Thursday, July 4, 2019

How Facebook's New Ad Metrics Will Affect Your Business - Business News Daily

How Facebook's New Ad Metrics Will Affect Your Business - Business News Daily


How Facebook's New Ad Metrics Will Affect Your Business - Business News Daily

Posted: 27 Jun 2019 07:00 AM PDT

image for PixieMe/Shutterstock
PixieMe/Shutterstock
  • Facebook has eliminated the single Ad Relevance Score and replaced it with more detailed metrics.
  • The social network giant adjusted its algorithm to give priority to content users engage the most with.
  • As a small business, valuable content is key to driving engagement.

Facebook has been hard at work updating many of its ad features over the last few months – namely, doing away with the single Ad Relevance Score, updating how the potential reach is calculated and adding three more actionable updates.

According to Facebook, "We're constantly evolving our ad platform, which means our metrics must evolve too. We think this [new] level of granularity will offer reporting that's more actionable for businesses." [Read related article: How to Use Facebook for Business]

Facebook has added three ad relevance diagnostic dimensions:

  • Quality ranking, which is how your ad's perceived quality compares with ads competing for the same audience. Facebook measures ad quality based on feedback that indicates users have hidden an ad or flagged it as clickbait.
  • Engagement rate ranking, which is how your ad's expected engagement rate compares with ads competing for the same audience – i.e., the likelihood of a user interacting with an ad either by clicking, reacting, commenting or sharing.
  • Conversion rate ranking, which is how your ad's expected conversion rate compares with ads that have the same optimization goal and compete for the same audience. This determines the likelihood of a user completing your optimization goal.

Facebook says that when used together, these diagnostics will help advertisers understand whether changes to creative assets, audience targeting or the post-click experience could improve performance. They will not factor into your ad's performance in the auction.

There were also changes to potential reach, which provides businesses with an idea of how many people will see the ad campaign. Potential reach was previously calculated based on the number of total monthly active Facebook users; now, though, it will only include users who were shown an ad on Facebook in the last 30 days. This estimate, according to Facebook, will more closely align with results advertisers will see in their campaign performance.

Facebook created a chart to help users discern the meaning of a variety of ad relevance diagnostics, and it provides helpful recommendations to help you meet your advertising goals.

These changes will allow advertisers to see exactly how their advertisements are performing against their competition, something that many feel has been a long time coming in the age of digital transparency.

These new metrics are scored based on how well your advertisements compare against those of your competitors shown to the same audience, instead of the old method of Facebook assigning your ad a score between one and 10 based on early impressions of positive and negative interactions (such as likes, video views or hiding an ad). Many advertisers complained the old metric was too vague to be of any value and didn't delve into why an ad was performing well or failing.

The new quality ranking is still primarily based on users' interactions with the ad, but each ad's performance is no longer isolated within its own performance. As a result, engagement has become more important than ever – if your ads get more engagement than your competitors' ads do, you get a better score.

"Focus on creating relationships instead of just selling," said Brandon Fargo, owner and CEO of Brahvia Consulting. "Content and video are king right now."

You want your advertisements to echo your business, grab attention and inspire customers to follow the call to action, whether it's to buy a product or sign up for a newsletter. Video is one of the highest-engaged-with forms of advertising on the platform – 70% of videos are watched all the way through – and can have enormous benefits for your business if executed correctly.

To create a video ad, you'll follow the same protocol for creating a static ad. Select "Get video views" under Campaign Objective, then define your audience, budget and ad schedule. Then follow Facebook's instructions for creating a video or upload your own file.

Because these changes are largely for advertisers' benefit, don't expect to see any noticeable changes with your Facebook ads. You should, however, expect to see more detailed information regarding your ads and how they are performing, which can help you refine your marketing strategy.

"[You] should only change the ads that need revision based on [Facebook's] insights," said Emma Franks, senior paid social account manager at Hanapin Marketing. "If there are ads with low engagement rates, those are the ones that should be updated first."

Franks added that ads with a low-quality ranking could improve if shown to a different audience, while ads with poor conversion rates could benefit from driving traffic to a new landing page. Take the time to understand the new metrics and what they mean for your advertisements, and have a plan in place if you see that changes need to be made.

