10%

Facebook Ad

Click here

AD

SET

ADVERTISINGFACEBOOK

2019

GUIDE TO

INFOGRAPHIC 5/8

AD SETS: BUDGET & SCHEDULE

AUCTIONS

AUCTIONS

An auction takes place whenever someone is eligible to see an ad. The "participants" in an auction are ads targeted to an audience that the eligible person falls into. The ad that wins an auction and gets shown is the one with the highest total value. Total value isn't how much an advertiser is willing to pay to show their ad. It's a combination of three major factors:

BID

ESTIMATED ACTION RATES

AD QUALITY AND RELEVANCE

Using information provided in the ad creation process, the auction shows the ad to the people who are most likely to be interested in it – for the bidded price or less, and never higher.

In the ad creation process, you set parameters that the auction will use to deliver your ad to people, including:

First, set your advertising budget – a total amount to be spend daily or over the course of the campaign. This can be edited at any time. Then, set a bid – the maximum amount that to pay when someone sees your ad or takes your desired action.

Choose who you want to see your ad (more details in Audience section of this infographic).

This is where you decide how you want your ad to look. Use text, images and videos to capture people's attention. Once ad is created and submitted, it goes to ad auction, where it will start being shown to your audience.

BUDGET

AUDIENCE

CREATIVE

You can run ads on Facebook, Instagram and Audience Network on any budget, with minimum spend of $1 per day. The exact cost associated with your ad being shown to someone is determined in ad auction.

? HOW TO PURCHASE ADS?

The most common way to purchase ads for Facebook, Instagram and Audience Network is through Ads Manager. Purchase ads by creating an ad and submitting it to ad auction.

Then, set the budget and bid. Ads are shown to people who are likely to be interested, so you get results.

HOW MUCH DO FACEBOOK ADS COST??

BIDSBID BID STRATEGY

Bid strategies are cost control tools which help control your cost per optimisation event in the same way that budgets help control your overall spend. Your bid strategy choice tells Facebook how to bid for you in ad auctions. There are two bid strategies:

Lowest cost tells Facebook to bid with the goal of getting you the lowest possible cost per optimisation event while also spending your entire budget by the end of the day or your ad set's (or campaign's) schedule. You can also set a "bid cap", which tells Facebook the maximum amount to be bid in an auction.

Target cost tells Facebook to bid with the goal of achieving an average cost per optimisation event as close to your target cost as possible. This strategy is only available for campaigns using the Lead Generation, App Installs, Conversions or Catalogue Sales marketing objectives.

A bid is a number representing how much you value an optimisation event from someone in your target audience. We set your bid for you in alignment with your selected bid strategy. This may include raising or lowering it on an auction-by-auction basis, which is called "pacing" your bid (see Schedule: Pacing).

?WHICH BID STRATEGY TO CHOOSE

When bidding for Facebook Ads, the basic trade-off is between efficiency and stability.

If you care more about getting the most value from your budget, recommended is the lowest cost bid strategy. If you care more about having a stable average cost per optimisation event, we recommend the target cost bid strategy.

BUDGETS

MINIMUM BUDGET

The budget is the amount of money that you want to spend on showing people your ads. But it also allows you to control your overall spend for an ad set or a campaign. You can set your budget at the ad set or, as a new feature with Campaign Budget Optimization, at a campaign level.

ADS BUDGET

Daily budget, means you are setting an average budget per day.

Facebook will try to get you results that approximately match your daily budget, every day.

Opportunities for showing your ads fluctuate on a daily basis, Facebook adjusts your daily spending to make it as efficient as possible; some days only a portion of the budget is spent, and when there are better opportunities, up to 25% over the daily budget can be spent.

To mitigate overspending, Facebook makes sure that the money spent meets the average budget you have set over a course of one calendar week (Sunday to Saturday).

Lifetime budget means you set the amount of money you are willing to spend over the entire runtime of your ad set (or campaign).

