Homework case for Business Track Candidates

Instructions

Congratulations on finding your way to the homework! The following case is inspired by real world problems we are working on a daily basis. It should give you a view on the potential task assignments you might be doing in the future.

Preparation for completing the homework case: We recommend learning the basics of Facebook’s tools, (Ads Manager), as well as using Google and Facebook Help Center to learn more in-depth information about each term and concept that you are not familiar with already. In addition, it is highly recommended to read our own blog posts from here. Please note that we operate in a constantly evolving Facebook advertising ecosystem and thus appreciate the most up-to-date knowledge on the answers.

Returning your homework: When you feel confident about the answers below, please send your homework to careers-cases@smartly.io (and keep cc'd in the message the person you got instruction for it) as soon as you get it done. The tasks test your ability to communicate extremely complicated concepts clearly and efficiently. Show us your very best and use an organised structure in your answers, while keeping an optimal level of detail. Answer as if you would be serving our client who is having issues regarding FB advertising.

Please submit your solutions in the following format (we only read homework that fulfills this criteria):

  • PDF format
  • Maximum length = 1 A4 page

Optimization Case

Your client is a European e-commerce company, selling mid-priced clothing for women. They are looking for further growth and thus want to scale up their advertising spend, but have not been able to scale while maintaining the targeted CPA prices at the same time. After struggling with this situation for a while, the client has now asked you to take a look at their campaigns in Germany. They want you to provide ideas how they could maximize the amount of purchases generated from Facebook ads and remain ROI Positive at the same time. Client’s maximum monthly budget is 1M euros and an average purchase value is 100€. They also have a strict maximum cost per purchase (CPA) goal from the CMO which is 10€.

The client has the FB pixel implemented on their website and they’re using the standard pixel events to track visitors on the following pages on their webstore (websites not existing):

  • Front page (www.smartlywebstore.com)
  • Product page (www.smartlywebstore.com/product-page)
  • Shopping cart (www.smartlywebstore.com/shopping-cart/)
  • Thank you page after purchasing (www.smartlywebstore.com/thank-you/)

The client would like to know how to scale up and improve the performance of the company’s ecommerce campaigns. They ask your exact recommendations for campaigns and adsets, about:

  1. Is the current conversion optimized bidding the right bidding method in each ad set? If not, what would you recommend instead and why? What would you suggest as bid level for each ad set and why?
  2. How would you improve each of the three targetings used?
  3. Would you stop/remove any of the individual ads? Why?
  4. We plan to launch a mobile app and promote it on FB. What steps would you suggest us to follow?

Click here to download case material

Pro tip: Bear in mind that understanding Facebook’s tools is not required for handing in the homework, but it certainly pays off to be familiar with them. This is especially useful when learning about the new terms and concepts. After providing us with excellent homework, you'll be asked to show in-depth understanding of some Facebook concepts. To guide your learning, understanding at least these themes is helpful for you throughout the recruiting process:

  • How does the Facebook auction system work?
  • Bidding and budgeting - How do they work? How are they decided?
  • What is pacing and how does it work in Facebook?
  • Facebook pixel - How does it function and what can you do with it?
  • Product feed - How is it installed? What do you need for it? How do the DPA campaigns work?
  • URL tags - How to set up them? How do they work?
  • How do mobile app ads work?