A workshop lecture on Facebook Ads. Oulu, 2015 PhD Joni Salminen joolsa@utu.fi

1. ADVANCED OPTIMIZATION OF
FACEBOOK ADVERTISING
Joni Salminen
PhD, marketing
joolsa@utu.fi
2015

2. Content
1. Reports (columns & data breakdowns)
2. Metrics selection
3. Optimization process
4. A/B testing
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3. 1. Reporting (columns & data breakdown)
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4. Tips for reporting
1. save view for metrics
2. define the metrics based on campaign’s goals
(max. a few metrics, don’t drown into them or let
them lead you)
3. review definitions in Facebook Ads manager
(updated frequently)
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5. 2. Metrics selection
Performance Quality Burn
• CTR
• CPC
• Cost per
Conversion
• CTR
• Relevance Score
• Negative feedback
• Relevance Score
• frequency
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6. 3. Optimization process
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7. ABC of Facebook optimization
A. stop poorly performing ads, ad groups and
campaigns
B. increase budget for well-performing ad groups
(explore and exploit)
C. refine targeting based on data breakdown
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8. When campaign is not working…
(checklist)
1. change picture
2. change headline
3. change text
4. change value proposition
5. change placement
6. change targeting
7. change bid
results can ALWAYS be improved.
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9. ”Facebook marketing is not rocket
science. But it can be science.”
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10. 4. A/B testing
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11. Testing process for Facebook Ads*
1. Choose test subjects (message, target group)
2. Choose target (clicks=CTR, conversions=CVR)
3. Implement campaign (change only one variable at a
time)
4. In a week or so (depending on the optimization
cycle), calculate results in Excel.
*Download Excel sheet for Facebook Ads testing:
https://www.dropbox.com/s/ih9wxpr7en4n275/Facebook
%20Ads%20testing%20tool.xls?dl=0
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12. Statistical signifance – you want to make sure
that the result is not by chance.
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13. What can you test?
1. message (value proposition, e.g. price, quality,
selection)
2. formulation of message (how you communicate the
value proposition, i.e. copytext, picture)
3. target groups (how different audiences are
responding to your message)
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14. Account structure for Facebook Ads testing
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A B
Campaign A
testing: sales potential of product X
Campaign B
testing: sales potential of product Y
Ad set A
testing: target
group
Ad set B
testing: target
group
Ad set A
testing: target
group
Ad set B
testing: target
group
Ad A
testing:
message
Ad B
testing:
message
Ad A
testing:
message
Ad B
testing:
message
Ad A
testing:
message
Ad B
testing:
message
Ad A
testing:
message
Ad B
testing:
message

15. Guidelines of A/B testing for Facebook Ads
1. Test one subject at a time: otherwise you cannot
know what influences what
2. Use systematic and continuous naming practice
3. When you discover a winner, stop the losing ad and
create a new version to compete against the
winner.
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16. Be cruel: Kill or scale (if low number of subjects,
give one ”mercy round” of optimization)
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17. The concept of scaling
A. test several variations or combinations (even
hundreds, thousands) each with a small budget
(e.g., 2€)
B. discover the best target groups / ads / products /
matches
C. stop losers and multiply budget of winners (e.g.,
double, triple, quadruple…)
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18. How to allocate budget between testing and
scaling?
• e.g., 30/70, in which 30% for test campaign and 70%
for scaling campaign
• most applicable to limited run campaigns
(continuous optimization may be different, although
explore and exploit works there as well)
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19. How often to optimize?
• Depends on your optimization cycle which is
derived from business goals and budget
• At least once a week, because of burn and ad
fatigue
• Optimize Facebook ads more often than Google
ads.
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20. Thanks!
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