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Pro Level Facebook Ad
Optimization Techniques
Dennis Yu
Chief Technology Officer
BlitzMetrics
Presented by
Affiliate_Summit_East_Presentaion_V1.3_2016_0715
Balancing Metrics Table
No. Metric Suggested Metric Pair Remarks
1 Cost Per Action Action Count
Action could be an impression or click or a conversion. Pair the cost per
action and ac- tion 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 Rate
Downstream 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 Traffic
Applies 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
5
Cost Per
Conversi
on
Breakeven Cost Per
Conversion
The cost of each conversion is arbitrary - unless you give it meaning. A cost
per conver- sion 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 Optimization
As 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 Optimization
Why 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 bid
Walking 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 well
No 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 Apps
Also 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
Facebook
Home Page
User
Like It
Interact with
the Fan Page
Perfect Ad
Fan Page
2
Facebook Open
Graph
Connections
Likes
Interests
Extrapolate
user data
Location Facebook
Ad Generator
Facebook
Ad Multiplier
Facebook
Ad Optimizer
+13
4
1
+2 +3
5
6
7
8
9
10
Bad
Good
Good
+90% CTR
11
User Profile Page12
Friends
Ad >> Good/Bad?
News Feed Optimization
User
User Profile
Like the Page
Fan Page Points
Based Game
Home Page
3
4
1
6
7
2
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 result
is your Business
Friends
Indexed by Google
News Feed
1
Increase
Social SEO
User
Searches on
Google
Like The Fan
Interact with the
Fan Page
Post
Comments
Visit other tabs
Upload
Photos
Post Quality
Store
Appear on
Social Search
Search on
Google
via Google Social Circle
Pro Level Facebook Ad Optimization Techniques
Permission to promote @Pubcon
Permission to promote @Pubcon
Permission to promote @Pubcon
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
Pro Level Facebook Ad Optimization Techniques
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 Facebook
Gender / 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 Names
Spending
Revenue
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 Facebook
Quarter
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
3
4
5
6
7
8
Ave
8.16%
4.80%
4.79%
5.98%
4.44%
3.79%
Total audiences across all channels
Feature Facebook
The 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
Audience
0,000,000
Post WAY more, as long as it's interesting
Feature Facebook
Facebook video lift test
Pro Level Facebook Ad Optimization Techniques
Social Amplification Engine
Feature
Social AmplificationGuide
content + amplification = everything
Feature
Custom
Audience
People-based
Marketing
Remarketing
Sequence
Across
Channels
Word of
Mouth
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.
dennis@blitzmetrics.com
to learn more about Advertising for a
dollar a day, go to
blitzmetrics.com/fdd
Send questions to

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Pro Level Facebook Ad Optimization Techniques

  • 1. Pro Level Facebook Ad Optimization Techniques Dennis Yu Chief Technology Officer BlitzMetrics Presented by Affiliate_Summit_East_Presentaion_V1.3_2016_0715
  • 2. Balancing Metrics Table No. Metric Suggested Metric Pair Remarks 1 Cost Per Action Action Count Action could be an impression or click or a conversion. Pair the cost per action and ac- tion 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 Rate Downstream 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 Traffic Applies 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 5 Cost Per Conversi on Breakeven Cost Per Conversion The cost of each conversion is arbitrary - unless you give it meaning. A cost per conver- sion 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.
  • 3. 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.
  • 4. If/Then Logic To Optimization As 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:
  • 5. If/Then Logic To Optimization Why 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 bid Walking 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.
  • 6. Working with ads that aren’t performing well No 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
  • 7. Exploit Carousel Ads Showing spend and carousel category compared to entertainment & media (publishing internet) and selected competitors.
  • 8. Solution Adoption: Carousel Spend - Benchmark Showing spend and placement compared to entertainment & media (publishing internet) and selected competitors.
  • 9. 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
  • 10. Exclude Websites and Apps Also 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.
  • 11. KPIs on fan generated content
  • 13. 91 cent CPC vs 3 cent CPC. High CPC, Low CTR, Low Action Rate Low CPC, High CTR, High Action Rate
  • 14. 631 fans for under a dollar.
