Following on from last months “Learn To Tweak with Twitter Analytics” we’re going to talk about how to deal with advertising cost management.
Your key Metrics to watch with Twitter promotions are:
- ‘CPE’ i.e. Cost Per Engagement – equivalent to Cost Per Click on Google Pay Per Click. Set your budget in advance and choose your key word.
- ‘CPC’ – Cost Per Conversion
To understand the real cost of your campaign, you have to know in advance what the average value of a conversion is and then work backwards to calculate how many engagements you need to achieve to cover costs and make a profit. The trick to any pay per click campaign is to set your budget in advance and stick to it, then review results. Test a number of focus points available. Twitter lets you pay in a variety of ways (For fuller details, go here, or speak to a Twitter Ads Consultancy). As a brief overview of pricing structures,
Twitter Ads are based on an auction model; it’s a learning curve. As an advertiser you can choose either automatic or maximum bidding.
Automatic bidding allows Twitter to optimise bids for your campaign objective and budget. Your business will be automatically entered into auctions with the lowest possible bid, given your overall campaign objectives.
Maximum bidding allows you to manually select how much a follow, lead, click or engagement is worth to you. When entering your bid, you don’t pay this amount when you win your ‘objective-based’ campaign auction; you will only pay one penny above the second place advertiser’s quality-adjusted bid. This is also known as a second price auction.
Your campaign type determines which actions you are bidding for; fees apply as soon as your campaign is live and the actions begin. The actions you can bid on include:
- Website Clicks or Conversions Campaigns: Pay for clicks to your website. All other engagements are free i.e. impressions, replies and retweets.
- Followers Campaigns: As the name suggests, you pay per new follower. All other engagements are free.
- Tweet Engagement Campaigns: Pay for any replies and retweets with your Promoted Tweets. Impressions are free.
- App Installs or App Engagement Campaigns: Pay for clicks to install or open your App. Everything else is free.
- Leads Campaigns: Cost per lead acquired; every other engagement is free.
If unsure which strategy might be best, compare metrics with split tests, but know your budget limits at the outset and set limits. This may determine whether you run continuously, or set a fixed term campaign ahead of time, or choose to switch on and off around peak traffic times, for instance, or set live around an event, for instance.
There is much more to learn about the management and monitoring of your campaigns, but Twitter do operate a support ticket system if you are struggling. Alternatively, you could hand it over to the professionals to begin with whilst you watch learn.