Why is this important?
Optimizing for your campaign objectives is the ultimate goal. Whether that objective is driving visitors to relevant pages to make purchases, drive registrations, or another key measurement of success – oCPM is a great way to reach audiences that have the propensity to take an action.
How does oCPM work?
Based on your ad type and campaign settings, Ad Engine will place a bid within the Facebook Marketplace using your cost per objective on an impression basis. Because you are utilizing oCPM, Facebook will automatically find individuals within your specified price that are likely to convert – ultimately increasing the likelihood your campaign achieves and beats performance objectives.
Because you are not bidding on the cost of a specific click or action using oCPM, it’s worth discussing how Facebook reaches specific users and how we can compare it to a common bid type — like CPC — that we are all familiar with. While the oCPM algorithms are proprietary, it’s well known that Facebook has an incredible amount of insight into user behavior and demographics. Psychographic information such as historical page likes, demographic information, and prior ad click activity helps Facebook’s algorithms make intelligent decisions on who to deliver your ad to. When you combine all of these factors alongside the powerful creation, management, and deployment of campaigns using Nanigans Ad Engine, oCPM represents a winning combination that increases campaign performance.
Why in-house advertisers should be considering oCPM for off-site clicks
One of our Certified Partners, Unique Influence, ran an oCPM test using different action bid levels and tested Cost per Install. When using a mobile action bid of $10.00 their CPI was $2.48. After lowering the bid to $1.75 the CPI respectively dropped to $2.19, and the ratio of individuals installing dropped from 100% to 81%. The key takeaway here is that Facebook is optimizing these placements to the best of their ability to generate off-site clicks (and in this case installs). A significant drop in the bid only resulted in a modest drop in percentage of users installing, and CPI.
In addition to this example – numerous eCommerce advertisers are utilizing Ad Engine and Facebook’s oCPM to automate bidding and drive desired campaign goals. In one specific case a popular eCommerce vendor has driven fan acquisition and customer purchases through their current fans. Using oCPM in this case has significantly increased their ROI and generated more customers than before.
Running a small test to start is always a best practice, and oCPM can easily be used alongside existing ads and bidding as a trial. Compare your key metric from the test using oCPM and see how it performs against other types. If it performs well, we suggest you continue running iterative tests at a scale that is comfortable. Based on these tests and your existing mix of bidding and campaigns, you can find the optimal combination that meets your overall marketing goals.
We ran our own analysis based on advertisers currently using oCPM for link click, comparing the results with CPC and traditional CPM metrics.
Some valuable insights:
- oCPM CTR is double pure-CPM, at a slightly lower cost per click
- oCPM cost per click is far lower than pure CPM
- Even though in this analysis oCPM spend was only 25% of spend for CPC, oCPM had nearly 40% of the impressions that CPC did.
How to use oCPM for off-site clicks within Ad Engine
Using oCPM for link click ads within Ad Engine is an easy three-step process. From your Strategy Group where you define the Goals & Rules for your campaign, select the appropriate Bid Type. In the case of off-site link clicks we’ll use the Bid Type of Optimized CPM for FB Actions.
Next, choose to let Facebook automate your bidding, or manually bid as appropriate. As a reminder, oCPM will automatically optimize toward your desired action and bids may fluctuate as a result.
The third and final step is to define the Ad Type and Action Type. In this example, we’re running a UPP Link Page Post and have selected ‘Page Post Ad’ as the Ad Type, along with Link Click for the Action Type.
Want more information on how oCPM could help achieve your campaign objectives? Get in touch to discuss how an appropriate mix of bidding and campaign strategies can help you achieve performance marketing at scale.Contact Us Today