How many of you are running paid advertising campaigns on Facebook? Did you know that you can use Lytics to boost your return on investment?
Facebook offers a wide variety of audience targeting options. Yet most advertisers we work with have been spending their money in the following priorities with varying degrees of performance:
So, why the varying degrees of performance? Why do some clients' Facebook campaigns vastly outperform others?
Part of the answer lies here: most advertisers are using blanket retargeting strategies. They can target remarketing audiences for ads by selecting “Website Traffic” in the Facebook Audience Manager, but targeting a smaller, niche audience is rarer than you'd think.
Which is a bad thing for marketers who want to identify their best customers and drive higher ROI.
Lytics can help advertisers do better than blanket retargeting. Simply targeting an audience who visited your website, without qualifying them, is an oft-used strategy that seldom maximizes return on ad spend (ROAS). For one client we work with, a general remarketing campaign yielded a ROAS of only 11 cents for every one dollar spent. The client, a retailer, was convinced that remarketing was not a profitable channel for them.
Clients frustrated by blanket retargeting typically look to refine their retargeting audience. Most often, this is done with conventional heuristics such as 30-day visitors, three-plus page views, etc. Conventional heuristics alone can make a difference. Lytics identified this audience for this retailer, and immediately, ROAS shot to $2.50 for every one dollar spent.
Yet, how did the client arrive at 30-day visitors or three-plus page views as the method of refinement?
In our experience, this is usually a best guess by a HIPPO (“highest paid person’s opinion”). But is that number right for every single user in the remarketing pool? Might there be some difference between someone who visited 10+ pages and maybe someone who had only two+ page views (yet is your ideal customer)?
Surely, there’s a smarter way than conventional heuristics.
Fortunately, data science can help improve upon the HIPPO in the room.
For the retail client mentioned above, we tested Lytics data science for “depth of engagement” and “recency of visit.” Lytics scores are dynamic and calculated at an individual user level — using more than 125 variables — and reflect historical engagement of that user with the client.
When replacing the old-fashioned logic with this improved scoring, Lytics helped drive another 60 percent improvement in ROAS — all the way to four dollars for every one dollar spent.
Then Lytics did something else that few technologies can duplicate:
We removed anyone from the remarketing pool who was receiving this client’s marketing messages via email.
After all, why should this client spend expensive CPMs (cost per thousand impressions) to appear in the Facebook Newsfeed for a customer they can already reach via email? This enabled the client to focus remarketing only on incremental audiences rather than supplementing their already-robust email program.
Most marketers are already familiar with Facebook’s Custom Audience product and its corresponding Lookalike capability. And if you’re not, you ought to get familiar with these products because they are insanely powerful. Facebook allows advertisers to upload hashed email lists for ad targeting — either to target the audience you’ve uploaded or to build prospecting lists based on users who fit the exact profile of users on that list.
Most often, marketers work with an analyst who will pull a list on their behalf, and then the marketer will manually upload that list a single time or update it at some regular cadence. This manual approach leads to very stale custom audience targets in an advertiser’s account.
Marketers who use Lytics can be much more efficient. Lytics can dynamically keep your custom audience targets up-to-date and fresh within Facebook without having to do time-consuming list pulls and uploads. So the next time you want to reach that subscriber audience who has not opened an email within 30 days, export that audience from Lytics to Facebook and target that list as it dynamically updates!
If you have specific questions about how Lytics can made your advertising more effective, contact your Lytics account representative, and if you’re new to Lytics don’t hesitate to reach out and request a demo.
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