Meta Media Buying Professional Exam Study Guide PDF

Media Buying Professional Exam study guide APRIL 2024 VERSION Table of contents Overview 3 Meta Advertising Standards 4 Meta Ads Manager 10 Meta Business Manager 13 From business...

Media Buying Professional Exam study guide APRIL 2024 VERSION Table of contents Overview 3 Meta Advertising Standards 4 Meta Ads Manager 10 Meta Business Manager 13 From business goals to ad objectives 20 Ads targeting options 29 Buying types 43 Auction bid strategies 52 Ad delivery optimization in the ad auction 60 Get started with data driven marketing 72 Tests to measure ad effectiveness 87 Automated rules 103 Creative strategy 107 Study questions 117 Answer key 129 Glossary 134 Overview Meta Certification can help you get noticed. Meta Certification recognizes advanced-level proficiency with Facebook, Messenger and Instagram. Certification is the highest level of accreditation that Meta recognizes in digital marketing. Help boost your resume, credibility and career. This document helps prepare you for the Meta Certified Media Buying Professional Exam. This exam measures your your ability to design an end-to-end marketing strategy that aligns with business goals and complements a holistic marketing plan using Meta technologies. Find answers to frequently asked questions and learn more about Meta Certification. 3 Meta Advertising Standards Meta Advertising Standards Meta Advertising Standards are designed to make ads safe for all people. Each ad is reviewed against these policies. These standards also highlight some common reasons ads are rejected and the difference between prohibited and restricted content. Familiarize yourself with the Advertising Standards to ensure that you're building a compliant and considerate ads experience. Here are some notable sections from the Advertising Standards: Ads must not contain content that asserts or implies personal attributes. This includes direct or indirect assertions or implications about a person’s race, ethnic origin, religion, Personal attributes beliefs, age, sexual orientation or practices, gender identity, disability, medical condition (including physical or mental health), financial status, membership in a trade union, criminal record or name. Ads must not contain adult content. This includes nudity, depictions of people in explicit or suggestive positions, or activities that are overly suggestive or sexually provocative. Sexually suggestive Ads that assert or imply the ability to meet someone, connect content with them or view content created by them must not be positioned in a sexual way or with an intent to sexualize the person featured in the ad. Ads linking to Facebook or Instagram content (including Pages, groups, events or websites that use Facebook Login) may make limited reference to Facebook or Instagram in ad text for the purpose of clarifying the destination of the ad. Ads Meta brands shouldn't represent the Meta brand in a way that makes it the most distinctive or prominent feature of the creative. Meta brand assets shouldn't be modified in any way, such as by changing the design or color or for the purpose of special effects or animation. META ADVERTISING STANDARDS 5 Some important policies for advertisers to know are: Community Standards Community Guidelines Learn more about the Meta Advertising Standards, and get more information on prohibited content, targeting and data use restrictions. Some additional areas to familiarize yourself with include policies for advertising regarding credit, alcohol, weapons, pharma, financial services, politics, social issues, housing and employment. Some rules may vary from country to country, based on market regulation. The ad review process Once you create your ad and place an order, your ad will be reviewed by the machine learning system. If your ad is flagged, it will be reviewed by our review team. If your ad is approved, it will begin delivering across placements. Create ad and place order. Submit ad for review. Ad is reviewed by the system or our review team. Ad is approved or rejected Ad isn’t approved, Ad is approved but the decision and begins can be appealed. delivery. META ADVERTISING STANDARDS 6 Rejected ads Your ad may be rejected if it goes against the Advertising Standards. You may also receive a rejection if the landing page content isn't fully functional or doesn't match the product or service promoted in your ad. It’s also possible for an ad to be rejected after approval if it receives an unusually high amount of negative feedback, such as people marking your ad as spam or hiding your ad. If your ad is rejected, you can edit your ad and resubmit it for review by following these steps: 1. Check the email address associated with your advertising account. If your ad isn’t approved, you’ll receive an email with details that explain why. 2. Edit and create a compliant ad. Use the information provided in your rejection email. 3. Save any changes to your ad. Your ad is submitted automatically for review once you save your changes. Appealing decisions If you think that your ad was mistakenly rejected, you can edit your ad or appeal the decision. You’ll receive an email that explains why your ad wasn’t approved, so you can use that information to guide any necessary changes. If you want to appeal the decision, request a review. The ad review process may take up to 24 hours. Common reasons for rejection The best way to ensure your ads aren’t rejected is to have a thorough understanding of the content and tactics that are prohibited and restricted by the Advertising Standards. Understanding prohibited and restricted content can help you to minimize the time and resources required to edit your ads and minimize delays in the delivery of your ads. Outlined in the Advertising Standards are five elements that are reviewed on every ad: text, creative, landing pages, targeting parameters and positioning. META ADVERTISING STANDARDS 7 The chart below outlines some common reasons ads are rejected. Fails to clearly specify the product or service offered Rejected ad Implies the advertiser knows specific attributes about a person text Uses offensive language Makes false or misleading claims or withholds important information Fails to clearly or accurately reflect the product or service promoted in the ad Rejected Contains content, products or services prohibited by Meta Advertising landing pages Standards Contains content that interferes with navigating away from it Fails to work or isn’t functional Includes images or videos of a sexual nature Rejected ad Includes misleading buttons in the image creative References Facebook or Instagram in a way that misrepresents Meta Focuses on a body part or pain point META ADVERTISING STANDARDS 8 Ad copy examples Here are examples of ads that would be rejected and suggestions on how to edit them. What to avoid How to edit Avoid being “Try our best product to reduce acne “We are offering a one-week free trial vague in scars.” for our popular acne scar removal descriptions cream!” of offers, This is quite vague and doesn’t specify products and the product being offered. This ad This version tells people exactly what service. would not be approved. the advertiser is offering. Avoid calling “Don’t worry if you’re a plus-sized “We have extended sizes for all our out personal woman.” spring styles.” attributes or characteristics. This implies the advertiser knows that This version focuses on the product the person viewing the ad is plus-sized. rather than the person viewing the ad. Ads must not contain content that asserts or implies personal attributes. Avoid offensive “Damn, these are the best diamond “Check out these gorgeous rings for language. rings ever.” your big day!” Even common profanity can’t be used This version doesn’t include any in ads across Meta technologies. profanity. Symbols, numbers and letters must be used properly, without the intention of circumventing the ad review process. Avoid making “I lost 10 lbs in 25 days attending the “I lost 5lbs attending this training deceptive, false training session. You can also lose 10 session! Join us today!” or misleading lbs by joining me today!” claims. This version simply states a fact and This implies that everyone will also invites people to join the training with have the same results, and makes an no promise of weight loss. unrealistic promise. META ADVERTISING STANDARDS 9 Meta Ads Manager Meta Ads Manager You can use Meta Ads Manager to manage ad campaigns for your business. You can create, edit and view ad campaigns as well as access performance reports. There are differences between campaigns, ad sets and ad levels as discussed below. Campaign structure In Ads Manager, there are three campaign structure levels: campaign, ad set and ad level. This chart provides an overview of the specific campaign elements you can control at each level. Campaign Advantage Buying type Objective campaign budget Ad set Placement Audience Optimization Budget Scheduling and bid strategy Ad Formats Creative The campaign levels and their elements may also be