Budget Optimization for Social Media Advertising and PPC
You have identified:
- All the relevant platforms that could carry your message – e.g. Facebook, Google, WhatsApp, LinkedIn etc.
- You have a target list of the messages, keywords and key phrases that you would like to promote via the available platforms.
- You have a good idea of the cost range by platform for each keyword, though this may vary by the targeting rules you apply (such as time, geo location etc.).
- You have an approximate idea of the value of each message, keyword or key phrase will generate for you if featured on each platform.
You have a limited budget, therefore you need to find the optimal mix of content targeted at each platform that will maximize the overall success of your campaign.
This simple matrix underpins our PPC budget optimization model.
- The X dimension is for the list of social media platforms.
- The Y dimension is for the list of keywords and/or phrases you target.
- The Z dimension is time dimension of your campaigns.
With the basic 3D cube set up we then need to instantiation each cell of the cube with performance data, such as click through rate, cost per click, revenue generated, profit generated etc, for each cell to create a data multi-dimensional data array for the optimization model to run against.
The number of dimensions required for the model will be a direct function of the sophistication of your web analytics tracking.
The optimization model seeks to achieve three specific optimization sets:
- The first is the optimization against against spend to help you allocate the PPC budget most effectively across platforms and campaigns.
- The second is the optimization over time to allow for seasonal behavior patterns in your targeted audience.
- The third attempts to identify clusters based on the similarity of content and audience characteristics to increase the efficiency of your PPC campaigns.