Unlocking the secrets to Facebook’s algorithm targeting functions seems to be a question been asked by many.
How can I reach the right audience to get the best ROI for my brand using Facebook advertising?
This space has grown significantly in the past 2 years and is only going to increase making it harder for the right people to see your ad but more importantly for the right price.
Traditionally, Facebook ads have been fairly generic with their targeting options eg. precise interests, keywords and demographics the only way to reach the right audience. This expanded last September with Power Editors ‘Custom Audience” option.
Businesses have been building their offline databases through varied channels for many years, using the data for EDM campaigns, mail outs, and SMS services, OR some have done nothing with this priceless information. These databases can now come in handy for Facebook advertising – warm lead, current/former customers, and subscribers to your newsletter are the best audiences to grow sales, they are familiar with your brand/business and strike rate is much higher compared to cold leads, along with decreased spend on Facebook advertising.
Kingnet, a Hong Kong-based game developer, saw a more than 40% decrease in cost-per-installs of its action role-playing game by using custom audience
Castle Auto Group, a car dealership in Chicago, saw a 24x return on their ad spend combining Facebook offers with custom audiences to their existing target customers
What is a custom audience and why should I use it? Custom audiences let brands find their offline audiences among Facebook users. Using email addresses, phone numbers or Facebook user IDs to make the match, you can now find the exact people you want to talk to, in custom audiences that are defined by what you already know. This means that in addition to targeting the types of people you want to reach among the Facebook population, you can now also reach segments of specific people based on information you have about your own, offline audiences
The latest news to come out of Facebook Studio is 3rd party support for the Custom Audience function (Please note this is in testing phase with Facebook’s selected partners and will initially be rolled out to marketers in the US)
The partners currently are Datalogix, Epsilon, Acxiom, and BlueKai which enable brands/businesses to further enhance the ads they run on Facebook
A 3rd party company can assist in enhancing your audience reach by using collective data, for example Datalogix has purchasing data from a reported 70 million U.S. households covering $1 trillion in consumer transactions; the data is largely drawn from loyalty cards and programs at more than 1,000 stores. For each of these users, Datalogix creates a Datalogix ID number that is then matched to Facebook users, who by default are opted into the program. By matching personal data like contact information associated with both the loyalty cards and Facebook accounts, Datalogix can track whether people bought a product in a store after seeing an ad on Facebook.
This data will help Facebook—and in turn, brands/businesses—understand how ads are performing.
Privacy is always an issue with using databases of personal information; Facebook’s custom audience data is protected using the method off hashing, which summarises text into a short fingerprint, which cannot be decrypted. The 3rd party partners also have an encryption method, by which they use a privacy and data-protective matching process.
Facebook is aware that businesses and brands want to ensure that their investment into Facebook ads is been seen by the right audience and are definitely on the right track by implementing these new features which I am very much looking forward to testing out when it launches in Australia along with the release of an API for Graph search (has not yet been confirmed) to really unleash the power of Facebook’s targeting capabilities.
Has your business been collecting user data for many years but are not sure on the best ways to utilise it or do you find your current Facebook advertising is not attracting the right audience?