available outside of the sequence represented in the chart. However, the sequence represented is designed to help you understand how Ads Manager is organized. There’s more information on these campaign elements throughout this guide. META ADS MANAGER 11 Meta Business Partners Meta Business Partners are a global network of third-party companies that have the expertise and technical skill to help businesses. These companies are members of the Meta Business Partners program and represent a variety of specialities, including commerce, agency, creative, advertising technology and messaging. Meta Business Partners can help you meet your marketing needs throughout the campaign creation process. Find someone to work with using the Meta Business Partner directory. The following are different types of Meta Business Partners: These partners can help you manage, scale and optimize your campaigns, Campaign including assistance with creative, audiences, budgets, scheduling, management partners reporting and analytics. Creative platform These partners can help you create and curate images or video, or improve partners your existing creative assets. Feed platforms These partners can help you create product catalogs for use in ads, partners Facebook Marketplace and Instagram Shop. These partners can help you track performance across Meta technologies Measurement partners and the rest of your marketing mix. These partners can help you connect your customer actions, including Conversion data offline and web activity to Meta technologies, and help you improve partners performance of ad campaigns. Community These partners can help you manage and moderate communities on Pages management partners and in conversations. These partners can help you build a messaging experience at scale and Messaging partners automate customer service, lead generation and transactions over chat. META ADS MANAGER 12 Meta Business Manager Meta Business Manager You can use Meta Business Manager to manage ad accounts, apps, Pages and employee permissions all in one place. Business Manager differs from Meta Ads Manager as it enables you to oversee campaigns and assets for all of the businesses you work with, not just a singular business. With Business Manager, you can run your ads, measure your ad performance, manage assets such as your Pages, data sources and ad accounts, as well as add an agency or marketing partner to help you manage your business. Payment methods You can set up a payment method in Business Manager to manage all of your billing details. Once you add a payment method, you can connect it to an ad account and use that account as the primary payment method for your ads. You can either add a payment method or have one shared with your Business Account from another Business Account. You must have admin access or have a Finance (view and manage) role to make any changes to the payment methods connected to Business Manager. Permissions and access To help you securely manage your business assets and content, Business Manager enables you to grant permissions to collaborators. There are two types of permissions you can grant: people or partner. These permissions enable you to assign the appropriate level of access based on their role in your business. META BUSINESS MANAGER 14  People You can assign people a status to grant them access to your Business Manager and assets. You can assign the following levels of access to people: This enables individuals to This enables individuals to work control all components in on assigned accounts and tools. Admin Business Manager, including Basic They can view information in role role editing settings, people, your business settings but can't accounts and tools. make any changes. Finance analyst: This enables individuals to view financial details of the business, including transactions, invoices, account spend and payment methods. Additional role Finance (view and manage): This enables individuals to edit financial details of the business, including business credit card information, transactions, invoices, account spend and payment methods. Partners You can assign partner status to other businesses you work with in Business Manager, such as agencies or clients. This enables you to share assets with each other. You can assign the following levels of access to partners: This enables you to grant This enables partners to grant Sharing partners access to assets in Requesting you access to assets in their (assets your Business Account to (assets Business Accounts. with) help you manage your Pages from) or ads. META BUSINESS MANAGER 15 Business ID Your business ID is a number that corresponds to your Business Account, which you can find in your business settings. You may need your business ID when you're sharing access to certain information, such as monthly invoices or the Meta Pixel. To add a new media agency to an existing Business Manager account, you need to share your Business Manager ID. Assets In Business Manager, assets refer to your business content. You can manage multiple assets such as: Pages Ad accounts Catalogs Apps Create new ad accounts. In Business Manager you can oversee all of your ad campaigns in one place. You can claim your ad accounts by adding an existing ad account, requesting access to the ad account of another business or creating a new ad account. Set up a separate ad account for each business campaign or partner to best manage your work. Turn on two-factor authentication Business Manager admins can turn on two-factor authentication to help protect their Business Account from unauthorized access. Follow these steps to turn on this additional feature: 1. Click Business info. 2. Scroll down to Business options. 3. Click the dropdown menu next to Two-factor authentication. 4. Select Admins only or Everyone to choose who this requirement applies to. You can turn off two-factor authentication here by choosing No one. You might have to enter a code every time you log in if you turn on private browsing or if you set up your browser to clear your history every time it closes. META BUSINESS MANAGER 16 Brand safety controls Brand safety enables you to control where your ads are delivered on Facebook, Instagram and Audience Network. You can prevent your ads from appearing within or alongside content and publishers that aren't suited to your brand. There are two main types of placements across Meta technologies. Ads independent from Examples include feed ads and Stories ads. publisher content Ads appearing within Examples include in-stream video and Audience Network. publisher content The brand safety controls in the brand safety hub give you control over how and where your ads appear. Not every business has the same brand safety needs or concerns. You can use any combination of these brand suitability controls if you have brand safety needs: Manual placements When you create an ad, you can choose where you want your ad to appear on Facebook, Instagram, Audience Network and Messenger. You can use manual placements to opt out of specific placements if you don’t want your ads to run within those environments. Select the right placements for your campaigns. Inventory filters You can filter the available inventory of content based on what’s best for your brand. On Facebook, filters exclude certain videos and articles. On Audience Network, filters exclude apps. You can choose from: Expanded inventory: Show ads on all content that adheres to the Content Monetization Policies so you get the most reach. Moderate inventory: Exclude moderately sensitive content. Limited inventory: Exclude additional sensitive content. This lowers reach and can increase costs. Learn more about inventory filters. (Continued on next page.) META BUSINESS MANAGER 17 Block lists If there are certain places where you don’t want your ads to appear, you can upload a list of Pages, Instagram account URLs and apps and prevent your ads from being delivered there. You can create a list in Business Manager and select the preferred list in Ads Manager when you create an ad set. Learn more about block lists. Publisher allow lists Publisher allow lists are lists of Audience Network, Facebook and Instagram in-stream publishers you want your ads to appear on. Learn more about publisher allow lists. Topic exclusions for By excluding specific topics, you can choose which published Facebook in-steam video Facebook in-stream videos you want your ads to display on. You can choose content-level exclusions from four different topics: news, politics, gaming and religious and spiritual content. Content type exclusions You can use in-stream video placements and show your ads in partner live streams or videos claimed by rights holders. Live videos: Stop your in-stream ads from appearing in live videos. Learn more about live stream exclusions. Nonpartner-publishers not on our publisher list: Stop your in-stream video ads from appearing in videos from publishers that didn't sign up for monetization. These videos are being monetized by the rights holders. Learn more about content type exclusions. Content allow lists