In this presentation, Facebook’s Partner Manager, Anastasia Oulianova, and Hanapin’s Head Of Paid Social, JD Prater, will give you some direct response best practices when it comes to the Facebook ad auction and bidding. They’ll tell you what bid types are great to use, and how to set your bid and budget so that your campaign will stand out among the rest.

1. Breaking Down the
Facebook Auction for
More Competitive
Campaigns
11/17/2016

2. 1. Introductions
2. Facebook & Instagram by the
Numbers
3. Breaking Down the Auction
4. Planning for Holiday

3. IntroductionsM E E T T H E T E A M

4. Anastasia
Oulianova
Agency Partner, US
4

5. JD Prater
Head of Paid Social, Hanapin
Marketing
5

6. Who is Hanapin?
– Run the world’s most popular PPC blog
and conference.
– We manage and optimize global paid
search, paid social, and display programs.
– Within 12 months, brands can expect a
250% increase in their growth trajectory.

7. Our Clients

8. Join the conversation
Use the webinar question box
to send us questions.

9. Live Poll Question #1
How long have you been in PPC?
A. Less than 1 year
B. 1-3 years
C. 3-5 years
D. 5+ years

10. Live Poll Question #1
How long have you been working in Facebook?
A. Less than 1 year
B. 1-3 years
C. 3-5 years
D. 5+ years

11. F A C E B O O K A N D I N S T A G R A M I N T H E
United States

12. 1.8B
on Facebook
each month
1B+
on Whatsapp
each month
1B+
on Messenger
each month
500M
+
on Instagram
each month
Source: Facebook internal data, Q2 2016

13. of internet users*people
205M 77%
13
=
Facebook in United States of America
Source: Based on Facebook data, June 2016
* Percentage of Internet users calculated with data from eMarketer, April 2016.

14. 14
Reach your audience at the centre of discovery
Source: Based on Facebook data, June 2016.
people access Facebook
daily on mobile
people access
Facebook
monthly on mobile
187M 145M

15. 15Source:
Mobile is a constant companion
of MAUpeople access
Facebook monthly on
mobile
187M 91%
=

16. Source: Instagram Internal Data, Jun 2016
Instagram: the fastest growing social platform
500M
Instagram has grown to a
community of over
95M
Over
photos and videos
are posted to
Instagram each
day

17. Activity on Instagram
95M+ photos and
videos daily1
+40% increase in
time spent watching
video1
+50% non-
reciprocal
relationships2
Visual StorytellingSources: 1. Instagram internal data, June 2016. 2. Instagram internal data, August 2015.

18. Reach people
where they spend
their time
of time spent on
mobile apps
6% Over 20%
of all time spent on mobile
Source: US ComScore data, Media Metrix June 2015
F A C E B O O K A N D I N S T A G R A M

19. U N D E R S T A N D I N G T H E
Facebook
Auction

20. Facebook Ads Auction is Different

21. The gap between content creation and ability to consume
content will continue to widen
Each user has over 1500 pieces
of content eligible for their
News Feed when they sign on,
but only about 300 are displayed
All media platforms face the
reality that as available content
grows, it's more difficult to reach
your audience
Competition for feed
Content
Time
Content
created
Ability to consume
content

22. And millions of advertisers
are trying to reach them
every day
There are over
1 billion people on
Facebook, Instagram
and the Audience
Network
Source: Combined data across Facebook, Instagram and the Audience Network, Q4 2015

23. Ad #1 Ad #2
We hold an auction to show the right
ads to the right people

24. Understanding the Facebook Auction
= B x EA + R
BID FOR
DESIRED
OUTCOME
ESTIMATED
ACTION
RATE
RELEVANC
Y AND
QUALITY
MAXIMIZES
ADVERTISE
R VALUE
OPTIMIZES
CONSUMER
EXPERIENC
E
MAXIMIZES
ADVERTISE
R VALUE
Our Auction Maximizes Value, Not Revenue
x +

25. Tip 1 Set the right bid
Conversion value = $20
Your bid = $20
Higher bids can help you
win more auctions
Manual bidding:
If you don’t have a specific monetary value for the outcome
you’re optimizing for, you can select automatic bidding. Automatic
bidding will allow the system to use your budget to get as much
of your desired outcome as possible.

