Research has revealed that a large percentage of advertisers using the wrong strategy for their campaign bidding. This means that there is a huge opportunity for advertisers to optimize their bidding against their business goals and lower their media costs at the same time. We’re going to show you how to get more value for money.
In this article we’ll help you with 2 strategies:
- Clients with brand awareness objectives get more reach for their media budget
- Clients with performance objectives (DR) to see less competition for clicky & responsive audiences.
2 Major misconceptions about your target group
- First of all it’s important to realize that 84% of all internet users don’t click on ads. Which means that if you’re optimizing your campaign around clicks, you’re neglecting the value of this huge group.
- Second the vast majority of people who purchase your products will do so without clicking on your ads. Studies even show that more than 90% of offline sales come from people who didn’t interact with your ads during your campaign.
Get increased reach and avoid “clicky” expensive users
Did you know that 90% of all ads compete for the clicky expensive users by bidding on actions? They are up to 6x more expensive than the bottom 50%. So to use the most effective users, use reach based bidding. Using reach based bidding you can see a 40 to 50% decrease in your campaign costs by reaching the most effective users, without entering the competition for the most clicky ones.
How to even further reduce your CPM and cost per reach
Even though you get an increased result based on reach based bidding you can even go further by using reach and frequency bidding. Analysis showed that your cost per reach can go as far as 250% less expensive.
The only downside to reach and frequency bidding on Facebook is that the minimum reach of your campaign should be 1 million users and your ads have to run for a minimum of 3 days and a maximum of 30 days.
We’ve been asked a lot when to use a certain bid type. For those of you who’d like to use a cheat sheet we’ve added a nice overview below.
Bidding types are optimized for different objectives