For years, granularity has been the key to online marketing success. The more granular your audience, the more targeted and relevant you’ll make your advertising content. As a result, most advertisers built out countless audiences, campaigns, ad groups, and ads during a never-ending quest to seek out the proper niche audience for his or her product or service. Whether you were an experienced advertiser or a newbie, it had been an intimidating, almost overwhelming challenge. The Facebook Power 5 throws all of that out of the window. Remember, one of Facebook’s core objectives is to form Facebook advertising as easy and intuitive as possible. So, the primary thing they need advertisers to try is to simplify their account structure. Instead of creating layers of campaigns and ad groups in an attempt to get and target the right audience, Facebook is encouraging advertisers to let Facebook’s algorithms worry about finding the proper audience. With the facility 5 approach, you target a reasonably wide audience and over time, Facebook will narrow that audience down for you. Simpler Isn’t Always Better This all is sensible on paper, but there are a couple of factors here that complicate things. As we mentioned earlier, one of the explanations why advertisers wish to get granular is because specifics sell. The more closely aligned your messaging is with a possible customer’s pain points, goals, and aspirations, the more likely they’re to concentrate on your ad, click and convert. While simplifying your account structure makes things easier for the algorithm, it also makes it harder to nail down your messaging. Facebook doesn’t tell you which of the audience is responding best to your messaging, so all you’ll really do is throw spaghetti at the wall and hope Facebook can make it stick. Unfortunately, Facebook’s algorithms don’t really understand why a specific ad is performing well for a particular group of individuals. All it does is answer indicators. As a result, if an odd subset of your audience responds well to a particular message, Facebook will focus your ads thereon audience. You, however, won’t have any sense for whom your ads are literally appealing to, which may throw off your entire marketing approach. So, while account simplification is sweet for Facebook’s algorithms, how good it’s for your business will really depend upon what you’re selling and whom you’re selling it to. For simple products with simple value propositions, simplification is perhaps an honest thanks to going. But, if what you’re selling has specific value propositions that appeal to specific subsets of your audience, granular campaigns should be an honest choice to consider.
2 Campaign Budget Optimization (CBO)
Facebook has been pushing campaign budget optimization (CBO) hard lately. In fact, early in 2020, Facebook made CBO mandatory for brand spanking new campaigns. It didn’t stick, but this move was an honest indicator of just how strongly Facebook believes in CBO. If you’re not conversant in the difference between CBO and ad set budget optimization, CBO sets your ad budget at the campaign level. Facebook then divides your campaign budget amongst your ad sets supported performance. Ad sets that had best get more budget. Ad sets that perform poorly progressively lose budget until they basically stop showing ads. Again, the underlying idea here is that deciding what proportion to spend on each ad set is often challenging. It’s hard to understand when and where to shift things around. As shown within the diagram above, Facebook’s algorithms can find out the simplest thanks to spending your budget minute-by-minute. As a result, they will put your money where you’ll get the simplest bang for your buck…and you don’t need to lift a finger. Best of all, by spending more on campaigns that are performing well, CBO helps those campaigns get data faster, get out of the training phase and begin driving cheaper, more reliable results.
3 Automatic Placements
At now, the thinking behind Facebook’s automatic placements recommendation should be pretty obvious. once more, the thought here is to let Facebook run the show for you. Automatic placements have been around for a short time, but within the past, they had quite a few limitations. the foremost significance of those was poor customization options. Simply in terms of formatting, there’s an enormous difference between a story ad and a newsfeed ad. If you tried to run an equivalent ad with automatic placements, you’d often find yourself with really funny-looking ads and unsurprisingly poor results. Fortunately, that’s beat the past. Today, Facebook allows you to customize your ads for every sort of ad placement, which allows advertisers to use automatic placements effectively. you’ll optimize your ad for every placement, hit “go” and let Facebook find out which placements drive the simplest results. To maximize this, many advertisers have used automatic placements to spot which placements to prioritize then started manually targeting those placements to make sure that their budget was going towards the proper placements. With facility 5, Facebook is arguing that these kinds of tactics are not any longer necessary. Facebook’s algorithms can now quickly identify which placement deserves your budget, so why bother doing everything manually? In addition, by enabling automatic placements, you permit Facebook to regulate things in real-time, which suggests you ought to actually recover results than simply picking a placement and budget manually, as shown below. Of course, in my observation, Facebook usually finishes up putting most or all of your budget towards one or two placements, so how often these “real-time” adjustments actually matter is up for debate. However, now that Facebook has gotten things working right, automatic placements are usually a simple thanks to letting an algorithm find out when and where your ads should be displayed.
