CAMPAIGN BUDGETS AND SCHEDULES Flashcards
Optimization for ad delivery
For every campaign, you will select an optimization for ad delivery. When you define your ad delivery optimization, it helps us make the most efficient use of your budget. We aim to get you the overall best results while trying to ensure the cost of those results align as closely as possible with your bid strategy.
Note: Facebook will consider cost efficiency if you choose the cost cap bidding strategy, not if you choose target cost.
the available optimizations for each direct response objective:
Business Goals: Consideration
Campaign Objective: · Traffic · AppInstalls · LeadGeneration · Messages
Optimization for Ad Delivery:
· Landing Page Views, Link Clicks, Impressions, Daily Unique Reach
· App Installs, Link Clicks, App Events, Value
· Leads
· Replies
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Business Goals: Conversions
· Conversions · CatalogSales · StoreTraffic Optimization for Ad Delivery: · Conversions,Value,LandingPageViews,LinkClicks, Impressions, Daily Unique Reach, App Events (if app is destination), Replies (if Messenger is destination)
· ConversionEvents,Value,LinkClicks,Impressions
· Daily Unique Reach, Store Visits*
*Store Visits optimization isn’t available to everyone right now.
Please speak to your Facebook representative if you want to learn more.
Ad delivery optimization process:
Ad delivery optimizations is part of our machine learning systems at Facebook. Our delivery system works to determine what outcome an advertiser
is trying to accomplish based on the objective, optimization and any other offsite signal provided in ad setup. To understand optimization, it’s important to also understand how machine learning works. Our systems use machine learning (a type
of artificial intelligence) to create the highest-value experiences for both advertisers and audiences, we use information from Facebook and the information you provide.
This system is based on signals. These signals
can be things like the audience the advertiser has selected, the information the advertiser has provided (Custom Audiences or pixel/SDK/Offline signals), the optimization selected, and the advertiser’s bid. Our system identifies connections between the signals and estimates the best delivery opportunities for
the advertiser’s ads. Machine learning happens when someone takes action on the ad. When people don’t take the desired action after receiving an ad, the system learns from that, too.
Learning phase for ad delivery
When we start delivering your ad set, whether at the start of a campaign or after you edit it, we don’t have all the information necessary to deliver it as stably as possible. To get that information, we have to show ads to different types of people to learn who is most likely to generate your optimization events. This process is called the “learning phase.”
Once we have the information we need, your ad set can experience fewer performance fluctuations. At this point, you can make an informed decision about your ad set. If you’re satisfied with your results, you can let it keep running or increase its budget. If you’re unsatisfied, you can edit the ad set to try to improve its performance or pause it.
The following are considered significant edits, which reset the learning phase:
· Any change to targeting
· Any change to ad creative
· Any change to your “optimization for ad delivery” choice
· Pausing your ad set (or the campaign your ad set is in)
the advertiser’s ads. Machine learning happens when someone takes action on the ad. When people don’t take the desired action after receiving an ad, the system learns from that, too.
Learning phase for ad delivery
When we start delivering your ad set, whether at the start of a campaign or after you edit it, we don’t have all the information necessary to deliver it as stably as possible. To get that information, we have to show ads to different types of people to learn who is most likely to generate your optimization events. This process is called the “learning phase.”
Once we have the information we need, your ad set can experience fewer performance fluctuations. At this point, you can make an informed decision about your ad set. If you’re satisfied with your results, you can let it keep running or increase its budget. If you’re unsatisfied, you can edit the ad set to try to improve its performance or pause it.
The following may or may not be significant depending on magnitude:
· Bid amount (or bid cap amount / cost target)
· Budget amount (unless you’re using the target cost bid strategy, in which case budget changes of any magnitude aren’t considered significant edits)
The following may or may not be significant depending on magnitude:
· Bid amount (or bid cap amount / cost target)
· Budget amount (unless you’re using the target cost bid strategy, in which case budget changes of any magnitude aren’t considered significant edits)
Campaign budget optimization (CBO)
Campaign budget optimization (CBO) is an option available at the campaign level. With CBO, advertisers can set one central campaign budget to optimize across ad sets and continuously distribute budget to the top–performing ad sets in real-time. Facebook’s optimization system works to find the best way to spend this budget across different ad sets and ads, according to the optimization goal, bid strategy and bid amount. CBO is available for any campaign objective and is best suited for campaigns with multiple ad sets. We highly recommend using this tool across all of your campaigns. The benefits include:
· Efficiently spend across all audiences · Simplified campaign management · Spend less time managing campaigns · De–duplicate audiences The image below demonstrates how a budget is allocated and spent for conversions without CBO and with CBO:
CBO best practices
· Use ad set spend limits sparingly, or not at
all.
