Pro Level Facebook Ad Optimization Techniques

Pro Level Facebook Ad Optimization Techniques

Dennis YuChief Technology Officer

BlitzMetrics

Presented by

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Balancing Metrics TableNo. Metric Suggested Metric Pair Remarks

1 Cost Per Action Action CountAction could be an impression or click or a conversion. Pair the cost per action and action count to provide context on the scale of the ads and answer the following question: “Will I get this cost per action when I scale?”

2 Click through RateDownstream Conversion Rate

A high clickthrough rate is a good thing only if the downstream conversion rate is not lower than the other campaigns. If downstream conversion rates are low, it could mean that the content on the landing page did not match the visitors’ expectations or that you attracted the wrong people.

3 Cost Per Click Cost Per Acquisition

Similar to the pair of clickthrough rate and downstream conversion rate - a low cost per click is only good if they lower the cost per acquisition. A low cost per click is meaning- less if no acquisitions result from the traffic. If cost per acquisition is the same as before despite a relatively lower cost per click, consider why the downstream conversion rate is lower.

4 Average Position Search TrafficApplies only to Search Engine Marketing (SEM). A higher average position may be due to the relatively lower competitiveness of the keyword. You can verify by pairing the average position with search traffic

5Cost Per Conversion

Breakeven Cost Per Conversion

The cost of each conversion is arbitrary - unless you give it meaning. A cost per conversion of $10 may be profitable to a business selling a product for $15 and unprofitable to a business selling a product for $5. The idea of the breakeven cost per conversion is to maximize the no. of conversions until the cost per conversion reaches breakeven.

Balancing Metrics Table

Drilling down on a series of metrics to determine underlying root cause, then being able to take action. This model of actionable insights can apply in

other areas of your business:

Certain content on your site is more popular than others.

Start from what articles are the most popular, drill into which ones generate the most conversions (which is not the same as what gets the most

traffic), send alerts to your staff to write more articles on these topics.

Your organic traffic from Google search is decreasing.

If/Then Logic To OptimizationAs you have learned from the Metrics > Analysis > Action

framework, analysis is about understanding the possible reasons

WHY a metric may have changed. Know and be comfortable with

the fact that there may be more than one reason and the reason

you believe to be most true could be wrong.

Here are the top 7 most common analysis (if-then logic) that we

make about changes in key metric pairs. To test your

understanding of the logic behind why we make these

hypotheses, try reversing the direction of the change in these

metrics to see if you can explain logically:

If/Then Logic To OptimizationWhy is my CPC so high?Have you considered using FOF targeting on your ads? If you have

10% social percentage on the ads, FOF targeting is not being used.

FOF targeting will significantly increase the CTR, which then reduces

the CPF (Cost Per Fan).

Walking down the bidWalking down bids gradually is smart. A new ad should start at the top

of the recommended CPC range, then gradually decrease, keeping at

the top of the recommended range.

Why is my CPC so high?We do CPC when we want to drive clicks or some form of

engagement. We do CPM when it’s a really small target, hits an

existing small fan base, or is just to drive awareness.

Why is my CPC so high?A high daily campaign budget can easily cause a thousand dollars of

loss in a couple hours. If you want to test, create a new campaign with

a low budget - then promote the ad to the production campaign.

Working with ads that aren’t performing wellNo need to turn bids down to 5 cents - if an ad isn’t doing well, bid

down to 10 cents above the ad that is pulling best. So if the best Sprint

ad is at 55 cents, then you can bid 65 cents, for example. That should

give us “some” traffic, while a 5 cent bid is totally shut out of the ad

auction.

many daily impressions as people in the audience if you are at the top

of the bid range, since position (not shown) does matter.

For example, if are have an available audience of 100k people for an

ad, then you could perhaps get 200k daily impressions until burnout.

Consider an average CTR of 0.030 percent and you might get 600

clicks and 400 fans. That will last a few days until burnout, when your

bid eventually falls outside the range, whether because our system

progressively bids down or Facebook increases the range because our

CTR is decreasing.

Q: My daily budget is set to $9,000 per day, how

come the ad spent is only at $1,501?

A: Just because you want to spend a certain amount on Facebook

doesn’t guarantee it will get spent. Inventory is finite and we are also

subject to the competition for that inventory.

Just like with PPC on Google, increasing the daily budget doesn’t

necessarily mean we will get more traffic. Consider the size of the

audience we are targeting. You will be able to get perhaps double as

Exploit Carousel Ads

Showing spend and carousel category compared to entertainment & media (publishing internet) and selected competitors.

Solution Adoption: Carousel Spend - Benchmark

Showing spend and placement compared to entertainment & media (publishing internet) and selected competitors.

Exclude Categories

Choose the categories where you don't want your ads to be seen by clicking the Browse button.

Increase Quality Of Targeting On Audience Network

Exclude Websites and AppsAlso within the advanced options, you may find a section called Apply block lists for Audience Network. A block list is a list of websites and apps where you don't want your ads to appear.

This option will only appear if one or more block lists were added to your account. Choose the block lists you want to apply to your ad set by clicking the Browse button.

KPIs on fan generated content

Goal: Sell Lakers fans!

91 cent CPC vs 3 cent CPC.High CPC, Low CTR, Low Action Rate

Low CPC, High CTR, High Action Rate

631 fans for under a dollar.

Facebook conversion funnel

FanCPM CPC

Click Thru Rate Fan conversion

Ticket

Sale conversion

Viral Factor based on content and interaction: shoot for 10 to 1.

