FB Ads: Higher Bid = Better Quality Impressions? (12)
I have a campaign that is doing well on every traffic source I try it on, so I'm working towards getting FB dialed in.
Yesterday I made about 25 images with 1 really good adcopy, and ended up spending $245 to earn $285
Today, I took my best ads, flipped them to CPM and broke out the age groups into 2year increments. I bid a low $0.30CPM when my suggested was $1+ and my CTR and conversions both have suffered (today was negative ROI)
Tomorrow I'm going to keep everything identical and bid on top of the suggested CPM and see what effect it has on CTR and conversions.
Stackman, do you notice better quality impressions (and hence conversions) the higher you bid?
Hey index, I personally have tested this and from what I've seen bidding higher is better.
If my suggested CPM bid is $.85, I'll bid somewhere around $1 and my CPM will end up being $.35 cents or less anyway depending on the demographic. Also, I think the higher you bid, the higher your ad will show which equals higher ctr which in turn will lead to a lower cpc. I've also seen that when you get a high CTR on CPM bidding, Facebook determines that your ad is relevant to an audience and the CPM will slowly come down a bit to lower levels.
sweet, I'll update everyone who's reading with hard stats tomorrow sometime and "blog" (hate that word lol) of how I'm going about testing this adgroup/angle. Hopefully it will uncover something I'm missing. The conversions are obviously there, but who wants to break even on $100s/day ad spend without ever tipping into the green.
Everything sirob says is true!
- Higher bids supposedly = better ad spots = better CTR = makes facebook think your ads are more relevant = lowers your suggested bid and your clicks overall, BUT you'll need to have a good ad in the first place to make this all work. If your ad is only getting 0.05% CTR, then bidding higher won't help you much.
Also you might want to track split testing CPC & CPM, because i've done some extensive research on whether bidding CPC vs CPM affects conversions rates because of the quality of traffic and CPC did come out on top but with higher clicks. So it's absolutely worth split testing if you think your campaign will be long term.
CPM vs CPC has different effects for many reasons, but mainly what pages the traffic is coming from and also the ad spots themselves. It's known but not confirmed that bidding CPC will always give you higher ad spots on the board.
Originally Posted by stackman
dammit! I restarted my campaigns, but FB hammered me with impressions and ate up my whole daily budget within 1-2 hours! Time of day is something I've been keeping my eye on.
A quick update though. I now see how important splitting up age groups is. All my conversions are coming from the older. The younger demo in my group is a huge waste of clicks!
marco
That, but even more importantly you let it run before dropping the cpc because if you drop it too quick, the fb system won't recognize the CTR it has - to determine if it's a good ad. Meaning if you drop the bid to quick, facebook will stop sending you a lot of traffic.
index
Exactly. Tracking is key, you gotta see where you conversions are coming from, it changes everything.
UPDATES:
Here's my stats for Day 1:
Bidding CPC on a 3Mill demo. Overall spent $245 to earn $285. Profit=$40
For day 2, I took that highest eCPM ad, flipped to CPM, set low $0.30 CPM bid (ignore bid price in the image, that's for today) and divided up the age ranges. Overall spent $80. Earned $60. Loss=$20
Today, I upped my CPM bids to a nickel above the top of the suggested. For some weird reason, FB slammed me with impressions during the first hour and didn't space it out through the day. On my CPM ads, today spent $147. Earned $100. Loss=$47.
Today, I also reactivated my best CPC ad from Day1 and upped the CPC to the top of suggested range. Again, FB slammed me with impressions and daily budget got eaten up in 1 or 2 hours. Spent $54 - earned $0. Loss=$54
My CPC never fell down very far on it's own. I'm paying a $0.70 on a 0.142% CTR? I think it must be because the demo I'm targeting is probably the most competitive? And therefore, right ad + CPM FTW?
----
Ok, throughout all this testing I've found my best ages to target and focus in on those (that adgroup was 100% ROI today) - I'm wondering why that is. Maybe people at that age are comfortable with purchasing online and comfortable with the offer? Who knows.
This weekend I'm going to focus in on this age group (250k demo) and test a bunch more images and another landing page.
dammit! so I re-group and launch new ads with 10x better targeting. Earlier, when I was bidding CPM, FB was only charging me $0.10 - $0.20
On my new campaign, they are charging me $0.60 CPM (Im bidding $1.80 - 2cents over top suggested). I'd be profiting nicely right now had that CPM stayed the same. Hopefully that shit comes down. Shit, with Facebook it's a new curveball every fucking time. </rant>
^^ Facebooks a bit screwed up atm, platform issues. Some of that may be why your campaigns are so sketchy, espcially why your bids are weird. Also sometimes you may need around 100 clicks or so for Facebook to feel good about your ad and lower your suggested bids.
Other than that i see no pattern in your gains/losses so its pretty weird... but if you noticed 1 age group converting best, stick with it, because that happens often and that's why tracking is so key. Sometimes you launch a campaign that only works with 14-19 year olds, and it's unprofitable if you advertise to 14-40 year olds, but if you stick with the converting age group you'll see 300% ROI. (previous mobile campaign of mine, so stick with your converting demo's and as long as your CTR is good your 1.80 ridiculous CPM will go down)
Edit just re-looked at your last image:
- So just wait it out longer 78 clicks should be enough to have tyour bids lower.
- Also 1.42%CTR isn't amazing so CPM might not be your best bidding option
Originally Posted by stackman
I think I screwed up this last test, because I changed my targeting and my adtext. If I was targeting "Green Day Fans" initially on Day 1, today I targeted everybody who likes "Dookie", <every-song-on-dookie>, "American Idiot", <every-song-on-american-idiot>, "Dookie", <every-song-on-dookie>. ENded with like 100+ keywords
My thoughts are there are probably alot of people who just throw that out there (that they like Green Day), but true fans will list the specific songs/albums and hopefully in turn would give me a better CTR and ROI.
Not enough data to tell but my conversions seem to be rising (because my adtext is much stronger, but lower CTR), but I'm still slightly in the red. I'm gonna take a small break from this campaign for just a couple days and let people forget my ad and let FB even itself out. This campaign can be scaled horizontally ---> almost infinity, so I'm in no rush
I love old school green day so your examples make perfect sense to me lol, and i agree, definitely some strong targeting.
As long as your CPCs are lower when bidding CPM *AND* your conversion rate is the same as when bidding CPC then your fine.
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