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Pro Level Facebook Ad Optimization Techniques

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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.

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Pro Level Facebook Ad Optimization Techniques

  1. 1. Pro Level Facebook Ad Optimization Techniques Dennis Yu Chief Technology Officer BlitzMetrics Presented by Affiliate_Summit_East_Presentaion_V1.3_2016_0715
  2. 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. 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. 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. 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. 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. 7. Exploit Carousel Ads Showing spend and carousel category compared to entertainment & media (publishing internet) and selected competitors.
  8. 8. Solution Adoption: Carousel Spend - Benchmark Showing spend and placement compared to entertainment & media (publishing internet) and selected competitors.
  9. 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. 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. 11. KPIs on fan generated content
  12. 12. Goal: Sell Lakers fans!
  13. 13. 91 cent CPC vs 3 cent CPC. High CPC, Low CTR, Low Action Rate Low CPC, High CTR, High Action Rate
  14. 14. 631 fans for under a dollar.
  15. 15. Facebook conversion funnel FanCPM CPC Click Thru Rate Fan conversion Ticket Sale conversion
  16. 16. Viral Factor based on content and interaction: shoot for 10 to 1.
  17. 17. Interestingness squared, boringness squared.
  18. 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. 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. 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
  21. 21. Permission to promote @Pubcon
  22. 22. Permission to promote @Pubcon
  23. 23. Permission to promote @Pubcon
  24. 24. Permission to promote @Pubcon
  25. 25. 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
  26. 26. Business Objectives, Not Social Metrics
  27. 27. Benchmark by business objectives Feature Facebook
  28. 28. reporting = optimization = education Feature Facebook
  29. 29. Amplify cross-channel
  30. 30. 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
  31. 31. Are you visualizing YOUR funnel? Feature Audiences Engagement Conversion
  32. 32. use internal and external triggers, NOT static personas. Feature Facebook
  33. 33. Facebook 10 year plan Feature Facebook
  34. 34. 40 random accounts with half a billion ad impressions Feature Facebook
  35. 35. Uber nearly kills me, then charges me $178.93 Feature Facebook
  36. 36. an Uber-apology for micro-effort Feature Facebook
  37. 37. How to measure cross-channel marketing
  38. 38. Video, video, video! Feature
  39. 39. Video placement matters
  40. 40. Benchmark: 1% of viewers register for event Feature Facebook
  41. 41. Facebook and YouTube video head-to-head Feature Facebook
  42. 42. Keep paid at under 10% of organic impressions if you're a publisher Feature Facebook
  43. 43. Hybrid models create hybrid business metrics Feature Facebook
  44. 44. Who says BOOST doesn't work? Feature Facebook
  45. 45. $20 boost on post yields 20 conversions and 950 likes Feature Facebook
  46. 46. 50% impressions to actions creates viral loop. Feature Facebook
  47. 47. Shifting to mid-funnel engagement Feature Facebook
  48. 48. 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
  49. 49. 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%
  50. 50. 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
  51. 51. Post WAY more, as long as it's interesting Feature Facebook
  52. 52. Facebook video lift test
  53. 53. Social Amplification Engine Feature Social AmplificationGuide
  54. 54. content + amplification = everything Feature Custom Audience People-based Marketing Remarketing Sequence Across Channels Word of Mouth At Scale
  55. 55. Organize by 4 areas of business value Feature Facebook
  56. 56. Team structure for efficient revenue production Feature Facebook
  57. 57. Project Management (RACI Framework)
  58. 58. How do you measure across these? Feature Facebook
  59. 59. Warriors Dominate NBA in Interactions and Interaction Rate Feature Facebook
  60. 60. Winning Engagement Revenue Feature  
  61. 61. Systematically optimizing for revenue at a set ROAS threshold Feature Facebook
  62. 62. Mobile to desktop conversion increasing Mobile to desktop conversions rising rapidly for ticket conversions on Facebook
  63. 63. Measuring social ROI for partners
  64. 64. Facebook Signal to amplify
  65. 65. Digital Demand Curve
  66. 66. 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.
  67. 67. 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.
  68. 68. Your KPIs based on YOUR funnel VideoLinkAd
  69. 69. 6 Stages of Personal Branding
  70. 70. sequences = amplification = automation
  71. 71. 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.
  72. 72. 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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