Facebook Updated 410-101 Exam Questions and Answers by lylah

Facebook in-stream:

• Video length: 5–15 seconds
• Objective: Video views, Reach, Brand awareness, and Post engagement
• Aspect ratio: Vertical (up to 9:16), Square (1:1), landscape (16:9)

Audience Network in-stream:

• Video length: 5–120 seconds when automatic placements is selected, 5–30 seconds when selecting in-stream placements on their own
• Objective (with automatic placements): Video views, Reach, Brand awareness, Post engagement, Conversions, Traffic, App installs, and Product catalog sales
• Objective (on its own): Video views
• Aspect ratio: Square (1:1) or landscape (16:9)

Facebook and Audience Network in-stream together:

• Video length: 5–15 seconds
• Objective: Video views
• Aspect ratio: Square (1:1) or landscape (16:9)

The four main factors that affect your ad in an auction are the following:

• Advertiser Bid: How much you value the results you are trying to obtain.
• Estimated Action Rates: How likely Facebook thinks a given person will take action on your ads. Estimated action rates are based on the person you're reaching historical data and your ad's historical data performance.
• Ad quality: Basically this comes down to your images or creative. The better the ad image, video or design, the more appealing it will be to your target audience; thus, increasing the ad quality.
• Relevance: If ads are getting negative feedback or are not getting actions, your relevance will be much lower.

Ad relevance diagnostics aren't inputs into the ad auction:

• Quality Ranking: How your ad's perceived quality compared to ads competing for the same audience.
• Engagement Rate Ranking: How your ad's expected engagement rate compared to ads competing for the same audience.
• Conversion Rate Ranking: How your ad's expected conversion rate compared to ads with the same optimization goal competing for the same audience.

Facebook uses user value, not any of the ad relevance diagnostics in calculating Total Value. Just keep in mind that the Relevance Diagnostics is an output of all of the metrics above; NOT an input.  

Frequency is only a metric as a result of your ads and relationship between reach and impressions.

Bidding strategies help you control the overall spent with budget constraints.

There are basically two bidding options: Lowest Cost or Target Cost

1. Lowest Cost

The lowest cost bidding strategy tells Facebook to get the lowest possible cost per result, while also spending your entire budget. 

2. Target Cost

The target cost bidding strategy tells Facebook to get as close as possible to your cost target. This option is only available for app installs, conversions, and catalog sales marketing objectives.

In this case you need to have a "Lowest Cost" strategy as you want to achieve the following:

- Limit the app install at $9.00

- You know you can't afford a higher cost of $9.00 as it won't be profitable for your client

Keep in mind that lowest cost budget will achieve your costs results but might not get you results as you might be bidding lower than the auction requires for your ad to be competitive.

You should start with lowest costs and then could potentially move to target cost once you've achieved at least 50-75 app installs and you have a better understanding of real costs for your client. 

You should also move to target costs if you are not getting enough app install results with your first campaign.

ROAS = (# of new customers acquired from Campaign x Long-term Value of a New Customer) - Cost of Ad Campaign

• # of new customers => 64

Long Term Value for new Customers => is comprised of two parts:

• #1 Sales of the consumer watch: 64 * 250 = $16,000 
• #2 Sales from subscriptions: 64 customers * $0.99 monthly fee * 12 months * 50% = $380.16

Total LTV = $16,380.16

Cost of Ad Campaign = $11,958

ROAS = $16,380.16 - $11,958 = $4,422.16