🔌❺ FACEBOOK'S POWER 5 FORMULA 🧪
Putting your trust in the machine 🤖
Facebook recently made a major announcement that not many people are talking about. It reveals some really interesting secrets from its big-spending advertisers like HelloFresh, Bombas and Smile Direct Club that will no doubt trickle down to all other advertisers over the course of the rest of 2019.
📓Facebook coined the new way that top direct-response media buyers structure their Facebook ad campaigns as the "Power 5" playbook:
- Campaign Budget Optimization
- Automatic Placements
- Auto Advanced Matching
- Dynamic Ads
- Account Simplification
🖲It goes against the grain of manually 'hacking' ad sets, creatives, and copy to trusting Facebook's machine learning algorithm and automation.
🔗Facebook is moving advertisers from less ad set / ad creative tinkering to a multi-variate test-oriented, automated approach to media buying.
🚀 Here is how 'Power 5' works to improve your ad performance. It is based on five pillars:
The fact of the matter is that not all ad sets are created equally. In a perfect world, we could choose five audiences, give them all the same budget, sit back and reap the rewards.
Obviously that is not the case when it comes to budget allocation, but the good news is, things are getting easier (and automated). Facebook’s release of Campaign Budget Optimization has made it easier than ever to manage budgets and ensure optimal results.
The old way of running Facebook ads was to set your budget at the ad set level, which can make things a bit tricky when trying to track and optimize account spend. Now, the new and improved way to set up your Facebook ads is to set the budget at the campaign level using CBO. Then, let Facebook find the best active opportunity for results and automatically distribute spend to top performing ad sets in real-time.
What are the benefits of Campaign Budget Optimization?
For starters, you’re saving valuable time. Campaign Budget Optimization is an automated process. So, the days of staring at your screen and manually shifting budgets from ad set to ad set are over.
Prior to Campaign Budget Optimization, making a change to an ad set’s budget could send it back into the learning phase. But now with CBO, advertisers don’t have to worry about that because of Facebook’s advanced learning.
In addition to time saved, you’ll also be gaining more value from your campaigns. Opting into a CBO campaign means Facebook will be working in real-time to capture the most results for your budget and effectively lower your total cost per result.
My CBO campaigns deliver better ROAS by automatically distributing spend to top performing ad sets in real time, compared to the old way of having to manually allocate spend at the ad set level and use third party automation tools to manage the scaling process.
As easy as it is to leverage the power of the Campaign Budget Optimization, it is extremely important to be sure that you set your optimization goals and bids according to their value to your business; that way Facebook can find you results within your desired cost goals. All in all, Campaign Budget Optimization plays a crucial role as one of Facebook’s Power 5 tactics and gets advertisers one step closer to unlocking new phases for growth and scale.
When Facebook revealed their “Power 5” list naming the best practices media buyers should utilize when advertising on the business manager platform, it was no surprise that Automatic Placements made the list.
Automatic Placements are a default option given on the ad set level that automatically display your creative where it is most likely to perform best. This could include Facebook, Instagram, or Audience Network and even smaller subsets of these options as well.
If you are an experienced media buyer, you know that it is no secret that Facebook has been pushing people on the platform to utilize Automatic Placements for their advertising. This is probably the tool that gets the most pushback from agencies and buyers, for good reason…
As a marketer, why wouldn’t I want more targeted advertisements that put my best creative in the most native placement where it will perform best?
If you’re asking yourself that question, then naturally you’re probably wondering why media buyers should be utilizing this tool.
Well, for starters, computers are smarter than humans. We have the ability to analyze only a few variables at a time. This is why we are so interested in the data surrounding which placement performs best.
The interesting part though, is that when you give a computer the same problem, it takes an omni-channel approach to a solution. Take traditional marketing for example. If you see an ad on a bus station and then go home to watch a TV commercial for the same product, you are much more likely to remember that product.
This is the approach Facebook is taking, but through machine learning. With the ability to show creatives across platforms in many different native types, your advertisements tend to be much more memorable and will drive purchasing behavior more efficiently and effectively.
With the right campaign objective set, Automatic Placements in combination with CBO tends to use relevant placements that optimize campaigns for the cheaper possible cost-per-result outcome. It still manually targets placements for FB/IG Stories focused campaigns and also messenger ads.
We encourage all media buyers and brands to test and trust automatic placements in their advertising strategy. This is by far the best way to allow Facebook to do what it does best: learn, optimize, and execute to help your brand grow.
Facebook's Power 5 advertising tool of Auto Advanced Matching is one really simple trick you can use to increase your ad account’s performance today.
In the "spy vs. spy" game that is the internet, marketers and business owners are trying to better understand who their customers are and where they come from, while web browsers and ad blockers are trying to block access to this information.
Auto Advanced Matching represents the next leap forward in better capturing customer data, making your custom audiences bigger, making your re-marketing pools more robust, and more accurately attributing purchases to Ads Manager. This means more purchases and better data, allowing you to make decisions even faster.
