When seeking a way to increase ROI and conversions using optimization techniques that will improve the performance of your ads on Facebook, you’ll want to implement the following steps into your own ad campaign.
Utilize Facebook Newsfeed
There is no better advertising platform than Facebook to reach the masses. Placing a mobile ad in the News Feed allows you to reach the users that are more apt to buy your product or service. Using the Nanigan’s Ad Engine platform, we’ve been able to control costs while improving ROI.
After a number of tests to determine the best bidding style to drive more installs at a given CPI, we found the oCPM bidding outperforms CPC and CPM every time. By using the oCPM bidding style, Facebook will place your ad on users page’s based on their interests.
Curiosity Got the Best of Us
When we set out to discover what the best settings would be for driving conversions, we coupled Nanigan’s Ad Engine platform with Facebook’s Power Editor to find the results we wanted. Those results included how the bidding style and oCPM bid affected the install volume. Note, in the Pricing and Status section is where you can set oCPM action bids.
Recently, I wrote “How to Leverage oCPM to Improve ROI for your Facebook Mobile Campaign” where I explained how to set the oCPM action bid. “In Power Editor, click on “Optimized CPM” and “Manually configure my objectives and bids”. Installs are the only action for mobile app advertising.
Campaign Strategy and Set-Up
All of the ads we set up for this test were done to run with oCPM using the default $10 action. Something to remember; your initial bid will be the default bid used by Facebook anytime you have “Automatically optimize for actions” selected. Of course you’ll be targeting a CPI lower than $10 and should expect to pay less than $10 per install. Due to the auction process in Facebook, you’ll only pay more than the next closest person. Keep an eye on your ads however to ensure they don’t go higher than you’d like them to is important for your campaign and your pocketbook.
Note: Rotate your ads consistently to improve the ad campaign’s performance.
In the first phase and using the default $10 action, we were able to drive installs at $2.48. This is a higher CPI than many apps we advertise but for the purpose of this test, $2.48 is acceptable for our client. Once we set the action bid to $1.75 we noticed the average CPI was lowered to $2.19. Setting them lower one more time, to $1.50, we noticed a decrease in CPI to $2.12.
“Note: We did not see success at driving installs at our targeted CPI’s, but we did drive the CPI closer to our targeted number after we lowered the action bid.”
You will find the percentage of installs received in the “Install Ratio” table. If Facebook does not feel over time that they can optimize your placements, you will find your ads slowly moved out of circulation.
The most important part to managing your Facebook ad campaign will be to set the appropriate action bid. For bids that are set too low you might not achieve the results you are seeking as you won’t receive enough installs. However, leaving it unset will impact your bottom line and you’ll end up going over your budget.