Posted by Riley | Posted in Case Studies, CPM, Plenty of Fish | Posted on April 11th, 2010
Earlier this week I made a post about doing a case study on the effects of different CPM bids on Plenty of Fish. I literally gave away an exact campaign, including ad copy, images, targeting and bids. I tested different CPM bids of 15c, 25c, 35c and 45c. I ran this campaign from Sunday – Wednesday.
Campaign with 15c bids
Campaign with 25c bids
|Avg. CTR||0.103%||Avg. CTR||0.087%|
|Total Costs||$5.96||Total Costs||$16.40|
|Conv. Ratio||9.76%||Conv. Ratio||10.17%|
Campaign with 35c bids
Campaign with 45c bids
|Avg. CTR||0.102%||Avg. CTR||0.092%|
|Total Costs||$97.49||Total Costs||$201.18|
|Conv. Ratio||7.98%||Conv. Ratio||5.58%|
* This campaign hit it’s $50 daily spending limit everyday it was active. If this limit would’ve been higher I would’ve received more impressions.
I was pleasantly relieved to see that my assessment of the Plenty of Fish self-serve advertising platform was wrong. They absolutely do favor the higher bids and will provide more impressions to higher bids. Ben from Plenty of Fish noticed my last post and if you didn’t happen to read the comments, he provided some valuable insight to their platform. His quote is below.
Your CPM will have an affect on your CTR because we serve ads based on CPM price. The highest bids get their ads shown to the user first, followed by the next highest and so forth. So if your bid is too low, then the impressions you receive will be from people who have already seen 20 ads (thus the likelihood of clicking and converting are low).
Also, your CPM will have an affect on your traffic flow because the highest bids get their ad quota fillled first, followed by the next highest and so forth. So if your bid is too low, you might not get the priority to start getting a lot of traffic to your site. This explains why CPM is so critical in highly targeted campaigns.
After reading the quote from Ben above and assessing my stats from the 15c and 25c campaigns, I’m wondering if I could use the Session Depth targeting criteria to my advantage. I realize that my stats on those two campaigns aren’t statistically significant, but it got me thinking and made me realize something. When I first login to Facebook, I’ll be checking messages, notifications and status updates first thing and won’t pay attention to the ads at first. Then as I start just dicking around on Facebook, I notice myself paying more attention to the ads.
So this coming week will see me doing a case study that split tests only the session depth.