With this option, you cannot go over budget, as the amount set is an absolute maximum to be spent on the ads.

Facebook then tries to spend that budget evenly over your ad set’s or campaign’s lifetime. However, in this case too can happen that due to ad delivery amount of money spent won’t be exactly the same every day, as the delivery gets more optimized for conversions.

Therefore, allocating different portions of the budget to maximize the results.

The actual minimum budget will depend on several factors.

Facebook requires you to provide a minimum budget in order to deliver the ad consistently. Minimum budget is calculated as a daily amount, regardless if you opted for a daily or a lifetime option. It is listed in USD and depends on your bid strategy and charge choice.

With charge choice, you can determine what event you want to cause money to be removed from your budget (like whenever someone clicks an ad link or watches a certain percentage of a video). The choices you have depend on what objective you choose.

Also, the currency you are using plays a role, as shown in the table.

CLICKSLIKES

VIDEO VIEWS,POST ENGAGEMENT

LOW FREQUENCY EVENTS---

OFFER CLAIMS, APP INSTALLS

IMPRESSIONSCHARGE CHOICE

CURRENCY

EUR

USD

AUD

CAD

SGD

JPY

EUR

NZD

TWD

CHF

SEK

HKD

GBP

ILS

NOK

KRW

OTHER CURRENCIES

DKK

$1 / DAY

$0.5 / DAY

$5 / DAY $40/ DAY

$2.5 / DAY $20/ DAY

DAILY BUDGET LIFETIME BUDGET

You can pause running an ad at any time.

Once the ad is paused, you may still receive a bill for the time it has been running, but it will stop further charges from/for the time it has been paused.

SCHEDULE

When scheduling your ads, you can control what dates and times ads are to be shown.

Ad will be eligible to start running after it is reviewed and approved. This review process typically takes up to 24 hours, although in some cases, it may take longer.

If you want an ad to start running on a specific date in the future, you can:

Create your ad in advance and turn it off, then turn it on when you want it to start running

Set a schedule while creating your ad set

Ads are not delivered outside of the set schedule. However, it's possible that a small amount of people could see them outside the schedule, because delivery of ads is independant of when people actually see them.

SCHEDULE

PACING

Pacing is a mechanism that ensures your budget is being spent evenly over the schedule of your ad set; as well as to meet the cost goals of your bid strategy. It may be useful to think of it as the intersection of your budget and your bid strategy.

There are two aspects of pacing that work together:

budget pacing bid pacing

In order to get the most from your budget, Facebook paces spending across the schedule set in the ad set; so it doesn’t happen that you run out of the budget before the schedule ends.

€

€

€

€

€ €

€

€ €

€

€

€

€

€1

TIME

BUD

GET

%

€15TOTAL BUDGET

24 H

OUR

S

1€

€3

€1

€2 €2

€3 €3 €3

2€

€3

€4

€5

FAST PACED(ACCELERATED DELIVERY)

CONSERVATIVELY PACED

OPTIMALLY PACED(STANDARD DELIVERY)

TOTAL BUDGET TO SPEND €15

BUDGETREACHED€15

AD DELIVERY : STANDARD VS ACCELERATED

€10 TOTAL BUDGET TO SPEND €10

TIME IN WHICH THERE IS MONEY BUDGET REACHED

TIME

BUD

GET

%

CUMULATIVE SPEND

TOTAL BUDGET €10

TIME

BUD

GET

%

CUMULATIVE SPEND

€10TOTAL BUDGET

STANDARD DELIVERY ACCELERATED DELIVERY

Standard delivery is the default delivery option when you launch Facebook ads. It will try to deliver your ads in a way that is evenly distributed throughout the day. In other words, your campaigns will be paced.

Accelerated delivery means there is no pacing! The ads will be shown as frequently and quickly as possible as soon as you launch your campaign’s start date and time.

