Hacking Facebook with audiences, bidding models, ABO, Retargeting funnels, and more… will only cause more harm over time.
If you’re running ads on Facebook… you need to know how the auction works.
Once you know that, you’ll be free of the FOMO that causes so much stress.
Aligning yourself with the business model of your business partners is much better for business success… than making disrespecting it a core standard operating procedure
Facebook’s model is simple
Retention of Attention for Monetization
The Facebook algorithm for determining what ads get shown to whom hasn’t had any fundamental changes in over 5 years.
This is excellent for us because the machine only gets smarter and more effective with each passing day.
This is an amazing opportunity to leverage the strength.
The knowledge of how the Auction works comes with the gift of freedom and confident directional thinking
If we know what simple choices make real change
We can choose what goals we want to prioritize to create the future we want
None of it comes from Audiences or Bidding Models.
“Budget” = the total amount of ‘work’ any ad has to do today.
How many impressions does it have to serve?
How many people does it have to reach?
The budget in this equation for the auction is not what we set at the Campaign level but what the machine determines based on opportunity.
Remember, every ad makes its own lookalike audience based on user experience with that ad.
Facebook tries to show content to the folks who would have the best experience by seeing it.
More budget means that the ad gets a higher number of lesser quality impressions concerning the EAR.
How you treat your customers after they click on the ad is as important as the user experience those people have from your content on Facebook!
Facebook does not want to be a marketplace with really terrible buyer experiences, getting an even playing field with brands who care…
When users see content from a brand and then click on the site if the customer journey/experience is terrible, that’s a liability to their business model of Retention of Attention for Profit.
You'd stop watching if a TV channel only showed ads for businesses that harmed you.
Simply put, does your content make someone’s user experience on the platform better or worse than the content of every single other advertiser bidding on the impression in the auction.
This rate is dynamic & gives us a tremendous opportunity to leverage Facebook AI for profit.
When advertisers pay extra to use detailed targeting, they limit the ability to leverage the ad’s own Lookalike Audience, to meet the best people, at the best time, at the lowest cost.
This will often prevent Conquesting via Retargeting users in other advertiser’s funnels.
If you can get users to lean in, you’ll pay considerably less money to reach far more people that “look like” others who have leaned in.
This is how Ads make their own Audiences, and when leveraged correctly, this is why targeting is all but obsolete on Facebook.
Improving your business relationship with Facebook
by being a better partner to the platform
as well as focusing on your business model
and the customer experience
After they click on the ad…
That’s the way you can truly scale your business.
Scaling Facebook Ad spend is a ramification of scaling results by improving business metrics before and after the impression on Facebook.
Trying to maintain efficiency while forcing budgets to go higher only benefits the advertiser who collects a commission on ad spend
One of the biggest mistakes far too many advertisers make is trying to “scale spend to their best ad”
Giving an ad more budget forces it to deliver a higher number of impressions to a lower quality audience which causes more harm to your entire account
Diversity is key!
Success from Ads doesn’t just come from lower costs on inventory; it also comes from access to higher quality impressions.
An ad shown right when someone logs in is FAR more meaningful than one shown 10 minutes into doom scrolling.
This placement is EARNED or paid very highly for
Facebook Ads are about far more than creative type, audience, and bidding model… in fact, none of those things make nearly the same difference as algorithmic alignment and business model optimization.
You can’t move Mountains if you worry about the pebbles!
Think Bigger…
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