Content allow lists are sets of in-stream videos chosen by a Meta Business Partner based on the categories or themes you want your ads to appear alongside and your chosen level of sensitivity of content. Meta Business Partners are third-party experts who can help you with ads. Learn more about content allow lists. Delivery reports Delivery reports provide you with access to impression data at the publisher and content levels, giving greater transparency into which individual pieces of content your ads were embedded in so you can properly validate the brand safety risks of placements and publishers. How to download and read publisher delivery reports. META BUSINESS MANAGER 18 Advantage+ shopping campaigns Some advertisers now have the option to choose between Meta Advantage+ shopping campaigns or manual sales campaigns within the sales objective. In comparison to manual shopping ads, Advantage+ shopping campaigns require fewer inputs during campaign creation, as it simplifies audience options and the creative management process. Advantage+ shopping campaigns is an end-to-end automated portfolio solution for performance marketers that offers: The new machine learning model automates creative, targeting, Better campaign performance optimization and destination configurations to pair relevant ads to the people most likely to be interested while maximizing sales. Upload a mix of lifestyle and product imagery to minimize. creative fatigue and maintenance. Include up to 150 creative combinations to maximize Increased efficiency liquidity. Lean on the system to optimize relevant, high-performing creative to deliver the most relevant ads to the people most likely to be interested. Connect your brand with more people interested in your products and services. Achieve all performance objectives in one campaign. Greater scale Leverage a spectrum of intent, from implicit to explicit. Connect ads to people at every stage of their purchase journey. Learn more about Advantage+ shopping campaigns. This product is currently available to qualified advertisers and may not be available to you yet. META BUSINESS MANAGER 19 From business goals to ad objectives Campaign objectives in Ads Manager There are a variety of different campaign objectives for you to choose from. Before choosing your campaign objective, define your business goal so you can align this with the corresponding objective. When you choose an objective, it can help determine how your ads are delivered across Meta technologies. There are six campaign objectives (formerly, there were 11 objectives) to choose from across the three stages of the customer journey, which is also known as the marketing funnel. These stages are awareness, consideration and conversion. Awareness Generate interest in your product or service, and communicate what makes your business valuable. Encourage people to think about and get more Consideration information about your business. Conversion Inspire people already interested in your business to buy or use your product or service. This stage is also referred to as the conversion stage of the customer journey. The six objectives are categorized into the stages of the customer journey. Awareness Consideration Conversion Awareness Traffic Sales Engagement Leads App promotion The app promotion objective can be a part of the consideration or conversion stage of the customer journey, depending on the optimization you choose. More optimization options are available for this objective in the consideration stage. FROM BUSINESS GOALS TO AD OBJECTIVES 21 How campaign objectives relate to business goals The chart outlines how each objective correlates to business goals. Objective Business goal Example Data sources Notes Reach the most You can use this Not applicable The awareness people to increase objective if your objective gives awareness, business is brand you the estimated ad introduce your brand new, has undergone recall lift metric, or improve recall. a name change or which shows an Awareness You can use the you want more estimated number of awareness objective potential customers people likely to for reach, impression to get to know you. remember your ad or ad recall. when asked within two days of seeing it. Send people to a You can use this Optional but Depending on destination, such as objective if you’re recommended: the conversion your website, app, having a flash sale on location you choose, Facebook Shop or your website or want Meta Pixel you have different Instagram Shop. to send potential optimization options Under the traffic customers to a web available. Your Traffic objective, you select page that describes optimizations can which location you your services. support clicks, want conversions to impressions and occur on. Choose reach. from your website, app, Messenger or WhatsApp. Find people You can use this Not applicable With the likely to interact objective if you want engagement with your business people who objective you can online and take are interested in run ads across actions, such as your products or messaging apps, starting a services to start a ads, websites, apps conversation conversation on and Pages. An Engagement or commenting Messenger. engagement on posts. conversion can include signing up for a newsletter, chatting with an agent or completing a video. FROM BUSINESS GOALS TO AD OBJECTIVES 22 Objective Business goals Example Data sources Notes Find people likely For example, if Required: Deep linking enables to install your app. you want potential Registered app you to lead people The app promotion customers to make Facebook SDK to a specified objective can help a purchase through destination of your you with app installs, your app or try a new mobile app once desired actions app feature, they click your ad, App people can take in you can create an if they have your promotion your app, clicks on app promotion app installed. Use your ad and ROAS. campaign. deferred deep linking if people have not installed your app yet. Collect leads for For example, if Not applicable After clicking your your business. you want potential lead ad, customers customers to sign up will see a form that’s for a monthly already filled out newsletter, this with information objective can help they’ve shared with you reach people Meta, such as their Leads willing to share their name, phone information with you number or email. The to learn more about form is your business. mobile–friendly and designed to minimize typing. Find people likely For example, if Depending on With the sales to make purchases you want to reach your conversion objective, it's or take other people most likely locations, you might recommended that important actions to make a purchase, need a different you have a catalog online or in store. such as through an data source (such so you can reach You can attract sales ecommerce site, you as the Meta Pixel, the people most on the following: can use the sales Facebook SDK, the likely to engage Sales website, app, objective. You can Conversions API or with your products. Messenger or also optimize for offline conversions). WhatsApp. other actions, such For example, for app as adding an item to conversions you their cart. need to have the Facebook SDK installed. FROM BUSINESS GOALS TO AD OBJECTIVES 23 Campaign objectives and buying types When you want to increase brand exposure across an audience of 200,000 or more people, it’s recommended that you use the reservation buying type. This works best with the awareness or engagement objectives. If your goal is to find the most cost-efficient way of promoting a specific direct response, such as conversions or app promotions, it’s recommended that you use the auction buying method instead. Advantage+ catalog ads You can use Advantage+ catalog ads to help reach potential customers at key stages during the purchase journey. Advantage+ catalog ads are a way for advertisers to increase sales on their website or in their app using personalized, user-level recommendations from their catalog. Advantage+ catalog ads match the intent of your audience, which is captured from your website, mobile app or elsewhere (such as Facebook), to help increase demand and sales for your online catalog. Advantage+ catalog ads look exactly like other ads, but they enable you to create an ad template that automatically uses images and details from your catalog for items you want to advertise. A catalog includes information about the items in your inventory. Catalogs can help you automatically personalize your ad creative at scale without having to create thousands of individual ads. After you create a catalog, you can create ads and commerce experiences that pull information from your catalog to show people your items. FROM BUSINESS GOALS TO AD OBJECTIVES 24 Targeting options for Advantage+ catalog ads Advantage+ catalog ads have two targeting options that can help you reach your intended audience across different stages of the buying journey. Reach people who haven’t yet purchased from your business or Advantage+ catalog ads for visited your website but may have shown