A big question for many digital marketers is what event to optimize bids towards on Facebook, Twitter and Instagram. Most advertisers just choose the most important metric
to them, whether it is subscribe, purchase, or register. Unfortunately, many social platforms heavily depend on data from that specified event’s activity within the last 24 hours. If that event isn’t getting a lot of activity, advertising volume may suffer.
Most online marketers share a common goal: to scale spend while maintaining campaign performance. However, it can often be difficult to achieve both.
How To Troubleshoot Low-Volume Ad Spend
Let’s say there’s a brand with high-value products who is bidding oCPM on purchase. Their CPA may be excellent, but with a high value product and a low conversion rate, Facebook isn’t giving them the volume they want.
In order to avoid volume from taking a plunge, it is important to consider highly correlated actions
that occur earlier in the user flow. These associated actions may not necessarily be the end goal (for example, a purchase), but they can be bid upon in order to ultimately achieve purchases.
Examples of Correlated Action Bidding
A user who adds to cart is likely to follow up with a purchase – so, bidding on add to cart as a correlated action would be a good way to increase ad volume while optimizing toward purchases.
If a user installs an app, they are likely to take an action in that app – so, bidding on app install as a correlated action would be a good way to increase ad volume while optimizing toward in-app actions.
Correlated Actions + Nanigans
Advertisers who are concerned about leaving their main metric in the dust can rely on Nanigans optimization as well. Nanigans looks at correlated actions and a longer window of historical data and uses it to determine optimal bids. Nanigans also offers the ability to call out correlated actions to add into the mix of what to optimize on. Pairing Nanigans intelligent usage of historical data with Facebook’s plentiful user base creates a dynamic team of ad bidding.
So, what happens when the brand we mentioned at the beginning of this post uses a correlated action? When moving their action towards optimizing on Add to Cart instead of Purchase, volume increases by more than double, while the conversion rate only slightly fluctuates.