What's value optimisation?

Optimising for value tells our delivery system to show your ads to people who are likely to maximise the amount of value they'll generate.

By "value", we mean how much revenue (as reported by the "value" field of reporting) is generated by a person within a day or a week (depending on which conversion window you choose) of a given purchase event. We don't mean long-term value (longer than a day or week, in this case). For example, we don't factor in the possibility that a purchase event that doesn't generate much revenue within a week could lead to a long-term loyal customer who generates lots of revenue over several years. A purchase event that we predict will generate a lot of revenue relative to its cost is considered "higher value" than one that generates less revenue relative to its cost.

By "optimisation", we mean the result that our delivery system is trying to get you. You make this selection in the "Optimisation for ad delivery" field of ad set creation.

Can I optimise for value?

You can, if you meet each of the following prerequisites:

• The ad sets you want to optimise for value are part of a Conversions campaign
• You have a Facebook pixel implemented
• Your pixel has the purchase standard event and it's sending us the value and currency parameters (learn how to set this up or learn more about standard events)
• Your ad sets are able to deliver consistently (a good benchmark for this is getting about 50 purchase conversions per week per purchase-conversion optimised ad set)
• Your ad sets send us several different values over the course of the day (e.g. someone may buy GBP 10 worth of product while someone else may buy GBP 50). This helps us determine who to show your ads to in order to generate the most value.

Why should I optimise for value rather than conversions?

Here's a simplified example of the difference between value optimisation and conversion optimisation:

There are GBP 3-value and GBP 5-value purchase conversions available, and both types cost GBP 1 to get. Ad sets optimised for conversions (not value) don't distinguish between the two. As long as a purchase is completed, our system will use that information to find you more conversions with no regard for how much value one generates compared to another. Ad sets optimised for value do make that distinction and seek out the highest-value conversions available within your budget.

It's also important to remember that we bear your budget in mind when finding higher-value conversions. Say you have GBP 5 left in your budget. If we find a conversion that costs GBP 10 and has a GBP 40 value, and one that costs GBP 1 and has a GBP 3 value, we won't skip the GBP 1 conversion just because the ROAS of the GBP 10 one is better. Our delivery system will recognise that the GBP 1 conversion is the best value we can get you within the constraint of your budget. In other words, value optimisation doesn't only go for higher-value conversions. You don't have to worry about missing out on lower-value (but still valuable) conversions by making this optimisation choice.

Should I optimise for value?

If you can optimise for value, you should. You'll still get the conversions you care about, but you're more likely to have better ROAS on those conversions.

If you're still not sure if value optimisation is right for you, you could think of it as a choice between having a lower average cost per conversion (conversion optimisation – in blue below) or a higher average amount of value per conversion (value optimisation – in yellow below).

Additional information

Bear in mind:

• When you optimise for value, you can only use the highest value bid strategy.
• To fully understand the results of value optimisation, make sure that you're viewing the "Purchase Value (ROAS)" column in ads reporting. You may need to customise your columns to see this metric.
• Optimising for value could lead to a higher average cost per result compared to optimising for conversions. Remember that this type of optimisation is about finding the purchase conversions that get you the most revenue (within the constraint of your budget), not finding the cheapest purchase conversions. For example, if there's a GBP 1 conversion with a GBP 2 value and a GBP 2 conversion with a GBP 10 value, we'll choose the latter, since it has a 2.5 times higher ROAS, despite having a higher cost per result.
• If you're not sure which conversion window to choose, we recommend using the one that's most similar to the one you'd use for conversion optimisation.

* Nguồn: Facebook