Once the campaign is on track and pacing well. It’s time to focus on the Performance of the campaign.
So, what is performance and how do you measure it?
Let’s assume, I have a fruit market business where I sell varieties of fresh fruits. You want to purchase 10 kgs of apples which is at 10/kg. Here, your goal is, you want to purchase more apples at less cost
Goal 1: Focus on saving budget – for same Quantity
Total Buying price = 10kg x $10 = $100. For $100, you purchased 10 kgs of apples.
If you can purchase at less price than fixed rate for each kg, then you can save budget
For the same total kgs, if you can purchase at a low rate, Ex: $8/kg, you would have saved some portion of the budget.
10kgs x $8 = $80, you saved $20 here.
Goal 2: Focus on Spending same budget – Increase Quantity
If you can purchase at less price than fixed rate for each kg, then you can get more apples in your bag
$100/$8 per kg = $12.5 Kg – Quantity increased
We can compare the above example with our concept campaign performance.
If you purchase impressions at a high rate, you need to spend more.
And at less rate, you can purchase more impressions and save the budget too.
If the performance is well for any dimension, we increase the rate.
This determines how well your campaign is performed against the campaign goal.
Let’s take another example. In a Cricket match, in the first innings, your team score is 300 runs in 50 overs. Now it’s time for the Opponent to chase at a Run rate of 6 per over. Your team has to make sure to bowl with economy < 6 as much as possible, which determines the performance of bowlers in the team to win the match.
Importance of Campaign Performance:
Any advertiser can purchase at any rate till budget spends. But paying the right price for the right Inventory is a key factor that leads to the overall success of the campaign.
Campaign goals can be Building brand awareness by serving more impressions, Increase CTR, Purchasing products, increasing sales, and so on. We will create another post related to this KPIs exclusions.
Depending on the Campaign’s goal, KPIs are determined. KPI means Key Performance Indicator, by choosing it, the buyer can optimize towards it
Let’s classify KPIs into two types
Action-based KPIs which depends on Impressions delivered. They are CTR, Viewability, VTR(for video), Completion rate (Audio and video), LTR (audio) etc
Cost-Based Goals depend on the Budget spent. They are CPM, CPC, vCPM, CPCV, CPV, CPA, ROI and so on
Advertisers shouldn’t shift the focus of the Performing goal for the campaign. Whatever the changes that made to the campaign are with respect to the KPI goal set by Advertiser
As a Media Buyer, one needs to understand that performance of the campaign is key for running a successful campaign for your advertisement and message that you want to deliver to the consumer irrespective of budget and how small or larger advertiser you are.
Hope you understood about the Campaign’s Goal and KPII will clearly explain to you how to check whether your campaign is performing against the campaign goals and delivery.
We have already covered topics on optimizations related to budget and pacing. Once the budget is spending, it’s time to monitor how effectively it is spending by balancing Current KPI and Actual KPI
Optimizations – Performance:
Pull various reports from the platform which include Various dimensions and metrics by which we can calculate KPI with respect to the dimension
You can use platform dashboard or Excel or google sheet to pivot or add formulae for KPIs and other Metrics too
Now Find out best and worst performing Line items with respect to Primary KPI
Make changes in targeting setting as per the client’s approval
Increase the bid for strong performing lines which are performing well.
Example: KPI is CPM=$2, eCPM is $1.5, increase the bid slightly to win more auctions.
Decrease budget and lower the bid for underperforming lines
Example: KPI is CPM=$2, eCPM is $3, decrease the bid to avoid spending more on this line.
This may lower the pacing of the campaign but make sure the budget is spending more on other well-performing one
One thing to keep in mind is that whatever bid changes you make, it should be aligned with the pacing of the campaign.
Check how each strategy are performing against KPI
Allocate more budget to Best performing one. Remove some portion of the budget from less performing strategies
You can also create separate lines for strategies that are not performing and allocate respective budgets, increase bid and inclusions in targeting if possible
If the lines are not meeting the daily budget, increase the bid slightly. Don’t increase too much at once. Monitor and make changes accordingly. If you aren’t confident enough how much you want to increase or decrease, just follow +/- 10% change for every move
You can choose various dimensions in the report with one KPI related to another KPI
For example, CPC with CTR, vCPM with Viewability, etc
Find out performance of KPIs on other dimensions like Device type, Location, Site/Apps, Day Parting, etc, to optimize against Audience performance
You targeted all devices and noticed desktop and smartphone are performing well. Before the Bid multiplier option was available, you needed to create a separate line targeting only to desktops and smartphone.
Using Bid multiplier, you can increase bids by requiring percentage so that, in the single line item itelsef bidding can be set as per our requirement
In DV360, Let’s assume CPM for a line item is $10. I have increased the Bid multiplier for Desktop and Smartphone by 10%.
Now other devices table and Connected bid at $10
Whereas Desktop and smartphone now bid at = $10 + ($10×10%) = $10+$1 = $11
Not only devices, but also you can apply bid multipliers on various dimensions that are available in the platforms like DV360, TTD, etc
If the conversions with good CPA are more on a particular website, you can increase the bid for a particular site ‘n’ times more than other sites.
If they are not performing, decrease by n%
Finally, by using Bid multipliers, we save time in the creation of multiple line items for any single adjustment and avoids manual budget allocations
Effectively manage the campaign, the line’s budget, Frequency, reach etc.
This makes to spend more budget on high performing strategies or Dimensions
Improves overall efficiency,
If you spend more budget, you can have a good amount of data to analyze performance