Today I’m going to share a little trick that helped me optimize performance on campaigns with huge discrepancies.
Now that FB changed it’s attribution window from 28 days to 7 days, a lot of purchases are not tracked.
It depends on many factors:
The size of the business,
How long you have been running ads
How well you know your campaigns
The performance and what you should expect
But even if you know your Ad Account inside & out, the attribution change can still affect it, plus each quarter has different user behavior, but this is another topic.
Let’s see now how to track the performance and start learning again to deal with the 7 days attribution window.
The first thing I noticed is that it’s not a good idea to optimize based on daily performance, unless you’re hitting your KPIs.
Solution, until you get to learn again your campaign’s behavior and know what to expect in terms of attribution you’ll need to follow closely the daily performance from day 1 to day 7 and the 8th day to recheck again.
It is a bit time consuming but exporting into an excel spreadsheet will help to have a clear view.
For example, on one of our clients, we noticed that the discrepancy from day 1 to day 7 was about 50%.
Yes, it is kind of a madness in this case to optimize on the daily performance, we would have killed good campaigns.
However keep in mind that campaigns with a higher budget for 7 days unoptimized can be a double edged sword, so pay attention to the daily budgets until you learn the new patterns.
For this specific test I was using 2x the CPA for the daily budget.
If you have multiple sales channels running try to understand how much of the sales came through FB.
I know this is “mission impossible” and a never ending cycle, but actually the spreadsheet will help you to notice the discrepancy between day 1 and day 7.
So once you have a clear pattern you’ll be able to know approximately how much sale came through FB on Day 1.
Example: Day 1: 50 sales in Facebook’s Ads Manager / 100 sales in Shopify Day 7: 75 sales in Facebook’s Ads Manager
As per the above example there is a 33% discrepancy between Day 1 and Day 7.
We found that 75% of the total sales came from Facebook.
I would like to encourage you to try this test if you haven’t yet, and see if it will help to better understand and optimize your Facebook Ads campaigns with the new 7 days attribution window.
Let us know if you have any questions or give us feedback if you are trying similar optimization hacks.
If you are spending over $500 a day and want to scale your brand
I am sure that everyone who runs an e-business, or works in digital advertisement already met (or at least heard about) the new iOS 14 changes, which were implemented by Apple. The iOS14 update will ask users for permission to track their activities across the web. In case the user does not give permission, third-party data collectors like Google, Facebook, Pinterest, Snapchat, etc will not be able to get user data for targeting, optimization, and reporting.
In the U.S. more than 50% of mobile users have iOS, (which number is approximately 30% in Europe.) In the worst case scenario, 50% of the conversions may not be reported – so the effect of the update can be significant. Due to these changes, Facebook also has to implement some changes, trying to support its advertisers’ efforts to run effective campaigns even with the changed data-environment. Although it is not fully clear yet what the full impact will be, it already seems that everyone has to adapt to less data, limited targeting precisity and higher costs.
There will be several changes, which need to be adapted in further strategies.
Where We Will See Changes
Only 8 events can be tracked, and will be reported after the priority level. This will affect utmost those products and services, where the customer’s decision-making time is longer than 7 days. This case if a customer clicks to an ad but purchases only later than 7 days, this purchase can not be connected to the Fb campaign.
Conversion data from mobile web will be delayed up to three days. This means that remarketing audiences are not fully updated in real-time.
Dynamic Ads audience sizes will decrease
You will only be allowed to use 1 pixel per catalog.
Offline conversion events will be reported based on the time the conversions occur and not the time of ad impressions.
From late February, ads metrics data older than 37 months will no longer be reported.
Aggregated Event Measurement will be introduced, which results in partial event reporting. For every visit, only the highest priority event will be reported. So if someone arrives at your page, checks a product, adds to cart, and goes through checkout ending with a purchase, from this 5 pixel event (page view, ViewContent, ATC, IC and Purchase) only the Purchase event, as highest priority one will be displayed.
What does it mean in everydays? You may see a decrease in the number of reported conversions and some of your ads may be paused or could stop being delivered to certain devices.
