Facebook Study Set

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The factors we consider in predicting an ad's relevance to a person on Facebook, Instagram, or Audience Network....

is constantly changing

Pantene Brazil

Increased its reach and engagement among female consumers in Brazil, Argentina, and Mexico

You can target ads by mobile device under

Mobile Device User

2014 Instagram

When Facebook acquired Instagram, it got a platform for visual expression which allows advertisers more opportunities to reach their target audience efficiently.

Location Targeting

allows marketers to target ads by postal code, city, region, or country — or worldwide — and to deliver ads based on where people are, whether they live in a location, are new arrivals, or just visiting

expected click through rate

eCTR- clicks

Interest Targeting

focuses on consumer and lifestyle categories such as fitness, fashion, or hobbies.

You should only add language targeting if the language you're targeting is...

not the primary language spoken in the location you're targeting.

Accuracy of internet targeting globally

only 65% accurate at reaching broadly defined audiences

Our US Hispanic, African American, and Asian American affinity audiences are defined by

peoples' affinity to cultures they've demonstrated an interest in through their behaviors on Facebook. This is why you'll find affinity group audiences under behaviors, rather than demographics.

Regional targeting

provides a way to identify and target countries based on non-geographic commonalities

Over ___ people are consistently using Facebook on mobile every day

1 billion

When did Facebook launch?

2004

Accelerated delivery

Allows advertisers to spend their budgets as quickly as possible

2007 Become A Fan Button

Along with Facebook Pages, the Become a Fan button allowed people to broadcast their interactions with Pages to their friends. This kept advertisement authentic and provided a platform for legitimate word-of-mouth advertising online. Facebook was focused on people's experience and never wanted advertising to feel intrusive.

The default Facebook ad targeting option is

Core Audience

You can target ads by desktop browser and operating system under

Digital Activities

Ad Relevance Factors

Expected Clicks, Engagement, Conversion Rate, Expected Positive Feedback, Expected x-outs

Targeting for Core Audiences

Happens at the ad set level, and audiences can be broken out into separate ad sets when you'd bid differently to reach each audience.

Concern Worldwide

Improved audience engagement levels when they tried a 6-month 'experiment and learn' exercise that revealed the true power of images

African American affinity cluster

More than 20 million members of the African American affinity audience spend time on Facebook each month, and 16 million (81%) are daily visitors.5 19 million (95.5%) visit Facebook on mobile devices, and 60.1% access Facebook exclusively via mobile.6

2009 Language, Geo, Connections Targeting

Powerful new targeting features allowed businesses to select the users who received their ads based on language, gender, workplace, geographic location, education level, age, relationship status, and even profile keywords. Targeted ads could also be shown to all users who were connected with a business's Page or ads on Facebook. This expansion allowed advertisers to stretch their advertising budget while still making ads meaningful.

Lookalike Audiences

Surface new audiences by combining Custom Audiences with Facebook targeting.

Core Audiences

Target ads using Facebook data.

US Hispanic affinity cluster

The US Hispanic population reached 56.6 million in 2015, comprising 17.6% of the US population. 2 96.9% of the Hispanic affinity audience accesses Facebook via mobile, and 66.8% access Facebook exclusively via mobile.3

The more relevant we predict an ad will be to a person...

The less it should cost for the advertiser to show the ad to that person

2012 Non-Connected Page Post Ads

This update to ads in News Feed allowed advertisers to share ads with anyone they wanted to target, including those who weren't already connected to their brand. A "Like" button was included on the ad so that people could instantly connect with brands and businesses that interested them.

Audience exclusion

To exclude an audience, select Exclude from the Audience section of your ad set.

2008 Engagement Ads

To keep ads feeling like a natural extension of the user experience, Facebook let people engage with ads. People could make comments, share gifts from the ad with friends, or become a fan of the product or company. This generated a notification in their News Feed and continued the tradition of keeping advertising personal and unobtrusive.

If you're optimizing for impressions or reach and paying for impressions (CPM) ...

