12. september 2018 @ dmexco - eprofessional · 2018-09-17 · 12.09.2018 / dmexco 2018 / facebook...

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

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What can you expect?

⁄ 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

⁄ 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

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.

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

KEEP IN MIND

different factors

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The final (= total) bid differs from user to user.

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 =

*Total Bid = (Paced) Advertiser bid * estim. Action Rate + Relevance & Quality

Facebook‘s estimation

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Two Options

⁄ 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

⁄ 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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The available bidding & opt. strategies depend on the chosen campaign objective.

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Which options do I have?

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)

Who setsthe bid?

When to use? + -

Facebook

/ 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

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

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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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

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intergrund stellen!

WHICH BIDDING STRATEGY DO I CHOOSE IF…… I advertise a new product and do not know my

target CPAA: Lowest Cost Bidding

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intergrund stellen!WHICH BIDDING STRATEGY DO I CHOOSE IF…… my main goal is to lower my CPA

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intergrund stellen!

WHICH BIDDING STRATEGY DO I CHOOSE IF…… my main goal is to lower my CPA

Lowest Cost Bidding with Bid Cap

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intergrund stellen!

WHICH BIDDING STRATEGY DO I CHOOSE IF…… I know my max. CPA &

… want to maximise my spendings

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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?

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

SEITE 3012.09.2018 / DMEXCO 2018 / FACEBOOK & INSTAGRAM ADVERTISING - HOW TO BID & OPTIMIZE

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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

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

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Chapter 3

Let‘s check it out!

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How does a Reach & Frequency campaign work?

⁄ 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?

⁄ 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.《

By now, you can adjust both thecampaign runtime and the budgetretroactively.

》 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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intergrund stellen!HOW DO I HAVE TO ADJUST MY FREQUENCY CAP IF I WANT TO MAXIMIZE MY REACH?

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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

SEITE 53And that‘s

it. Key takeaw

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EPROFESSIONAL GMBH / GESCHÄFTSFÜHRER: THOMAS NUSS / JAN-PHILIPP WACHSMUTH / MARK GARY WALTERSHEIDENKAMPSWEG 74-76 / 20097 HAMBURG / +49 40 399 27 80 / INFO@EPROFESSIONAL.DE

YOUR CONTACT

Steffi KegelDirector Social Media AdvertisingStefanie.welscher@eprofessional.de

12. september 2018 @ dmexco - eprofessional · 2018-09-17 · 12.09.2018 / dmexco 2018 / facebook...

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