12. september 2018 @ dmexco - eprofessional · 2018-09-17 · 12.09.2018 / dmexco 2018 / facebook...
TRANSCRIPT
12. September 2018 @ dmexco
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Digital Marketing Agency since 1999⁄ Subsidiary of AWIN and therefore Axel-Springer group
⁄ based in Hamburg with 130+ Digital Experts
⁄ Technology is part of our DNA
⁄ inhouse software development⁄ Own Bidmanagement- and Tracking-System⁄ Granular Performance Dashboard
⁄ Multi-Channel strategies in order to cover the whole user journey
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Director Social Media Advertising @ eprofessional
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
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What can you expect?
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Principles of the Facebook Ad Delivery
⁄ Modules of the Ad Delivery
⁄ Optimization of ad delivery
⁄ Bidding strategies
⁄ What you get charged for
⁄ Buying Options: Auction vs. Reach & Frequency
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Chapter 1
Let‘s get started!
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Basics
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Two main goals with regards to ad delivery:
⁄ Ad delivery is based on three main components:
Relevance for individual user Maximization of company goals
FacebookAuction
PacingSystem
AdvertiserControls
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Total Bid = Advertiser BidEstimated
Action rate
Relevance &
QualityX +
Maximizes the advertiser valueOptimizes the user
experience
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
BEAR formula = „Total value formula“
Paced: 0,x * Bid
⁄ BEAR formula is ranking ads in the auction using a total value formula, where the ad with the highest value isshown to the person in consideration:
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You never bid against your own ads.
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
KPIs within the BEAR formula
⁄ Paced Bid = the advertiser‘s bid value for the desired result
⁄ Estimated Action Rate = the probability that showing an ad to the person will lead tothe desired outcome (estimated CTR & CVR, based on any available data about theindividual user)
⁄ Relevance & Quality = depending on rating (pos./ neg.), this part will result in deduction or bonusese.g. misleading ads have strong negative impact
rele
vant
con
tent
?
KEEP IN MIND
different factors
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The final (= total) bid differs from user to user.
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Person Advertiser BidEstimated
Action RateTotal Bid*
Steffi 25,00 € 5%25€ x 0,05 =
1,25€
Tom 25,00 € 2%25€ x 0,02 =
0,50€
Anna 25,00 € 8%25€ x 0,08 =
2€
*Total Bid = (Paced) Advertiser bid * estim. Action Rate + Relevance & Quality
Facebook‘s estimation
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Two Options
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Pacing determines how to spend an advertiser‘s budget across the different ad opportunities
⁄ Two different options:
Standard Delivery Accelerated Delivery
Designed to spend the budget evenlyover time.
Spends the budget as quickly aspossible.
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Setting options for advertisers
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ creating the framework for the auction and pacing systems
⁄ Targeting
⁄ Budget
⁄ Bid
⁄ Placement
⁄ Schedule
⁄ Optimization for Ad Delivery
▪ Bid = important and sensitive variable, in oder to decide how the ad will be classified and deliveredwithin the auction system
▪ All other factors = evenly important parameters when it comes to campaign optimization
KEEP IN MIND
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Chapter 2
Let‘s do it!
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2
3
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The available bidding & opt. strategies depend on the chosen campaign objective.
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2
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2
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Which options do I have?
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Target CostLowest Costwith bid cap
Lowest Cost
SCALE CONTROL
Automatic
Bidding
Maximum value
for desired result
Stable cost as you scale
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Lowest Cost (Automatic Bidding)
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Who setsthe bid?
When to use? + -
/ if you want to lower your cost as much as possible and do not
have a concrete CPA goal in mind
/ minimize cost per result while
spending yourbudget
/ less control of your max. CPA / costs rise as you run out of the
most cost-effective results orincrease your budget
/ high fluctuation of your costs(depending on competition)
Lowest Cost
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Target Cost
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Who setsthe bid?
When to use? + -
Advertiser/ maintain a stable average cost near your target as your
spend increases
/ maintain stable cost at the target bid that you set as
you scale
/ in order to keep stability, higher CPAs might be preferred
/ will not minimize your CPA
Target Cost
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Lowest Cost with bid cap
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Who setsthe bid?
When to use? + -
Advertiser/ if you want to set a maximum
bid to control your CPA
/ achieve the mostresults under yourspecified bid cap
/ minimize cost per result
/ costs rise as you run out of themost cost-effective results or
increase your budget/ you may not spend your entire
budget
Lowest Costwith bid cap
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Bild in den H
intergrund stellen!
WHICH BIDDING STRATEGY DO I CHOOSE IF…… I advertise a new product and do not know my
target CPAA: Lowest Cost | B: Target Cost | C: Lowest Cost w. BC
Bild in den H
intergrund stellen!
