How Adjusting Your Facebook Ad Objectives Can Deliver More Conversions

How Adjusting Your Facebook Ad Objectives Can Deliver More Conversions

Facebook

Facebook’s user base keeps growing as a reflection of an increased adoption of digital among the general population in 2020. Businesses want to use advertising to squeeze as much revenue as they can from this massive audience, as well they should. At True Interactive, we’ve been helping advertisers succeed on Facebook for years, and one way we do that is by trying different approaches with Facebook’s advertising tools. Recently, we’ve been demonstrating to our clients how a fresh approach to choosing Facebook ad objectives can make Facebook ads more effective.

The Conventional Wisdom about Facebook Ad Objectives

When businesses set ad goals, they typically have two strategies in mind: build brand awareness with prospects (i.e., people who have never been to their site before) and also retarget website visitors and existing customers to drive conversions. From there, businesses select ad objectives for a given campaign. Now, conventional wisdom says that when a business wants to attract new customers (as opposed to retargeting existing ones), it’s best to choose brand awareness or consideration ad objectives such as reach, traffic, engagement, and app installs (among others). But for a retargeting campaign, it’s better to choose conversion-based objectives such as conversions, catalog sales, and store traffic.

Makes sense, right? Why set the bar too high for brand awareness by actually trying to measure conversions? It’s far better to save conversion-based objectives for retargeting existing customers, who already know about your product and are more likely to buy it.

Setting Conversion-Based Goals for Prospects

And yet, we’re delivering results by setting conversion-based goals for prospects, too. It sounds like a simple thing to do: set a conversion goal for a prospect. And you can literally do it with a click. By experimenting with some of our campaigns, we’re learning that a powerful ad targeting prospects can indeed drive them to conversion.

Now, I’m not talking about running the same ad for a prospect that you would for a current customer. You still need to customize different ads for different audiences. Ads for prospects require different calls to action than ads for existing customers, and indeed you may need to do completely different ads for each, such as special offers that apply only to new customers.

To be sure, conversion costs for retargeting-oriented campaigns are lower. But so far the conversion rate for prospects justifies the effort of running brand-awareness ads on Facebook – because these ads can do more than raise awareness.

What Happens If You Lack Conversion Data?

What happens if your business lacks enough conversion data to set up a conversion goal? In that case, we suggest that you use the conversion step before your final conversion so that the Facebook algorithm will have more data to optimize towards (example: if you don’t see a lot of sales, then don’t set your conversion goal to sales — set it to “add to carts”).

So, why might conversion-oriented ad objectives work for prospects? I believe that social media in general is becoming less of a lean-back-and-scroll experience. More users are spending time on social with intent to learn more about products and buy them. That’s because more Gen Zers and Millennials are growing up with a social experience that includes the presence of ads, more so than their predecessors did. They’re more comfortable viewing social as an intent-based platform. So they’re more likely to convert on an ad that introduces them to a new product.

Have you been experimenting with ad objectives? What have your results been?

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Photo by NeONBRAND on Unsplash

Facebook Lifts “20 Percent Rule” with Ads – but Should You?

Facebook Lifts “20 Percent Rule” with Ads – but Should You?

Facebook

Many marketers had reason to rejoice recently when Facebook lifted a longstanding requirement that Facebook ad images contain no more than 20 percent text. But at True Interactive, we believe marketers need to tread carefully. Just because you can pack more texts into your ads, it doesn’t mean you should.

What Is the 20 Percent Rule?

The “20 percent rule” means that ad images on Facebook can contain no more than 20 percent text. Advertisers who run afoul of the requirement have had their ads penalized or blocked on Facebook. But recently, Facebook began letting advertisers know it was eliminating the rule:

Search Engine Journal confirmed the accuracy of this update.

Why Facebook Is Lifting the 20 Percent Rule

Why is Facebook changing course? As an agency that creates ads for many clients on Facebook, we believe the COVID-19 pandemic has made the Facebook staffed overburdened as it has for Google. Reviewing and flagging advertisements requires human intervention. We have noticed that since COVID-19, the platform was mis-flagging quite a few ads we’ve created that should have been acceptable. Lifting the requirement is probably Facebook’s way of reducing the amount of work on their end.

