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Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
Hussein Fazal, SMASH Summit NYC
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Hussein Fazal, SMASH Summit NYC

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Hussein Fazal's (CEO @ AdParlor) presentation at SMASH Summit on 7/26 in NYC

Hussein Fazal's (CEO @ AdParlor) presentation at SMASH Summit on 7/26 in NYC

Published in: Technology, Education
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Transcript

  • 1. Facebook Ads – The Math behind the Magic www.adparlor.com
  • 2. Hussein Fazal – CEO, AdParlorAds API Partner – manages ~1 Billion daily impressions on Facebook
  • 3. Some Basic Terms CTR – Click Through Rate CVR – Conversion Rate CPM – Cost per 1,000 impressions eCPM – Effective cost per 1,000 impressions CPC – Cost per click CPA – Cost per acquisition 4 Clicks from 10,000 Impressions = 0.04% CTR 2 Acquisitions from 4 Clicks = 50% CVR 4 Clicks * $0.30 CPC = $1.20 Cost $1.20 Cost / 2 Acquisitions = $0.60 CPA
  • 4. Ad Server Fundamentals Any ad network wants to choose the ad with the highest eCPM o This is true for Facebook and amplified by their focus on user experience A high CTR means you can buy cheaper clicks A high CVR means you get more conversions for those clicks
  • 5. The Importance of CTRDifference in eCPM based on the CTR [hold CPC bid constant] Impressions CTR Clicks CPC Bid eCPM 1,000 1.00% 10 $ 0.50 $ 5.00 1,000 0.10% 1 $ 0.50 $ 0.50 1,000 0.05% 0.5 $ 0.50 $ 0.25 1,000 0.01% 0.1 $ 0.50 $ 0.05
  • 6. Seeing the Effect on Facebook
  • 7. The Importance of CVRDifference in eCPA based on the CVR [holding cost constant] Cost Clicks CVR Conversions eCPA $ 5,000.00 10,000 40.00% 4,000 $ 1.25 $ 5,000.00 10,000 50.00% 5,000 $ 1.00 $ 5,000.00 10,000 60.00% 6,000 $ 0.83 $ 5,000.00 10,000 70.00% 7,000 $ 0.71
  • 8. Understanding Ad Optimization Don’t talk to me about pricing unless you understand CTR and CVR  High CTR = cheaper clicks  High CVR = more conversions for those clicks Create thousands of ad, learn in real-time, and optimize CTR and CVR By optimizing on CTR/CVR you are essentially driving down your CPA
  • 9. Quick Tangent - Sponsored Stories “Something that would appear on a users news feed – turned into an ad unit”
  • 10. Why do Sponsored Stories get you cheaper fans (technical)?Higher Click-Through-Rate (CTR) Higher Conversion Rate (CVR)gets you cheaper clicks gets you more for those clicks
  • 11. Why Do Sponsored Stories getyou cheaper fans (high level)? Because it is a story – not an ad. Remember - “Something that would appear on a users news feed – turned into an ad unit” Before sponsored stories: o More Fans = More expensive for the next Fan Since sponsored stories: o More Fans = Cheaper for the next Fan
  • 12. If the Ingredients are PerfectSuper TargetedFan Acquisition Campaign $.08 Able to achieve 0.29% CTR and 81% CVR through life of campaign Effective Cost Per Fan
  • 13. Groupon’s Goal is to get sign-ups
  • 14. Groupon Generic Ads  Constant creative rotation Deal Specific Ads  Combining the Groupon deals API with the Facebook Ads API
  • 15. Generic Ads It’s all about testing & optimization
  • 16. Deal Specific Ads
  • 17. Deal Specific Ads Integrate with Groupon Deals API Pull deals as they go live at midnight in local timezone Machine learning to determine who to target Set Facebook Ads live within minutes of deal going live!
  • 18. Use Cool Facebook Features Create actions & buy open graph action spec ads Learn about Mobile
  • 19. hussein.fazal@adparlor.com www.adparlor.comwww.facebook.com/adparlor

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