How the “lowest cost per click” conversion event impacted full video promotional ad views on Facebook Ads Manager
NextAfter
Experiment Summary
Ended On: 08/10/2022
As a part of the NIO Summit 2022 promotional paid advertising campaign to sell event tickets, we wanted to experiment with what kind of video conversion event would produce the best balance between impressions, reach, clicks, and full promotional video views.
Our natural thought was to promote the video ads via “reach” campaign types, but our desire as direct response marketers was to test that natural inclination against a more “direct response” like conversion event of “lowest cost per click.”
How would the video ad start and finish rates play out while balanced against clicks and reach?
Research Question
We believe that the optimizing our video ad campaign for lowest cost per click for prospective and known audiences we were targeting in our ad campaign will achieve only increase clicks, but not increase full video completion rates.
Design
Results
| Treatment Name | Open Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Control | 0.09% | ||
| T1: | Treatment #1 | 0.90% | 851.9% | 100.0% |
This experiment has a required sample size of 213 in order to be valid. Since the experiment had a total sample size of 95,573, and the level of confidence is above 95% the experiment results are valid.
Flux Metrics Affected
The Flux Metrics analyze the three primary metrics that affect revenue (traffic, conversion rate, and average gift). This experiment produced the following results:
851.9% increase in traffic
× 0% increase in conversion rate
× 0% increase in average gift
Key Learnings
With a 100% level of confidence, we observed that full video views on the “lowest cost per click” campaign surprisingly produced a staggering increase of full video views in the amount of +851.9% over the “reach” optimized campaigns.
It’s worth noting that we did reach 85,286 with the “reach” optimized campaign when compared to just 10,287 prospects in the “lowest cost per click” optimized campaign.
Alternatively, we did see 9.5x more clicks (+7805% increase in ad link clicks, with a 100% level of confidence) in the “lowest cost per click” optimized campaign, though.
So, to summarize — although we reached 8.2x more people with the “reach” campaign, we saw 9.5x more link clicks with the “lowest cpc” campaign (and 1.14x more “full video views” as noted in the data above) over the “reach” optimized campaign.
Ultimately, it comes down to what you value and your ultimate goal … if you’re looking to just get your video ads in front of the largest number of people — you should optimize for the “reach” event type. However, if you’re mostly interested in driving site visitors or full video views based upon who you reached, through your video campaigns — it makes sense to optimize for the “lowest cpc” event type.