interest in the types of broad audiences products you offer. Advantage+ catalog ads for Reach people who have expressed interest in specific products on retargeting your website or app and encourage them to complete the action. The benefits of Advantage+ catalog ads Advantage+ catalog ads are personalized, always on, support retargeting, help you find new shoppers and can appear in organic reconsideration experiences, such as Shops. Advantage+ catalog ad data sources To run Advantage+ catalog ads, you need to connect your catalog to your Meta Pixel or Facebook SDK. FROM BUSINESS GOALS TO AD OBJECTIVES 25 Advantage+ catalog ad verticals There are currently products tailored to four different Advantage+ catalog ad verticals. Retail or Use the retail or ecommerce vertical to reach more shoppers, ecommerce move people to complete a sale and find new potential shoppers. Use the travel vertical to reach people, such as weekend, single and Travel group travelers through their dynamic booking window. Use the real estate vertical to reach people with your real estate Real estate inventory. You can include elements, such as the number of bedrooms and bathrooms. Use the auto vertical to upload your entire catalog of vehicle Auto inventory with relevant details, such as make, model and year. Manage a catalog in Meta Business Manager To manage your catalog, you can use Commerce Manager. However, you can perform some basic actions to manage your catalog in Business Manager. Use Business Manager to assign permissions to other people or businesses to work on your catalog. To manage your catalog in Business Manager: 1. Go to Business settings and select your Business Account. 2. Select Data sources followed by Catalogs. 3. Select your catalog on the left-hand side. 4. Select how you want to manage your catalog. Create a high-quality catalog with Commerce Manager Commerce Manager enables you to set up and manage your catalog and sales on Facebook and Instagram. FROM BUSINESS GOALS TO AD OBJECTIVES 26 You don’t need a shop to use Commerce Manager, but if you sell physical products, you can set up a shop on Facebook, Instagram or both. This creates a commerce account for you and unlocks additional tools in Commerce Manager. Keep all items in one catalog instead of creating multiple catalogs. This makes it easier to manage your inventory, helps build your Use one catalog. audience by consolidating pixel data and ensures all your items are available to sell with Instagram Shop and Facebook Shop. Keep your catalog Update your items every time prices or availability change and make updated. sure that the information in your catalog matches your website. Provide accurate Include important details, avoid keyword stuffing, proofread for details. spelling and don't include any links in these fields. Choose high- Provide high resolution images that are at least 500 x 500 pixels and quality images. show your items accurately. Provide multiple images of each product. Make sure your Make sure that your product links begin with http:// or https://, aren’t product links are broken and direct customers to the correct product page. correct. Include product Provide the most specific Google or Facebook product category categories. possible for each item in your catalog. Make sure to set up variants in your catalog so they display correctly Set up variants. if you sell variants of the same item, such as different sizes or colors. Create product sets, which are groups of items in your catalog. You Create sets can use sets to help control the items that appear in your ads or of items. feature collections of items in your Facebook Shop or Instagram Shop. Resolve any Check that your items comply with the Advertising Standards so they issues. can appear in your ads or shop. Set the correct permission level for the catalog in Business Manager. Set the correct There are two permission levels for catalogs: manage catalog or permissions. create ads. To use checkout on Facebook and Instagram, additional information is required for each item, including a quantity, product category and size (US only). FROM BUSINESS GOALS TO AD OBJECTIVES 27 Advantage+ shopping campaigns Some advertisers now have the option to choose between Meta Advantage+ shopping campaigns or manual sales campaigns within the sales objective. In comparison to manual shopping ads, Advantage+ shopping campaigns require fewer inputs during campaign creation, as it simplifies audience options and the creative management process. Advantage+ shopping campaigns is an end-to-end automated portfolio solution for performance marketers that offers: The new machine learning model automates creative, targeting, Better campaign performance optimization and destination configurations to pair relevant ads to the people most likely to be interested while maximizing sales. Upload a mix of lifestyle and product imagery to minimize. creative fatigue and maintenance. Include up to 150 creative combinations to maximize Increased efficiency liquidity. Lean on the system to optimize relevant, high-performing creative to deliver the most relevant ads to the people most likely to be interested. Connect your brand with more people interested in your products and services. Achieve all performance objectives in one campaign. Greater scale Leverage a spectrum of intent, from implicit to explicit. Connect ads to people at every stage of their purchase journey. Learn more about Advantage+ shopping campaigns. This product is currently available to qualified advertisers and may not be available to you yet. FROM BUSINESS GOALS TO AD OBJECTIVES 28 Ads targeting options Types of audiences Audience selection occurs at the ad set level, and you can separate audiences into separate ad sets and bid differently to reach each one. Your first option is to manually create a new audience based on demographics, location, interests, online behaviors and connections. You can also create a custom audience to engage people who have already interacted with a business. Lookalike audiences use a source audience of existing customers or people who have shown interest in a business to reach other people with common interests and traits. 1 2 3 New Custom Lookalike audiences audiences audiences New audiences You can create an audience based on aggregated data about people’s location, age, demographics, interests and behaviors. Let’s review the four categories: Location: Reach people by city, country or community. Demographics: Reach people by age, gender, household income, occupation and education. Interests: Reach people who may share interests in certain products, topics or activities. Behaviors: Reach people who may read the same publications, visit the same online destinations or watch the same amount of television. Audience selection occurs at the ad set level. You can separate audiences into separate ad sets and bid differently to reach each one. Custom audiences A custom audience is a targeting option that lets you find your existing audiences among people across Meta technologies. With the custom audience option advertisers reach people across devices based on the information they already have access to in a privacy-safe way. ADS TARGETING OPTIONS 30 Generate custom audiences with your sources You can use these sources to generate custom audiences of people who already know your business: Type of custom audience Data source Customer list custom audience Customer files Website custom audience Meta Pixel App activity custom audience Facebook SDK Engagement custom audience Engagement across Meta technologies Generate custom audiences with customer files To use your customer files or offline activity to generate custom audiences, upload your information (such as email addresses or phone numbers) manually or transfer data from your CRM into Ads Manager. When you transfer data from your CRM, it gives you more opportunities to explore customers that are valuable to you, such as customers that buy high-value items in store, or customers that contacted your company through WhatsApp. Your browser hashes all of the uploaded information locally on your computer. Then, your list is compared to information from Meta. If there’s a matching hash, the person is added to a custom audience stored within your ad account. Once the matching process completes, all of the hashes are deleted, including both matching and nonmatching. ADS TARGETING OPTIONS 31 The result is a custom audience of people that can potentially receive your ads. The custom audiences is stored in your ad account, and only authorized account admins can deliver campaigns to it. You can't see the specific individuals who are contained in the custom audiences, you just see the approximate number of people that this audience contains. Pll data Column Custom audience hashing mapping data in CSV format SSL Meta Deleted All matched and Ad account unmatched hashes Custom audience 3,678 matches are deleted after the process completes. Personally identifiable information needs to be hashed before API transfer. Hashing is automatic through the user