Always Use THIS Facebook Ad Buying Type

0:00hi guys it's ben heath from lead guru and in this video i'm going to talk about facebook ad buying types there are two options and it is very very important to use the right option i'm going to talk about which one that is why it works best in this video before i get into that please click that thumbs up button that really helps me out as much appreciated and of course subscribe to my channel if you are new and haven't done so already okay so facebook buying times i'm in an example facebook ad account and i'm going to go ahead and just create an example campaign and the

0:26very very first option as soon as you click that create button before you even get to the campaign objectives is this section here that says buying type now you'll see that the default is auction and the second option here is reach and frequency and you can see that when i select reach and frequency i have less campaign objectives so we need to explain what these are what is auction that's the default auction is basically how facebook operates its advertising platform you compete against other facebook advertisers in an auction system they effectively facebook have a product and that's add real estate places for you to put your ads in front of facebook users

1:04instagram users etc and you are operating in an auction you are saying i would like to advertise to these people please facebook workout calculate the auction formula automatically and with an auction system you basically end up with your price your cost of facebook advertising and it is determined by advertiser competition how much supply there is so how many potential ad impressions are available in your target audience all that sort of stuff and because of that you are effectively accepting the market price for facebook advertising when you use the auction so if there's a holiday and lots of other advertisers are spending more there's more advertise than usual price

1:42goes up around black friday or christmas for example we see facebook ads skyrockets because lots of advertisers using auction and that's causing you know more advertiser demand basic economics pushes up the cost of facebook ads supply across facebook and instagram is very consistent so i said basic economics demand supply sets price um but the supply is pretty much fixed so it very much is the demand which is advertiser demand your competitors that are going to affect the price that's the default and you can see why that's nice and easy and you don't really need to think about it but it can lead to a lot of fluctuations so as i

2:18said over black friday particularly depending on what you advertise you might see your cpm as your cost per thousand impressions which is typically how we would measure the cost of facebook ads we when we analyze campaigns we analyze cost per conversion maybe always but when we're thinking about how expensive is a facebook instagram ad campaign we're often looking at cpm you might see cpms double or even triple for the week around black friday for example um depending again on what you're advertising and who you're advertising to with this auction system because it's impacted by all these other influences um other things can be like if it's

2:51really nice weather for example unless people are on there on their phones um on facebook and instagram that reduces supply which can affect again the cost of facebook so that's how the auction system works and that's the default and that's what most facebook advertisers go with but because of the drawbacks that i just talked about that led facebook to create this thing called reach and frequency now with reach and frequency you are in instead of um just being subjected to the natural auction system you are instead able to effectively book in a certain price so instead of just saying i'm just going to pay whatever the market's saying i have to pay i

3:28would like to guarantee a certain price for reaching a certain number of people and you can see why that might sound very attractive often with reach and frequency you end up paying a lot less per thousand impressions so per cpm than you do with auction again you say to facebook look over the next week i want to reach this many people what's the price facebook might come back to you in the uk with something like a a three pound cpm whereas your regular conversion campaigns might be operating at a 15 pound cpm so the price difference can be absolutely enormous in terms of those thousand impressions

4:02and you have the guarantees so a lot of larger businesses particularly started using reach and frequency because they wanted the guaranteed price and that's that's probably more similar to how traditional advertising is operated where you book in like a certain number of you know um ad slots or tv programs over the next six months and it's it's a fixed price so this sounds fantastic but there's one massive issue with reach and frequency and that massive issue is why you don't want to use it because you are saying to facebook i want you to guarantee me this price facebook is not only incentivized but effectively has to make sure

4:44that they advertise to the lower quality prospects and by quality i'm talking about demand the people that there's less advertiser demand for in order to fulfill their obligation at that significantly lower price like how is facebook going to offer you a cpm a cost per thousand impressions that is say 20 or 30 of what it would normally be unless they put your ads in front of people that other advertisers don't really want to reach that's how they do it so and we know this because we've tested a whole bunch and what you'll see is let's say you run a conversions campaign using the reach and frequency brian type

5:22facebook will offer you a cpm as i said might be a quarter of what you're used to paying and you think wow this is fantastic it's gonna be best thing ever and then you run the campaign and guess what your cost per conversion is nearly always quite a bit higher than through the auction now what that means is that those people are converting so much worse because if you're paying 25 of what you usually pay and your cost per conversion is higher than what it usually is that means that instead of converting let's say one in 200 people that you advertise to you might be converting one in 2 000

5:57people that you advertise to the difference is enormous and facebook effectively has to do that because that's the only way they can offer the guarantees it's like look facebook's basically saying we're going to take on more risk for you as an advertiser by guaranteeing this price with reach and frequency but in order for them to protect themselves they have to put your ads in front of people that other advertisers don't want to reach and you have to remember that if you think about how save conversions campaign works it works on trying to get you as many conversions as possible for the lowest possible price now you have

6:27to think about the fact that there are many many facebook and instagram users that effectively never convert from a facebook instagram ad that is not unheard of there are people that do it all the time there are people who do it a bit which is gonna be most and there are people who never convert there are people that advertisers do not want to reach because they just aren't active in that sense that is not a behavior of theirs and that'll be true for any form of marketing this is not just a facebook instructor there'll be people that buy based on tv ads all the time and people that never do and most

6:58of us in the middle that do every now and then and all sorts that that applies to all advertising platforms so if you really want to have a play with it do so with an experimental budget because i would be shocked if it produces better results no matter what kind of campaign objective you use or what setup use and if you want to see the setup i've got more details in another video so i'll include a link to that on how you go about clicking through it in this video i wanted to be very specific about the buying types and which ones you want to use but the

7:25the answer for now and we test this regularly to make sure it may well change the future but the answer for now as of the recording of this video is absolutely that you want to go ahead with auction okay hope that's been useful before you go some more very very useful things i want to quickly mention the first is a brand new free webinar i've created called the one facebook ads technique that will supercharge your results more than anything else and if there's one thing you need to get right as a facebook advertiser it is covered in detail in this webinar this is something i haven't talked about before

7:56hardly at all um in my videos um i've had other webinars i've talked about but this is a brand new webinar i'd strongly recommend you check it out it's about 50 60 minutes long it's there's a link in the description below completely free to go and watch it i said i break down step by step and if you can implement this technique as i show it i think you've got a really really good chance of succeeding with facebook ads improving the performance of your existing campaigns so i strongly recommend you go ahead and check that out other thing i want to mention is youtube channel membership so you can now become a

8:23member of my youtube channel and um members get certain perks so the first of which is priority reply to comments so as my channel has grown it's become more and more difficult for me to reply to comments so i'm prioritizing the people who are channel members their comments first so i'll answer their comments first and then get to other comments as much as i can but there's only so much time i can dedicate to that right members also get to participate in member-only polls so they get to have a say around what sort of content i create next and that sort of stuff and it's just a great way to support my channel

8:54if you appreciate my content you've gotten value out of it you want to find a way to uh to reciprocate to some extent you can become a channel member it's a small monthly fee you can click on the join button beneath this video and that'll bring up a window that just basically gives you all the information about it and you can see whether you'd like to become a member or not if you've got comments and questions that you want me to answer i strongly recommend it because i know how important getting the right answers to those are and i'm gonna make sure i answer every single member

9:17comment but i can't do that with uh with regular viewers of course anyway this has been useful please give it a thumbs up please subscribe to my channel if you haven't done so already and comment below will you become a member or not please leave a comment below um i i said i was still trying to answer comments for people who aren't members of course um and i certainly see all the comments the feedback is always very useful thanks a lot guys i'll talk to you soon bye for now