26. Conversion Conversion Conversion Conversion Conversion
Tip 2
Determine the right
budget
Conversion
Daily budget
= $5
Advertiser values a conversion at $5 -> bids $5 per conversion
Daily budget
= $30

27. What do I want to Achieve?
Do we have the volume?
Optimize ad delivery with the
conversion event that best
aligns with your campaign
objective
Ensure your ad set captures 15-
25 conversions/week to help
establish an adequate baseline ad
action rate
Under-
Delivering?
If under-delivery is an issue, optimize for:
•High frequency conversion events, ex: if purchases are low, test
optimizing for “Add To Cart” to increase ad action rates
•Pro Tip: If under-delivery continues to be an issue, use the default
automatic bidding option or increase bids/budgets to be more competitive
Tip 3
Optimize Events to Maximize Action
Rates

28. Broad ReachPeople who matter to you
Tip 4 Choose the right audience

29. Consumer Journey
Pre-
Purchase
Delivering relevant
content based on
previous behavior: Drive
Sales
Purchasers:
Driving Loyalty
1st Touchpoint:
Demand Generation

30. Consumer Journey
Pre-
Purchase
CRM DATA
Non-Website
Visitors
Website
Visitors
Lookalike or
Interest/Behavi
or Targeting

31. Consumer Journey
Pre-
Purchase
High LTV
Low LTV

32. Lookalike Audiences
Find more people who look like your best customers
People who have shopped
Nordstrom in the last three
months
People who have lifetime
spend at Lowes over $50k
People who are loyalty
members of Macy’s
mailing list
and people who look like them

33. Standard Audiences
ChannelData
type
Purchase based*
Psychographic
Geographic
Intent/interest
Demographic
Lifestyle/life-stage
Partner
Categories
Segments
Categories &
Interests
Interested in gardening
Newly engaged
Android phone user
Premium brand buyers
In market for entry level car
First-time mortgage household

34. Matched targets
Email addresses
Phone numbers, iOS IDFAs
Facebook User IDs, App User IDs
People you know
Direct or through third-party
People from your website
FacebookPeople you know on
Facebook
Custom Audiences
Reach your specific customers or prospects at scale

35. Custom Audiences from intent data
Acquire customers
Ads automatically served in News Feed
Drive back to your website or retarget in feed
Exit and didn’t
purchase
Your website or mobile app

36. Segmenting website visitors
Intent Recency Product
Sets
Dynamic Ads

37. Intent
Home
Page
Category
Page
Product
Page Add-to-Cart Purchase
Low intent High intent
WCA audience for each step

38. Recency
3 days 14 days 28 days7 days
Add
to Cart

39. Overlapping Demographics
Targeted Campaign #1 Targeted Campaign #2
Tip 5
Be mindful of audience
overlap

40. Tip 6
Select flexible placement options, like Instagram
and Audience Network
Avg. Cost Per Outcome:
Instagram-only
Avg. Cost Per Outcome:
Facebook-and Audience
Network only
Avg. Cost Per Outcome:
Combined
Costperoutcome
Time Elapsed

41. Source: Kissmetrics anayltics infographic: https://blog.kissmetrics.com/loading-time/?wide=1
VISIT OUR
WEBSITE
Click HereClick Here
12345WELCOME
40% of consumers abandon a
site that takes over 4 seconds
to load.
On mobile, you
need to be fast
40% of consumers abandon a
site that takes over 4 seconds
to load.
Tip 7

42. Tip 8 Improve your relevance and monitor feedback
Check your relevance
score in ads reporting
Monitor the positive and negative
feedback for your ads

43. The gap between content creation and ability to consume
content will continue to widen
Each user has over 1500 pieces
of content eligible for their
News Feed when they sign on,
but only about 300 are displayed
All media platforms face the
reality that as available content
grows, it's more difficult to reach
your audience
Competition for feed
Content
Time
Content
created
Ability to consume
content

44. Search is not a natural point
of entry on mobile
In apps,
people expect
to discover
things just for
them

45. Right content
Right person
Right time

46. Holidays on
Facebook

47. Source:
1 National Retail Federation survey, Jan. 15 2016
2 IPSOS Holiday Survey (commissioned by Facebook), US general population aged 18-65, Dec 2015-Jan 2016
3 TheStreet, Google and Facebook Will Dominate the $1 Billion Digital Ad Spend for Election 2016, June 8 2016
4 AdAge, 2016 Election Digital Ad Spending will Break $1Billion, Aug 2015
47
Holiday shopping is
starting earlier
Mobile’s role in the path to
purchase is accelerating
40%
of consumers report starting
holiday shopping by
Halloween1
20%
start by end of September1
62%
of consumers report using
their smartphone more
than in previous years to
research holiday shopping2
2016 holiday truths

48. Source: eMarketer, US Holiday Shopping Preview 2016, Feb 2016 48
Mobile is fueling online growth
2014 2015 2016
Desktop $53.31B $56.43B +6%
Mobile $7.98 $12.65B
Total $61.29 $69.08 +13%
Mobile sales
grew nearly 10x
the rate of
desktop
in 2015
+59%
US Holiday Season Retail, eCommerce Sales by
Device

49. Source: Facebook earnings, Q1 2016; Instagram internal data, June 2016, US ComScore data, Media Metrix June 2015 49
So start
sooner to
maximize
efficiency…
›20%time spent on mobile
6%
additional mobile reach
…where
consumers
spend their
time.

