Optimizing Your Facebook Dynamic Ads to Maximize Conversions

The 2016
Facebook Advertising Summit
HOW 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 Presentation
Event Coordinators
Nick Cotter
Marketing Operations Coordinator
Sarah Rogers
Senior 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 Ahene
Co-Founder & Chief Operating
Officer
Stephen Kerner
Sr. Retail Search Manager

Optimizing Your Facebook Dynamic
Ads to Maximize Conversions

www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
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 Actions
Clicks to Website Send people to your website
Website Conversions Increase conversions on your website
Page 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 app
App Engagement Increase engagement in your app
Offer Claims Create offers for people to redeem in your store
Local Awareness Reach people near your business
Event Responses Raise attendance at your event
Product 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 business
Video 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, 2015
Eric Sodomka, Facebook
https://simons.berkeley.edu/talks/eric-sodomka-2015-11-17
https://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 Framework
Ad/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

Utilizing Demographic Data to Increase
Efficiency of Media Spend

Utilizing Demographic Data to Increase Efficiency of Media Spend
 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 Campaign
Total Daily Budget - $600.00
Product view but no
purchase – 1 - 3 Days
Daily Budget - $100
Product added to cart, but
no purchase - 1 - 3 Days
Daily Budget - $100
Product view but no
purchase - 4-15 Days
Daily Budget - $100
no purchase – 4 - 15 Days
Daily Budget - $100
Product view but no
purchase – 16 -31 Days
Daily Budget - $100
no purchase – 16 -31 Days
Daily Budget - $100
Desktop DPA Campaign
Product view but no
purchase – 1 - 3 Day
Daily Budget - $100
no purchase - 1 - 3 Day
Daily Budget - $100
Product view but no
purchase - 4-15 Day
Daily Budget - $100
no purchase – 4 - 15 Day
Daily Budget - $100
Product view but no
purchase – 16 -31 Day
Daily Budget - $100
no purchase – 16 -31 Day
Daily Budget - $100
CAMPAIGN LAUNCH

Media Spend Allocation Breakdown
Mobile DPA Campaign
Product view but no
Daily Budget - $250
Daily Budget - $280
Product view but no
purchase - 4-15 Day
Daily Budget - $50
Daily Budget - $10
Product view but no
Daily Budget - $15
Daily Budget - $10
Desktop DPA Campaign
Product view but no
Daily Budget - $200
Daily Budget - $125
Product view but no
purchase - 4-15 Day
Daily Budget - $50
Daily Budget - $50
Product view but no
Daily Budget - $50
Daily Budget - $25
AFTER ALLOCATION

CPC Strategy Facebook Evaluation
Would 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

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Optimizing Your Facebook Dynamic Ads to Maximize Conversions