Organizing the World of Marketing
When we started our careers in social marketing, Facebook had one ad unit - the right hand rail ad. Newsfeed ads didn't even exist. Bidding was all CPC based and oCPM was a big deal when it was rolled out.
Cut to 12 years later and Facebook is like an all-in-one printer for marketers. It gets the job done but you’ll be mad at it about once a quarter.
As such, nearly every business has a place on social but clearly the expectations should be different based on the offering. Inspired by nearly *every non-fiction book or business case study, dysrupt has built a helpful organizational model for social marketers.
We organize the world of 8 million advertisers based on two criteria, scale and feedback loop.
- Scale is the easier of the two to define and we think of it as both the overall marketing budget and the brand’s size, TAM, and resonance. These aspects are all heavily correlated with few exceptions - like Wish.
- Feedback Loop is more nuanced. Brands with low feedback loops have long sales cycles and/or decision making processes. A B2B product that needs the CTO sign off is a low feedback loop business. On the other end of the spectrum, high feedback loop businesses are receiving data constantly which allows them to act quickly.
Let us provide a brief introduction to our four quadrants of marketers on Facebook.
Land of Plenty
These are the advertisers that grab headlines and are constantly referenced by your Facebook reps. Largely dominated by eCommerce and Gaming, these businesses have 8 figure plus marketing budgets on Facebook alone. Why? Because they are kings and queens of their first party data and can ensure their marketing is ROI positive on an hourly or worse, daily basis.
The Wild West
This is the hardest quadrant to exist in because everyone’s problems are slightly different and unique. Adherence to best practices get you into The Wild West but they don’t allow you break free. Competition is intense. Turning your marketing into a competitive advantage and pursuing growth hacks - including funding - will quicken your journey.
Suburbia
Businesses that exist in this space can be widely profitable and large or just starting out. To extend the analogy, the mansions or the starter homes of the area.
The defining principle of suburbia is that the Total Addressable Market, TAM, is relatively small. A small market does not mean that marketing on social isn’t worthwhile, it does mean that realistic expectations need to be understood.
**Middlemenistan
Businesses in this quadrant are varied but share a characteristic that they are not vertically aligned. They have a 1st party data issue on tying their marketing to sales. The often quoted, “half the money I spend on advertising is wasted; the trouble is, I don't know which half” is actually relevant in this quadrant as feedback loops are cumbersome.
A unique feature of middlemenistan are the businesses that remove these middlemen become unicorns: Netflix, Glossier, Tesla, Cash App, etc. all identified middlemen in their industry and went direct-to-consumer with a product or service. E.g. Glossier could have sold via Sephora and Ulta like many in the Beauty space but went direct to consumer to increase the feedback loop and 1st part data of their business. Tesla removed the independent dealer layer in their business model. Netflix is now launching movies in theaters after amassing a huge 1st party data set of releasing content direct to consumer.
We will be doing a series of write ups around this break out in 2021. For a final thought exercise we mapped out some typical paths businesses take as they move through the chart.
*The authors have a theory that to publish a book for the business minded reader, a 2x2 grid is a necessity. They are aware that no 2x2 grid is 100% accurate. The goal of this exercise is to provide a short hand to the market that can explain 85% of circumstances. Because of some psychological bias, most readers will think they are in the 15% cohort.
**In Black Swan Nassim Nicholas Taleb constructs Extremistan and Mediocristan to help illustrate his points around different distributions. We were inspired but the names are subject to change 😃
--
Photo by Sticker Mule on Unsplash
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Facebook Ads Bidding Strategies can either make or break your advertising campaign. If you've been struggling with getting the best results, understanding the benefits and drawbacks of each strategy can save you both time and money. The right bidding strategy can help you reach your target audience more effectively and get the most out of your advertising budget.
Each bidding strategy has its unique benefits and challenges. Some are great for maximizing visibility, while others prioritize cost-efficiency. Choosing the right one depends on your specific goals, whether that's more clicks, better engagement, or higher sales. Knowing the pros and cons of each strategy will help you make informed choices that benefit your business.
This article will guide you through five key Facebook Ads Bidding Strategies. You’ll learn about their benefits, drawbacks, and how to pick the one that suits your campaign objectives. By the end, you’ll have a clear understanding of which strategy will help you achieve your advertising goals effectively.
Understanding Facebook Bidding Mechanics
Facebook bidding is essential for advertising success. It involves auctions where advertisers compete for ad placements. Understanding key elements like Auction Dynamics and Different Bidding Strategies is crucial.
Auction Dynamics and How Bids Work
In Facebook's auction, ads compete based on bids, estimated action rates, and ad quality. Bid represents how much you're willing to pay for a specific action (like clicks, views, or conversions). The Cost Per Result adjusts based on competition.
Bid Cap lets advertisers set a maximum bid. This ensures spending control but may limit campaign reach. Meta bidding strategies, like Lowest Cost and Target Cost, help optimize for specific goals, balancing cost and performance.
