•  Value optimization is dependent on whether or not you are driving enough customers that Facebook's capturing value from in order for you to then be able to optimize for that value. So let's say you need about 100 to 200 purchases with a value attached to it when they buy your course, or maybe when they buy some coaching from you, then you're giving that information to be passed back to Facebook. If enough purchases go through, you'll be able to optimize for value, but everyone is given the optimization of conversion or customer optimization from the very beginning. 

• Now what's the difference between conversion and value. Essentially what Facebook is telling us is that with value optimization, you are optimizing for a higher value in the cart. So with the conversion side, even though it has a lower CPA, the goal here is that you're going for volume when you're using just conversion or customer optimization, whereas with value it's okay if you pay slightly more in hopes that maybe you get a higher cart. 

• So if a value campaign can average a higher return on ad spend than conversion than great, does it always average higher? No. And that's why we make sure to use both. In some accounts we've seen value optimization outperform the base conversion or customer optimization, you would usually put into a campaign setup. So really it's matter of preference. I know that with the traditional conversion or customer optimization, there's more volume. So the impressions come in a lot faster and with value it has to figure out who it is that you're targeting and whether or not it can deliver that higher value per purchase into your campaign. That's the main reason why you should test it out.

 David (00:01):

Hey everyone. Welcome back in this video. We're breaking down customer versus value optimization. The practically the same thing. Now I may not say customer optimization in Facebook. It's going to say conversion, but what you're working on is gathering customers. So let's just call it that. Now not everyone's going to have access to value. Optimization value optimization is dependent on whether or not you are driving enough customers that Facebook's capturing value from in order for you to then be able to optimize for that value. So let's say you need about 100 to 200 purchases with a value attached to it through the pixel, right? Whether you have a Shopify store WooCommerce store, uh, maybe you've built something on Squarespace, or maybe you selling something through a funnel, but you've attached the value to it when they buy your course, or maybe when they buy some coaching from you, then you're giving that information to be passed back to Facebook.

David (00:59):

And if enough purchases go through, you'll be able to optimize for value, but everyone is given the optimization of conversion or customer optimization from the very beginning. It's the default. It's what everyone sees. So in this example, here in this account, you'll see that I have two campaigns at the very end of this campaign name, you see value. And at the end of this one, you see conversion. So let's look at the difference with conversion. You'll see the setting for optimizing for conversion at the bottom, right? So you could see optimization for ad delivery conversion. That's the default when you select a conversion ad, but when you are trying to optimize for values, you see it's already live. So I can't change it. But if let's say I wanted to set up a value campaign, it's exactly how you'd set up any other campaign. But then you look at that same section for optimization for ad delivery and you would select value.

David (01:51):

And like I said, value will only appear after a set number of purchases have passed value back. So as long as you have that value attached to your pixel, you're fine. In this example, because it's an e-commerce store, which Shopify, after about a hundred to 150 purchases value optimization came through, thus, we were able to start optimizing for value. Now what's the difference between conversion and value. Essentially what Facebook is telling me is that with value optimization, I am optimizing for a higher value in the cart, right? So maybe with the conversion side, even though it has a lower CPA, the goal here is that I'm going for volume when you're using just conversion or customer optimization, whereas with value it's okay. If I pay slightly more in hopes that maybe I get a higher cart, does that always happen? No, but in this example, you can see it's not happening at all.

David (02:43):

They're about the same, they're the same return on that spend. And with this client, we can average a 1.3 and be profitable. We're going for volume. So if a value campaign can average a higher return on ad spend and conversion great, does it always no. And that's why we made sure to use both, but if we look a little further, you could see one 63 in this example and this one, one six one, right? So it's about the same, but in some accounts we've seen value optimization, outperform the base conversion or customer optimization, you would usually put into a campaign setup. So really it's matter of preference. I know that with the traditional conversion or customer optimization, there's more volume. So the impressions come in a lot faster value. It has to figure out who it is that you're targeting and whether or not it can deliver that higher value per purchase into your campaign.

David (03:38):

That's really the main reason why you would test it out. It's one of the reasons why I tested it. I'm like maybe if I can make this to where it's a 2.0 or higher, that would make things a lot better. And plus, when we look at things from a more historical standpoint, since we started using value, you could see our value campaign is performing higher than our base conversion campaign. So of course it makes sense for us to keep using it. That's the whole intention of a customer or conversion-based campaign versus a value campaign. And quite honestly, I give them both a shot, especially if you're doing e-commerce. And so give it a try, see what it does for you. And if you have the opportunity to use value as an optimization strategy, do so, trust me, it's worth it.