatic videos sparked the landscape in the US achieved a significant Instagram community's interest and, with 4-point lift in brand awareness. Chinese perspective on international affairs and the subtle use of branding, successfully an insight into modern China. communicated that CCTVNEWS is the go- to source for world news – from a unique perspective. "Instagram advertising allowed us to reach our target audience at scale in the US. By producing THEIR GOAL video content specifically for the platform, that showcased the breadth and quality of our news A far-reaching story programming, we could truly engage the English speaking youth community on mobile." Zhang Shilei CCTVNEWS wanted to reach millennials in the Head of Multimedia Global Operation, CCTVNEWS US and increase brand awareness. By engaging this audience on Instagram, they could position the channel as a trusted source of news and a place to stay in touch with Chinese culture. CROSS-BORDER BUSINESS HANDBOOK

E-COMMERCE Unwrapping results with Birchbox Birchbox created an Instagram video campaign capturing the surprise and delight of the monthly beauty subscription. Showcasing their upbeat editorial style and quality products, the 15-second videos made a big impact on potential customers, dramatically boosting brand awareness with its target audience. 12pt lift in brand awareness 26pt lift in advert recall

THEIR STORY THEIR SOLUTION Out-of-the-box thinking The grand opening Created in 2010, Birchbox offers savvy To get the brand in front of potential unboxing to the product samples themselves, customers, the team created a series of five showing women applying lipgloss, highlighter consumers a personalised way to discover the captivating videos designed specifically for and eyeliner. The women featured are all best beauty products and brands. Delivering Instagram that targeted its key demographic. Birchbox staff members, a "real girl" strategy Each video began with the ritual unboxing, reflected in all of the brand's editorial and original editorial content and hassle-free highlighting a favourite part of the Birchbox social content. shopping through its e-commerce site, coupled experience. The video campaign generated a sizeable with the undeniable excitement of the monthly Featuring clean-cut creative in bright colours, 12-point lift in brand awareness and a the wordless videos were presented from a 26-point lift in advert recall versus the control unboxing, Birchbox makes modern beauty easy, "let me show you" point of view, mimicking group. efficient and fun. the visual style of popular beauty blog posts. Later videos in the series went beyond the THEIR GOAL "Instagram has been an incredibly effective engagement-driver among our current customers, so An audience makeover we wanted to leverage the platform in a creative way to reach new audiences as well. This video series was fun, friendly and cheerful – authentically showcasing what Birchbox is all about – and As one of the fastest-growing beauty retailers, we saw a significant lift in brand awareness as a result." Birchbox looked to Instagram to boost brand Rachel Jo Silver Director, Social Marketing & Content Strategy, Birchbox awareness and spread its story of discovery to a new audience. CROSS-BORDER BUSINESS HANDBOOK

Creative best On brand Identify your brand's unique point of view that you want to share with the Instagram community. practices It's key that branding is present in images for paid media to ensure brand linkage. This may be a logo, an iconic brand element, or a brand colour. Instagram is unlike any other platform in its singular focus on captivating imagery. We have identified four key creative principles that have enabled brands to effectively engage with the Instagram community. Consistent On Instagram, consistency is key. If Instagram users can visit your account and quickly understand your brand's message, then they will be more likely to follow your brand and engage with your content. Brands should ensure that their message is consistent across both paid and organic content.

Concept driven Ideas are essential in paid advertising to drive metrics – to say something about your brand you need a message in your campaign. An idea can come to life through a storyline, a specific visual treatment, or a theme that carries through your brand's content. It can be conceptual, or it can be executional. Well crafted Campaigns must be well crafted to inspire the Instagram community. This does not always mean "expensive production" – it needs to inspire through whatever means are right for your brand's idea. Strong focal point Avoid using imagery that is a busy or complex composition. As a best practice, one of the focal points should include a branded element. Framing and balance Subtle details such as the rule-of-thirds, straightening, and symmetry make a big difference in the overall polish of an image and affect the tone of your shot. Lighting and detail Every pixel is important when publishing to an audience with high-resolution screens. CROSS-BORDER BUSINESS HANDBOOK