4 Auto Advanced Matching
Perhaps my favorite of the Facebook Power 5, auto advanced matching got an enormous update this year that made it well worth considering. In a nutshell, auto advanced matching is just how to offer Facebook more data about your customers. More customer data means bigger, better, and more meaningful audiences, which suggests better targeting for your campaigns. counting on how you’ve been doing things, auto advanced matching may or might not have an enormous impact on performance, but it simplifies tons of things and provides Facebook additional data to feed into their algorithms. And that, of course, is why Facebook recommends turning on auto advanced matching. Algorithms are only nearly as good because of the data they need to figure with and, unfortunately, customer behavior is usually much more complex than “monkey see, monkey click, monkey convert.” People use different devices, wait weeks or months to convert, change browsers and do all types of other things which will make their behavior hard for Facebook to trace. With auto advanced matching, however, you’re ready to reclaim tons of that data and feed it to Facebook. It’s like uploading your customer and email lists to Facebook to make a custom audience, but better because Facebook can connect your current campaigns, identify trends and improve performance.
For example, auto advanced matching allows Facebook to gather cached customer data from
5 Dynamic Product Ads vs Standard Ecommerce Ads
Whether or not the algorithm is really ok to outperform a solid marketing campaign, however, is debatable. for instance, the typical CPM for conversion-focused campaigns on Facebook during September (2020) was $14.01. the typical CPM for catalog sales, on the opposite hand, was $13.93. Campaigns with the conversions goal include lead generation campaigns, which averaged a CPM of $18.97 in September, though, so it’s likely that the CPM for non-catalog sales campaigns is really quite a bit less than $14.01. To make matters worse, the cost-per-sale for catalog sales has been steadily climbing over the past few months (possibly due to all the hype around the Facebook Power 5?): The problem with dynamic product ads is that you simply don’t have much creative control. Most website product photos are designed to present the merchandise clearly—not to be eye-catching or highlight how a product addresses a pain point. Since Facebook pulls the pictures for dynamic product ads from your product feed—which typically pulls images from your website—most dynamic product ads aren’t particularly compelling. There are workarounds for this, but when the core point of an advertising recommendation is ease and accessibility, we’ve to assume that the majority of Power 5 advertisers aren’t getting to the trouble to feature custom, separate images to their product feed. This isn’t a big issue for retargeting campaigns—where the goal is usually to remind folks that they’re curious about a selected product—but it doesn’t bring excellent upper or mid-funnel advertising. While algorithmic specificity may help somewhat with this, it’s unclear how effective dynamic product ads areas compared with conventional upper and mid-funnel campaigns. The good news is, dynamic product ads are very easy to line up and run that there’s little or no reason to not try them. they’ll not perform quite also as other campaigns, but they will still play clean-up by providing an alternate, targeted ad format which will work surely people in your audience.
Is the Facebook Power 5 Right for You?
Does the Facebook Power 5 work? Absolutely! Facebook has plenty of case studies showing that it works, as do many other advertisers and agencies. But will it work for you? That’s a way harder question to answer. In general, I’m a lover of giving new, data-supported strategies a try—especially when they’re fairly easy to implement, just like the Facebook Power 5. To try out facility 5, all you basically need to do is about up a couple of campaigns targeting people at different stages of your funnel (and I already gave you the beginnings of an overview for that), turn on auto advanced matching, and run dynamic product ads with automatic placements. If it works, awesome. You’ve got a replacement advertising approach to fiddle with. If it’s been a few weeks and therefore the Power 5 isn’t nearly as good as your current campaigns, you’ll either tweak a couple of things or simply advance. That being said, despite the hype, the Facebook Power 5 is clearly designed for smaller businesses with limited knowledge and resources. Facebook’s goal is to form using their platform as simple as possible for these advertisers. they could not get the simplest possible results, but if they’re recuperating results than they were before, everyone’s happy. If you pay close attention to most of the facility 5 case studies, they typically feature businesses that weren’t getting great results from Facebook and turned things around with the facility 5. Or, in other words, facility 5 is best than crappy advertising. I hate to interrupt it to Facebook, but outperforming advertisers who don’t know what they’re doing isn’t something to urge excited about. Any good agency can do this. Facebook’s biggest advantage is that the incontrovertible fact that the value of their algorithms is already baked into their platform. So, if you’ve been advertising on Facebook for a short time and your campaigns are pretty dialed in, don’t expect an excessive amount of from the Facebook Power 5. Is there an opportunity that you’re wrong, your campaigns suck, and therefore the Power 5 will knock things out of the park? Sure, but don’t calculate it. to require things to the subsequent level, you’ll probably get to either invest longer and energy yourself…or hire a workplace like Touchstone Infotech.