FACEBOOK BUYING TYPES: AUCTION VS REACH & FREQUENCY - WHICH IS BETTER?

TL;DR

Facebook auction buying is generally better for conversion campaigns with small, specific audiences, while reach and frequency is better for broad brand-awareness and reach campaigns. Auction is the default buying type, whereas reach and frequency lets advertisers book a guaranteed price to reach a certain number of people but supports only seven campaign objectives. Read on to compare their costs, limitations, and recommended uses.

Transcript

hi guys has been Heath from Leaguer and in this video I'm going to talk about Facebook's buying type called reach and frequency so Facebook have two different buying types they have auction and they have reached and frequency and could he discuss the pros and cons of each because nearly everyone uses auction all the time but there are times when yo... Read More

Key Insights

• Facebook offers two main buying types: auction and reach & frequency, each with distinct advantages and limitations.
• Auction is the default buying type on Facebook, operating on a competitive bidding system to reach targeted audiences.
• Reach and frequency allow advertisers to guarantee a set price for reaching a specific number of people, ideal for large-scale brand awareness campaigns.
• Auction is more suitable for conversion-focused campaigns targeting specific audiences likely to take action.
• Reach and frequency campaigns limit the range of campaign objectives, focusing mainly on brand awareness rather than lead generation or conversions.
• Testing is crucial in Facebook advertising to determine which buying type yields the best results for specific campaign goals.
• Reach and frequency can be cost-effective for large brands with significant marketing budgets aiming to maximize reach.
• The speaker offers a free five-part Facebook ad template to help improve ad performance, available for download via their website.

Questions & Answers

Q: Which Facebook buying type is better: auction or reach and frequency?

Auction is better when you want people to buy, become a lead, or take another specific action because it supports targeting small, relevant audiences. Reach and frequency is better for brand-awareness or reach campaigns designed to get in front of as many people as possible at a guaranteed price.

Q: How does Facebook auction buying work?

Auction is Facebook’s default buying type. When multiple advertisers want to reach the same people, they compete through an auction, with factors such as the amount paid, relevancy score, placement, and time of day contributing to who reaches the audience and what advertising costs.

Q: How does Facebook reach and frequency buying work?

Reach and frequency lets an advertiser book a guaranteed price to reach a certain number of people instead of competing through the standard auction. The speaker recommends it when the goal is broad, cost-efficient exposure rather than a specific conversion action.

Q: When should advertisers use reach and frequency?

Advertisers should consider reach and frequency for brand-awareness and reach campaigns aimed at large audiences. The speaker particularly recommends testing it for big brands that have large marketing budgets and want to spread the word about their business.

Q: When should advertisers use Facebook auction buying?

Auction buying is the stronger choice for conversion campaigns where people need to purchase, become a lead, or take another specific action. The speaker says small, specific audiences interested in the offer are more suitable for these goals than the larger audiences used for reach and frequency.

Q: What campaign-objective limitations does reach and frequency have?

Reach and frequency supports only seven campaign objectives rather than Facebook’s full objective list. The transcript specifically says it cannot be used for lead-generation campaigns, while brand awareness is available.

Q: How did the estimated costs and reach compare in the example campaign?

Facebook estimated a CPM of 53 pence for reach and frequency in the UK 18-plus example. It also estimated that auction would cost 42 percent more, deliver 41 percent less, and that reach and frequency would reach 772 percent more people.

Q: Should advertisers test both Facebook buying types?

Yes. The speaker says testing is key in Facebook advertising and recommends trying reach and frequency for broad brand-awareness scenarios while otherwise being inclined to use auction.

Summary & Key Takeaways

• The video discusses Facebook's two buying types: auction and reach & frequency. Auction is the default, allowing advertisers to bid for audience attention. Reach & frequency guarantees a set price for reaching a specific number of people, suitable for brand awareness.

• Auction buying type is best for conversion campaigns targeting specific audiences, while reach & frequency is ideal for large-scale brand awareness campaigns. Testing is recommended to determine the most effective approach for specific campaign goals.

• The speaker provides additional resources, including a free five-part Facebook ad template and consulting services, to help advertisers optimize their Facebook ad campaigns. The video encourages viewers to test and find the best buying type for their needs.