interface. Learn more about creating a customer list custom audience. Generate custom audiences with the Meta Pixel A custom audience from your website are a targeting option that matches people who visit your website with people across Meta technologies, using the Meta Pixel. You can then create an ad to show to that audience. You can create a custom audience from your website for any group of visitors that you want to reach with ads across Meta technologies. For example, you can run a campaign to reach people who visited a product page but didn't complete a purchase to encourage them to go back to the website to do so. Or you can create an audience of everyone who's visited your website in the past 30 days. This time frame is based on a rolling number of days, rather than on the specific number of days since the custom audience creation date. You can create a custom audience from your website events in Ads Manager. Learn more about creating custom audiences with Meta Pixel. ADS TARGETING OPTIONS 32 Generate custom audiences with Facebook SDK When you create a custom audience, you can target ads to specific groups of people who are most likely to take action on your app. With the Facebook SDK, you can pass information to Meta from your app and use that information to specify who you want to include in your custom audience. For example, if you run an app engagement campaign, your ads may perform better if you create a custom audience of the people who have already installed your app. The ads are then shown to people who already have the app installed but don't engage with it as much as you’d like. You can create a custom audience, from your app events, in Ads Manager. The minimum size for a custom audience, or to build a lookalike audience, is 100 people from a single origin country. However, we recommend using at least 1,000 people. Learn more about creating custom audiences with Facebook SDK. ADS TARGETING OPTIONS 33 Generate engagement custom audiences. You can also use these sources to generate engagement custom audiences : Video Lead form Fullscreen experience Facebook Instagram Event Page business profile An engagement custom audience is made up of people who have engaged with your content across Meta technologies. Engagement refers to actions, such as spending time viewing your videos or opening your lead form or collection ad. This could also come from people who use a fullscreen experience, interacting with your Facebook Page or Instagram business profile and responding to your event. Using engagement custom audiences, you can target your ads to people who've taken these actions. Engagement custom audiences are different from website custom audiences. While both do take actions into account, engagement custom audiences use actions taken across Meta technologies, whereas website custom audiences use actions taken on your website, which is measured by the Meta Pixel. When you create an engagement custom audience, you communicate how many days to go back when collecting engagement. Anyone new who engages within the time period you choose will be added to the audience. The audience is constantly being refreshed, meaning you don't need to edit or create a new custom audience unless you want to change the time period or the type of engagement. Learn more about creating custom audiences with engagement data. ADS TARGETING OPTIONS 34 Advantage custom audiences It allows the delivery system to dynamically expand the audience to improve delivery performance. Advantage custom audience allows the delivery system to dynamically expand the audience to improve delivery performance. It uses your custom audience as a source to guide to reach more people likely to take the action you optimized for. Advantage custom audience will be automatically turned on for all objectives when you create a new campaign that includes a website, mobile or engagement custom audience. You can choose to opt-out of using Advantage custom audiences by unchecking the Advantage custom audience checkbox within the custom audience section. ADS TARGETING OPTIONS 35 Lookalike audiences Lookalike audiences identify people who share similar interests or characteristics as your current audience. You can target ads to a lookalike audience if you want to reach new people who are likely to be interested in your business because they're similar to your best existing customers. To build a lookalike audience, you must have a minimum of 100 people (from a single origin country) in your source audience. We recommend using at least 1,000 people. You can create a lookalike audience in Ads Manager using sources such as a custom audience, mobile app data or fans of your Page. Learn more about creating lookalike audiences. Most similar Least similar Source 1% lookalike audience Audience size ranges from 1% to 10% of the total population across Meta technologies in the countries you choose, with 1% being those who most closely match your source. Value-based lookalike audiences You can create value-based lookalike audiences from your Meta Pixel, Facebook SDK, offline conversions or catalog to find new high-value customers from your business. Value-based lookalikes can be created using the signals from these data sources and the values you’ve provided. The audiences created contain people who resemble your most valuable existing customers. You can create a value-based lookalike audience in Ads Manager. Learn more about creating value-based lookalike audiences. ADS TARGETING OPTIONS 36 Advantage lookalike Advantage lookalike can help improve your campaign performance, which is achieved by delivering ads to people outside your defined lookalike audience if it’s likely to improve performance. You can select Advantage lookalike in Ads Manager during campaign creation. Detailed targeting Detailed targeting is an option available in the audience section of ad set creation that enables you to refine the group of people who may see your ads based on their interests and behaviors. You can do this with information such as additional demographics, interests and behaviors. For example: Ads people watch Pages people engage with Demographics like age, gender and location The mobile device people use and the speed of their network connection Only some detailed targeting options may be available to you. Advantage detailed targeting Advantage detailed targeting is a targeting option that enables you to refine a group of people you want to show your ads to. You can select Advantage detailed targeting in Ads Manager during campaign setup. These detailed targeting options are based on factors, such as: Ads people that watch. Pages people engage with. Activities people engage in across Meta technologies. Demographics, such as age, gender and location. ADS TARGETING OPTIONS 37 Retargeting options Retargeting ads enables you to re engage people who didn’t convert after their first engagement with your website or mobile app. If you've implemented pixel or SDK to capture events, you can use your custom audience to do this. Retargeting takes into account the people who have previously engaged with your website or mobile app and retargets ads to them as they engage with other websites or mobile apps. If you've uploaded your CRM information, you can create custom audiences from offline activity. You can use that offline event information to retarget ads to customers or exclude customers who recently made purchases offline to find new customers. Broad targeting Broad targeting is when you specify location, age or gender, but don’t provide any other audience parameters, such as interests. Broad targeting can lead you to people whom you would otherwise be unaware of. It’s also a good approach if you're not sure who you want to target your ads to. Learn more about the types of people recommended for you and how people reacted to your ads with Meta Business Suite audience insights or Ads Reporting in Ads Manager. Narrow targeting The ad delivery system shows your ads to the people it determines are most likely to take the action, so it's best to not restrict targeting unless you have a good reason. When ad sets have a very narrow audience, it’s difficult for the system to get enough converters (data) to find the people most likely to be interested in the ads. A narrow audience could prevent you from receiving 50 conversions per week, a best practice. 