Everyone's Personal Shopper
I need to admit something, something that nearly everyone I have ever spoken with vehemently denies and yet the industry is predicted to generate $407 Billion in revenue this year - I have bought something after clicking on an ad.
Even more so, I am proud of this behavior. I know it’s shocking to hear someone so brazenly declare that they enjoy seeing an ad and purchasing an item they need or want. I am in a select few who participate in an industry, eCommerce, that contributes to a large portion of the $86 Billion in Revenue that Facebook made in 2020.
The term “personalized advertising” has been discussed at length given the updates from Apple and Google. Mobile web does not have platform neutrality. Apple and Google are the dominant mobile platforms, and they are the gatekeepers to who and how one plays on their hardware. Apple is unilaterally changing its rules and is forcing the industry to comply.
I am a fan of experiencing this personalized advertising. When the prompt appears in various social apps asking “will you allow tracking”, I’ll be part of the tiny cohort expected to opt-in.
What is the benefit of all this tracking to the end consumer? Outside of the 2015 study from Deloitte that Facebook’s as a platform created 4.5 MM jobs globally and contributed 227 Billion to the global economy that year alone.
Let’s explore a modest example.
It’s Your Personal Shopper
Have you ever wanted to purchase an item? Perhaps you wanted to buy a new baseball cap and didn’t want to support Amazon. Welcome to the power of personalized advertising and it’s shopping experience!
All you need to do is visit any hat store that is well ranked in a google search. That store will more than likely have a Facebook Pixel in place. Click around the site a bit, maybe add a hat to your cart but here is the twist... don’t purchase anything.
Then go about your day. The average person consumes about 300 feet of newsfeed on Facebook or Instagram a day. Before you can hashtag the latest pic of you and your pup, you will start seeing ads in that newsfeed related to baseball caps. Click on the ads and window-shop a bit more in a given store.
Rinse and repeat until you find the perfect baseball cap for your needs. Facebook’s personal advertising experience eventually served me an ad from Sendero Provisions.
Don’t know who Sendero Provisions is? Neither did I.
I found a great hat that even donates to a national park I absolutely love - Yosemite.
Personalized advertising allowed me to support a small start up of what appears to be three dudes who like the outdoors. The horror.
This is the big, bad boogie-man at the center of all the news stories and Netflix documentaries.
If you are brave enough to participate in the $400 Billion industry of eCommerce, you too can use Facebook’s personal shopper feature to find new brands in all sorts of verticals: mattresses, bicycles, blenders, diapers, vitamins, shirts, cars, etc.
Simply follow these steps:
- Visit about any eCommerce site that has your product
- Go about your day.
- Click on some ads in the product category you care about
- Buy the item if it meets your standards
- Bask in the wonder of technology finding an awesome item for you and potentially supporting a small business!
The A-Pixel-Lypse
This process of Facebook predicting that I am interested in hats and serving me more hat related ads is what is threatened by the pixel updates. We don’t want to discount the issues with user privacy; however, we have not seen one article written about how many small companies benefit from these algorithms.
There are over 500,000 active merchants on Shopify. Unilateral changes by one platform or another will impact their ability to serve “hat” ads. Until we update our society to not be consumption driven, people buying goods and services are quite important to keeping the world turning.
The phone book no longer exists and it is difficult/expensive to buy a TV ad. Social networks allow these SMBs access to new customers and personalized ad algorithms provide a useful service to both the store owner and end consumer.
Weirdly, none of these changes to advertising “privacy” will negatively impact Apple or Google’s ability to effectively reach people within their walled ad buys. The story is not the same for any competitor.
Over the next several weeks we will be writing about the potential impacts and more specific predictions as we are ever closer to the A-Pixel-Lypse. Overall, we want to provide the market our recommendations on building resilient marketing systems.
“Wind extinguishes a candle and energizes fire." Time to be a system that is energized by these winds of change.
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Photo by freestocks on Unsplash
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Facebook Ads Bidding Strategies can either make or break your advertising campaign. If you've been struggling with getting the best results, understanding the benefits and drawbacks of each strategy can save you both time and money. The right bidding strategy can help you reach your target audience more effectively and get the most out of your advertising budget.
Each bidding strategy has its unique benefits and challenges. Some are great for maximizing visibility, while others prioritize cost-efficiency. Choosing the right one depends on your specific goals, whether that's more clicks, better engagement, or higher sales. Knowing the pros and cons of each strategy will help you make informed choices that benefit your business.
This article will guide you through five key Facebook Ads Bidding Strategies. You’ll learn about their benefits, drawbacks, and how to pick the one that suits your campaign objectives. By the end, you’ll have a clear understanding of which strategy will help you achieve your advertising goals effectively.
Understanding Facebook Bidding Mechanics
Facebook bidding is essential for advertising success. It involves auctions where advertisers compete for ad placements. Understanding key elements like Auction Dynamics and Different Bidding Strategies is crucial.
Auction Dynamics and How Bids Work
In Facebook's auction, ads compete based on bids, estimated action rates, and ad quality. Bid represents how much you're willing to pay for a specific action (like clicks, views, or conversions). The Cost Per Result adjusts based on competition.
