Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
Hussein Fazal, SMASH Summit NYC
1. Facebook Ads – The Math behind the Magic
www.adparlor.com
2. Hussein Fazal – CEO, AdParlor
Ads API Partner – manages ~1 Billion daily impressions on Facebook
3. Some Basic Terms
CTR – Click Through Rate
CVR – Conversion Rate
CPM – Cost per 1,000 impressions
eCPM – Effective cost per 1,000 impressions
CPC – Cost per click
CPA – Cost per acquisition
4 Clicks from 10,000 Impressions = 0.04% CTR
2 Acquisitions from 4 Clicks = 50% CVR
4 Clicks * $0.30 CPC = $1.20 Cost
$1.20 Cost / 2 Acquisitions = $0.60 CPA
4. Ad Server Fundamentals
Any ad network wants to choose the ad
with the highest eCPM
o This is true for Facebook and amplified by their focus
on user experience
A high CTR means you can buy cheaper
clicks
A high CVR means you get more
conversions for those clicks
5. The Importance of CTR
Difference in eCPM based on the CTR [hold CPC bid constant]
Impressions CTR Clicks CPC Bid eCPM
1,000 1.00% 10 $ 0.50 $ 5.00
1,000 0.10% 1 $ 0.50 $ 0.50
1,000 0.05% 0.5 $ 0.50 $ 0.25
1,000 0.01% 0.1 $ 0.50 $ 0.05
7. The Importance of CVR
Difference in eCPA based on the CVR [holding cost constant]
Cost Clicks CVR Conversions eCPA
$ 5,000.00 10,000 40.00% 4,000 $ 1.25
$ 5,000.00 10,000 50.00% 5,000 $ 1.00
$ 5,000.00 10,000 60.00% 6,000 $ 0.83
$ 5,000.00 10,000 70.00% 7,000 $ 0.71
8. Understanding Ad Optimization
Don’t talk to me about pricing unless you
understand CTR and CVR
High CTR = cheaper clicks
High CVR = more conversions for those
clicks
Create thousands of ad, learn in real-time,
and optimize CTR and CVR
By optimizing on CTR/CVR you are
essentially driving down your CPA
9. Quick Tangent - Sponsored Stories
“Something that would appear on a users news feed – turned into an ad unit”
10. Why do Sponsored Stories get you cheaper fans (technical)?
Higher Click-Through-Rate (CTR) Higher Conversion Rate (CVR)
gets you cheaper clicks gets you more for those clicks
11. Why Do Sponsored Stories get
you cheaper fans (high level)?
Because it is a story – not an ad.
Remember - “Something that would appear on a users news feed
– turned into an ad unit”
Before sponsored stories:
o More Fans = More expensive for the next Fan
Since sponsored stories:
o More Fans = Cheaper for the next Fan
12. If the Ingredients are Perfect
Super Targeted
Fan Acquisition
Campaign
$.08 Able to achieve 0.29%
CTR and 81% CVR
through life of campaign
Effective Cost Per Fan
18. Deal Specific Ads
Integrate with Groupon Deals API
Pull deals as they go live at
midnight in local timezone
Machine learning to determine who to target
Set Facebook Ads live within minutes of deal going live!
19. Use Cool Facebook Features
Create actions & buy open graph action spec ads
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