38 ADS TARGETING OPTIONS Targeting best practices You can use these tips to help ensure your ads are being shown to your intended audience. Avoid audience overlap Audience overlap means multiple ad sets are delivering to audiences that contain the same people. The ad auction tries to avoid showing too many ads to the same person from a single advertiser over a short time period, so audience overlap might explain why some ad sets aren't spending the full budgets. To avoid audience overlap: Limit the number Use audience of ad sets targeting exclusions. the same people. Audience overlap isn’t always a detrimental issue. Small percentages of overlap may not affect performance, but a higher percentage of overlap can be problematic. Exclude strategically While targeting ads to an audience aligned with your goals is important, choosing who to exclude from your audience is crucial as well. If you want to grow your customer base when using broad and interest targeting, remember to exclude: Custom Lookalike Loyal Existing audiences audiences customers customers Ensure you also exclude any audiences from ad sets that may overlap. ADS TARGETING OPTIONS 39 Avoid extremely narrow targeting Narrow targeting is when you define an audience with parameters, such as interests. When ad sets h ave a very narrow audience, there may not be enough information to find the best people to show your ad to. Ideally, you need to be receiving at least 100 conversions per week, which a narrow audience might not be able to provide. As you increase the amount you want to spend on conversion optimization, you may need to expand your audience. There need to be more results to spend on. However, you may exhaust your existing audiences. Less is more when it comes to creating ad sets As you increase the scale and complexity of your conversion optimization advertising, you may want to split your campaigns into many very specific ad sets based on different segments of your audience. However, this can lead to poor performance. Instead, create a new ad set only if you're trying to control costs differently based on your audience or desired outcome. Otherwise, combine your audiences into one ad set with a larger budget. Create audiences for special ad categories Special ad category campaigns have limited targeting options you can use to define the audience you want your ads to reach. If you use a saved audience, it will be updated to comply with credit, employment or housing special ad category targeting restrictions. Special ad categories apply to ads that have specific requirements in certain countries, such as authorization and “Paid for by” disclaimers for issue, electoral and political ads or limited audiences selection tools for ads about credit, employment or housing opportunities to help protect people from unlawful discrimination. To create an audience compatible with special ad category campaign restrictions, declare your campaign in Ads Manager by navigating to special ad categories. ADS TARGETING OPTIONS 40 Some examples of special ad categories are below. These ads promote or directly link to a credit opportunity, including but not limited to credit card offers, auto loans, Credit personal or business loan services, mortgage loans and long-term financing. This also includes brand ads for credit cards, regardless of a specific offer. These ads promote or directly link to an employment opportunity, including but not limited to part- or full-time jobs, internships or professional certification programs. Employment Related ads that fall within this category include promotions for job boards or fairs, aggregation services or ads detailing perks a company may provide, regardless of a specific job offer. These ads promote or directly link to a housing opportunity or related service, including but not limited to listings for the sale or rental of a home or apartment, homeowners insurance, mortgage insurance, mortgage loans, housing Housing repairs and home equity or appraisal services. This does not include ads designed to educate people or housing providers about their rights and responsibilities under fair housing laws. You can include the Equal Opportunity Housing logo and slogan to help differentiate your ads as nondiscriminatory. These are ads made by, on behalf of or about a candidate for public office, a political figure, a political party or advocates for the outcome of an election to public office. Or about any election, referendum, or ballot initiative, including election campaigns that encourage people to go out and vote. Ads regulated as political advertising. About social issues in any Social issues, elections place where the ad is being placed. or politics Social issues are sensitive topics that are heavily debated, may influence the outcome of an election or result in or relate to existing or proposed legislation. Ads about social issues seek to influence public opinion through discussion, debate or advocacy for or against important topics, such as health and civil and social rights. Learn more about ads for social issues, elections or politics. This is not a comprehensive list of examples and doesn’t constitute legal advice. Learn more about what qualifies as an ad for credit, employment or housing. Discover how to choose a special ad category. ADS TARGETING OPTIONS 41 Machine learning can enhance your campaign performance Machine learning makes it possible to take people’s demographics, interests and purchase behaviors into consideration before showing them ads. This means that businesses are able to reach people more likely to be interested in their products or services, and that people see ads that are more relevant and useful to them. When you use machine learning, you can achieve what is referred to as liquidity, a state of ad buying in which every dollar can flow to the most valuable impression for maximum efficiency. Businesses can spend their marketing dollars much more efficiently when they: Understand how people interact with their business. Reach people with the right product at the right time. Make it easy for people to complete their transactions online, with as little friction as possible. Respect customer privacy. ADS TARGETING OPTIONS 42 Buying types Two ways to buy ads across Meta technologies A buying type determines how you pay for an ads campaign. In Ads Manager, you determine your buying type at the campaign level. Whether you’re launching a new brand or generating awareness of an upcoming product launch, it’s important to consider which buying type best meets the business goals of your campaign. When you set up your ad campaigns, you can select from two buying types: Auction Reservation You determine your buying type before selecting other elements in your campaign structure. So much of your ad performance depends on you choosing the buying type that best suits your budget, schedule or business goals. Auction buying Auction buying offers more choice, efficiency and flexibility, with less predictable results. Ads can be placed across Facebook, Messenger, Instagram and Audience Network. It's recommended that campaigns placed on Facebook or Instagram use the auction buying type. Auction buying is the default buying option in Ads Manager. Choose this buying type if you want to: Make specific choices about your audience. Get the most cost-efficient results for a given campaign objective. Adjust the campaign settings in real time. BUYING TYPES 44 Ad auction winner Through the ad auction, advertisers can reach people receptive to their ads, and people can see content that interests them. Unlike most traditional auctions, the ad with the highest monetary bid isn’t necessarily the winner. Instead, winning ads are determined by the value they offer to both advertisers and to the people seeing them. To ensure that the winning ad maximizes value for both people and advertisers, ads are ranked by total value, and the ad with the highest value wins the auction for a given ad placement. Total value is based on advertiser bid, estimated action rates and ad quality. Optimize the customer Maximize advertiser value experience Advertiser bid x estimated + Ad quality = Total value action rates BUYING TYPES 45 Advertiser bid The advertiser bid is the bid you select for an event that aligns with your desired result. A higher bid helps to increase the total value of an ad, which increases its ranking in the ad auction. However, the bid alone doesn’t determine whether or not an ad will win the auction. Estimated action rates Estimated action rates are how likely it is that showing your ad to a person will lead to your desired outcome. When an ad has a high estimated action rate, it means it’s likely to achieve results. This also helps to increase its total value. Ad quality Ad quality is a measure that is used to establish how relevant your ad is to a given individual. Quality of an ad is determined from many sources including feedback from people viewing or hiding the ad and assessments of clickbait, engagement bait and other poor experiences. To improve your ad quality, consider your website landing page experience and avoid the following ad experiences. Misleading experiences from ad to landing page Disproportionate volume of ads relative to content Sexually suggestive or shocking content Malicious or deceptive ads Pop–up interstitial ads Total value considers the relevance of an ad to the person who will see it as well as ad quality. The quality of an ad is determined from many sources, including feedback from people viewing or hiding the ad, assessment of clickbait, engagement bait and post-click experience. When an ad has a high ad quality, it means it’s relevant to the selected audience. This also helps boost its total value in the ad auction. BUYING TYPES 46 Advertiser costs There are a