HOW oCPM BIDDING
CAN MAXIMIZE YOUR
CONVERSIONS ON
FACEBOOK
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HOW oCPM CAN MAXIMIZE YOUR
CONVERSIONS ON FACEBOOK
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.
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HOW oCPM CAN MAXIMIZE YOUR
CONVERSIONS ON FACEBOOK
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.
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HOW oCPM CAN MAXIMIZE YOUR
CONVERSIONS ON FACEBOOK
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!
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HOW oCPM CAN MAXIMIZE YOUR
CONVERSIONS ON FACEBOOK
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.
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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.
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HOW oCPM CAN MAXIMIZE YOUR
CONVERSIONS ON FACEBOOK
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.
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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.
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For any questions,
contact us:
[email protected]
www.socialadstool.com