Also the Facebook app itselves is affected by the changes. As 80% of Facebook traffic is mobile-only (with iOS domination in device-profile). The users, who do not give permission for the FB app, might / or will drop out from such remarketing lists and audiences which are used by advertisers. Without the necessary user approval it will be difficult or even impossible to aggregate the following of customers. This means smaller and incomplete remarketing audiences.
There are a lot of brands and businesses, who can not afford to spend ten-or hundred thousand dollars for facebook ads – so it is essential for them to minimize wasted money on false audiences. So if you ask, if retargeting will be possible in the future? The answer is: Yes, but prepare for less effective retargeting and higher advertising costs!
Delay in event reporting, due to the Aggregated Event Measurement: this means you can react slower, and actually running “blind” during the first days of the new campaigns
Less qualified reach: as your targeted audience partly (or even mostly if you are not lucky) will not give permission for data sharing, the size of highly relevant audiences will shrink.
Less effective retargeting campaigns: Due the limited data, it will be more difficult to reach the most relevant group of people for your business.
Difficulties in the exclusions: if the reported data is delayed for 3 days, you will keep on targeting the purchasers for an extra 3 days. This decreases effectiveness and increases CPA. In case your customer chose not to provide data – you can not even exclude them at all after they completing any events.
Shrinking Audience sizes: some audience sizes can shrink to that level, which makes them quite impossible to target.
We do not have a lot of options so far… but as this affects simply too many companies and businesses, we can trust that the industry will find different solutions to minimize the effect of the changes. The Aggregated Events Measurements of Facebook, and Google’s Consent Mode (still Beta) will use algorithm-modelled data for completing the missing data-gaps. Even with this, we cannot expect to get the exact precisity as before, but the trends are supposed to be correct.
Some Tips to Try:
Split cost and risk due advertising also on additional channels
Try using independent measurement tools
Prioritize your events
Try to implement broader / consolidated audiences for event-based campaigns
Try to reach your audience through email campaigns, improve their commitment and loyalty to make them purchase again.
Don’t forget, not only you, but the whole industry is facing the same challenges. There will be plenty of information about the topic, and sooner-or later there will be a solution. Even if not perfect – everyone will adapt to the new circumstances.
How to Optimize Your Landing Page to Be Relevant and High Quality
Speed nowadays is everything, most users will lose interest in your brand or product if they need to wait just about a few seconds in order to fully load your landing page or website.
Any landing page that takes over 3 seconds to load will lose as much as 50% of the users that were potentially customers. That is how important speed is.
While having a landing page that is easy to navigate and that leads the users into converting, it is important to mention that the content that we present to those users is extremely important.
We don’t want to drive traffic into a very basic landing page, without information or content that only focuses on getting them to convert.
If a user clicks on your ad it is because they are interested in your product and/or brand. Work on the content that you are providing those users and make sure that it properly represents your brand.
It is extremely important to update landing pages into the most updated design in order to keep up with the trends.
We don’t want to drive traffic into a landing page that looks old or that it has not been updated in ages.
Most importantly, use a design that talks to your user persona. Think who is your ideal customer and adjust the landing page in a way that it speaks to them.
Nobody wants to spend time scrolling through a landing page that is too complicated or that it has too much information on it.
The same that most customers will leave if your page is not loading within the first few seconds, they will do the same if they cannot navigate easily though it and they cannot find the information that they are looking for.
Make it simple and user friendly and you’ll see your conversions improve.
These are just some of the main important things to keep in mind when optimizing or creating your landing page.
If you are just interested to know more about this topic or us, to find out if we are the right fit for you and if you are spending over $500 a day and you want to scale your brand.
Should I use one or many creatives / IDs or Dynamic in my campaigns?
We hear these two questions over and over again. With old and with new media buyers. What we found out is that both strategies will work.If you have a great product, that your targeted audience wants. And if you optimize campaigns correctly, when you get enough data.
Our recent tests showed that maybe at this point fewer is better than more – on cold traffic, more is better than a few – on retargeting, and IDs work better on short term, and Dynamics better on long term.
Let me explain a little more of our recent testing.
