One major concern for our new clients is the challenge of balancing ad frequency with audience saturation.
When you advertise to an audience, specifically a retargeting audience, you want to find the perfect balance of exposure where customers are aware of the product or service, but not so exposed that they begin to ignore or get tired of them.
And most importantly for direct response advertising, you want to make sure you’re not wasting money on jaded prospects.
I sat down with Amanda to record our podcast and discuss why all of this data is important for growing your business as well as how you can apply it to your own numbers.
WHAT DO YOU MEAN BY FREQUENCY?
The metric we track to measure saturation is frequency – how many times people in your pool see an ad in a given time frame.
If you’re advertising on Facebook, then it’s critical that you manage your frequency. That’s because it’s significantly more important when compared with Display because the impressions from Facebook have a greater impact.
A user might have 20 banner ad impressions in a single day, but they may not ever consciously notice the actual advertising. A Facebook impression, however, means the user definitely saw your ad because they have to scroll past it in their News Feed. It would even take up their entire phone screen if they were viewing it on mobile.
Since Facebook ads get noticed more than Display ads, you want to manage their frequency so you don’t create creative fatigue amongst your audience.
WHY DOES FREQUENCY MATTER?
Audience saturation is ranks as a greater concern when you’re looking at a retargeting audience. When you’re retargeting, you’re limited in the scope of your audience based on the number of users who have been to your site.
With a specific audience size in retargeting, regardless of your budget, you can hit an ad’s saturation point fairly quickly.
WHAT’S THE SWEET SPOT FOR FREQUENCY?
Seeking to measure where the “sweet spot” for frequency is for our clients, we pulled all of our 2016 retargeting data from across all of our clients who had spent consistently throughout the year and divided them into two groups: Lead Generation and E-Commerce.
Given that Facebook allows a maximum of 2 impressions per person (per ad set) per day, we measured on a monthly basis to give us a more meaningful metric for the ads seen per user.
CPA falls as frequency increases across all measured frequencies. Of the clients we measured only one saw their CPA increase after eight impressions.
However, click-through-Rate (CTR) decreased as users become less engaged after seeing the ad multiple times.
After the initial impression, the lead generation CPAs stayed…