What Advertisers Should Do

We believe lifting the 20 percent rule is good because advertisers have more flexibility. There are times when a banner ad on Facebook would be better off containing a bit more text than Facebook has allowed. At the same time, advertisers should be very careful about increasing text size. Facebook notes that ads with more images perform better, which should surprise no one. We’re living in a visual age, and advertising is no different. People are more likely to pause their news feed and explore your ad when you lead with visually arresting content.

So, we recommend to our clients that they consider using more text only if they have to. We suggest performing A/B tests, as well: run one image with minimal text against an image with more text and see how it serves on the platform. Let the performance numbers be your guide.

In addition, lifting the restriction might be signs of Facebook relaxing creative constraints in other ways, too, depending on how long the pandemic affects the company’s operations. Stay tuned.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Three Ways Retailers Can Succeed during the 2020 Holiday Shopping Season

Three Ways Retailers Can Succeed during the 2020 Holiday Shopping Season

Retail

The 2020 holiday shopping season will be unlike any other as people plan amid the reality of social distancing. And yet in a few important ways, the season will reflect the direction that consumer shopping behavior has been headed already, especially with people putting digital at the center of their shopping experience. Here are three ways retailers can prepare:

1 Be Digital-First

A Google-commissioned Ipsos survey found that 74 percent of U.S. shoppers said they plan to do more online shopping than they did in previous seasons. These findings should surprise no retailer. The holiday shopping season has been going increasingly digital for years. According to Salesforce data, there was an 8 percent increase in digital spend overall for the 2019 season, with $723 billion in digital revenue worldwide. The difference in 2020: digital will dominate.

If more people are buying online, that means they’re spending more time online searching for things to buy. In the past, we’ve counseled retailers to aggressively embrace digital advertising tools to prepare for this shift in behavior (for more insight, see this post from 2018 and a sample post of mine from 2019). What’s different about this year is that online advertising where your audience is – such as on Amazon, Facebook, and Google  – is essential, not optional, especially as social distancing has created a surge in people spending more time on digital.

2 Level up Your Mobile Game

Consumers prefer digital, but they have not abandoned in-store shopping by any means. According to a new survey of more than 1,400 U.S. consumers by CodeBroker, 53 percent of shoppers intend to shop at physical locations. Among those who said they were not planning to shop at their favorite stores’ locations, 61 percent said they would change their mind if they received a high-value mobile/digital coupon for a product in which they were interested.

In addition, the Google/Ipsos research says that 53 percent of shoppers that plan to shop this season said they’ll choose to shop at stores that offer contactless shopping. And 47 percent of said they’ll use options to buy online, pickup in-store, or use curbside pickup.

These findings tells us that retailers that use mobile wisely to improve the brick-and-mortar shopping experience will win. Here again, this trend is not new. Holiday shopping has been going mobile for some time, and as we blogged in 2019, retailers that had already responded to the rise of mobile orders were already enjoying a distinct advantage over those that had not. What’s different about 2020 is that retailers need to prepare for a surge in curbside pick-up orders with consumers using their mobile phones to manage the process of ordering and picking up their purchases. Moreover, retailers can and should deploy advertising strategies that use mobile coupons where possible and appropriate.

3 Adapt to a Different Shopping Mindset

How shoppers feel about the holiday season will be radically different. Consider these realities:

  • Many shoppers will be planning for a holiday apart from their extended families as they practice social distancing. As shoppers inevitably order gifts for shipping abroad to their socially distanced loved ones, their moods will be affected.
  • Shoppers are already planning amid a threat of COVID-19 cases spiking again during the winter and possibly triggering state-by-state lockdowns. The ongoing news reports about COVID-19 are likely creating a sense of urgency among shoppers as they work around the possibility of their favorite stores closing. Moreover, shoppers are likely experiencing understandable anxiety and fear.

Retailers should respond by:

  • Activating holiday shopping campaigns now. If ever there was a year when shoppers are planning ahead and are receptive to holiday campaigns that promote services such shipping and curbside pickup, 2020 is that time.

