Hey marketer! Raise your hand if you've experienced diminishing returns with your Meta Ads. You pour more and more money, but the incremental lift in revenue is lower and lower. Why? I will explain the reason for it in a very simple terms. Meta Ads algorithm behind the delivery is kind of like a genie in the bottle. You tell it to find you people who are most likely to purchase your product in the given market and with a given budget for it. Genie does what you command. It can estimate what are people buying. It starts looking for people who are most likely to purchase your product. It's a good genie. But... not everybody is based on her or his behaviour predicted to purchase exactly your product. So with time, your ads are shown to the same group of people over and over again. Simply because the genie is only fulfilling your command. There is a large group of people which could buy your poduct but simply the genie does not know. It thinks they will not care about your product. But guess what, only some 5% of all the people are actually in-market searching for a product like yours. And now in the economic downturn, the number is around 1%. So 99% of all the people can buy your product. But the genie simply does not know. So he does not show the ad to them. You pour more and more money, and the outcome is only small uplift in incremental reach and incremental revenue. So. How to tackle this? Don't blame the genie, blame yourself for giving this specific command. In Meta Ads, reach higher. Go upper in the funnel. Optimise for events that are higher, and ideally, add the Reach campaigns on top to build the awareness of your brand and your products. When looking at a meta-analysis of 40 conversion lifts we saw an 87% correlation between size of audience reached and volume of incremental purchases On average campaigns using reach and performance see 18% greater incremental sales than those using performance alone. Diversify. Test. Add higher funnel campaigns. Build your brand. How to do it? More about this next time! 👋 --- I'm Tomas Havlik. Marketer. Metamate. MiniMBA in Marketing and Brand Management graduate. Follow me for marketing tips and tricks. #marketing #meta #fullfunnel #reach #brand #marketingtips
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