Move Fast Around Broken Things
We originally wrote in June around the upcoming IDFA deprecation on iOS 14. Despite not explicitly dealing with pixels, we place this event in the never ending march of something named by a CSM while at Facebook, A-Pixel-Lypse Now.
IDFA deprecation places large swaths of the online advertising industry in precarious positions. If you recently tried to explain A/B testing to an executive on your team, try explaining SKadNetwork and how it only allows 6 bits of information in a 24 hour post back period...maybe.
And don’t feel alone if you don’t understand the specifics of how this impacts your business and more importantly how to communicate it to key stakeholders. New information is coming out each week, and even Facebook doesn’t fully know the impacts this will have on their business (see potential collapse of the Facebook Ad Network). The ramifications from breaks in the data chain are far reaching, and this doesn’t only pertain to iOS14.
Next we’ll be watching to see when Google follows Apples lead with Google Advertising ID (GAID). We already know about Google’s plans to block cookies in Chrome. GDPR has been a huge hurdle for advertisers internationally, and CCPA is quickly becoming an important consideration for advertisers in the US. There is now a very real clock on the collection and use of customer information.
So what does this mean for performance marketing today and the years to come? There are many tactical implications, but we wanted to go up a level and discuss two broad pivots to the way marketing is approached today.
Customer Data is at An All-Time High
There is a concept we take to heart at dysrupt, “If you don’t own your data, you don’t own your company.” Customer data has quickly become the most valuable currency of the modern age, and it’s going to be a key commonality in the advertisers who thrive post-IDFA, post-GAID, post-GDPR. Advertisers that leaned in when user acquisition was comparatively cheap and data was plentiful are going to find they have a distinct competitive advantage over their competitors that played it safe.
Our advice for any finance folks reading… now is the time to unlock budgets. The clock is ticking on effective custom acquisition and on building your CRM, because every customer acquired today will be cheaper than customers acquired tomorrow. This has been a historically terrible year that caused a large number of advertisers to pause or slow down spend. To quote Warren Buffet’s view on successful investing, “simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Existing Customers Matter Again
For years we’ve been able to prioritize new customers over current because new users were relatively cheap to acquire and the data signals were so strong that the underlying algorithms knew exactly when someone was “in-market”. Everyday moving forward that will become less true. With every new gap in data, the cost to acquire new customers will increase.
Retaining and increasing the value of existing customers will need to become a more balanced priority. To be clear, we’re not saying that new customer prospecting won’t be important. But the math will need to shift a bit. If you still haven’t figured out LTV or a broader view of attribution than last-click, now is the time to take that first step. The best time to plant a tree was yesterday, the next best time is today.
Between COVID, iOS 14, and a historic presidential election, this is going to be the most chaotic Q4 in recent memory. There is a huge opportunity for advertisers with the vision to see the forest through the trees. Take the time to plan your strategy, but be decisive and attack when others are retreating.
Probably one of the best online sources of information is the Slack Workspace run by Mobile Dev Memo. This is a group of industry veterans that are still seeking what the specific impact of every move is in the channel #idfa-apocalypse.
Q4 is right around the corner and come September 15th, Facebook will only allow 9 campaigns to handle all your iOS 14 app install campaigns - and they have to be a separate account.
But business is never ending. As all your competitors are in the same place, we leave you with this helpful message, “All courses of action are risky, so prudence is not in avoiding danger, but calculating risk and acting decisively. Make mistakes of ambition and not mistakes of sloth. Develop the strength to do bold things, not the strength to suffer.”
---
Thanks to Thomas Dumortier for sharing their work on Unsplash.
Read next
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.