number of factors that determine how much you pay for ads. When you understand these factors it can help you remain competitive within the auction and improve your results. Ultimately, ads with a high total value contribute to lower costs, since they get the most relevant content to the selected audience and most readily generate the desired business results. Competition Bid strategy Placements Compete for the same Choose the highest Select different audience in the volume, cost per result placements to change auction. This can have goal or bid cap. the cost. higher costs. Ad relevance Optimization Increase the relevance Choose an event to of an ad to lower the optimize for to change cost. the cost. BUYING TYPES 47 Reservation buying The reservation buying type enables advertisers to reach a specific number of people within a selected audience with a specified frequency and a fixed price. As a result, advertisers can book campaigns in advance with predictable ad delivery, optimized reach and controlled frequency. It’s important to know that with reservation, the frequency is an interval and the reach number isn’t guaranteed, it’s an approximation. Goals of reservation buying Reservation buying enables you to plan and buy your awareness and engagement campaigns in advance. It also offers predictable ad delivery and more control over the frequency of campaigns. This buying type enables you to influence brand perception, raise awareness of products or increase online and offline sales. Note: Reservation is available to qualified advertisers only. Choose the reservation buying type if your goal is: Transparency: Share media plans with reach, frequency and costs that are set before the campaign runs. Predictability: Help minimize the possibilities of under-pacing and under-delivery, and set cost per impression (CPM). Control: Tell a brand story with narrative ads delivered across devices and technologies. Compatible objectives for reservation buying Reservation buying works well for the following exposure-based objectives: Awareness Engagement For example, if you want people to buy something from a website or install your app, this auction buying type might be the best option. Note: Reservation isn’t available for app promotion, leads and sales campaigns because it may not include some people who use iOS 14 and above. This may significantly impact the performance of ad sets that include it. BUYING TYPES 48 Ad scheduling for reservation buying You can schedule ads to run during a certain time of day in Ads Manager. You can choose both the dates and times your ads are shown. There are many reasons why you might want to run ads at certain times of the day or on specific dates: Running ads at certain times of day Running ads on specific days Example: You want to promote a breakfast Example: You want to reach a lot people in food brand in the morning only, or if you your target areas a few days before an want to drive awareness of an evening show upcoming event, or you want to drive before its premiere time. awareness of a new brand leading up to its debut. Delivery scheduling preference Under Delivery scheduling preference, you can set the delivery method for your ads depending upon when and how you want your ads to appear. There are two ways to deliver ads: This is the default method, which tries to find and deliver the best Standard performing ads. When you create sequenced ads, these are shown to your audience in a certain order. Arrange up to 50 ads in a series. People in this audience have the opportunity to see ads in the order you set. Sequence ads when you want to: Sequenced Tell a story about a brand. Present information to people in a specific order. Reach a broader audience with several different ads that tell a story. Try different ways of engaging a broader audience. BUYING TYPES 49 Auction compared to reservation buying The table below shows the different characteristics of auction buying as it compares to reservation buying. Auction Reservation Select a target frequency or a Enable a flexible frequency cap for frequency cap. Not available for the Frequency controls awareness campaigns with reach sales, app promotion, traffic and optimization. leads objectives. Delivery controls Standard delivery Sequenced and standard delivery Predictability Daily reach predictions Campaign lifetime prediction Prices fluctuate in the auction Lock in a fixed CPM for your Pricing depending on market conditions. You campaign. The system bids for you. compete with your bid. Schedule ads to run only during part of the day. However, you can’t Schedule your ads for different times Day parting vary this selection by day of the of day for different days of the week. week. The minimum campaign length is 24 hours. Optimize for the selected campaign Optimize for the selected campaign Optimization objective but with predictable objective. reach over the campaign lifetime. Target ads to audiences in multiple Target ads to audiences that are countries, which must be no fewer Targeting multi-country and small, and exclude than 200,000 people. You can’t dynamic audiences. exclude dynamic audiences. BUYING TYPES 50 Choosing a buying type You can use the diagram below to determine a buying type based on whether you need more predictability or whether you have more flexibility: I need predictability. I have some flexibility. Recommended Use reservation Use auction optimized for specific optimized for specific buying type metrics. metrics. BUYING TYPES 51 Auction bid strategies Auction bid strategies As we learned in the previous section, in the ad auction, ads are ranked based on their total value. An ad’s total value takes into account the advertiser bid, the estimated action rate and the likelihood that the ad will be relevant to the person seeing it. This helps maximize the value of ads for people and advertisers. Ad auction The ad auction is where ads chosen for your audience are ranked to find the ad most likely to maximize value for both advertisers and people. In an auction, ads are ranked by their total value and the ad with the highest total value wins the auction for the chosen individual. Step one Step two Step three Step four You launch a The system considers bids The winner is chosen That particular person campaign and decide and holds an auction to based on the total value sees the winning ad. on a bid. determine which of the ad. The ad with the advertiser gets to show highest total value wins their ad to a particular the auction. person. Total value is based on advertiser bid, estimated action rates and ad quality. Optimize the customer Maximize advertiser value experience Advertiser bid x estimated + Ad quality = Total value action rates Now let’s talk about bid strategies and how they are used. Your bid strategy determines how the system bids for you in ad auctions. Understanding bid strategies can help you maximize your campaign’s efficiency, increase your advertising ROI (return on investment) and ultimately help to increase profitability. The long-term success of your campaign relies on keeping it profitable. So it’s important to know how much an action or conversion is worth to you and to bid its true value. The right bid strategy can help you control your acquisition costs and maximize your campaign results. AUCTION BID STRATEGIES 53 These bid strategies are divided into three categories. These are spend-based bidding, goal-based bidding and manual bidding. Spend-based bidding Goal-based bidding Manual bidding Focus on spending your full Set a cost or value you want Control how much you can bid budget and getting the most to achieve. across ad auctions. results or value possible. Use the table below to learn more about the bid strategies. Spend-based bidding Goal-based bidding Manual bidding Highest volume Highest value Cost per ROAS goal Bid cap result goal Spend the full Maximize the Keep cost per Exercise more Use internal budget. value of result below a control over the bidding models conversions, certain amount, purchase value or lifetime value Get the most rather than regardless of generated from models. results possible simply market ads than can be from your increasing the conditions. achieved with Control how budget. number of highest value much can be conversions. bidding. bid in auctions. Budget goals Don’t have a specific cost Spend the full Break even on per result goal. budget while your ad spend focusing on and reach a Don’t aim for getting higher certain return. specific goals value to measure or purchases. define success. Your cost per This requires an Spend may be If Ads Manager A bid control result may even slower than can’t reach your that’s set too fluctuate. distribution of when using ROAS floor, low might result values across highest volume then delivery in Costs may go different bidding and may stop and a campaign down if auction products sold budget may not your budget will under competition by your be entirely not be spent in delivering. decreases, or business. spent. full. Considerations costs may go Bid caps don’t up if auction This requires