Brand Bidding Guide

Brand BiddingAligning bidding and optimization with business objectives

March,  2015

Why we’re here

• Analysis has revealed that a large percentage of brand campaigns are utilizing sub-optimal bidding – bidding for clicks only

• Opportunity for advertisers to optimize their bidding against business goals and objectives and to lower media costs

• With optimal bidding: • Clients with Brand objectives can get more reach & impression per dollar

spent• Clients with DR objectives can see less competition for clicky/responsive

audiences

Clicks are not the only objectiveEngaging content does not necessarily result in a click

“Today, marketers who attempt to optimize theiradvertising campaigns solely around click are assigning no

value to the 84 percent of Internet users who don’t click on an ad.”

*Source: These findings are consistent with findings from comScore, Starcom USA and Tacoda: “Natural Born Clickers”, Oct 2009

The vast majority of people who purchase your products will do sowithout clicking on your ads1; studies show that more than 90% of offline

sales come from people who don’t interact with ads during the campaign2.

*Source: 1Datalogix ROI study, Oct 2012; 2Facebook Telco Outcome Measurement, Mar 2013.

Get increased reachAvoid “clicky” expensive users

10% of the “clickiest” people on Facebook in the US are 6xmore expensive to reach than the bottom 50%, for no other reason than they click on ads

Source: Facebook Internal Data, US Feed Ads, selection of top spending FB advertisers, last 28 days of November 2014

50%

25%15%

10%

CPM  1x CPM  1.5x CPM  2.3x CPM  5.9x

90% of all ads compete for the “clicky” expensive user by bidding for actionsTo reach the most cost effective users, use reach based bidding

Not clicky Clicky

Source: Facebook Internal Data, US Feed Ads, selection of top spending FB advertisers, last 28 days of November 2014

Reduce CPMs and Cost per Reach with R&F biddingComparison Cost of R&F Bidding – Disguised client examples

Source: Internal data, Feb 2015

Comparison on Cost per Reach BasisComparison on CPM Basis

40% less expensive

50% less expensive

330% less expensive

250% less expensive

Fashion Gaming Fashion Gaming

Reach & Frequency to plan campaign delivery

Bid for Impressions to drive awarenessR&F, CPM, auction optimized for actions, fixed CPM (for Instagram)

Announce a new product

Engage consumers with brand content

(photo or video)

Build brand equity messaging

Ad Campaign Objectives:

Bidding for action to drive responseCPA, auction optimized for actions

Send peopleto your website

Get them to take an action

(or claim an offer)

Increaseengagements

in your app

Bidding types are optimized for different objectives

Delivery is optimized towards

Reach and frequency Reach – predictable cost, predictable delivery, controlled frequency

Cost per mile (CPM) Reach – bidded price, variable delivery, unmanaged frequency

Cost per clicks (CPC) CTR – favors people most likely to click

Auction optimized for actionsSelected goal – driving video views, pages post engagement, app installs, page likes, offer claims or events accepts

Cost per action (CPA)Action – Pay only for actions like offer claims, mobile app install or link clicks

Fixed CPM Reach – fixed price, guaranteed delivery, controlled frequency

Next steps for client discussion

What bidding type is most appropriate for this campaign (you could be using both)

What desired result do you want? CTA?

What are the brand objectives/goals for this campaign?1

2

3

Discuss how to best use the FB bidding type for your specific campaign assets4

Use OCR to have 3rd party verification5