In addition, be ready for a surge in queries from shoppers about details such as product order status as people shop with caution. The Google/Ipsos survey found that 67 percent of holiday shoppers will confirm online that an item is in stock before going to buy it. This means retailers should expect more customer queries everywhere you interact with customers, including email and your socials.

Contact True Interactive

To succeed this holiday season with online advertising, contract True Interactive. We have extensive experience helping businesses thrive with digital.

Photo by Nathan Lemon on Unsplash

Walmart Takes Aim at Amazon, Facebook, and Google with Online Advertising

Walmart Takes Aim at Amazon, Facebook, and Google with Online Advertising

Advertising Amazon Facebook Google

When Walmart recently announced that it was joining Microsoft in a bid for TikTok, the news had many people scratching their heads. But the bid makes perfect sense in context of Walmart’s growing online advertising business, an aspect of the Walmart empire that is beginning to catch more attention among brands. Read on to learn more.

The Growth of Walmart Advertising

You might not know it, but Walmart operates its own digital advertising business under Walmart Media Group. Under CEO Doug McMillon, Walmart Media Group has been building an advertising business to compete with Amazon, Google, and Facebook (the Big Three of online advertising). As reported in The Wall Street Journal, “deep-pocketed companies with large amounts of data on their customers are in the best position to mount a challenge” to these competitors.

Walmart feels ready to play in that sandbox. The retail behemoth aims to tap into its own trove of shopper data (about purchases made both online and in brick-and-mortar stores), and sell advertising services to businesses with products in Walmart stores and across the entire digital world, on sites including Walmart.com. As Steve Bratspies, the chief merchandising officer for Walmart U.S., has noted, data can give advertisers a leg up by providing insight into what a consumer might really want and need.

For example, as noted in The Wall Street Journal, a customer might buy a bicycle in a Walmart store, then subsequently see ads for bike helmets on platforms like Facebook. The ads would direct the shopper back to Walmart.com to make the purchase. It’s a win/win, with consumer needs being anticipated and met, and brands making the connection to a motivated shopper.

Walmart’s Advertising Services

How does Walmart propose to make those connections? The retailer currently offers advertisers services such as:

  • Sponsored Products ads, which consumers encounter when they are browsing Walmart.com. These ads can take many forms:
    • A brand’s products can get premium placement on the first page of a shopper’s search results.
    • An advertiser’s logo might appear, along with a custom headline, at the top of relevant search results.
    • Products can appear as part of a product carousel of relevant alternate purchase options.
    • Items can be highlighted in a “Buy Box” as the most relevant alternate purchase option on a product detail page.

Walmart Sponsored Product Ad

  • Visually compelling display ads, which keep a brand in the forefront:
    • Across Walmart’s digital properties. Content and advertising can be seamlessly merged on Walmart.com, pickup and delivery, and Walmart apps.
    • Offsite, across the web and social channels like Facebook, Instagram, and Pinterest. As noted earlier, relevant ads will re-engage customers and send them back to Walmart for products.

Walmart Display Ad

Where Does TikTok Fit into All This?

Walmart’s motivation for acquiring TikTok probably has much to do with digital ad dollars. As Mark Sullivan of Fast Company points out, TikTok is a prime space for digital advertising. And Walmart clearly recognizes that, sharing in a statement that TikTok might represent “an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses.”

Sullivan elaborates:

TikTok is itself in the early stages of selling ads on its app, and it has data on people’s video content choices, but it lacks data on the things people buy. If Walmart owned TikTok it could use its ecommerce user data to help advertisers put ads in front of the right TikTok users. And Walmart could be the exclusive seller of targeted ad space on TikTok.

One advertising industry insider told me that a brand—say a car company—might use a cookie to capture data on a consumer that came to its site to look at cars, then use Walmart’s ad-tech to show an ad to that same consumer on TikTok.