Costs may be Requires Meta control the cost competition data on higher during Pixel or per action you increases. purchase value the learning Facebook SDK see in reporting to be passed to phase, but to pass back and require Meta. delivery should purchase more frequent stabilize after values. bid changes. the learning phase. AUCTION BID STRATEGIES 54 Bid strategies There are five bid strategies to choose from. You can also choose not to enter a cost control. Highest volume Select the highest volume bid strategy if you want to maximize delivery and conversions you can get from your budget. This bid strategy is best for spending your budget as efficiently as possible. However, the cost of your ad results will fluctuate more, as changes are made to get the highest volume. For example, if auction competition decreases, the cost of your ads may go down and if auction competition increases, the costs of your ads may go up. Highest value Select the highest value bid strategy if you want to spend the entire budget by the end of the schedule of an ad set while maximizing the amount of value you get from purchases. This automated bid strategy is available for ad sets optimizing for purchase value. Value optimization uses machine learning to predict how much ROAS a user may generate for a business over a one- or seven-day window. This prediction is then used to bid for your highest value customers. By bidding more for people who are likely to spend more, you can maximize the ROAS for your campaigns. Cost per result goal Select the cost per result goal bid strategy if you want to maximize cost-efficiency and need to keep cost within a specific threshold. This bid strategy enables you to provide a benchmark cost for the results you care about. This helps limit your cost per conversion while maximizing the number of conversions. The cost per result goal reflects how much you are paying on average for results. Not all optimization goals are available for cost per result goal. Learn more about best practices for using cost per result goal. ROAS goal Select the ROAS goal bid strategy if you want to keep return on ad spend around an average amount of the course of your campaign, providing you with more command over the value a campaign brings to your business. When you set a ROAS goal, we’ll try to deliver against that throughout the campaign’s lifetime, dynamically bidding as high as needed to maximize results. To use this bid strategy, you'll need to optimize your ad set for purchase value. Bid cap Select the bid-cap bid strategy if you want to set a maximum bid across auctions and reach as many people as possible at that bid. This bid strategy maximizes volume at specified maximum bid and can increase competitiveness against other advertisers targeting similar audiences. Bid controls are less flexible, which means they're more likely to constrain delivery than cost controls because the bid cap limits bids in every auction. AUCTION BID STRATEGIES 55 Select your bid strategy The long-term success of your campaign relies on keeping it profitable. You should always bid the true value for how much an action or conversion is worth to you. To control acquisition costs and maximize campaign results, understand how to set the right bid method. Use this chart to select the best bid strategy for you. Do you want to control costs? Do you want to optimize purchase value? Highest volume Highest volume Cost per result goal ROAS goal with Get the most with highest value Get the most highest value results for your Get the most results for your Reach a minimum budget. This results for your budget, and keep return for your ad doesn’t provide budget while cost per result spend by reaching cost control. focusing on higher below a threshold. higher purchase value purchases. value conversions. Bid cap Manually cap how much Ads Manager bids in an auction. AUCTION BID STRATEGIES 56 How to set a budget Your budget is the amount of money you want to spend to show people your ads. Your budget also enables you to control your overall spend for your ad set or campaign. You can set your budget delivery at the ad set level. There are two types of budget delivery: Daily budget The average amount you want to spend on an ad set or campaign per day. Select this option if you don’t have a set time frame, a total budget or have a set amount that you want to spend per day. Lifetime budget The amount you want to spend over the entire duration of your ad set or campaign. Lifetime budgets work best for pacing a defined budget over the lifetime of a campaign. Your budget may be increased when lower-cost outcomes are identified, and decreased when higher cost outcomes are discovered. This means the system will spend more budget when lower-cost outcomes are identified. This enables flexible pacing, optimizing your budget to an overall lifetime goal, rather than trying to reach the same goal every day. There’s a difference between your budget and spend. Your budget is the amount of money you want to spend or are willing to spend for your ad to run. Your spend is the amount you will actually pay. AUCTION BID STRATEGIES 57 Advantage campaign budget Advantage campaign budget is available to you to help you optimize campaign spend. Advantage campaign budget is available at the campaign level. With Advantage campaign budget, advertisers can set one central campaign budget to optimize across ad sets and continuously distribute budget to the top–performing ad sets in real time. With optimizations, the best way to spend this budget across different ad sets and ads is determined based on the optimization goal, bid strategy and bid amount. Advantage campaign budget is available for any campaign objective and is best suited for campaigns with multiple ad sets. Use this tool across all of your campaigns. The benefits of Advantage campaign budget include: Spending more De–duplicating Spending less Simplifying efficiently across audiences. time managing campaign all audiences. campaigns. management. AUCTION BID STRATEGIES 58 The image below demonstrates how a budget is allocated and spent for conversions with and without Advantage campaign budget. Without With Advantage campaign budget Advantage campaign budget $12 $10 $10 $15 $3 $10 Ad set 1 Ad set 2 Ad set 3 Ad set 1 Ad set 2 Ad set 3 Allocate $30 budget Allocate $30 budget equally across each ad set. across the campaign. This image is for illustrative purposes only. AUCTION BID STRATEGIES 59 Ad delivery optimization in the ad auction The ad auction The ad delivery system determines when and where ads appear across Meta technologies. This system has three components, all of which work together to optimize ad delivery and achieve your objectives. Below are the three methods used to determine how ads are shown to people. 1 2 3 Ad auction Performance Advertiser optimization controls Ad auction As we learned earlier, the ad auction is where ads chosen for your audience are ranked to find the ad most likely to maximize value for both advertisers and people. In an auction, ads are ranked by their total value and the ad with the highest total value wins the auction for the chosen individual. Step one Step two Step three Step four You launch a The system considers bids The winner is chosen That particular person campaign and decide and holds an auction to based on the total value sees the winning ad. on a bid. determine which of the ad. The ad with the advertiser gets to show highest total value wins their ad to a particular the auction. person. Total value is based on advertiser bid, estimated action rates and ad quality. Optimize the customer Maximize advertiser value experience Advertiser bid x estimated + Ad quality = Total value action rates AD DELIVERY OPTIMIZATION IN THE AD AUCTION 61 Estimated action rates Estimated action rates are how likely it is that showing your ad to a person will lead to your desired outcome. When an ad has a high estimated action rate, it means it’s likely to achieve results. This also helps to increase its total value. For ads optimized for clicks, the estimated action rate reflects the estimated click-through rate. For conversion-optimized ads, the estimated action rate reflects the estimated click-through rate multiplied by the estimated click to conversion rate. Below are how estimated action rates are used for different ad optimizations. Click-optimized ad Click-through conversion-optimized ad (Bid for click) x (estimated click-through rate) + (Bid for conversion) x (estimated click-through (ad quality)) = Total value rate) x (estimated click-to-conversion rate) + (ad quality) = Total value AD DELIVERY OPTIMIZATION IN THE AD AUCTION 62 Now, once your auction campaign has ended, you can get an ad relevance diagnostics to analyze whether the ads you ran were relevant to the audience you reached. If your ads aren't meeting your advertising objectives, you can use ad relevance diagnostics to understand whether adjustments to your creative assets, post-click experience or audience targeting could improve performance. Ad relevance diagnostics Ad relevance diagnostic