Example 1: Reorganizing a Current Client
We have this client’s account, where we mostly run dynamics on cold and retargeting for the past half of the year.
Budget was around 10k per day on average. We tested new always with $100 or $200, and after a few days and few tweaks performance was optimized. These campaigns performed well for 2-3 months if optimized correctly every day.
Here I mean downscaling and upscaling budget, and turning off and on ad sets + ads based on the last 3-7 days performance.
Structure on retargeting was almost the same as on cold traffic, and each ad set had around 10 images and 3 ad copies.
Then a few months back, we had to change all creatives very fast, and because we had more than 50 campaigns, we decided we were gonna do it with IDs.
We created around 10 different IDs (pics/vids, carousels, collections), and then duplicated all dynamic campaigns, deleted ads in them, and switched dynamics off on ad set level. Then we duplicated new IDs into these empty new campaigns one by one.
We finished the process in 2 days, but if we would go via dynamics, we would need the whole week as we would also need to create ad sets from scratch because of the audiences.
We decided that we are gonna try all campaigns with IDs for a week, to see if they can compete with our previous dynamic campaigns.
To our big surprise, after 5 days when new IDs got enough engagement, we optimized the campaigns heavily and results were great.
We put 1-2 IDs in different combinations on cold traffic, and 3-5 together in retargeting campaigns.
Now after 2 months these campaigns are still working well and they are bringing pretty much the same results as before.
Example 2: Setting Up a New Client
Our new client when he came to us, had only 2 proven IDs that performed well in the past.
He didn’t have any good video creatives, all he had was a bunch of product pics that were not tested. So we selected the best ones and put everything in dynamics on cold and retargeting.
We thought we were gonna make it work but somehow dynamics never worked here.
After one month of testing we gave up, and went testing just IDs. Results were better but still not where we want them to be.
So in month 2 we decided to push only the 2 IDs they performed the best in our dynamic tests, and use dynamic campaigns just on our retargeting.
Strategy became our winning one and we used the same approach in one other account.
Results were great again. So at this point, we like to push a small number of IDs on the front end, and a lot of creatives in dynamics on the backend.
You can also do with lots of IDs on retargeting, but then I would suggest to change copy based on the 3-90d segments.
We also exclude all page viewers, buyers and social media engagers on cold traffic, so we target just fresh visitors. And that is a very simple structure you can replicate and try out!
1 or 2 IDs on cold, 5-10 IDs or Dynamics on retargeting.
Have you ever jumped into Ads Manager and got a shock when the total number of purchases that you received during the day was the most you have ever had in a single day?
And have you ever seen Shopify sales at a high but Ads Manager reporting conversions at a low? Maybe the Add to Cart event is not showing data in Ads Manager, maybe the ROAS, and even worse – purchases.
I’ve been in this back and forth struggle with a client who unfortunately had many pixel errors. First the pixel kept over recording the purchase events, then under recording. Ads Manager doesn’t record the purchase Conversion Value and I cannot see the ROAS.
You might be wondering HOW DO YOU OPTIMISE !?!?
Let me share a few tips with you that I have learned throughout this ongoing struggle, and what you can do if this problem happens to you – we all experience pixel problems at some point.
Top of Funnel Campaigns
Firstly for prospecting campaigns. The key with your prospecting campaigns (cold traffic) is to keep your targeting as broad as possible. Since we cannot accurately track data, it is a great time to put broad audiences to the test and let Facebook find your customers for you.
When you have specific interests that you want to test – keep this testing for later and take your best known interests from past data (when you could still analyze the numbers accurately) and put them all in one consolidated audience in one ad set. Therefore you must create a stack of your best interests, in one ad set only. Remember, there is no real point splitting these interests in different ad sets as you might turn off the one that shows the least purchases, however its recording the wrong data and it might in fact be a good ad set.
We then move over to the Middle of the Funnel, where we target the people who have engaged and interacted with our ads and social pages. Generally a nice split is ideal between audiences such as your video viewers, Facebook engagers and Instagram Eengagers. However, because we are experiencing the wrong tracking of data, this is what you need to do.