Interestingness squared, boringness squared.

BlitzMetrics Facebook Process

FacebookHome Page

User

Like It

Interact withthe Fan Page

Perfect Ad

Fan Page

2

Facebook OpenGraph

ConnectionsLikes

Interests

Extrapolateuser data

Location FacebookAd Generator

FacebookAd Multiplier

Facebook Ad Optimizer

+13

4

1

+2 +3

5

6

7

89

10Bad

Good

Good

+90% CTR

11

User Profile Page12

Friends

Ad >> Good/Bad?

News Feed Optimization

User

User Profile

Like the Page

Fan Page PointsBased Game

Home Page

3

4

1

6

72

5

Post Quality Score

News feed Suggestions

1

1

Friends

Social SEO

Have Higher Ranking

Your Business is on the top search result page

1st search resultis your Business

Friends

Indexed by Google

News Feed

1

Increase Social SEO

User

Searches onGoogle

Like The Fan

Interact with theFan Page

Post Comments

Visit other tabsUploadPhotos

Post QualityStore

Appear on Social Search

Search onGoogle

via Google Social Circle

Permission to promote @Pubcon




Facebook is your website

Feature Facebook Your Website

email collection

landing pages

hosted video

event registration

blog, remarketing

location finder

integrated advertising

features are free

integrated audiences

completely owned by you

Business Objectives, Not Social Metrics

Benchmark by business objectives

Feature Facebook

reporting = optimization = education

Feature Facebook

Amplify cross-channel

What is Sequential Messaging?

Brand awareness Product information Call to action

Source: Adaptly, “New Digital Advertising Study Finds That Sequencing Ads Taking Individual Consumers Down the Marketing Funnel Achieves Better Outcomes Than Sustained Call-To-Action Message, July 2014

Are you visualizing YOUR funnel?

Feature

Audiences Engagement Conversion

use internal and external triggers, NOT static personas.

Feature Facebook

Facebook 10 year plan

Feature Facebook

40 random accounts with half a billion ad impressions

Feature Facebook

Uber nearly kills me, then charges me $178.93

Feature Facebook

an Uber-apology for micro-effort

Feature Facebook

How to measure cross-channel marketing

Video, video, video!

Feature

Video placement matters

Benchmark: 1% of viewers register for event

Feature Facebook

Facebook and YouTube video head-to-head

Feature Facebook

Keep paid at under 10% of organic impressions if you're a publisher

Feature Facebook

Hybrid models create hybrid business metrics

Feature Facebook

Who says BOOST doesn't work?

Feature Facebook

$20 boost on post yields 20 conversions and 950 likes

Feature Facebook

50% impressions to actions creates viral loop.

Feature Facebook

Shifting to mid-funnel engagement

Feature Facebook

MISTAKE: assuming you know your customers

Feature FacebookGender / Age

Female Male

18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+

0K

200K

400K

600K

800K

Val

0%

1000%

2000%

3000%

4000%

5000%

RO

Measure NamesSpendingRevenue

ROAS

• Males 25-34 provide the highest revenue, but males aged 35-44 have a higher ROAS, likely due to higher average disposable income.

• Males have a higher ROAS in every age category except 18-24

Increasing CTR is a red herring

Feature FacebookQuarter

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 20163

4

5

6

7

8

Ave

8.16%

4.80%

4.79%

5.98%

4.44%

3.79%

Total audiences across all channels

Feature FacebookThe total owned audiences that you can reach via Facebook plus the organic fan base on other social networks.

Website 000,000,000

Email 000,000,000

Facebook 000,000,000

Twitter 000,000,000

Linkedin 000,000,000

Instagram 000,000,000

Total 000,000,000

Total Audience0,000,000

Post WAY more, as long as it's interesting

Feature Facebook

Facebook video lift test

Social Amplification Engine

Feature

Social AmplificationGuide

content + amplification = everything

Feature

CustomAudience

People-basedMarketing

Remarketing

SequenceAcross

Channels

Word ofMouth

At Scale

Organize by 4 areas of business value

Feature Facebook

Team structure for efficient revenue production

Feature Facebook

Project Management (RACI Framework)

How do you measure across these?

Feature Facebook

Warriors Dominate NBA in Interactions and Interaction Rate

Feature Facebook

Winning Engagement Revenue

Feature

Systematically optimizing for revenue at a set ROAS threshold

Feature Facebook

Mobile to desktop conversion increasing

Mobile to desktop conversions rising rapidly for ticket conversions on Facebook

Measuring social ROI for partners

Facebook Signal to amplify

Digital Demand Curve

Optimizing campaigns shifts the demand curves outwards

Avg ROAS for generic branded ticket search campaign: 13.41%; Avg. ROAS for high intent: 26.70x; Timeframe is 10/01 to 12/23 2015

Increasing the size of remarketing audiences and driving engagement leads to an increase in searches with high purchase intent.

This process can be applied to any channel

*Yield Points are for this season tickets sales only for this season. Using Campaigns with over 5000 impressions.

Your KPIs based on YOUR funnel

VideoLinkAd

6 Stages of Personal Branding

sequences = amplification = automation

Facebook benchmarks• Relevance Score at 7 or higher, especially if video.

• 10% engagement to impressions for "viral" post.

• Goal of at least 1/3rd of posts being videos of 10 seconds in length.

• No more than 50% of funnel spend on conversion.

• CPA on Facebook retargeting = AdWords remarketing.

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