Frequency Cap Calculation and Optimization Strategies

When it comes to the ads you publish on Facebook, you might think that “Cost per Conversion (CPA)” or “Cost per Click” (CPC) are the most important metrics. But don’t forget about another critical metric you should always keep an eye on: Frequency.

We take full responsibility when people are repeatedly shown the same ad. Picture yourself seeing the same ad time and again; you would attempt to skip, close, or ignore it. Keep in mind that your customers will react similarly. Therefore, optimizing campaigns requires more than CPA and CPC. You must also factor in frequency limits, i.e., frequency. Moreover, it is advisable to keep track of Click-Through Rate (CTR) and Conversion Rate (CR).

What is the Frequency Limit and Why is it Important?

In order to know the frequency limit, we must first know the following terms.

Impressions : The number of times your ad was shown.

Reach : The number of people your ad reached. This number is unique.

Frequency : The rate at which your ad was shown to unique people. That is the number of times a person sees your average ad.

How to Calculate the Frequency Cap?

Once we have obtained the Impressions and Reach numbers, calculating the Frequency Limit is a breeze with the following formula:

Impressions / Reach = Frequency

To put it simply, by dividing the number of individuals who viewed your ad (Impressions) by the number of times your ad was displayed (Ad Reach), you can ascertain the Frequency Limit. For example, by dividing 16,190 by 12,586, you get an average of 1.29 individuals reached per impression. It is important to note that this number is only an average, and some campaigns may reach as many as 5 individuals while others may only reach 1. This metric is widely used to evaluate campaigns at a high level with confidence.

Why is Frequency Capping So Important and What Causes It?

Advertising blindness begins with people.

We have successfully identified the frequency limit, however, ad blindness is another contributing factor towards reduced engagement. According to Comscore, on average, an individual is exposed to 1,707 advertisements per month. This number seems to be extremely high and as time passes, our brains can filter out these ads to such an extent that we no longer register them. Consequently, this can lead to a decline in click-through rates (CTR) and an increase in cost-per-click (CPC) and cost-per-acquisition (CPA).

I understand your confusion regarding the connection between frequency capping and ad blindness, but let me assure you that this is highly relevant to our current situation. In fact, this issue is costing us a significant amount. Allow me to elaborate on the specifics below.

We Annoy Users

Users are effectively annoyed by repeatedly encountering the same ad. For example, if an advertisement appears 3, 5, or 6 times, it is unlikely that the brand will be viewed favorably after so much repetition. Instead, users may come to resent ads that interrupt their viewing experience or pop up while they are browsing their friends’ photos on Instagram.

With my extensive background in digital, I have confidently observed that ads with high frequency rates can often elicit strong reactions from users. These reactions may include negative comments, swearing, or unnecessary clicks.

If you say you don’t believe, then let’s look at some data.

After a thorough examination of the data from the four accounts that I currently manage, I can confidently state that the results are truly astonishing.

The data presented in the table and graph unequivocally demonstrate that raising the frequency cap leads to a decrease in the click-through rate (CTR) and a rise in cost per click (CPC). It is clear that this outcome is not desirable for advertisers or account managers.

Therefore, there is no point in showing an ad to a person 50 times.

If you were to ask me, the maximum impression rate is hard to define because it varies from sector to sector. However, based on the method I applied, I confidently close all ad groups with a frequency limit of more than 5 and replace them with new ad groups. From my experience, I strongly recommend not going above 10.

How Can We Fix the Frequency Limit Mismatch?

To start off, we will expertly craft our ads with the perfect ad text, complete with a compelling call-to-action and visually stunning graphics.

When it comes to targeting your audience, striking the right balance between reaching your desired audience and staying within your budget is crucial.

To minimize costs, it is crucial to establish a daily budget that corresponds to your target audience size. For instance, if your target audience comprises fewer than 100 individuals, a daily budget of 10 TL would be adequate. However, setting a budget of 100 TL or more for a target audience of less than 100 individuals would lead to avoidable expenses and complications.

Act quickly and follow up.

To ensure optimal performance of your ads and campaigns, it is crucial to stay on top of their progress. Keep a close eye on the frequency ratios and take action to close ads with a frequency greater than 5 by replacing them with fresh, new ad text and images. To combat banner blindness, focus on creating visually engaging and captivating ads that will pique the interest of your target audience. It’s also important to steer clear of posting ads that are solely promotional in nature. By following these guidelines, you can confidently maximize the effectiveness of your advertising efforts.

If you have any other questions or comments, you can contact me directly.