If you have good engagement on your Instagram page, Facebook page and your ads, it is the best idea to consolidate these engagement audiences into one Middle of Funnel campaign in one ad set. This will bring you consistently good results and is easier to manage and it makes sure you cover all the engaged audiences while you see the incorrect data in Ads Manager.
If you know that your Facebook page for example brings poor quality engagement, you can always opt for Instagram engagers only with or without video viewers – just to be more safe.
Retargeting is where we hope the magic happens as we sometimes struggle to convert on cold traffic, we have now warmed our audience up so we should be selling like HOT CAKES 😉
However, we can’t optimise because we still see the wrong data.
The theme throughout indicates once again – consolidate. This is generally the best method to deal with this problem and you want to consolidate the following audiences in one retargeting campaign with one ad set: people who have viewed pages on your website, people who have viewed the content of these pages, people who added to their cart, people who have initiated checkout (all of these excluding people who have purchased). This will keep your budget safer and in one place, and less optimisation will be needed until you are able to receive the correct data.
When you experience hiccups like this in your advertising journey, fall back to the basics and try to keep things as simple as possible. It is definitely not fun optimizing blindly in an ad account that runs 20 different campaigns.
Is it better to add new ads to existing campaigns? But then the campaign goes back to the learning phase.
Is it better to create a new campaign for testing creatives? But then the best performing audiences can overlap and it will be difficult to scale.
I think all of you have these questions and answers in mind when thinking about introducing new ads to a stable campaign structure.
I recently had a very interesting discussion with a Facebook representative on this matter and would like to share my findings with you.
Of course I won’t give you a strict guideline of testing new creatives because every account differs but I will share with you the information I got from Facebook which helps me understand the algorithm a bit better.
There will also be a very interesting tip on how to restart a learning for a specific video – so stay tuned!
How to Add a New Creative Into An Existing Campaign
Let’s say we have 1 top performing prospecting campaign with 5 different ads inside. Each ad has the same video and 5 different copies.
But at some point we see that the CTR starts to die and we want to refresh the ads with new videos. We don’t want to turn all of the old ads off since we don’t know the results of the new videos.
But if we just create new ads in the same campaign there’s a big chance that the new ads won’t start spending since the old ads have more engagement and the algorithm already learnt a lot about the ad.
So why does this happen?
Whenever you add a new video, Facebook identifies it is a specific creative. So, for example, if you’re using this video in different ads and even different campaigns, the algorithm consolidates all the learning around this video together.
And when you add an absolutely new video, Facebook doesn’t know anything about it so it prefers to spend the budget on the familiar video already.
So the first tip I got from the Facebook representative was to create a small testing campaign with the new video. This way the algorithm will start the learning process and gather more information about this specific new video.
After several days you will be able to introduce this new video to the existing campaign. And since Facebook will already be familiar with this video, it will start separating the traffic between the videos.
How to Split Test an Old Creative Vs. New Creative
Let’s imagine another situation. You’ve been running the same campaign for weeks but now you would like to create a new campaign with different targeting (let’s say targeting another GEO) and you would like to introduce the old video together with the new video in the campaign.
Whenever you upload both of them, though they are new ads, still the algorithm starts sending much more traffic to the old video.
How can we avoid this? This tip really helped me a lot.
You need to change the thumbnail of the old video!
Whenever you change the thumbnail, Facebook starts looking at this video as an absolutely new video.
So if you want to create an A/B test with an old and a new video from scratch, just change the thumbnail of the old video and both of them will have the same chances to compete.
I found this information really interesting and helpful.
To sum up when you’re planning a creative testing, think carefully whether in this specific test you want the Facebook algorithm to work based on the previous knowledge or not. Now you also know how to trick it and start the learning from scratch.
If you want to know about other strategies we’re using while testing
We recently started working with a new client from the Fitness niche. He is the face of the brand and is selling online courses to a very specific audience: 30-50 years old men with children, interested in motorcycles and cars, from the working class, who are looking for a way to make their lives healthier and their bodies better looking.
