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Updates to the Facebook Network Ad Management service

We’ve updated the Facebook Network Ad Management service to be more inline with customer needs.

Name change

Because “Facebook Network” is a term that Facebook already uses to refer to a specific segment of their market (and consequently their ad placements), we’re removing the word Network from our service name so that it is more clear that it isn’t referring to just one part of Facebook Ads. The service name is now Facebook Ad Management.

Service scope

We’ve expanded the scope of what this service covers. Previously, the service covered the deployment and management of Facebook campaigns, adsets, and ads.

We’ve now expanded the service. In addition to what we offered before, customers using this service will also benefit from:

  • Audience management and building
  • Automated rules development and management
  • Monthly ads progress/effectiveness reporting
  • Facebook Pixel deployment
  • Budgeting recommendations
  • Creatives recommendations and deployment
    • We’ll put all the elements together for a coherent and consistent Facebook ad; you still need to provide the images/videos and text
  • Facebook Ad A/B testing
  • Stop loss rules (both value and Return on Ad Spend (ROAS) based)
  • Fully managed hands-off approach

Pricing

Previously, we charged a flat fee per ad (per month), and while this worked fine, it was noted that the system provides little incentive for ad optimisation. After a few conversations with our customers, we’ve reached a pricing scheme that makes sense for everyone.

M Media Facebook Ad Management now charges 5.6% of generated ad revenue less ad expenditure. This means that if you spend 100 EUR on a given Facebook ad, and it makes you 500 EUR in revenue, we will charge you (500 – 100) * 5.6%, or 22,4 EUR.

The better your ads perform, the more money everyone makes.

If your ads don’t make you any money, then you don’t owe us any payments.

If at the end of the month the total ad expenditure exceeds the total ad revenue, we will not charge or pay you. You can set a per-ad stop loss value to minimise expenditures on less effective ads.

If your website isn’t e-commerce driven or doesn’t support advanced conversion tracking, we can work out alternate pricing schemes.

Cost overrun protection (stop loss)

A “stop loss” is an investment term commonly seen when trading on the stock market. In plain English it means “if I spend this much money on something and I don’t get the result I want, stop spending that money”. We use the term similarly here, though we refer to your Facebook Ad spend instead of your stock market portfolio.

On average, our customers opt in for a stop loss set at 120 EUR, meaning that if after 120 EUR an ad didn’t generate any revenue, it will be terminated and its budget dissolved across other ad campaigns. That being said, most customers see their first returns after just 20 EUR ad spend, and never even get close to the stop loss value.

In addition to a value based stop loss, you can opt in for a Return on Ad Spend (ROAS) stop loss. Most of our customers have an additional ROAS based stop loss at 2. This means that if your ad is generating 199 EUR in revenue for every 100 EUR you spend on it, the ad will be deemed ineffective and the ad budget will be dissolved across other ads. ROAS stop loss values are checked between once a week and once a month and only after your ad has been seen at least 5k times, whereas value based stop loss rules come into effect as soon as the set stop loss threshold is reached. Combined together, these two types of stop loss rules can manage your risk level on Facebook ads.

We work with you to determine the best stop loss options for your business. These values depend highly on profit margins, marketing budget allocations, and your customer conversion rates, so we take a look at all that and offer you some reasonable suggestions.

Tailored hands-off approach

Our customers tend to be very busy people that don’t have time to manage their Facebook ads. Because of this, we now offer a tailored hands-off approach to Facebook ads, involving you only when you want to be involved.

Some customers have given us a maximum daily budget and let us control everything, while others prefer to be notified of things like new campaigns and budget changes. Whatever the level of management and oversight is required by you; we’ll make it happen.

Commonly asked questions

So, how much does the service cost?

In short: (Ad-generated revenue − Ad expenditure) × 0.056

Please read the Pricing section on this page for a more detailed explanation.

What is the minimum I need to spend on Facebook ads to qualify for this service?

In order to generate enough data and results to be able to cover the scope of this service, we require that you allocate at least 15 EUR per day on Facebook ads.

You will also need a website where your customers can take an action that has an intrinsic monetary value (like an e-commerce web shop where people can buy your products, or a restaurant website where customers can make a reservation). Your website should also have at least 50 visitors per day.

All these words look like a foreign language to me. What’s this about?

Facebook Ads can be very complicated. If you didn’t quite understand this article, contact us and we’ll be happy to walk you through it.

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