If Walmart had an ownership stake in TikTok, Walmart could connect its advertisers with TikTok’s young demographic, too. And let’s face it — TikTok is hot. In early August 2020, the video-sharing social networking service reported about 100 million monthly active U.S. users, a figure that is up nearly 800 percent from January 2018. Walmart clearly sees the opportunities inherent in connecting its brands with that audience.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Instagram Reels: A New Way for Brands to Connect with Gen Z

Instagram Reels: A New Way for Brands to Connect with Gen Z

Facebook Social media

On August 5, Facebook released a new feature on Instagram called Instagram Reels: “a new way to create and discover short, entertaining videos on Instagram.” Sound familiar? Facebook has been accused of cloning multiple popular social media app features in the past; given the rising popularity of TikTok, especially with Gen Z, we knew it would not be long before Instagram debuted its own short-looped video feature. The release of Instagram Reels also comes at an interesting time, as TikTok and Microsoft try to hammer out a purchase deal in the face of concerns that TikTok poses security threats.

Regardless of TikTok’s path forward, Instagram Reels has legs. And while Instagram Reels may seem identical to TikTok, that doesn’t mean brands should ignore it. Here are some reasons why:

Connect with Gen Zers on Instagram

It’s no secret that Gen Z is growing up in a world where many aspire to be an influencer or creator. TikTok, which became available worldwide in 2018, quickly gave teens the creative opportunity to do so. Many brands whose main customer base is Gen Z started using TikTok as a way to engage with that demographic. But some brands have felt hesitant about working with a new social media platform.

Now with the release of Instagram Reels, many Gen Z influencers and creators are bringing their successful TikTok content over to Instagram. The shift gives those brands reluctant to engage with a new social media app a familiar platform on which they can connect with Gen Z. And on Instagram Reels, brands have an opportunity to create fresh, engaging content to reach that audience.

Refresh Your Content for Your Instagram Community

If you were already seeing success with TikTok, you don’t have to reinvent the wheel. On Instagram Reels, you can share the same or similar content with your Instagram following, which most likely will include a broader age range than Gen Z alone. Instagram Reels is a great way to refresh your current Instagram content and stay relevant.

If you don’t know where to begin on Instagram Reels, scroll through Instagram to get a feel for the popular short videos of dancing, lip syncing, or tutorials already on view. And consider making Instagram Reels part of your Influencer strategy.

Post Creative Videos Without Breaking the Bank

Instagram Reels doesn’t just help brands stay relevant. The platform makes sense economically, too. Because let’s face it: when it comes to video content, many brands, hampered by limited resources or limited budget, struggle to produce high-quality videos. Instagram Reels (and TikTok) allow brands to be creative without needing a full production team or deep pockets. A variety of editing tools include audio, AR effects, timer, speed, and more, giving users the ability to share high-quality videos in minutes.

Brands Already On Board

Brands eager to appeal to young consumers are already giving Instagram Reels a go. Dunkin’, for example, has posted a video, set to original Dunkin’ music and making good use of the platform’s filters and stickers, promoting the brand’s drive-through service and cold brew coffee.

And Maybelline has debuted a video starring influencer and model Nikkie De Jager, who lip-syncs Maybelline’s catchphrase—Maybe she’s born with it, maybe it’s Maybelline—while applying makeup.

Red Bull, Louis Vuitton, and Sephora have also already posted to Instagram Reels.

Contact True Interactive

Eager to learn more about how Instagram Reels can bring attention to your brand? Contact us.

 

Why Microsoft Wants to Buy TikTok

Why Microsoft Wants to Buy TikTok

Microsoft

A couple of months ago, I mentioned on our blog that dark clouds were on the horizon for TikTok because of lingering concerns over the app’s security. Those dark clouds are here. On July 31, President Trump said he planned to ban the app in the United States because the U.S. government is concerned that TikTok poses a national security risk. TikTok’s detractors say that the popular app, owned by China-based Bytedance, could have personal data from its American users fall into the hands of the Communist Chinese government – a form of foreign espionage. But just as the issue reaching a crisis point, on August 2, Microsoft confirmed a rumor that it intends to buy the U.S. operations of TikTok. President Trump gave Microsoft and TikTok until September 15 to work out a deal, which would pave the way for TikTok to have a future in the United States. The drama is intriguing especially to the many businesses that have a presence on TikTok either through organic content or advertising. In addition, TikTok stakeholders are asking: What does Microsoft get out of buying TikTok and taking on the headaches of securing user data? Here are two reasons why:

1 TikTok Gives Microsoft a Social Media Card to Play Against Big Tech

Google has YouTube. Facebook has Instagram (and many other cash cows). But Microsoft lacks a go-to social app on which to build an advertising business. And this is a major drawback especially in 2020 as social media usage surges. Facebook’s recent quarterly earnings announcement underscored this reality: with people turning online for safer ways to pass the time during the COVID-19 pandemic, Facebook’s monthly average users across all its apps has risen to 3 billion. Microsoft is missing out on a consumer-focused social app. True, Microsoft owns LinkedIn, but LinkedIn is not a business-to-consumer ad powerhouse. TikTok gives Microsoft an instant platform.

Granted, TikTok is still in the early stages of earning revenue from advertising and in-app purchases. And the app shows promise as well as challenges. According to the Financial Times, one 24-hour TikTok campaign ran by Guess logged a CTR of 16% compared to a 4% average. Kroger, which ran a #TransformUrDorm challenge, attracted close to 477 million views across hundreds of videos over the course of approximately one week. But in November 2019, The Verge said TikTok ads were the Wild West. Self-serve ads on the platform deliver CPM of $10 (compared negatively to Instagram’s $8).

TikTok has plenty of room to grow, and Microsoft sees the potential. If TikTok were fully developed as an advertising powerhouse, it’s possible the U.S. assets would have been too expensive to buy – so now is the right time to make a deal.

It’s all about Gen Z

Microsoft has been trying to build a presence with the surging Gen Z population for the past few years, and with good reason: Gen Z is set to overtake Millennials as the largest age cohort in the United States. Thus far, Microsoft has relied on gaming to connect with Gen Z, as witnessed by its development of Xbox, a Gen Z favorite. TikTok gives Microsoft another powerful way to connect with Gen Z: 60 percent of TikTok users are Gen Zers. TikTok also gives Microsoft a way to cross-promote Gen Z friendly products such as Xbox. As The Verge notes:

Microsoft could take advantage of that direct access to TikTok users with ads for Surface, Xbox, and other products, or even as another base for its game-streaming ambitions. Google is planning to leverage YouTube to integrate its Stadia streaming service, and TikTok would give Microsoft a response with xCloud game streaming. Microsoft had been planning to use Mixer for Xbox game streaming, but the service never gained enough traction, and the company was forced to strike a deal with Facebook for xCloud integration instead. It’s not hard to imagine watching a Call of Duty video on TikTok and then being able to click and instantly play the game as it streams to your phone via Microsoft’s xCloud service.

Microsoft, in addition, could reap the benefits of revenue gained when businesses tap into TikTok to advertise to Gen Z, as well – something that businesses might be reluctant to do while TikTok’s future remains in limbo.

What’s Next?

In addition to giving Microsoft and TikTok a deadline of September 15 to work out a deal, President Trump has said the U.S. government should get a financial cut of the transaction, which complicates an already tricky process. Microsoft is taking on a risk with this political hot potato, to be sure. The company has put its reputation on the line by stating that it will “ensure that all private data of TikTok’s American users is transferred to and remains in the United States.” But there is also potentially strong reward for Microsoft. With an American owner, TikTok may become a more attractive place for American businesses to build their brands with advertising and other forms of activity that would enrich Microsoft’s bottom line.

Meanwhile, as if to underline TikTok’s importance, Instagram launched on August 5 a feature, Instagram Reels, that competes directly with TikTok. Instagram Reels benefits from Instagram’s cachet and Facebook’s muscle. The pressure is on for Microsoft to land the TikTok deal.

To learn more about TikTok, check out this treasure trove of statistics.

Contact True Interactive

To learn more about how to build your own brand on the digital world, contact True Interactive.

6 Reasons Why Facebook Continues to Succeed

6 Reasons Why Facebook Continues to Succeed

Facebook

Is Facebook the most resilient brand in the world? It sure seems that way. Here is a business that has weathered one public relations storm after another in recent years, and yet the global business is getting stronger than ever. In the past couple of years alone, we’ve seen Facebook experience some serious threats, such as:

  • Widespread criticism that the platform tolerates hate groups.
  • Accusations that Facebook has been used as a tool for malicious parties to interfere with the election of public officials in the United States and internationally.
  • Anger over Facebook’s failure to contain egregious breaches of user privacy.
  • Speculation that Facebook’s internal culture is imploding.
  • Anxiety that Facebook exerts an unfair advantage over its competition and needs to be broken up.