Total Bid = [ CPM bid ] + [ ad relevance and quality factors ]

If you're optimizing for actions and you're paying for actions* (CPA) or impressions (oCPM)

Total Bid = [(CPA or oCPM bid) x (click-through rate, or eCTR) x (conversion probability, or eCVR) * 1000] + ad relevance and quality factors]

If you're optimizing and paying for clicks (CPC) ....

Total Bid = [(CPC bid) x (expected click-through rate or eCTR) *1000] + [ad relevance and quality factors]

True or False: Facebook tries to show your ads evenly throughout the day so that the people most valuable to you in your target audience are more likely to see them

True

True or False: There is a limited number of ads in a users Facebook news feed.

True

Custom Audiences

Use data from your CMS, website, mobile app, or other sources to target Facebook ads to people you already know.

Dominant Language Targeting

When messaging to the US Hispanic affinity audience, marketers can create English-language, Spanish-language, and bilingual ads and ad sets. According to an October 2016 Facebook IQ study on language preference, brands that advertise in Spanish are seen in a positive light. 79% of Spanish-dominant, 82% of Bilingual, and 60% of English-dominant research participants surveyed think brands should advertise in both Spanish and English.4

Target by connections

You can include or exclude people from Core Audiences based on whether they engage with your Facebook Page, your apps, or your Facebook Events. You can also target or exclude friends and connections of people who have engaged with your content.

Predictions for eCTR and eCVR can be influenced by the following factors...

ad history, ad set history, campaign history, user characteristics, page type, and activity on the specific ad.

When your ad enters the Facebook ad auction, it competes with other ads in the auction....

aimed at people in your target audience

multiple targeting characteristics

be aware that each additional one narrows the total pool of people that your ad set can be shown to; the Audience Size indicator can help you find the right balance.

Ad relevance

captures things like expected engagement (ex. clicks), expected positive feedback (Ex. likes, shares), and expected negative feedback (Ex. hiding the ad) - from the individual people in your target audience

expected click to conversion rate

eCVR- actions

Target Connections

to include or exclude audience segments based on their engagement with your Facebook Page, Facebook Events, or app.

The Facebook ad auction is designed...

to maximize advertiser value while optimizing the consumer experience for audiences on Facebook, Instagram, and Audience Network

The Facebook ad auction is designed to promote

truthful bidding

To help you gauge how interesting or relevant we expect your ad will be to people in your target audience compared to other ads targeting those people....

we provide a metric in Ads Reporting called Relevance Score.

Regions that you can advertise to

Free trade areas: Advertise within a single free trade area — for example, the European Economic Area. •App Store regions: Target only countries where the iTunes App Store, Android Paid Store, or Android Free Store is available. Or mix-and-match. •Emerging markets: Identify and advertise in one of more than 20 countries that are experiencing rapid economic growth. •Euro Area: Target people in countries that use the euro as their common currency.

Over___people accessed Facebook from a mobile phone on an average day in December

1.15 billion

SalesForce

50% lower cost per lead relative to goal

After your ad is served more than _____ times, your ad receives a daily relevance score

500

By 2020, ___ of the world's mobile data traffic will be video

75%

Thermalquellen Brigerbad

80% of web traffic from new visitors

Accuracy of Facebook Targeting

85% accurate in broadly targeted global campaigns—and up to 90% accurate for US campaigns combining age and gender

2006 Facebook Ads

An advertiser's ad could now appear in Facebook's right-hand column when viewed on desktop. Facebook believed that the future of advertising should not be about interrupting what people are doing. By getting the right information about the purchases they make when they want it, Facebook paved the way for marketers to advertise differently online.

Asian American affinity cluster

Asian American-affiliated audiences on Facebook may identify with cultures ranging from Pakistan to Malaysia. 7.2 million people connected with Asian cultures visit Facebook each month, and 5 million of them are on Facebook every day.7 89.8% of this audience — 6.3 million people — access Facebook via mobile. 43.4% are mobile-only visitors.8 In a Facebook IQ Digital Diversity study, 55% of Asian American survey participants — and 82% of Asian American respondents who were born outside the US — report that Facebook Messenger is their go-to method for communicating with friends and family abroad.

