HOW ocpm BIDDING CAN MAXIMIZE YOUR CONVERSIONS ON FACEBOOK.
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1 HOW ocpm BIDDING CAN MAXIMIZE YOUR CONVERSIONS ON FACEBOOK
2 What ocpm? Optimized Cost Per Thousand Impressions means that Facebook optimises your ad by showing it to the people most likely to perform your desired action within your target. Just like in the case of regular CPM bidding you pay for the amount of impressions, but the delivery is optimised by Facebook to meet an objective set by you. That objective can be, for example, maximum reach, page likes, or conversions on your Facebook pixel. Additionally, bidding is automated. Your bid will change dynamically based on competition, assuring that you ll reach your desired audience.
3 Why ocpm can be the best solution for you? ocpm is one of the most popular bidding options available today, as it allows you to keep your bidding and the amount you spend tied directly to your marketing campaign s objective. This way Facebook can focus specifically on users that have a higher chance of completing your requested action. This means being very effective, as well as budget friendly. Because ocpm is optimised, the final CPM price is typically much higher than CPC or regular CPM. But, also because it s optimised, it s almost always most efficient and it results in the best Cost Per Action.
4 Why ocpm can be the best solution for you? Although ocpm has been getting the best results when used for large audiences (ideal target size is in fact 1 million), ocpm campaigns for smaller audiences have been working amazingly well too. While you ll pay slightly more to display your ads, the overall cost per conversion will be much cheaper. And that s really the most important thing!
5 BEST PRACTICES Follow these golden rules to get the best results from ocpm bidding: 1. Your daily budget should be at least 5x your bid or target value. The optimisation algorithm needs to buy a certain amount of impressions before determining what constitutes a user likely to convert. If the budget is too small it will not be able to gather enough data before having to stop showing the ad. 2. Your conversion goal should generate at least 25 conversions per day with a minimum 0.5% conversion rate. If your conversion rate turns out to be greater than 0.5% you re good to go. If it s lower however, stick to CPC until you have managed to increase it. If you can t seem to reach this prerequisite, take a look at our tips on the next slide. 3. Targeted audience size must be bigger than when using CPC. Around 1 million is optimal. 4. Focus optimisation on improving quality of your ads: test different creatives, placements and targets. Facebook will take care of optimizing the delivery. 5. Don t change your bids and budget more than 3 times a day The optimization algorithm needs time to start working on the campaign data, and if you change the campaign settings too often, it will have hard time making data-based decisions.
6 WHAT TO DO IF ocpm SEEMS NOT TO BE WORKING FOR YOU? HOW TO REACH THE REQUIRED 25 CONVERSIONS A DAY If you re struggling with getting your conversions to meet the prerequisites described earlier (at least 25 conversions per day with a minimum 0.5% conversion rate), it could be that your pixel is placed where there s simply not enough action happening for ocpm to get the data it needs. One option is to move the pixel further up the funnel to an event which makes a good proxy for the conversion you really care about. TIP It is also a good idea to start with a bit of caution and not expose too much budget. Give just enough room for the optimisation algorithm to gather the data it needs and increase budget as you re starting to get conversions at a level you re happy with.
7 START WITH A TEST 1. Running a small test in the beginning is always a good idea, and ocpm can easily be used alongside existing ads and bidding as a trial. Compare your key metric from the test using ocpm and see how it performs against other bid types. If it performs well, we suggest you to continue running iterative tests at a scale that is comfortable. Based on these tests and your existing mix of bidding and campaigns, you can find the optimal combination that meets your overall marketing goals.
8 OPTIMIZED CPM ON SOCIAL ADS TOOL 1) Enter your budget and choose Optimized CPM as the bid type. 2) Enter one or more bids, to give Facebook a rough guideline to understand what you re looking for. Action bid (CPA you are willing to achieve) Click bid Reach bid Social impression bid Facebook will still automatically bid on your behalf to maximize conversions. 3) Your ad objective defines this step. For most objectives the action is selected automatically and you don t need to setup tracking. - For Website Conversions or Product Catalogue Sales objective, you need to populate the FB offsite pixels field.
9 For any questions, contact us:
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