Our Original Strategy
The client has spent a lot of time structuring the funnel flow and right now it looks ideal to him. He is driving the future customers into a survey where they answer all the main questions about their lifestyle but the main dealbreaker is the question: “How much money are you willing to spend on your fitness program each month?”
And based on the amount the client either sends them to a page with a selection of low priced programs (from $40 to $60) or sends them to a high ticket lead page. The future customer leaves all the details and waits for a call from the sales man who ideally closes the lead for a high priced individual program (from $1200 to $2800).
When we onboarded this client this is how the Top of the Funnel flow looked like. The main obstacle we were facing is taking under consideration the revenue coming from the high ticket leads. Since it is a whole process, we wouldn’t see the revenue coming from high ticket leads straight away in Ads Manager so it was very difficult to optimize the campaigns.
But since the client told us that the closure rate is quite high we continued pushing the TOF campaigns based on the amount of high ticket leads that we were getting since the revenue coming from these individual programs is much higher than the revenue coming from the cheap programs.
For the retargeting traffic though we were driving customers only to the low ticket programs since ideally the leads would be closed on the phone. And we saw that both Middle and Bottom of Funnel were performing quite well but we couldn’t start scaling them because there was not enough audience in the Top of the Funnel for the low priced programs.
Getting On the Same Foot
The client wasn’t that satisfied with the performance of the Top of the Funnel traffic so we hopped on a call with him to discuss our steps moving forward.
Our main point was that we were getting a decent amount of high ticket leads through our Top of Funnel traffic which ideally would be the main percentage of the revenue so it made total sense from our side to continue pushing the survey and getting more and more leads.
But the client told us that his main goal is to increase the amount of low priced programs sold and ideally exclude the high ticket leads at all because the main goal of the business is to get passive income without having to deal with calls, sales and so on.
Of course in terms of revenue at the moment this approach doesn’t make much sense but it is very important sometimes to look at the business from your client’s point of view and start adjusting your campaigns not just in order to increase the profitability right now but to reach much bigger goals in the future.
Building The New Strategy
So we started working on an absolutely different strategy and flow for the customers. We decided to separate the low priced programs from the survey and create additional landing pages for them with an option to purchase the programs straight away.
We don’t have any results yet but based on the results we’re getting for the retargeting traffic I’m sure we will manage to improve the prospecting traffic this way as well.
We have 5 different programs that can be considered as 5 different products so the variety of audiences and ads that can be set up is enormous which will make it much easier to optimize and scale.
Since there is no product cost for the low priced programs, our breakeven point is a ROAS of 1.0. We can start scaling if we’re over this point and there are no actual limits because there can be no stock issues or shipping fees.
And this path will make the client more satisfied than focusing on the high ticket leads and will grow his business much faster because this product is much more scalable.
But the key takeaway from this case study is that it’s much more important to listen to your clients needs because maybe from a media buying perspective it’s much more efficient to advertise one product but from the business owner point of view another.
If you want to start working with an agency that actually listens to your needs
So let’s go now into the data, how to optimize campaigns, and how to scale them.
Before that, let me just say a few things about our Pinterest reps. In Part 1 I said how very happy I am with my reps, now the situation changed. After 30 days and after 3 calls with rep 1 and rep 2, rep 2 sent me an email that now I will get a new rep.
On Pinterest they have different teams of reps based on the country where the majority of your clients are coming from. As this client I’m doing Pinterest ads is from the US, they signed me now to the US team.
Now rep 3 wanted to schedule an introduction call again. We went through the same stuff we did with rep 1 and 2, and most questions I had on pixel and event attribution were not explained and just skipped.
He said that he is only the ‘introduction’ guy, and that in a short amount of time I will get a rep 4, who will help me with these questions and more details about campaign optimization.
So few questions I had about agency accounts and pixels are still not being answered, and it’s been more than 2 months now. But ok, I get it… It’s Covid lockdown, it’s the beginning of Christmas time, and we’re not big spenders yet for them, so we have time to wait. 🙂
Update: Just yesterday rep 3 sent me an email that we don’t need another introduction call, and that rep 4 will now try to answer all my questions.