Access all saved audiences, Custom Audiences, and Lookalike Audiences associated with your ad account

Audiences area of Ads Manager or Power

2012 Custom Audiences

Custom Audiences was a powerful tool that Facebook released in 2012. Power Editor users could upload bulk data like emails, user IDs or phone numbers, and create a targeted Custom Audience. This allowed advertisers to connect on Facebook with data collected outside of Facebook, and continues to be a driver for successfully targeted campaigns on Facebook today.

Four different types of location based targeting

Everyone in a location •Locals: Only people who identify that location as their home •New residents: Only people who recently updated their location •Visitors: People who have checked into or been tagged in a place that isn't their primary location

Modify and Manage Audiences

Explore creation and use history for all your Page's audiences. Edit and securely share audiences, and investigate overlaps.

2015 360 Video

Facebook 360 Videos and Photos offer a captivating way for immersive storytelling. You can use 360 Videos and Photos to share stories, places, and experiences with your audience.

2016 Facebook Live

Facebook Live is a way for people to broadcast to the world in real time via their mobile devices. It's an easy, powerful way for anyone — including public figures and news publishers — to connect with and inform their audiences via live video broadcasts. You can go live from a Page, profile, group, or event.

____ is the only place on mobile that an advertisement can appear

Facebook News Feed

2009 Like Button

Facebook evolved the Become a Fan button to let people initiate a connection with their favorite businesses by liking their Page. This feature increased opt-in campaigns and brand resonance.

2012: Ads in News Feed

Facebook included the ability to place ads in News Feeds for people who were already connected to businesses through Facebook Pages. These ads were less formal and more personal, and designed to be a natural part of the News Feed experience

2013 Partner Categories

Facebook introduced Partner Categories in 2013, which allowed advertisers to target the right people based on their activity off Facebook. For example, car companies could use offline data from third-party data providers to target people whose actions indicate they may be shopping for a new car.

sponsoredgroups

Facebook launched sponsored groups in 2006 to connect users with the brands they love. Large retailers were able to direct-market to Facebook users through Sponsored Groups. However, as the News Feed was built, Facebook recognized that there was an even more powerful way for brands to connect with people.

Value-based Lookalikes

Include a customer value file when creating a Custom Audience to seed a Lookalike Audience that resembles your very best customers, based on previous or predicted spend.

2016 Instagram Stories

Instagram Stories allow people to capture and share daily moments as they happen. As people share multiple photos and videos, they appear together in a slideshow format as a single story. The photos and videos will disappear after 24 hours and won't appear within the profile grid or in feed.

The ad auction works the same way for ads on Facebook as it does for...

Instagram and Audience Network

App store availability requires which targeting method

Regional targeting

What considerations does Facebook use to determine which advertiser wins the auction?

The advertisers' bids, how interesting and relevant they think the user will find each of these advertisers' ads, and how likely the user would take an action such as clicking or making a purchase after seeing the ad

Audience overlap

When you have two or more audiences selected, you can examine the overlap between them from the Actions dropdown. Some overlap between audiences is okay, but can lead to lower delivery of your ad sets. When ad sets from the same advertiser target similar audiences during the same timeframe, they may end up competing against each other in the ad auction, which can drive up prices for everyone in that auction and lead to inefficient use of your budget. To avoid this, when two ad sets from the same ad account target the same audience, Facebook only allows the ad set with the best performance history in.

What are the five targeting options for Core Audiences

demographics, locations, interests, behaviors, and connections.

Demographic targeting

draws from information that people share publicly on Facebook about their education, political views, family/relationship status, life events, career, and more..

Behavior Targeting

draws on Facebook and third-party data around travel, home and vehicle ownership, charitable donations, device usage, and other consumer behaviors.

Age restrictions on Facebook Ads

financial services, gambling or lotteries, and health and fitness products — including herbal and dietary supplements. Age restrictions regarding alcohol can vary by country, state, or province. Explore the full alcohol advertising policy, including the complete list of geographic restrictions.

Your ad relevance scores ranges...

from 1 (not very relevant) to 10 (highly relevant).