Bid Cap lets advertisers set a maximum bid. This ensures spending control but may limit campaign reach. Meta bidding strategies, like Lowest Cost and Target Cost, help optimize for specific goals, balancing cost and performance.
Factors influencing the auction include:
- Bid amount
- Ad relevance
- Estimated action rates
Exploring Different Bidding Strategies
Advertisers can choose from several Facebook bidding strategies. The Lowest Cost strategy aims to get the most results for the lowest price but may lack spending control. The Cost Cap strategy helps maintain an average cost while driving results.
The Bid Cap strategy is useful for high-control needs, letting you set the max bid per action but it might restrict delivery. Target Cost aims for a stable cost per action, ideal for steady budget planning.
Choosing the right strategy depends on your campaign goals, budget, and desired Cost Per Result. Evaluate each option to find the best fit for your needs.
Implementing Bidding Strategies for Campaign Success
Successful implementation of bidding strategies can drive better results and optimize ad spend. Key factors include setting appropriate bid caps, maximizing returns using ROAS goals, and balancing volume and value.
Setting the Right Bid Cap for Your Campaign
Setting the right bid cap involves determining the maximum amount you are willing to pay for a result. This ensures costs don't exceed the budget. Bid caps can help control spending and improve efficiency.
- Analyze past performance: Review historical data to identify the highest bid that achieved desired results.
- Adjust as needed: Be flexible to change bid caps based on real-time campaign performance.
- Consider the competition: Higher bid caps might be necessary in competitive markets.
Maximizing Returns with ROAS Goals
Use the Return on Ad Spend (ROAS) bid strategy to drive maximum returns. ROAS goals ensure that every dollar spent on ads generates a specific amount of revenue.
- Calculate target ROAS: Set a realistic ROAS based on past campaigns.
- Monitor and tweak: Regularly check ad performance and adjust your ROAS goals to meet revenue targets.
- Balance quality and cost: High ROAS might limit reach, so find a balance between cost and quality.
Balancing Volume and Value in Bidding
Balancing volume and value helps achieve the right mix of reach and profitability. Consider using both Highest Volume and Highest Value strategies.
- Highest Volume: Bids are set to get the most conversions, good for awareness and large-scale campaigns.
- Highest Value: Focuses on getting the highest-value conversions, suitable for targeting high-value customers.
By carefully implementing these strategies, advertisers can meet their campaign goals effectively.
5 Facebook Bidding Strategies: Benefits, Drawbacks, and Selection Guide
Static ads and dynamic ads serve different purposes in the world of marketing. Static ads are simple and stay the same at all times. They are easy to create and can be effective for straightforward messaging. But dynamic ads offer customization, changing their content to fit the audience's preferences and behaviors.
Dynamic ads might seem complicated, but they bring better results by targeting specific groups with personalized messages. This means higher engagement rates and more conversions. Static ads, on the other hand, are less effort to produce but may not capture attention as effectively.
Deciding between static and dynamic ads depends on the brand's goals and resources. Each has its strengths and can be powerful if used appropriately in a marketing strategy.
Understanding Static and Dynamic Ads
Static ads and dynamic ads serve different purposes in digital marketing. Each has unique features and benefits that cater to varied marketing needs.
Exploring Static Image Ads
Static image ads are straightforward. They are typically still images that do not change once created. These ads are ideal for conveying a clear, unchanging message or brand image.
A static image can include text, graphics, and logos, and is often used on websites and social media platforms.
Advantages of Static Images
- Consistency: The message remains the same, which can be useful for brand recognition.
- Simplicity: They are simple to create and often cost less than dynamic ads.
- Predictability: Once the ad goes live, what you see is what you get.
Unpacking Dynamic Advertising
Dynamic ads are more complex. They can change content in real-time based on user data and behavior. Unlike static ads, dynamic ads can alter images, text, and calls to action depending on who is viewing the ad.
Benefits of Dynamic Ads
- Personalization: Content can be tailored to each user, potentially increasing engagement.
- Flexibility: They can show different messages to different audiences without creating multiple ads.
- Efficiency: They adapt to user preferences, making the ad experience more relevant.
Comparative Analysis and Use Cases
Static and dynamic ads offer different benefits and limitations. This comparison will help you understand where and how to use each type effectively in your marketing strategy.
Static Images Vs. Videos
Static images are simple and quick to create. They load faster than videos, which is great for mobile users and slow internet connections. They allow for clear, focused messages without distractions.
Videos, on the other hand, capture attention better with motion and sound. They convey more information in a short time. Videos are more engaging and can demonstrate products or services in action.
Leveraging Opportunities for Static Ads
Static ads are useful in various scenarios. Billboards are a great example, as they need to be read quickly. Print ads in magazines and newspapers also benefit from static images. Online banners are often more effective when static, as they load quickly and are less intrusive.
Static ads are best when the message is straightforward. They work well for short calls to action like "Buy Now" or "Sign Up." Visually, they should be clean and uncluttered to convey the message quickly.