So let’s wait and see what will happen. Maybe rep 5 will now jump in and ask me again of what I already solved by myself till this day.
But anyway, let’s go now into more important stuff – Data & Optimization.
Data & Optimization
So as I explained the structure of my tested campaigns in article 1, what I did next is I waited 3 days. Then I turned off the majority of campaigns as numbers were crazy.
After my second call with rep 2 from AU (by the way, she was the best so far), I decided to switch the attribution window from 30 to 7 days. I wanted to see the closest results we get in Shopify or Google Analytics.
It’s still 7 days but this is the best we can do, as Pinterest is just an introduction site for your products, and the majority of these audiences are just browsing around and will not purchase on day 1. When they will see the same ad after 4 days on FB, and if they will make a purchase, Pinterest will take the credit for that sale. And also the FB.
From what rep 2 told me and how I saw the first data, I decided that I will not touch campaigns for the first 7 days.
You will see many campaign’s data getting better after days go by, because of their different attribution windows.
Then when day 7 came, I started optimizing. I was killing whole campaigns above my KPI, and killing ad sets and interests/keywords in active campaigns that showed bad performance.
In week 2 and 3 I also started to check 7/14/30 days data and optimize the worst performers compared to a 7 day period. There will be a big difference between 30d and 7d, so always check also 30d data. Pinterest conversion has a big late attribution, also if you set up for a 7 day window. So don’t kill too fast at the beginning and wait for a little more time if you have a budget.
If results are not near your KPI in the first 7 days, then kill fast and don’t wait. If your KPI is $20 CPA, I would kill all campaigns that have CPA $30 or more.
I experienced that CPA will 2 or 3 times drop after 14-30 days, but this is just the product I am advertising. Probably with other products is a different game and you have to figure it out how your account works with your products.
Let’s get into Scaling. Scaling is very simple on Pinterest.
You select good working campaigns, go to adset level, select adset and click EDIT BUDGETS. Then you put how much you want to increase or decrease the budget.
Recommendation from our rep 2 was 20% is the safest way, and also to never go more than double up. So pretty same scenario as with FB here.
Depends on how good my campaign is performing, that’s how much I will increase or decrease budgets. I like how you can do this in Pinterest, because you can select all ad sets and then select 3 ways:
Set budget to (amount)
Increase budget (amount or percentage)
Decrease budget (amount or percentage)
You can also put a safety amount per ad group, so they won’t spend more than you want. And this is pretty much how you do it.
I tried scaling also 3x on my top performers and it worked.
So from Day 1 to day 21 all I was doing is killing campaigns above KPI in the last 7 days, and scaling every 2-3 days the ones that performed well.
I also checked how CPA changes from week 2 and 3, and also made correct adjustments on how much budget I will put on.
At the same time I duplicated best performing creatives and tried different very broad and also to combine smaller interests. And one more thing here with interests – don’t forget about RETARGETING!!!
Half of the sales came in this account because of my retargeting strategy. Specially existing buyers retargeting and page viewers in the last 30 days.
So first thing when you start ads on Pinterest, go to your Shopify or Woo or Kajabi or whatever, and export your buyers emails!
Then import them and create a custom audience. And, create LLAs or AALs 2-10% with this audience. Also 3/7/14/30d audiences of website visitors.
Then use them in different combinations of campaigns and creatives for your best ROI.
*** At this point (after 2 months), I spent on this account around $80k on Pinterest ads, and attributed to more than $800k of revenue.
Average ROAS for the last 30 days is 10.5, and average CPA is below $7.
We would need to turn all FB advertising off to see actual success, but I believe we’re doing pretty awesome stuff here.
So if you’re into FB (or if you want to combine it with Pinterest) and scale big (yes over $500k per month too), we can do it for you.
Hi Everyone, it’s Monika here from the DimNiko Team.
One of the biggest questions and concerns going into 2021 is Apple’s latest iOS14 update and its effect on the advertisers.
With the looming worry, our team wanted to put together some information to help you navigate through the upcoming changes.
Let’s jump into it..
Why Is This Update Super Important for Facebook and Any Other Platform?
