How Do You Bid Using oCPM? (6)
When deciding what bid to use on an oCPM campaign, what factors do you go by? Or am I just supposed to leave it on the default $30 CPM no matter what product/service I'm selling and no matter what my campaign goals are?
Also, is there ever a point in the campaign where you'd want to lower that bid once it's running?
Lastly, when your campaign goal is clicks to website, what is the difference between bidding on clicks and bidding on actions? Are these not the same thing in this scenario?
Let me know if this isn't clear in my Facebook guide and I'll update it. I may need to go through my reply posts and inject some of them into the guide contents.
When bidding oCPM, the bids are just average CPM bids.
You have to bid whatever you need to bid to get traffic for that demo/targeting in the news feed, and Facebook will then bid higher/lower on your behalf.
E.g. if you bid $10 then FB's algorithm may bid $10±4 throughout the day.
When you bid toward actions/clicks/social/reach, FB delivers your ads to different subsets of the total audience - http://stmforum.com/forum/showthread...l=1#post160141
I would recommend only bidding toward one group at a time, and would focus on actions first.
As a ballpark, I would bid $5-10 CPM toward actions and raise/lower as needed. You can certainly lower it to get a balance of news feed position, CTR, costs and profitability.
Also, the whole clicks to website vs website conversions campaign objective, to the best of my knowledge, just changes the default oCPM bids and ad types FB allows for the campaign - I just use website conversions and generally ignore the very existence of this 'campaign objective'.
Originally Posted by zeno
Read your guide, great stuff. From what you are saying, I now understand that when I bid $30 on an action (say a website conversion), I am not telling Facebook that I am willing to pay $30 per conversion, but instead telling them that I want to bid an average of $30 per 1,000 impressions?
That is a completely new concept to me. When I learned about oCPM, I thought you were supposed to bid the value of what that action was to you. Therefore, if a conversion was worth $30 to me, then I should be bidding $30 per conversion action.
So if I put a pixel on my site to track conversions and use oCPM, I should just leave the bid as the default for actions? And the bid has no relationship at all to the conversion value I code into my pixel? Is that correct?
It may have originally been like this, it certainly is not now - and I think Facebook's explanation is confusing.
I am 100% certain it is a CPM bid, not what a conversion is worth to you.
If you have a pixel down that's fine, but i will have no influence on how much you need to bid and yes there is no relationship between conversion value and the bid you need.
So, just use the default bid and see how it goes. You may need to raise it to get traffic, but rarely have I seen the default work poorly.
Originally Posted by zeno
I am still a little confused though because I currently have a 5 dollar actions bid but my cpm in reality is over 9 dollars
It will likely be that $5 is too low so Facebook has to go on the higher side just to get you traffic.
It's probably a very complex algorithm that does try to optimise pricing for your conversion revenues, but in the end the revenue you get from some action is not at all related to the price you need to pay to get impressions...
The value being a CPM bid makes sense.
The documentation on Facebook can be confusing.
I have talked to a rep working for a PMD and he agreed with me that it really is a CPM bid.
Furthermore, in tests of mine I found I got nil traffic at $5 bid and after incremental increases the impressions started coming in and at CPM price close to what I was bidding.
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