Ad set spend limits are an optional setting you can choose to put on your ad set for how much it can spend. The more budget that’s locked into specific ad sets, the less flexibility our delivery system has to optimize your campaign budget.
· Be aware that any campaign using CBO can have a maximum of 200 ad sets. However, campaigns with greater than 70 ad sets will have limited editing functionality. The “best practice” is to have less than 70 ad sets.
· Ensure all ad sets in your campaign can be delivered. If an ad set isn’t delivering, it isn’t encountering any opportunities for results. This means we can’t distribute budget to it. CBO works best when all ad sets in a campaign could spend a full budget, but we get to pick only the best results from each one. If any
of your ad sets aren’t delivering, you can try increasing your bid caps or target costs (if applicable/possible), adjusting your targeting and creative or switching to a more common optimization event.
· Avoid pausing ad sets. Pausing a low delivery ad set today may limit CBOs ability to find tomorrow’s opportunities.
· It’s best to evaluate performance on the campaign level. Evaluating on the ad set level may lead to the breakdown effect.
· If you have specific spend targets for each ad set and don’t want any flexibility between them, we don’t recommend using CBO.
Note: If you’re using CBO, you can’t use accelerated delivery or run ads on a schedule (as opposed to running ads all the time, as determined by your “Ad Scheduling” choice in ad set creation).
Estimated daily results
If there’s enough information available, Facebook can make estimations about how many people you will reach and/or how many results you can get (if you spend your full budget). You can see these estimations under “estimated daily reach” and “estimated daily results” when you’re creating or editing an ad set.
Estimated daily results allows you to make more informed delivery control decisions by:
· Estimating results like website conversions
· Setting realistic expectations for results
· Understanding the daily impact of changes to budget, bid, targeting and placement
How estimated daily results is calculated?
· Your budget · Your bid · Your past performance information · Market information · Characteristics of your target audience
Bid strategies! Lowest Cost 1 of 4
1 Lowest cost: Select the lowest-cost bid strategy if you want to spend as much of your budget as possible without having to keep costs within a specific amount. With
the lowest cost bidding strategy you don’t have a specific cost threshold, you prioritize spending budget over cost control. The lowest-cost bid strategy may produce costs that fluctuate more. For example, if auction competition decreases, costs may go down. If auction competition increases, costs may go up. We will work to get you the most results available for your ad set.
Best for:
· Spending full budget
· Reaching lowest cost opportunities
Things to consider:
· You’re willing to trade cost control for spending budget/low cost opportunities
Bid strategies! Cost Cap
Cost cap: Select the cost cap bid strategy
if you want to maximize cost-efficiency and need to keep cost within a specific threshold. This bid strategy allows you to provide us with the cost of the results you care about. This can enable us to deliver the maximum number of conversions. The cost you provide is an average amount we try to stay under by seeking the lowest-cost events.
Best for:
· Getting the most volume within
your acceptable CPA/CPI
· Maximizing cost efficiency
Things to consider:
· Costs may increase as budget increases
Target cost:
Select the target-cost bid strategy if you want to maintain stable cost per result as your spend increases and you’re willing to trade cost efficiency for cost stability. This bid strategy achieves a stable average cost (over the lifetime of your ad set) that’s as close to your cost target as possible, even if you increase your budget. To maintain this stability, we may occasionally skip less expensive results in favor of more expensive ones. If you care more about having stable average costs, we recommend the target- cost bid strategy. If you care less about stable average costs, and care more about getting lower cost events, we recommend the cost- cap bid strategy.
Best for:
· Maintaining consistent costs
Things to consider:
· Costs stay fixed as budget increases: might forego cheap results
· You’re willing to trade cost efficiency for cost stability
Bid cap:
Select the bid-cap bid strategy if you want to set a maximum bid across auctions to limit what we bid in every auction and reach as many people as possible at that
bid. This bid strategy maximizes volume at specified maximum bid and can increase competitiveness against other advertisers targeting similar audiences. If you want
to control for cost of actual results, we recommend the cost-cap bid strategy.
Best for:
· Controlling bids in the auction
Things to consider:
· The bid is different than the cost per result – bid isn’t what you will see in reporting
· May not spend full budget
Advertiser controls:
Advertiser controls are the inputs you can change to help improve your ad performance. There are many advertiser control adjustments you can make to optimize your campaign performance. Adjustments can be made to your charge choice or bid strategy, your ad placement, your targeting strategy, your optimization strategy and your budget. By adjusting the advertiser controls that you’re opting into, you would be adjusting potential reach and spend, possibly affecting cost outcomes.
