Research from Facebook IQ’s 2016 Whitepapers has shown that marketers have the opportunity to increase reach and drive a greater number of people to change their behavior—and to do so efficiently.
Our big question is how a marketer can actually implement a broad reach strategy in their campaign executions. Marketers need to align their campaign execution against their marketing objective. With brand marketers focused on reach, there are multiple levers a marketer can pull to drive greater reach:
(1) broaden audience definition,
(2) Scale media budget or
(3) execute their campaigns to optimize and align to their reach objectives.
In the case of Facebook and Instagram, where campaign execution is based on an auction, marketers should employ bidding strategies focused on driving reach in the most efficient way. Facebook’s auction-based media-buying environment is executed real-time, with an auction taking place whenever someone is eligible to see an ad.
The participants in an auction represent competing ads targeted to the audience the eligible person falls into, and the winning participant is the ad that creates the most overall value. Billions of these auctions take place every day.
In Facebook’s auction-based media-buying environment, marketplace dynamics—demand and supply factors, among others—determine the relative cost of reaching people within an advertiser’s target audience at any given time. A variety of factors can influence whether people are more or less expensive for an advertiser to reach.
Ongoing internal research has shown that one important factor is “user clickiness”—the relative propensity of people to click on ads. We find that clickier people are more expensive to reach compared to less clicky people because of greater competition from advertisers trying to reach the same group of people, among other reasons.
This pattern suggests that reach-optimized bidding allows marketers to reach a greater share of people with less expensive user CPMs. In other words, reach-optimized bidding allows marketers to have a lower cost per reach compared to action-optimized bidding.
To learn more about Optimized Bidding and the best advertising options for your brand, set up a consultation today!