Optimizing Your Facebook Dynamic Ads to Maximize Conversions

The 2016

Facebook Advertising SummitHOW TO APPROACH FACEBOOK PERFORMANCE MARKETING DURING THE Q4 SHOPPING RUSH

2016 Facebook Summit Layout

Day 1 Optimizing Your Facebook Dynamic Ads

Day 2 How To Fix Non-Converting Social Traffic

Day 3 Custom Audiences: From Zero to Hero in 4 steps

Event Logistics

• Submit Questions In the Chat Box to the Right

• Session Recording Will Be Sent 9/16/16

• More Resources In the Handouts Section to the

Right

• Poll Questions Throughout PresentationEvent Coordinators

Nick CotterMarketing Operations Coordinator

Sarah RogersSenior Social Strategist

OVERVIEW

•Founded in 2007

•Recognized as an Official Google Shopping Partner

•350+ Active Retail Clients

•Top 50 fastest growing company in San Diego 4 years

•Recognized as one of the Top 10 best places to work in SD

CLIENTS

SOLUTIONS

• Retail-focused Paid Search (PPC)

• Google Shopping Management

• Shopping Channel Management

• Amazon Sales Acceleration

• Facebook Advertising Management

About CPC Strategy

Today’s Event Speakers

Nii AheneCo-Founder & Chief Operating Officer

Stephen KernerSr. Retail Search Manager

Optimizing Your Facebook Dynamic Ads to Maximize

Conversions

www.CPCStrategy.com | 619.501.6138 | [email protected]

Course Overview

The Everchanging Facebook Dynamic Ad Landscape

Introducing a Framework to Split Test Ad Copy

Utilizing Demographic Data to Increase Efficiency of Media Spend

How to Find the Perfect Call to Action for Your Audiences

Preparing Your Budget for Q4: Proper Media Spend Allocation

Live Q&A

Poll For The Audience…Are you currently utilizing Facebook as an advertising channel?

A. Yes

B. No

C. Just getting started

The Everchanging Facebook Ad Landscape


Different Ads for Different Objectives

Objectives ActionsClicks to Website Send people to your websiteWebsite Conversions Increase conversions on your websitePage Post Engagement

Boost your posts

Page Likes Promote your Page and get Page likes to connect with more of the people who matter to you

App Installs Get installs of your appApp Engagement Increase engagement in your appOffer Claims Create offers for people to redeem in your storeLocal Awareness Reach people near your businessEvent Responses Raise attendance at your eventProduct Catalog Promotion

Automatically show products from your product catalog based on your target audience

Brand Awareness Reach people more likely to pay attention to your brand

Lead Generation Collect leads for your businessVideo Views Create ads that get more people to view a video


Different Ads for Different Objectives


Where to Start? Everywhere?

Introducing The Facebook Ecommerce Conversion Funnel


Facebook Ecommerce Conversion Funnel

Facebook paid advertising is unique because it touches on every point in the ecommerce conversion funnel - from brand awareness to generating revenue and creating loyal customer relationships.

Although many brands are eager to leverage Facebook’s advertising capabilities - they suffer from a lack of education and guidance on how to promote their brand effectively, optimize their creative, target specific audiences and allocate budget.


Facebook Ecommerce Conversion Funnel

The unique ability of Facebook advertising is that retailers can start their advertising efforts at any point within the funnel depending on their business objectives at the time.

For example, a start-up company is more likely to focus on their “Awareness” aka getting the word out about their new company in comparison with a more established brand who is focused on “Reengagement” aka building customer loyalty among past purchasers.


Where We’ll Start Today – Activation with Dynamic Ads

What is Activation? Customer Activation is when we target people who have shown an interest in your brand

by visiting your site or checking out your product but for some reason have not converted just yet.

How do Dynamic Ads Play a Role in Activation? Increase conversions on your website Get people to claim your offer Promote a product catalog

Introducing a Framework to Split Test Ad Creative & Copy


How the Facebook Algorithm Works

Algorithmic Game Theory and Practice: Published on Nov 20, 2015Eric Sodomka, Facebookhttps://simons.berkeley.edu/talks/eric-sodomka-2015-11-17https://youtu.be/94s0yYECeR8


How the Facebook Algorithm Works

The Goal of News Feed - Show users stories they care about and nothing else. This includes ads.

Facebook assigns a predicted utility value to every possible story based on your individual likelihood to have a positive or negative interaction with a story.

These interactions are then weighted based on Facebook's determination of the meaningfulness of the interaction.

When it comes to ads, Ad relevance is assessed based on the value that the ad is displacing in the organic news feed in a Vickrey–Clarke–Groves auction.


How to Layout a Solid Framework

Because you pay for impressions, CTR or interaction rate should be the *primary* metric a retailer tracks for two different ads.

The higher the CTR or interaction rate , the lower the cost of traffic for your Dynamic Ad Campaigns.

Optimization efforts should be focused on creating a call to action that increases interaction or CTR.