Lookalike Audiences

help marketers find new audiences that resemble people already connected to the brand.

Specific categories such as ______cannot be marketed on the basis of multicultural affinity.

housing, employment, and credit

Advertiser Bid (effective CPM bid, or eCPM)

how much an advertiser values a certain outcome from a person in his or her target audience.

Your Ad relevance score shows...

how relevant we predict your ad will be compared to other ads targeting people in your target audience at the same time. You can view the score in Ads Manager by going to Campaigns and clicking Ads.

the Vickrey-Clarke-Groves (VCG) model

incentive-compatible auction, meaning that if advertisers bid their true value for the action that the ad is being optimized for, this can help maximize their ROI

•Interest targeting

lets marketers reach specific audiences by looking at people's interests, activities, the Pages and posts they like, posts and comments they make, and closely related topics.

Behavior Targeting

lets you reach people based on purchase behaviors, device usage, and other activities

Steps for adding location targeting...

log into Ads Manager or Power Editor. Create a new campaign, or add an ad set to an existing campaign. Remember, audience targeting occurs at the ad set level.

People who demonstrate interest in a "multicultural affinity" have

responded well in the past to content that's affiliated with certain cultural identifiers. Targeting by multicultural affinity can help advertisers serve highly-relevant content.

As an advertiser, you can optimize for different outcomes...

such as clicks, impressions, installs, conversions, or reach. With your bid, you tell us the price you're willing to pay for that outcome from someone in your target audience.

Use the browse feature to....

target your ads worldwide, by geographic area, country, city, or postal code.

Facebook's audience types help marketers target ads using data....

that people self-report to Facebook publicly as well as data from third-party companies.

Facebook ad auctions are structured on which model?

the Vickrey-Clarke-Groves (VCG) model

After an ad wins an auction, the price paid for the winning ad is based on....

value lost by all of the advertisers whose ads did not get shown - not just the bid of the second place advertiser. We determine this lost value based on those advertisers' bids. Because your price is based on the value lost by all of the advertisers you've displaced, and not just one bidder, this minimizes the ability for people to "game" the auction by trying to undercut any single bidder.

2007 Facebook Pages for Business

were distinct, customized profiles designed for businesses, bands, celebrities, and more to represent themselves on Facebook. This allowed people to connect with their favorite music, restaurants, and brands in meaningful ways.

Before you can target ads to Lookalike Audiences, you'll need to determine ....

what audience characteristics to match, and how closely the people in the Lookalike Audience should resemble those in the initial data source that it's based on

When building core audiences you can...

you can opt to include or exclude people from your target audience based on any of these attributes. You can save Core Audiences for future use, and can modify Saved Audiences to test and optimize your targeting.

613 inn achieved the following results using Facebook marketing

•10X increase in website visits in 2 months •3X increase in bookings in one year

There are a few strategies marketers can use to avoid overlapping audiences:

•Craft different ads targeted to different audiences. If you're looking to create awareness for cooking classes, customize different ads for each audience. For example:•Females, ages 20-35: Cooking classes are a great date night activity •Males, ages 20-35: Learn to make simple, five-ingredient meals •Busy families, ages 36-50: Master fast and healthy dishes even picky eaters will love This strategy not only helps create more relevant messages, but reduces targeting overlap and underdelivery. •Consolidate your audiences into larger but fewer audience segments. •Evaluate the timing of ad sets and decide if they can be run at different times. •Exclude similar audiences.

You can use lookalike audiences to reach people who are similar to....

•Existing customers •People who like your Facebook Page •Visitors to your website •People who engage with your mobile app

Facebook Targeted Reach Statistics

•On average, nearly 1.9 billion people log into Facebook every month.1613 inn •There are over 1 billion people on mobile daily.1 •On average, more than 1 billion people use Facebook every day.

Facebook's three key pillars of value for marketers

•Targeted Reach •Deep Engagement •Proven Results

Total bid is calculated using:

•Your stated bid •How we expect people in your target audience to take action after they see your ad •How relevant we predict people in your target audience will find your ad


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