Apple has announced changes with iOS 14 that will provide an opt-in for users to choose whether to allow third-party sites to track their user data. Basically giving a choice for users to allow third-party sites to track their online activities across browsers and devices.
This will affect how Facebook receives and processes conversion events from the pixel and therefore ads personalisation and performance reporting will be limited.
As well as that their AI which has been helping (or not) advertisers to get the best traffic simply won’t work.
We’re still learning and trying to understand how this will exactly affect Ad buying and it’s performance, but we are confident that Facebook and Instagram will remain the best advertising channels for acquiring new customers and scaling brands.
Expected and Most Important Limitations
There will be only 8 standard pixel events to optimise for per domain (Landing Page View, Add to Cart, Initiated Checkout, Lead….).
Delayed reporting (data may be delayed up to 3 days)
Facebook will use statistical modelling and report estimated Results
Reporting breakdowns will be limited, such age, gender, placement, region
Attribution window changes, Only 1 day click, 7 day click, 1 day click and 1 day view and 7 days click and 1 day view will be available.
Audience Network will probably be the most affected placement as it relies the most on App advertising.
How Will The IOS14 Update Affect Your Ecom Brand?
It is hard to tell just yet.
We have no way of knowing how this will actually impact our ad campaigns and performance.
The information is continuously changing, as well how third party platforms, and users react and respond.
It may make it extremely hard on new advertisers to compete with bigger brands, or could mean the opposite and help small businesses with less amount of pixel data.
What we know for sure is that advertisers need to relearn the trends and strategies that were helping them achieve results and set KPI’s.
Without the reporting breakdown and with delayed attribution, analysing the data, the traffic and performance will be less accurate and much harder.
This will make personalised marketing much more challenging and will require more work especially with smaller, less accurate audience pools to target and retarget.
Brands will need to know more about their buyers, and rely more on backend marketing for retargeting.
It will change user behaviors and only time will tell how many of them will actually opt out of tracking and how users will appreciate retargeting offers.
Overall, the art of media buying will be the essence for success.
What You Can Do To Prepare For The Update
There are a couple things that Facebook suggest to do in order to be prepared for the changes and avoid any disruption of the campaigns.
Update to Facebook’s SDK for iOS 14 version 8.1 if you have a business app
Verify your website’s domain
Set up Conversion API
Turn on Auto-Advanced Matching in Ads Manager
As only 8 standard pixel events will be available to choose from to optimise your campaigns for, and possibly get reporting data on, we highly recommend to review any custom pixel events you may have on your website and conversion funnels.
Overall I think there is no reason to panic.
For sure there will be change which is not expected and not welcomed. But, we don’t know what the actual impact will be until these implications are set live.
Let’s not forget that Facebook has over 2.7 billion active users leaving it to be the best advertising platform to find new customers.
And most importantly good products and services will always sell.
So, if you’re a brand owner worried about these changes here’s the TLDR:
Work on your funnels and setup a thorough backend
Optimise for user experience
Prioritize customer service
Make sure you have organic engagement
And, above all else, ensure your product / service is high-quality.
And while you’re working on your brand, Facebook will for sure find a way to keep its advertisers and continue to monetise their user base via advertising. They are a business after all.
So, if you’re still worried about how IOS14 will affect your brand, working with an Agency who lives and breathes Facebook Ads will help set you up for success when this update is implemented.
Profitably scaling campaigns is probably the main hurdle that every business that wants to grow has to clear. It’s one thing to spend $200 a day and stay in business, quite another to achieve the same returns spending $2000 or $4000. Here I’m going to take you through the metrics you need to pay attention to, the ‘early warning signs’ of a bad campaign, the key indicators of potential and the techniques for managing spend so you don’t empty your wallet chasing a unicorn.
How People Are Reacting To Your Ads
First, you need to know how users are reacting to your ads: are they visually appealing? Do they give enough information? Are they attractive propositions? The base metric for this is the CTR (link click-through rate). This shows what percentage of impressions result in a successful click. CTR is a great early indicator of the success of your ads, but be careful: a higher number doesn’t automatically mean your ads are kicking ass, just that they are engaging with users.