3 Axis Breakdown – DPA Segments

CHANNEL/CAMPAIGN

DESKTOP

MOBILE

Product View But, No Purchase

Product Added To Cart, But No Purchase

Product View But, No Purchase

Product Added To Cart, But No Purchase

1-3 Days

16-30 Days

4-15 Days

1-3 Days

16-30 Days

4-15 Days

1-3 Days

16-30 Days

4-15 Days

1-3 Days

16-30 Days

4-15 Days

PRO TIP: For split testing we want to learn as quickly as possible so we'll run two versions of an ad against each of these audiences.


Split Test Setup

Split Test FrameworkAd/CTA Variation 1 Ad/CTA Variation 2

Optimization against engagement KPIs – CTR or Interaction Rate.

Run campaigns until each there’s a statistically significant difference in ad performance

Generally speaking 10,000 impressions per variation is a good target to aim for

Aggregate performance against variations and channel to see if there are key difference between copy and/channel



Three suggested segmentations to start

- Recency- Activity Type- Channel or Placement

For larger or more nuanced catalogs gender, Age, or Geo maybe be swapped out with activity type or recency to help to target messaging

The breakdown dropdown helps advertisers select logical breakpoints for segmentation


Age, Gender & Geographic Segmentation

Gender Verticals that might consider breaking out by gender to get more insight into spend

effectiveness include:

Apparel

Jewelry

Footwear

Beauty



Age Verticals that might consider breaking out by age to get more insight into spend

effectiveness include:

Apparel/Fashion Electronics



Geographic Verticals that might consider breaking out by geo identify geographic segments to

suppress include:

Weather

Seasonal

Outdoor Sports


Facebook Audience Insights – Custom Audience

How to Find the Perfect Call to Action for Your Audiences


Coupon Code CTAs

Get People To Claim Your Offer Create ads with a coupon, discount or other special deals. Ensure you include the coupon code in the copy to give the ad more urgency and call out

why there’s a special promotion.


Seasonal CTAs

Seasonal CTA Targeting Speak to the time of year with specific copy and segment your products accordingly.


Transactional Messaging CTAs

Transactional Targeting Speak to customers where they’re at in the conversion process – remind them they have

something in their cart or provide an incentive (i.e. coupons) if they’re further up the conversion process.


Brand Reinforcement Messaging CTAs

Brand Reinforcement Reinforce the benefits of your brand and what your brand is trying to accomplish. Why

buy from your store?


Geographical CTAs

Geographical Targeting Speak to weather changes, deals in specific geo-regions. The more targeted your

copy, the higher the likelihood of conversions.


Interest Based CTAs

Interest Based Targeting Layer interests over your targeting to speak to specific customer segments.

Preparing Your Budget for Q4: Proper Media Spend Allocation


Media Spend Allocation

While the process of split testing CTAs never really ends - the exercise can reach the point of diminishing returns against established segments.

Once we know the performance of these campaigns segments against the same creative we can make decisions on where to allocate spend based on the metric we’re trying to drive (ROI v. Traffic v. CTR).

During the holiday season maximizing opportunities in front of buyers that are most likely to buy is the most important optimization activity a retailer can do.


Media Spend Allocation Breakdown

Mobile DPA CampaignTotal Daily Budget - $600.00

Product view but no purchase – 1 - 3 DaysDaily Budget - $100

Product added to cart, but no purchase - 1 - 3 DaysDaily Budget - $100

Product view but no purchase - 4-15 DaysDaily Budget - $100

Product added to cart, but no purchase – 4 - 15 DaysDaily Budget - $100

Product view but no purchase – 16 -31 DaysDaily Budget - $100

Product added to cart, but no purchase – 16 -31 DaysDaily Budget - $100

Desktop DPA CampaignTotal Daily Budget - $600.00

Product view but no purchase – 1 - 3 DayDaily Budget - $100

Product added to cart, but no purchase - 1 - 3 DayDaily Budget - $100

Product view but no purchase - 4-15 DayDaily Budget - $100

Product added to cart, but no purchase – 4 - 15 DayDaily Budget - $100

Product view but no purchase – 16 -31 DayDaily Budget - $100

Product added to cart, but no purchase – 16 -31 DayDaily Budget - $100

CAMPAIGN LAUNCH


Media Spend Allocation Breakdown

Mobile DPA CampaignTotal Daily Budget - $700.00







Desktop DPA CampaignTotal Daily Budget - $500.00







AFTER ALLOCATION

CPC Strategy Facebook EvaluationWould you like to speak with us about your Q4 Facebook strategy?

A. Yes, please.

B. No, thank you.

Questions for the Experts?Submit your questions in the chat box on the right


cpcstrategy.com/facebook-advertising-management

Schedule A Free 60 min. Audit

Optimizing Your Facebook Dynamic Ads to Maximize Conversions

Social Media

Transcript of Optimizing Your Facebook Dynamic Ads to Maximize Conversions