When you are launching a sales

campaign and have a specific or short

time frame in order to engage a maximum number of people with your

campaign.

When you have a live show and want as many people to see your video as possible. This will

allow you to increase your reach much

quicker.

When you are launching a new

product or service and want to create

as much awareness as

possible, as quickly as possible.

When you have a campaign that is short of time or time-sensitive

which will allow you to spend your budget quickly and

reach as many people as possible.

If you have a siezable budget, you can afford to optimize and test

accelerated delivery; especially for campaigns with

reach and awareness objectives.

BIGGER BUDGETSTIME-SENSITIVECAMPAIGNS

LIVE SHOW FLASH SALES PRODUCT LAUNCHES

€

? WHEN TO PICK ACCELERATED DELIVERY

CAMPAIGN BUDGET OPTIMIZATION (CBO)

In November 2017, Facebook introduced Campaign Budget Optimization (CBO) which allows advertisers to set one central campaign budget for all of the ad sets.

It is available for any campaign objective but best suited for campaigns with multiple ad sets.

The main difference between CBO and „the usual way“ is that instead of setting the budget on the ad-set level and fine-tuning each segment’s budget, you simply set the daily or lifetime budget for the whole campaign. After that, Facebook takes over and automatically distributes the budget in real time to the top-performing ad sets. The goal is to help you spend the budget more efficiently without the need to manually shift budgets between ad sets (see image).

TOTAL CONVERSIONS: 10

€10 €10 €10AD SET 1 AD SET 3AD SET 2

€10€10

€10

CAMPAIGN

AD SET 1 AD SET 3AD SET 2

TOTAL CONVERSIONS: 15

CAMPAIGN

€30

€7

€18

€5

WITHOUT CAMPAIGN BUDGET OPTIMIZATION WITH CAMPAIGN BUDGET OPTIMIZATION

€10 ALLOCATED BUDGET €10 SPENT BUDGET CONVERSION

Budget allocated at Campaign level and

distributed dynamically Budget allocated at Ad

Set level and distributed evenly

BILLING

The budget you set for Facebook ads is not necessarily the amount you’ll actually spend. There is a difference between the budget and the spend:

BUDGET THE SPEND

The amount of money that you are willing to spend on your ad to run.

The amount of money you actually pay for your ad to run.

PRICING

The pricing of Facebook ads is based on an auction system where ads compete for impressions based on bid and performance. When you run your ad, you’ll only be charged for the number of clicks or the number of impressions that your ad received.

PAYMENT METHODS

When you’ll pay for your ads depends on your chosen method of payment. When you create your first ad on Facebook, you’ll add a payment method to your ad account, and that payment method determines your payment setting. There are two main payment settings for Facebook ads:

AUTOMATIC MANUAL

If you use PayPal or most credit and debit cards to purchase ads, the amount is automatically charged whenever you spend a certain amount (billing threshold) and again on your monthly bill date for any leftover costs.

If you use a manual payment method (like PayTM or Boleto Bancário) to purchase ads, there is no billing threshold. Money is pre-paid to your account first and then deducted from that amount up to once a day as you run ads.

To see how much you are spending on your ads, you can see an estimated daily spending limit in the Billing section of Ads Manager. There you can find all your final charges, including the specific ads and conversion goals that you’ve paid for.

In this step you will determine your budget and schedule you want your ads to run.

STEP BY STEP OVERVIEW

PRACTICAL GUIDE

CREATE CAMPAIGN & SET YOUR OBJECTIVE

4

5

8

7

1

2

3

6

AD SETS: SET YOUR BUDGET & SCHEDULE

PLACE YOUR ORDER

CHOOSE YOUR PLATFORM AND LOG INTO ACCOUNT

AD SETS: PICK THE PLACEMENT

AD SETS: CHOOSE YOUR AUDIENCE

MEASURE AND OPTIMIZE YOUR ADS

ADS: CREATE YOUR AD

1

5

REFERENCES

List of all references and sources used for this Guide can be found at: http://10vorne.it/complete-guide-facebook-ads-2019/#references

