This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: Dennis Yu has spent over $100MM on Facebook since 2007. He’ll log-in live to 3 Facebook ad accounts and show exactly how to build and manage conversion conversions. 6 phase process. Will share guide.
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.
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
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
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
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
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.
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.