WHICH BIDDING STRATEGY DO I CHOOSE IF…… I advertise a new product and do not know my
target CPAA: Lowest Cost Bidding
Bild in den H
intergrund stellen!WHICH BIDDING STRATEGY DO I CHOOSE IF…… my main goal is to lower my CPA
Bild in den H
intergrund stellen!
WHICH BIDDING STRATEGY DO I CHOOSE IF…… my main goal is to lower my CPA
Lowest Cost Bidding with Bid Cap
Bild in den H
intergrund stellen!
WHICH BIDDING STRATEGY DO I CHOOSE IF…… I know my max. CPA &
… want to maximise my spendings
Bild in den H
intergrund stellen!
WHICH BIDDING STRATEGY DO I CHOOSE IF…… I know my max. CPA &
… want to maximise my spendingsTarget Cost Bidding
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Which strategies are available?
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
Target Cost
Lowest Costwith bid cap
Lowest Cost All Objectives (for Brand Awareness campaigns you must choose this option)
All Objectives except for Brand Awareness
Only available for Conversion-, Lead-, Catalog- & App-Install campaigns
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3
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▪ Pay per Impressions = (o)CPM
▪ Pay per Action = CPC/CPA, limits the amount of users extremly ➤ not recommended for most cases.
KEEP IN MIND
CPM CPC / CPV
CPM = Standard, CPC/CPV only available for Link Click and Video View Ad Delivery Optimization
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What‘s important to know
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
There is no optimal delivery during the learning phase
Duration:
➤ at least 15-25 Conversion per ad set per week (optimum 50-100)
➤ after 70K–100K impressions (per ad set) the system has a good understanding of the performance
Duration of the learning phase depends on objective, total amount of conversions, and on attribution window
Do not undertake major changes during the learning phase
Factors which might reset the learning phase:
/ changes of targeting, assets, event-optimization, or bidding strategy
/ pause campaign or ad sets
/ budget depening on amount (small changes = no reset)
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Best Practice tips to remember
⁄ Not enough conversions? ➤ switch to event further upin the funnel (remember to adjust your bid)
⁄ Don‘t switch bidding strategy too often
⁄ Use different bids for different target groups
⁄ Budget needs to be much higher than bid
⁄ Bid boldly but wisely
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
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Chapter 3
Let‘s check it out!
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How does a Reach & Frequency campaign work?
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Advertiser sets Frequency Capindicates how often the ad will be shown on average
⁄ Average frequency is usually lower than the Frequency Cap
/ Example: Frequency Cap = 2 / week, ∅ frequency at the end of the campaign = 1,47 / week
▪ ∅ frequency of 1,47 does not mean that everyone who saw the ad, saw it 1-2 times a week!
▪ The actual distribution of ad impressions varies during the campaign run time:some users saw the ad once, others 2, 3, or 4 times…
KEEP IN MIND
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When do I favor for which buying option?
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
⁄ Buying Option Reach & Frequency
Guaranteed reach & fixed CPMs
Frequency control (e.g.: 2 impressions per 7 days)
Ad sequencing
Less flexible for ongoing optimizations
Always optimizes first towards reach and then towards my chosencampaign objective
⁄ Buying Option Action
No forecasted prices & results
More choices and flexibility with regards to ongoing changes & optimization possibilites
Only opimizes towards my chosen campaign objective
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Let‘s clear them up!
》You cannot adjust budgets once a R&F campaign has started.《
》You cannot adjust budgets once a R&F campaign has started.《
By now, you can adjust both thecampaign runtime and the budgetretroactively.
》 It‘s best to log in the R&F as earlyas possible.《
》 It‘s best to log in the R&F as earlyas possible.《
Nowadays, it is not a big advantageanymore to log in early.
》My Ad Account might be blocked ifI delete R&F campaigns too often.《
》My Ad Account might be blocked if I delete R&F campaigns too often.《
There is no penalty to expect if youdelete single campaigns. Still, youshould not upload and deletecampaigns on a regular basis.
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Bild in den H
intergrund stellen!HOW DO I HAVE TO ADJUST MY FREQUENCY CAP IF I WANT TO MAXIMIZE MY REACH?
Bild in den H
intergrund stellen!
HOW DO I HAVE TO ADJUST MY FREQUENCY CAP IF I WANT TO MAXIMIZE MY REACH?
Lower the FC
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Best Practice tips to remember
⁄ Ad Recall / Reach: set FC to 1/week
⁄ Purchase Intent: set FC to 2/week
⁄ Keep an eye on the frequency per person
⁄ Use Campaign Planner for forecasts
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
SEITE 53And that‘s
it. Key takeaw
ays?
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EPROFESSIONAL GMBH / GESCHÄFTSFÜHRER: THOMAS NUSS / JAN-PHILIPP WACHSMUTH / MARK GARY WALTERSHEIDENKAMPSWEG 74-76 / 20097 HAMBURG / +49 40 399 27 80 / [email protected]
12.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE
YOUR CONTACT
Steffi KegelDirector Social Media [email protected]