The distinction? The purchase conversion rate from those clicks. It would be far better to have a CTR of 1% and a conversion rate from those clicks of 5% than a CTR of 5% and a conversion rate of 1%. Trying to scale with such a minuscule rate of conversions is going to cost a fortune, and in the initial phases you are likely to see a drop in both CTR and the conversion rate from clicks anyway. Audience quality matters. So does website quality. A low conversion rate from clicks indicates several things, but the most likely are that your website does a bad job of completing the customer journey and that the audience you are delivering to the site is of a low quality.
Audience Quality and Ad Effect
This takes us to the second ‘early warning’ sign of your campaigns – the Add to Cart and Initiate Checkout metrics. These are useful as they can give an idea of audience quality and how effective your ads are before purchases start coming in. If users are converting well on these events it indicates a level of intent that goes beyond merely browsing. Furthermore, if users are adding to cart at a high rate but not following through with the purchase it may indicate an interruption or roadblock in the customer journey at either the cart or the checkout. The average cart abandonment rate for ecommerce is around 68%, so if your numbers are regularly exceeding this it may be time to analyse the final stages of your customer journey more closely. Maybe you’re charging too much for shipping or maybe you don’t have the right payment methods available? Keep an eye on these metrics as indicators of audience and website quality alongside the purchase conversion rate.
Cost Per Acquisition & Return on Ad Spend
Finally, we get to the meat: Cost per Acquisition and Return on Ad Spend (CPA and ROAS). Cost per Acquisition – how much you have to spend to make a sale – is probably your second-most-important metric, although this can depend on whether you have a single fixed product or sell multiple products which vary in price. Using your Average Order Value (AOV) as a guide, you can calculate what sort of CPA you need to break even and how much you need to spend to consider your campaigns worth your while. ROAS is the most popular metric – and for good reason! This is the return on your investment in one number. 1.5 means you get 50% of your investment back on top of the original amount, 2 means you’ve doubled the money spent and so on. It is the main reflection of the overall health of your campaigns.
The above metrics are the big boys when it comes to scaling. Keeping them within acceptable ranges while you increase spend is how you scale. Inevitably, an increase in spend is accompanied by bloating in some metrics – notably CPA – and contraction in others – like ROAS. It’s important to see consistent results at least 15-20% ahead of your breakeven numbers for around 48 hours before you begin scaling, and try not to increase the budget by more than 25% each time. This will provide you with a good ‘buffer’ to absorb the initial loss of efficiency and will prevent Facebook from spitting out all of your cash in a matter of hours. Another handy trick is to implement a cost control on your bidding strategy. Once you have audiences and creatives that you know work, and are ready to increase spend, begin with a cost control of 3 times your expected CPA. Once you see regular results coming in, slowly bring it down until you reach around 1.5 times your ideal CPA. This allows you to scale campaigns – especially CBO campaigns – without the worry that you’ll check your ads manager in a couple of hours and see a catastrophic overspend on clearly failing ad sets.
Audience Size & Quality
Two final metrics to consider are the Cost per Mille (CPM) – the cost per thousand impressions and Frequency. CPM varies depending on the value of the audience, its size and the quality and relevance of your ads. If your ads are solid but you’re seeing high CPMs, remember that this could indicate a smaller audience and therefore a limited scope for scaling your campaigns. A high CPM audience which converts at precisely the same rate as a low CPM audience will naturally have higher CPAs, so you will be able to piece this together from the metrics above – but looking to the future it’s important to know the value that Facebook places on your audiences before you start throwing money at them. CPM can grow very quickly if the audiences you are trying to reach are already saturated or if more advertisers are using the platform for a sales event like Black Friday or Cyber Monday.
Frequency is the average number of times each person sees your ad. If this number is too high (normally more than 3) then it’s possible that you’re saturating this audience and risk exhausting it if you spend more aggressively.
So there you have it. These are the metrics to watch to determine your ad quality, audience quality and potential and whether you’re scaling or slipping. If you want to chat and see if we can help grow your business, you can click below and see if you qualify for a call!