  • 15. Facebook conversion funnel FanCPM CPC Click Thru Rate Fan conversion Ticket Sale conversion
  • 16. Viral Factor based on content and interaction: shoot for 10 to 1.
  • 18. BlitzMetrics Facebook Process Facebook Home Page User Like It Interact with the Fan Page Perfect Ad Fan Page 2 Facebook Open Graph Connections Likes Interests Extrapolate user data Location Facebook Ad Generator Facebook Ad Multiplier Facebook Ad Optimizer +13 4 1 +2 +3 5 6 7 8 9 10 Bad Good Good +90% CTR 11 User Profile Page12 Friends Ad >> Good/Bad?
  • 19. News Feed Optimization User User Profile Like the Page Fan Page Points Based Game Home Page 3 4 1 6 7 2 5 Post Quality Score News feed Suggestions 1 1 Friends
  • 20. Social SEO Have Higher Ranking Your Business is on the top search result page 1st search result is your Business Friends Indexed by Google News Feed 1 Increase Social SEO User Searches on Google Like The Fan Interact with the Fan Page Post Comments Visit other tabs Upload Photos Post Quality Store Appear on Social Search Search on Google via Google Social Circle
  • 26. 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
  • 27. Business Objectives, Not Social Metrics
  • 28. Benchmark by business objectives Feature Facebook
  • 30. reporting = optimization = education Feature Facebook
  • 32. 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
  • 33. Are you visualizing YOUR funnel? Feature Audiences Engagement Conversion
  • 34. use internal and external triggers, NOT static personas. Feature Facebook
  • 35. Facebook 10 year plan Feature Facebook
  • 36. 40 random accounts with half a billion ad impressions Feature Facebook
  • 37. Uber nearly kills me, then charges me $178.93 Feature Facebook
  • 38. an Uber-apology for micro-effort Feature Facebook
  • 39. How to measure cross-channel marketing
  • 42. Benchmark: 1% of viewers register for event Feature Facebook
  • 43. Facebook and YouTube video head-to-head Feature Facebook
  • 44. Keep paid at under 10% of organic impressions if you're a publisher Feature Facebook
  • 45. Hybrid models create hybrid business metrics Feature Facebook
  • 46. Who says BOOST doesn't work? Feature Facebook
  • 47. $20 boost on post yields 20 conversions and 950 likes Feature Facebook
  • 48. 50% impressions to actions creates viral loop. Feature Facebook
  • 49. Shifting to mid-funnel engagement Feature Facebook
  • 50. MISTAKE: assuming you know your customers Feature Facebook Gender / 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 Names Spending Revenue 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
  • 51. Increasing CTR is a red herring Feature Facebook Quarter Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 3 4 5 6 7 8 Ave 8.16% 4.80% 4.79% 5.98% 4.44% 3.79%
  • 52. Total audiences across all channels Feature Facebook The 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 Audience 0,000,000
  • 53. Post WAY more, as long as it's interesting Feature Facebook
  • 57. content + amplification = everything Feature Custom Audience People-based Marketing Remarketing Sequence Across Channels Word of Mouth At Scale
  • 58. Organize by 4 areas of business value Feature Facebook
  • 59. Team structure for efficient revenue production Feature Facebook
  • 61. How do you measure across these? Feature Facebook
  • 62. Warriors Dominate NBA in Interactions and Interaction Rate Feature Facebook
  • 64. Systematically optimizing for revenue at a set ROAS threshold Feature Facebook
  • 65. Mobile to desktop conversion increasing Mobile to desktop conversions rising rapidly for ticket conversions on Facebook
  • 66. Measuring social ROI for partners
  • 69. 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.
  • 70. 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.
  • 71. Your KPIs based on YOUR funnel VideoLinkAd
  • 72. 6 Stages of Personal Branding
  • 74. 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.
  • 75. dennis@blitzmetrics.com to learn more about Advertising for a dollar a day, go to blitzmetrics.com/fdd Send questions to