Paid social, also known as social media advertising, is the use of social channels to advertise your brand. Paid social can be used to build brand awareness, drive brand engagement, and/or generate revenue through Ecommerce.
Paid social accounts for multiple social platforms such as Facebook, Instagram, LinkedIn, Twitter, and Pinterest. This guide will represent the structure and performance of Facebook and Instagram advertising specifically.
Paid Social Basics:
1. Business Manager
A home where multiple ad accounts can live and multiple advertisers can log into.
2. Ad Account
Associated with a unique Facebook and/or Instagram page.
3. Ads Manager
Interface in which advertisers can create and report on campaigns.
Campaigns are usually separated by audience, optimization strategy, or sale.
Campaign objectives are chosen at this level which includes: Brand Awareness, Local Awareness, Reach, Website Traffic, App Installs, Post Engagement, Video Views, Lead Generation, Conversions (can choose conversion event in ad set level), Product Catalog Sales, and Store Visits.
Campaigns have an optional campaign budget limit which oversees budget in all of their ad sets.
5. Ad Set
Ad sets contain budget, bidding strategies, placement, and targeting settings.
Ad level is where all ads are created.
This level is also where the advertiser chooses what creative unit best fits their campaign. Creative units include:
Single Image/Video - a single image file is uploaded and used in advertising.
Carousel/Multi-Product - multiple images or videos are uploaded into a card format with copy for each card; advertisers can also choose various destinations per card.
Collections (New!) - an image or video is displayed in the top half of the ad unit while products are displayed in a carousel form at the bottom half. The products can be chosen by the advertiser using the product feed uploaded into the ad account, or Facebook can pick products based on the destination webpage.
7. Power Editor
In-browser editor platform provided by Facebook and used for bulk edits across multiple campaigns, ad sets, or ads. Contains same format as Ads Manager.
Budget is determined in the ad set level of either Ads Manager or Power Editor.
There are two types of budget strategies:
Daily - Advertiser sets a daily budget per ad set.
Lifetime - Advertiser sets a budget that spans the entire campaign time range; Facebook will distribute lifetime budget differently per day depending on performance.
Bidding determines on the campaign objective. A website traffic campaign will bid on CPC (cost-per-click). A conversions objective will bid on cost-per-conversion. A video view objective will bid on CPV (cost-per-view).
The bid amount can be determined in two ways:
Automatic - let Facebook set the bid that helps the advertiser get the most desired result at the best price.
Manual - advertiser determines target cost per result.
Placement is where ads will be shown determined by the advertiser. The following placements are available within Ads Manager or Power Editor:
Facebook News Feed - ads are placed directly on the News Feed on desktop or mobile.
Instant Articles - publishing format in which news publishers distribute articles directly on Facebook without re-directing to their website; ads are seen throughout the articles.
In-Stream Videos - ads are shown in the middle of videos shown on Facebook; this only applies to video creative.
Right Column - ads are shown on the right-hand column of Facebook’s interface.
Instagram - ads are shown inline with followers' posts.
Audience Network - group of websites and apps that allow Facebook to place ads in banner formats.
Facebook Messenger - Facebook’s own messaging app where ads are shown in banner formats.
11. Audience Targeting
Detailed Targeting - uses Facebook user data to group users together based on demographics, behaviors, or overall interests.
Custom Audiences - 1st party data from the advertising brand, which is uploaded into Facebook for targeting purposes. Includes: website traffic data, customer files (purchase data or email lists), app activity, and engagement on Facebook.
Lookalike Audiences - uses Custom Audience data to try to find users who are similar to those in the Custom Audience in terms of demographics and behaviors. Is segmented by country and audience size.
12. Facebook Pixel
The Facebook Pixel is the code snippet placed on a client’s site which tracks all post-ad performance. The Pixel has Events which determine actions taken on a website. The standard events are: Search, View Content, Add to Cart, Add to Wishlist, Initiate Checkout, Add Payment Info, Purchase, Lead, and Complete Registration. Custom events are also available.
The Pixel is especially important for Ecommerce clients to determine all purchases and revenue generated from Facebook or Instagram advertising.
Advertisers can use the Facebook Pixel Helper to determine if their pixel is firing correctly on their client’s websites.
Paid Social Performance:
Performance truly depends on what you are looking to do with social advertising. Due to the nature of social advertising, there are many determinants of campaign success. Below are the most common metrics, rates, and formulas.
Impressions - the number of times the ad was viewed. Includes multiple views from the same person.
Reach - the number of people who saw your ads at least once. Reach is different from impressions, which may include multiple views of your ads by the same people.
Link Clicks - number of times ad is clicked and links to determined destination, on or off Facebook.
CPC - also known as cost-per-click. The average cost for each link click.
CTR - also known as clickthrough rate. The percentage of times someone saw an ad then clicked.
Purchase - conversion event associated with purchases made on the brand’s website. Purchases are also determined by viewthrough or clickthrough conversions.
Revenue - also known as purchase conversion value. Represents the value of each purchase.
ROAS - also known as return on ad spend. The percentage of revenue determined by each dollar of ad spend.
Average Order Value - the average amount of revenue for each purchase conversion tracked.
Conversion Rate - the amount of times someone clicked on an ad then converted. Usually is determined by purchases divided by link clicks.