Factors influencing the auction include:
- Bid amount
- Ad relevance
- Estimated action rates
Exploring Different Bidding Strategies
Advertisers can choose from several Facebook bidding strategies. The Lowest Cost strategy aims to get the most results for the lowest price but may lack spending control. The Cost Cap strategy helps maintain an average cost while driving results.
The Bid Cap strategy is useful for high-control needs, letting you set the max bid per action but it might restrict delivery. Target Cost aims for a stable cost per action, ideal for steady budget planning.
Choosing the right strategy depends on your campaign goals, budget, and desired Cost Per Result. Evaluate each option to find the best fit for your needs.
Implementing Bidding Strategies for Campaign Success
Successful implementation of bidding strategies can drive better results and optimize ad spend. Key factors include setting appropriate bid caps, maximizing returns using ROAS goals, and balancing volume and value.
Setting the Right Bid Cap for Your Campaign
Setting the right bid cap involves determining the maximum amount you are willing to pay for a result. This ensures costs don't exceed the budget. Bid caps can help control spending and improve efficiency.
- Analyze past performance: Review historical data to identify the highest bid that achieved desired results.
- Adjust as needed: Be flexible to change bid caps based on real-time campaign performance.
- Consider the competition: Higher bid caps might be necessary in competitive markets.
Maximizing Returns with ROAS Goals
Use the Return on Ad Spend (ROAS) bid strategy to drive maximum returns. ROAS goals ensure that every dollar spent on ads generates a specific amount of revenue.
- Calculate target ROAS: Set a realistic ROAS based on past campaigns.
- Monitor and tweak: Regularly check ad performance and adjust your ROAS goals to meet revenue targets.
- Balance quality and cost: High ROAS might limit reach, so find a balance between cost and quality.
Balancing Volume and Value in Bidding
Balancing volume and value helps achieve the right mix of reach and profitability. Consider using both Highest Volume and Highest Value strategies.
- Highest Volume: Bids are set to get the most conversions, good for awareness and large-scale campaigns.
- Highest Value: Focuses on getting the highest-value conversions, suitable for targeting high-value customers.
By carefully implementing these strategies, advertisers can meet their campaign goals effectively.
5 Facebook Bidding Strategies: Benefits, Drawbacks, and Selection Guide
Static ads and dynamic ads serve different purposes in the world of marketing. Static ads are simple and stay the same at all times. They are easy to create and can be effective for straightforward messaging. But dynamic ads offer customization, changing their content to fit the audience's preferences and behaviors.
Dynamic ads might seem complicated, but they bring better results by targeting specific groups with personalized messages. This means higher engagement rates and more conversions. Static ads, on the other hand, are less effort to produce but may not capture attention as effectively.
Deciding between static and dynamic ads depends on the brand's goals and resources. Each has its strengths and can be powerful if used appropriately in a marketing strategy.
Understanding Static and Dynamic Ads
Static ads and dynamic ads serve different purposes in digital marketing. Each has unique features and benefits that cater to varied marketing needs.
Exploring Static Image Ads
Static image ads are straightforward. They are typically still images that do not change once created. These ads are ideal for conveying a clear, unchanging message or brand image.
A static image can include text, graphics, and logos, and is often used on websites and social media platforms.
Advantages of Static Images
- Consistency: The message remains the same, which can be useful for brand recognition.
- Simplicity: They are simple to create and often cost less than dynamic ads.
- Predictability: Once the ad goes live, what you see is what you get.
Unpacking Dynamic Advertising
Dynamic ads are more complex. They can change content in real-time based on user data and behavior. Unlike static ads, dynamic ads can alter images, text, and calls to action depending on who is viewing the ad.
Benefits of Dynamic Ads
- Personalization: Content can be tailored to each user, potentially increasing engagement.
- Flexibility: They can show different messages to different audiences without creating multiple ads.
- Efficiency: They adapt to user preferences, making the ad experience more relevant.
Comparative Analysis and Use Cases
Static and dynamic ads offer different benefits and limitations. This comparison will help you understand where and how to use each type effectively in your marketing strategy.
Static Images Vs. Videos
Static images are simple and quick to create. They load faster than videos, which is great for mobile users and slow internet connections. They allow for clear, focused messages without distractions.
Videos, on the other hand, capture attention better with motion and sound. They convey more information in a short time. Videos are more engaging and can demonstrate products or services in action.
Leveraging Opportunities for Static Ads
Static ads are useful in various scenarios. Billboards are a great example, as they need to be read quickly. Print ads in magazines and newspapers also benefit from static images. Online banners are often more effective when static, as they load quickly and are less intrusive.
Static ads are best when the message is straightforward. They work well for short calls to action like "Buy Now" or "Sign Up." Visually, they should be clean and uncluttered to convey the message quickly.