50. A U G U S T - S E P
Build momentum
Invest in building
awareness, prospecting and
driving demand
50
J A N - M A R
Generate loyalty
Capitalize on demand from
returners and gift card
recipients with an eye
toward growing LTV
N O W
Maximize sales
Break through the clutter to
drive holiday sales for
shoppers with high intent
1
Spread your efforts across these key stages to use your resources effectively
Let’s start maximizing!

51. Target shoppers with high intent to generate demand and sales
Break through the clutter this holiday season
Timeline
October- December
Goals
Generate demand
among existing
customers:
Focus on people
who are already
familiar with your
brand to drive
holiday sales
Retarget with
Dynamic Ads:
Drive sales by
retargeting website
and mobile app
visitors
with relevant
products
Generate store
visits and sales
Target people
near your stores
to drive foot
traffic
34
1 0 - 1 2

52. 50%of shoppers say they
leave buying
presents until
December
31%of men say
they will shop
December 11-31
Source: IPSOS Holiday Survey (commissioned by Facebook), US general population aged 18-65, Dec 2015-Jan 2016 – “During which of the following time frames do you do MOST of your holiday shopping?” 52
28%of Millennials say
they will shop
December 11-31
Buy Online, Pick-Up in Store (BOPUS) adoption may lead consumers to shop
after traditional shipping cut-off dates
27%of singles say
they will shop
December 11-31
Millions of people in the US wait to the last minute

53. Source: Facebook data, US only, Jan 1, 2015 – Jan 30, 2016. Analysis of conversion pixel and App Events data for conversions of people ages 18+ on Facebook. The gaming vertical is excluded from this analysis. 53
Transactions initiated on Facebook accelerate in Q4
People shop year-round on Facebook in the US
Number of transactions on Desktop and Mobile
Mobile Conversions Desktop conversions
Q4

54. Source: : Facebook data, US only, Jan 1, 2015 – Jan 30, 2016. Analysis of conversion pixel and App Events data for conversions of people ages 18+ on Facebook. The gaming vertical is excluded from this analysis. 54
Some Q4 moments matter more than others
Number of Transactions Initiated on Facebook in Q4
Nov 18
BLACK
FRIDAY
CYBER
MONDAY
DEC 31
JAN 17

55. Source: National Retail Federation Holiday Trends report 2015, Jan 15, 2016 55
65%
of shoppers plan to
keep shopping –
browsing and buying
– after Christmas 47%
plan to shop in-
store the week
after Christmas
plan to keep
shopping – browsing
and buying – after
Christmas
plan to shop in-store
the week
after Christmas
Consumers keep shopping
after the holidays
65% 47%
Source: National Retail Federation Holiday Trends report 2015, Jan 15, 2016

56. Source: Facebook data, US only, Dec 1-31, 2015. Analysis of posts, videos, photos uploaded by people age 18+ on Facebook. 56
267m
Average posts, photos and
videos published to Facebook
in the US every day in
December
28%increase in average daily
content uploads in December
relative to the rest of the year
84%of this content
shared via mobile
US consumers are on Facebook
throughout the holidays

57. 57
LOYALTY
N O W
Gain momentum
H O L I D A Y
Maximize sales
J A N - M A R
Generate loyalty
DEMAND
GEN ER ATIO
N
AWAR EN ESS AC QU ISITIO
N
TR AN SAC TIO
N
With Facebook, you can deliver people-based marketing
at every stage of the consumer journey

58. Build a solid
foundation
Invest in a mobile optimized creative, website and purchase experience
Prepare your product catalog for effective re-targeting
Add Facebook Pixel to your site and Facebook SDK to your app
Get to know
your audience
Identify and segment key audiences you want to target by campaign
Leverage Facebook's Audience Insights to learn about your audience (e.g. psychographics, purchase behavior) and create new
target audiences
Review your customers' conversion path based on the Facebook Pixel and SDK in ads reporting
Test different creative formats and messaging to determine what works for your audience
Set up your
auction &
delivery
strategy
Allocate your budget for always-on campaigns and for big moments
Set your budget to account for higher conversion rates during the holidays
Consider manual bidding to hit your ROAS as the auction gets competitive during the holidays; utilize automatic bidding for
dynamic ads to maximize efficiency
Be mindful of audience overlap to ensure delivery, consider consolidating ads or refining your targets
58
Plan early to maximize your holiday campaign
NOWNOW

59. Happy holidays!

60. Offers!
A. Get an account analysis by the experts at Hanapin
(For accounts spending 15k+/month)
B. No Thanks!

61. Live Q&A Time!

62. Thank you for attending our webinar! #thinkppc
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