Optimizing campaigns to maximize ad performance has been made easier for marketers with automated tactics. These machine learning tactics should be adopted in order to focus on growth opportunities. Facebook recommends five optimizations tactics to consider and execute, called the “Power5”, that work simultaneously to procure better results for campaign performance. These include auto advanced matching, account simplification, campaign budget optimization, automatic placements and dynamic ads.
- Auto Advanced Matching
Before, conversions often times were being inaccurately measured and attributed to the wrong source. Now, automated advanced matching (AAM) increases pixel rate matches and has the ability to detect certain website fields. This leads to conversions being more accurately attributed to its appropriate source. With an increase in efficiency, AAM can help in lowering costs per conversion. AAM also helps to increase custom audience sizes by matching visitors on your website to users on Facebook’s platform.
Increased match rate on Facebook through webpage activity
Page view: 5% increase
View Content: 4% increase
Search: 3% increase
Add to carts: 14% increase
Initiate Checkout: 14% increase
Add to payment info: 12%
2. Ad Account Settings
In order to improve campaign efficiencies, Facebook recommends simplifying your ad account. Changing how your ad account is structured, how campaigns are organized and narrowing ad set targeting are all ways that you can simplify your account. Making these will help the Facebook platform’s machine learning to test creatives and placements to optimize performance automatically.
The account was simplified by consolidating gender, age and device type
Pre: CPC $2.95 CPM $17.43 CTR 0.59%
Post: CPC $2.36 CPM $15.01 CTR 0.64%
3. Campaign Budget Optimization
Campaign budget optimization (CBO) allows for automated campaign optimizing within the Facebook platform. In the past, most campaigns required manual edits and adjusting ad set budgets. Now, there is a way to help maximize results and performance through machine learning. Turning on Facebook’s CBO allows the platform to spend less on ad sets that are underperforming and to allocate budget to higher performing audiences and ad sets in real time. The benefits of CBO include better performance, increased simplicity by eliminating the need for manual managing and time efficiency.
Pre CBO: CPM $16.07 and $7.31 cost per engagement
Post CBO: CPM $13.57 and $5.72 cost per engagement
4. Automatic Placements
Automatic placements is another machine learning tactic in which the platform is able to optimize campaigns based on the best performing Facebook placements. The benefits of automatic placements include better performance by shifting budget to the best performing placements, allowing for a larger audience scale and cutting out the need for manual management.
Pre automatic placements: $1.97 CPM and $3.49 cost per engagement
Post automatic placements: $1.34 CPM and $2.93 cost per engagement
5. Dynamic Ads
Lastly, dynamic ads show creatives to users who have expressed interest previously. Dynamic ads are shown to those who have indicated interest from an advertiser’s website, mobile apps or elsewhere on the internet. The benefits in using this tactic is better performance, simplicity and time efficiency by showcasing only relevant products and reducing the need for manual creative optimizations. Dynamic ads can also improve Cost Per Results since ads are automatically only shown to relevant audiences.
Standard carousel ad: 0.32% CTR and $5.51 CPC
Dynamic carousel ads: 0.81% CTR and $3.40
Interesting in trying out these tactics for yourself? Read more on Facebook’s Power5 here.
Author: Elise Stieferman, Client Strategist