I’m coming to you today with a whole lot of tips and news about what’s HOT with Facebook Ads at the moment.
They recently released a few incredibly important features that are going to change the way you use Facebook Ads and help you reach profitable results even faster.
Let’s do this.
Target people living in the same household
As most of you know, some of the big decisions aren’t just made by one person alone, but several people have to chime in to finally reach that decision.
When you’re planning a trip with your family, everyone expresses their wishes for that final travel location.
A very similar thing happens when you’re buying a new house. Or a TV.
Now imagine you would be able to target people living under the same roof, even when having access to the email of just one person in that house?
After several years of testing, Facebook is finally making that feature widely available for everyone. And it’s called Household Audiences.
Here’s how it works:
Let’s say you’re running a travel agency and have an email list of people interested in your offers. You will upload that email list to Facebook through Custom Audiences, and will be prompted to create a Household Audience immediately after.
Facebook will be able to determine the other members of that household through a combination of their familial relationships on Facebook, frequency of shared check-ins, and where they access the internet.
But not only is this new feature helpful for when you’re trying to influence the decisions typically made by the whole family, it will also significantly reduce wasted ad spend.
If a household member is already subscribed to Netflix and the whole family uses that account to access it, there’s no point of advertising Netflix to the other members of that family. However, Netflix only has contact information of that one person.
By using household audiences they will be able to exclude whole households from targeting and focus on showing their ads to relevant audiences who aren’t yet subscribed.
Replacing Relevance Score
If you’re like me, you have relied on Relevance Score to determine how your ads are performing in an auction and what your next step should be. It was a good and quick indicator of if your campaign is moving in the right direction or not.
Well, Facebook got rid of Relevance Score altogether and replaced it with other metrics, like Quality Ranking, Engagement Rate Ranking, and Conversion Rate Ranking.
The combination of those three metrics does practically the same thing than Relevance Score. It helps you understand how relevant your ads are to audiences reached.
Facebook’s quality ranking explains how you ad’s perceived quality compares to ads competing for the same audience.
What percentage of people will hide your ad? Or report it?
Is Facebook assessing that your article is clickbait or engagement bait?
What’s the user experience on the other side of that ad?
Everything will be taken into consideration and Facebook will give you a Quality Score that’s going to determine what will happen with your ads.
If your ads are below average, Facebook might slowly phase out your ads and dial down on the spending.
Conversion Rate Ranking
Conversion Rate Ranking will help you understand how your ad's expected conversion rate compared to ads with the same optimization goal competing for the same audience.
Before you freak out about the technical details of this and how Facebook is even going to determine that when compared to other conversions advertising different products with naturally different conversion rates, Facebook has is all figured out.
This feature won’t be accessible when using optimization goals like Ad Recall Lift, Impressions, Reach, Custom Conversions or Value.
This is only going to be available for conversions with a set value, preferably using Standard Events.
Engagement Rate Ranking
Last but not least, Engagement Rate Ranking explains how your ad’s expected engagement rate compares to ads competing for the same audience.
How likely it is that someone will click on your link? Or react to your ad? Comment and share it?
Facebook wants your ads to be engaging, because good engagement rate improves your results. This is their system for calculating if your ads are competitive or not, which definitely influences your results.
Understanding Analytics with Inspect tool
I’m a data nerd. And Facebook Analytics has always boggled me.
Sure, you had Facebook Breakdowns, and Delivery Insights, and Creative Reporting, but I always felt there was something missing.
If I wanted to successfully optimize a campaign in detail, I had to dive really deep and use several analytics features across Facebook Ads Manager to get a sense of what’s happening.
There was no high-quality visual representation of what’s happening with my campaign. Or Ad Set. And Facebook recently realized how incredibly unfortunate it is that their own advertisers don’t really know how to make sense of all that data.
So they took charge and improved this.
You can know quickly analyze any Ad Set you’ve got running with the help of Inspect tool.
You can observe the correlation between your Cost per Result and First Time Impression Ratio. And the effect any big changes you implemented to the Ad Set had.
What happened when you launched those new visuals that are a step different from what you’ve previously implemented? Did the Cost per Result drop because people started to click more and your ads got exposed to new people? Or was it the other way around.
Facebook also helps you understand the dynamic between audience saturation and cost.
Does your audience need several touch points before they convert due to the higher price of the product? Is that why your result improved when your frequency increased?
And if you weren’t truly careful about Auction Overlap before and didn’t really pay attention to which Ad Sets are competing in the same auctions, Facebook made it easier to understand those metrics as well and observe the consequences.
These are the analytics that we wanted to see, the analytics that will make it easier for all of us to get a better understanding of what’s happening in the background.
And I couldn’t be more excited to put this in action.
Which is your favorite one? +ANNOUNCEMENT
From all these new and sexy features that Facebook launched, which one is your favorite one? Let me know what you’re going to use first.
In other news, I’m opening up the enrollment to The Science of Facebook Ads really really soon.
So if you’re serious about EFFECTIVELY growing your business with Facebook and avoiding all those high costs of learning from experience, make sure to put your name on the list.