Optimization can really make or break your Facebook and Instagram campaigns, but how do you know how to optimize bids, budgets, audiences, and creative? There is always something new you can learn and that’s why we hosted a webinar dedicated to all things optimization. And, for those of you who missed the webinar - do not worry! We compiled some of best practices for you.
Always Bid for the Final Step in the Funnel
Try to always use the final step in the funnel for testing. As many of you know, you need a certain amount of conversions on an ad set level for Facebook to be able to optimize properly. You want to try to get at least 50 during the first few days, but after that, even if you only have a few per day, that will work better than moving the optimization goal up in the funnel. If possible, try to structure your campaigns to give you enough conversions on an ad set level so that you can bid towards the final funnel step.
Optimizing Lookalike Audiences
Lookalike Audiences are, as the name suggests, people who "look like" your ideal audience (ie. people who have already bought from you). When building lookalike audiences, you have two separate dimensions to optimize:
1) Lookalike seed audience and
2) Lookalike size in percentages
Optimizing lookalike seeds is a topic often misunderstood. That’s why we dive deeper into that dimension. Luckily, you have a lot of options here: you can start with a custom audience that consists of your best historical customers, you can use an audience that converted from a specific Facebook campaign, or you can use a list that includes the lifetime values for each user. There are no correct answers to how you should select your lookalike seed audiences, but there are at least three dimensions to consider.
Seed size: The more people you have in your seed audience, the more data Facebook has to find users most similar to your seed. You can build a lookalike with a minimum of 100 users in your seed, however, it is optimal to have 1,000+ users to give Facebook more data to optimize. You want to segment out the highest quality users, which can be done based on, for example, the highest order values or the most frequent users of a service.
Audience quality: Typically your highest value users are the best choice for your lookalike audience, since you wish to find new customers that are similar to these - 25 % of users with the highest Lifetime value is a typical choice. This again, is a conflicting priority with audience seed size, so you should balance between the two.
Audience renewal: You also want your lookalike audiences to renew over time so that you don’t end up oversaturating your audiences. Here, audience recency plays a part – and it’s again a conflicting priority with audience seed size: the longer recency window you use (e.g., last 12 months purchasers), the bigger audience seed you have, but the slower your audience updates; the shorter recency window (e.g., last 1 month purchasers), the smaller your audience seed, but the faster it updates.
The goal of creative testing is to find a winning combination, be it design or messaging. Once found, it can be scaled based on a testing plan and iterations. Remember, creative testing is a financial investment; most of the creatives might fail at outperforming current winners or at becoming the winner. That should not stop you from continuing on the road of always-be-iterating; when following a consistent testing plan, you’ll be able to tell trends and predict audience behavior over time. Below are some guidelines to consider when testing creatives:
~ 4 – 8 of active ads per ad set
Run multiple ad formats
Keep on iterating to find opportunities and fight ad fatigue
Which Creative Elements To Test?
A good rule of thumb is to only test one thing at once to find the best creative. When testing creatives, there are several options on what to test, here are some examples:
Copy length: short vs. long copy
Ad formats: video, static images or collection ads?
Visuals: should you go for illustrations or photos?
Color scheme: what color resonates best with your audience?
Tone-of-voice: soft or persuasive? Energetic or mellow?
Different types of Calls-to-Action
If you are interested in learning more about optimization, contact your Account Manager or send a demo request!