This "Power 5" tool keeps all of the old features and functionalities of Facebook’s tracking Pixel and adds on the ability to collect hashed user data entered into form fills on your website. This means that when a customer enters their email into your newsletter pop-up or their name and phone number into a customer information form, Facebook can now use that data to match it to their Facebook profile, better allowing Facebook to track events from users using multiple devices and ad blockers.
This has been game-changing for my retargeting efforts – especially since discovering it in the Facebook Business consultant exams. Auto Advanced Matching captures customer data collected in registration forms and checkout like first/last name, email address and D.O.B. to improve and increase audience targeting data and attribution in your reports.
Turning on Auto Advanced Matching is simple, here's how to implement this Facebook Power 5 tactic in your ad account:
→ Go to your Events Manager
→ Select your Pixel
→ Then click on "Settings"
→ Under "Details", you can toggle on Auto Advanced Matching
→ You will also be asked what data you’d like to collect. At Common Thread Collective, we recommend at least email, phone number, and first/last name for the best results – but there is no harm in selecting all of them.
Now, you’re all set! Your Pixel will start automatically attributing more customers to your Ad Account and you should see a bump in your ROAS as well.
❹ Dynamic Ads ✅
At CTC, we believe that Dynamic Ads are the most powerful tool that Facebook offers. When it was named one of Facebook’s Power 5 tactics, it was clear that automation is the future of media buying.
Facebook’s Power 5 tools all reveal a theme of less manual hacking and more automation to drive ad success. Believe it or not, automation can even apply to your ad creative.
Dynamic Ads allow you to personalize your ads without the manual work. Through Facebook’s machine learning, Dynamic Ads pull products from your Shopify product catalog and show converting customers ads for products that are tailored to their interests.
This means that Facebook is doing the heavy lifting for you by finding the right people to purchase the right product. No stress over manually updating your ads to reflect pricing or availability – Dynamic Ads will work for you as long as you want and automatically update to offer what is relevant in your inventory.
Dynamic Ads are an extremely effective way for both re-marketing to your customers and even for prospecting. They’re an essential part of our strategy at Common Thread Collective because they are clear, targeted to the right customers, and can run in tandem with Automatic Placements.
Facebook's reference to Dynamic Ads is the same as Dynamic Product Feed Ads. But, building on this, CTC’s secret weapon of late for mid-funnel high ROAS has been Dynamic Creatives.
Here's how it works: You upload up to ten images or videos to Facebook, up to five text captions (I prefer using all five), up to five headlines, up to five link descriptions (I use one or two) and up to five CTA buttons (I use one "Shop Now").
The magic is letting Facebook figure shit out for you - with automation. And it works fantastically well!
We are now 🤖automating 🤖our campaigns at the...
✔ Ad Set level with Campaign Budget Optimization
✔ Ad Creative level with Dynamic Ads
From pitch to sale, Dynamic Ads are an easy and effective way to turn shoppers into buyers. With the combination of Dynamic Product Ads and Dynamic Creative Testing, you can create a bulletproof ad strategy.
Use a campaign-oriented approach to simplify account structure.
The old way of ad account setup meant manually creating multiple campaigns and ad sets, causing redundancy. With Facebook’s Power 5 tactics, the new power play is to utilize account simplification.
By simplifying your account structure, you allow Facebook’s machine learning to auto test which creative and ad placements drive the best results so that they can optimize for you in real time.
Hacking your way to performance through super granular and hyper targeted campaign and ad set strategies are over. Whether we’re talking about $1 ad sets or breaking audiences out by specific placements or demographics; those tactics that worked so well in the past are no longer strategies that will allow you to scale nor are they taking advantage of the value that Facebook’s algorithm and machine learning have to offer.
Account Simplification at Common Thread Collective looks like this:
- One campaign for Prospecting (Top Funnel)
- One campaign for Re-Engagement (Mid Funnel)
- One campaign for Remarketing (Bottom Funnel)
- One campaign for DPA’s (Bottom Funnel)
Inside of those campaigns there should never be more than 3-5 ad sets, especially if you are using Campaign Budget Optimization (which you should be).
Part of our account simplification strategy includes shifting from hyper targeted audiences to broad audiences that will allow you to scale. For example, rather than separately targeting five different interests that are all 1M person audiences, we are “stacking” all of those interests into one ad set and shifting towards targeting broad interests or broad lookalikes. We highly recommend utilizing broad audiences instead of hyper targeted audiences that have a lot of overlap and redundancy.
Buying into this simplification strategy and the rest of Facebook’s Power 5 tactics will allow you to spend your time thinking about what really matters, rather than spending hours in your ad account pulling on different levers and adjusting the budgets on 100 different ad sets.
The Results ✅
🧪 I have tested this approach all throughout April of 2019 with some really interesting results on eCommerce ad accounts.
💡Here are my results thus far from an account I am testing using the Power 5 playbook:
- Campaign CPA: Reduced CPA from $15 to $10 consistently over 2 weeks
- Time: This account has typically required at least 6 hours a week in management and optimization. I now average 1-2 hours. The set up takes time, but is worth it since it is leverage.
- Feedback: Facebook is showing me what creatives actually work – I mean both images/videos and text copy/headline/description