Next up:

ADS: Format, Content, CreativeInfographic 6/8

© . i tG U I D E T O F A C E B O O K A D V E R T I S I N G I N 2 0 1 9 - C O M P I L E D B Y 1 0 V O R N E . I T - A P R I L 2 0 1 9

STEP 5: SET YOUR BUDGET AND SCHEDULE

Budget

Daily budgets: The average amount that you're willing to spend on an ad set or campaign every day. This means that Facebook will try to get you roughly your daily budget's worth of the result that you optimised for every day. However, there may be certain days that are better opportunities than others to get you more of that result. On these days, we may spend up to 125% of your daily budget.

Schedule

If you have a lifetime budget, you can schedule your ad set to run on a specific day and at a specific time. When you schedule your ad set, your ad set must run for at least hour.

AUCTION BUYING

Lifetime budgets: The amount that you're willing to spend over the entire run-time of your ad set or campaign. You won't be charged more than your lifetime budget for your ad set's results. If you're using standard delivery (recommended), budget will be spent evenly over your ad set's lifetime.

With Ad Scheduling you can:

Specify what days and times you want your ad to be servedCombine run times with independent budgets and audiencesSee how your ads perform at different times of day

In Business Manager’s Power Editor there is a feature Ad scheduling.

When you get charged

By impression (CPM) - you’ll get charged every time an impression of your ad is shown, with the price calculated per 1,000 impressions.

By link click (CPC) - you’ll only get charged when someone clicks a link in your ad.

Optimization for Ad Delivery

The Optimization for Ad Delivery tells Facebook what’s the end goal you want this campaign to achieve.

Link Clicks - drive traffic to your websiteConversions - if your goal os to get people to convert on your websiteApp Install - if you want users to install your app

Bid Strategy

Lowest cost - bidding with a lowest possible cost per optimisation event while aspending your entire budget by the end of the day or your ad set's (or campaign's) schedule. You can also set a "bid cap".

Target cost - bidding with the goal of achieving an average cost per optimisation event as close to your target cost as possible; only available for certain objectives (see above)

Which one to choose? Check above:

?WHICH BID STRATEGY TO CHOOSE

Ad Scheduling

Facebook also allows advertisers to set up custom ad delivery schedules, so that your ads will reach people at your chosen weekdays, at your chosen time of day.

Run ads all the time is recommanded for the first ad campaign. That way you’ll gain the insight from your ad reports and figure out which hours and days perform best.

Run ads on a schedule is a great option to set up a custom schedule once you have an insight on best performance.

Delivery Type

The last selection in the Ad Set level is Delivery Type. There are two options:

Standard ad delivery – Facebook will deliver your ads with the optimal speed at the lowest cost

Accelerated ad delivery – Facebook will deliver your ads as quickly as possible, resulting in higher ad costs. It is mostly relevant to large advertisers who run time-sensitive campaigns. Since accelerated delivery optimizes for speed, not value, it often blows the budget and ends up with a higher cost per result.

Therefore, for a non time-sensitive campaigns, it is recommanded to use standard ad delivery.

Reach & Frequency

Reach and frequency is a buying type that lets you select a fixed CPM, so you know what you'll pay to reach your audience before you book your campaign. It allows you to predictably reach your chosen audience while controlling the number of times that your audience sees your ads as well as the days on which they see your ads, the times of day that they see them and in which order they see them. It is currently being rolled out to qualified ad accounts and is not available to all accounts. Reach & Frequency Graph

Lifetime Budget

To adjust your budget according to the number of people you want to reach, draft and drop the vertical line in the reach & budget graph.

Your predicted results and lifetime budget will automatically adjust to match the reach that you choose. You can continue to adjust the reach & budget graph as you create your campaign, ad set or ad.

REACH AND FREQUENCY BUYING