What have I missed?

These, and many other concerns, have resulted in some concrete actions that normally would cause some serious problems for a business, such as:

  • An advertising boycott by a number of powerful brands in July.
  • CEO Mark Zuckerberg being hauled into public hearings to face a public grilling by Congress, most recently the week of July 27 over Facebook’s competitive practices.

And yet, in Facebook’s most recent quarterly earnings report, the world’s largest social media network reported:

  • $18.7 billion in revenue, up from $16.9 billion a year earlier and above analysts’ expectations of $17.34 billion.
  • Profit for the second quarter nearly doubling to $5.18 billion, or $1.80 a share, exceeding Wall Street estimates.
  • An increase in monthly active users to 2.7 billion, from 2.6 billion in the first quarter. More than three billion people now use at least one of Facebook’s products on a monthly basis.

Now look at Facebook’s stock price, rising year after year:

Facebook’s resilience has prompted many to ask, Why? Well, I can think of a number of reasons:

  1. Clearly, the negative PR does not speak for everyone.
  1. Facebook continues to enjoy an advantage of being the first major social media network to break through globally. When you gain a foothold on a market, it’s awfully hard for anyone to dislodge you.
  1. Facebook has stayed true to a fundamental brand promise of connecting people. If you want to stay connected with Aunt Mary in Topeka or your old college buddy Jim in Montana, Facebook delivers.
  1. It’s not the only social media network fraught with controversy over free speech versus fringe activities. Every major platform – TikTok, Twitter, YouTube, and others – faces the same fundamental challenge Facebook does, and no one has anywhere near a perfect solution. Investors and advertisers understand this reality, and so long as social media platforms appeal to them, Facebook does, too.
  1. Facebook continues to make smart moves to expand its global reach, a recent example being its investment into Jio Platforms of India.
  1. The company is delivering on its 10-year growth plan unveiled in 2016, including continued investments in virtual reality.

Reason 6 above is especially important. Investors like to see businesses create a compelling growth plan and stick to it. Facebook has never lost sight of its own aspirations to grow globally and to use technology to connect people. As a result:

  • Facebook attracts more investors.
  • Those investors fuel the company’s expansion.
  • The company’s expansion attracts more users.
  • More users attract more advertisers. And advertisers are crucial to Facebook’s future.

My advice to advertisers:

  • If Facebook is delivering the audiences you want, continue to rely on Facebook as a crucial element of your game plan. Capitalize on new tools to reach your audience, such as Facebook’s recently unveiled ways to connect people and businesses on WhatsApp. If you work with an agency, ask them about how they’re using these tools to help you.
  • Be patient, and don’t let negative PR distract you (but if you’ve stuck with Facebook thus far, you probably know that already).
  • As with all social networks, assess your own tolerance for the risk versus reward of having a presence on Facebook. As I blogged recently, being on social media presents the possibility that your ads and organic content will appear alongside questionable content. At the same time, being on social also means benefitting from the surge in traffic on social media occurring in 2020. Bottom line: be vigilant (and your agency partner, if you have one, should be vigilant, too).
  • Keep a close watch on all the news affecting Facebook, especially Facebook’s ongoing issues with Congress. It’s important to understand the potential changes that legislation could have on Facebook. Being aware is always a good course of action.
  • Get comfortable living with the wild card in the deck: the effect of the COVID-19 pandemic. The biggest impact the pandemic may have on Facebook is fluctuating advertising revenues from businesses looking for ways to reduce their ad spend as they react to uncertain economic conditions. But one thing is clear: the Facebook community itself is only getting bigger, and it probably will as people increase their usage of online platforms amid spikes in COVID-19 rates.

Contact True Interactive

At True Interactive, we help businesses capitalize Facebook’s growth to build their brands. We can help you, too. Contact us to learn more.

Photo by Austin Distel on Unsplash