Facebook also introduced two changes to its algorithm around the same time as the metric changes, the first being prioritizing friends the user is most likely to want to hear from based on past engagement, and the second being increasing visibility to links the user will find most valuable.

As a small business, you can benefit from these changes by making sure your content is relevant and valuable to your customers, despite Facebook's declining organic reach to Pages. As long as users are actively engaging with your content, you should stay relevant in their news feeds and continue to have your ads viewed.

Facebook Introduces Its Own Version of Bitcoin...And Other Small Business Tech News This Week - Forbes

Posted: 23 Jun 2019 12:00 AM PDT

© 2019 Bloomberg Finance LP

Here are five things in technology that happened this past week and how they affect your business. Did you miss them?

1 — Facebook announces Libra cryptocurrency – its own version of bitcoin.

This week, Facebook unveiled its new Libra cryptocurrency, which will let users make purchases or send money to people with virtually no fees—either online or at local exchange points like grocery stores. Libra customers could spend the currency using interoperable third-party wallet apps or Facebook's Calibra wallet, which will be built into WhatsApp, Messenger, and its own app. Facebook will test the blockchain system soon and then plans a public launch in the first half of 2020. (Source: Tech Crunch)

Why this is important for your business:

This is just bitcoin for Facebook but it sends an important message: cryptocurrency is for real and has a long term future. If you're selling on Facebook and you sense your customers prefer this type of payment then you'll need to get on board. More importantly is that if this catches on – and I believe it will – then you'll be seeing lots of other cryptocurrencies popping up that are backed by big companies.

2 — Report: China tariffs will see laptop, phone, and console prices rise in US.

A study commissioned by the Consumer Technology Association predicts that the impact of President Trump's proposed tariffs of up to 25% on another $300 billion in Chinese imports will be higher prices for Americans buying electronics such as laptops, phones, and consoles. The report says that cell phones imported from China could cost 22% more, and prices for laptops could go up $120 from the national average of $622—a whopping 19%, which would cause consumers to reduce their spending on laptops and tablets by 35%. China currently accounts for 90% of total laptop/tablet imports. (Source: Techspot)

Why this is important for your business:

These price increases haven't happened yet and they may not happen at all if the President and Chinese President Xi come to an agreement at this week's G-20 meeting. If this doesn't happen then it would make sense for you to make your hardware buys sooner rather than later. Added bonus: there may be a potential accelerated depreciation tax deduction for you as well.

3  — Apple will release two iPhones with 5G in 2020, a top analyst says

Analyst Ming Chi Kuo of TF International Securities reported this week that Apple is getting ready to launch three new iPhones next year, including two with 5G support provided by Qualcomm. The new iPhone models will be available in 6.7-inch, 6.1-inch, and 5.4-inch screen sizes, respectively, and all three will have OLED screens, which are more colorful than LCD panels. (Source: CNBC)

Why this is important for your business:

If your employees are using iPhones my recommendation is to wait until these new 5G versions come out before upgrading. The speed will make a tremendous difference, plus future applications will be built for 5G and not having these devices will limit users.

4 — A small business security management platform brings in $12 million of funding.

This week, Aptible—which provides secure, compliant infrastructure hosting—closed a $12 million deal for Series A funding led that it will use to launch its new security management platform called Aptible Comply. (Source: Globe Newswire)

Why this is important for your business:

The platform helps small businesses and other companies to automate security and compliance workflows for common regulations and security frameworks such as ISO 27001, SOC 2, HIPAA, and GDPR. The company says Aptible Comply will be delivered as software-as-a-service so it's easy to implement.

5— American Airlines offers satellite WiFi to its entire mainline fleet.

Business travelers will no longer have to struggle for a good WiFi connection if they book on American. This week, the airline announced it has finished deploying satellite WiFi to its entire mainline fleet of 700+ aircraft that fly domestically. Depending on the destination, travelers will have either Gogo 2Ku or ViaSat Ka connections, which provide faster, more consistent WiFi than the current ground solutions. American also plans to install power outlets in every seat for its mainline and two-class regional fleets, and it will offer tablet holders on most of its narrowbody airplanes. (Source: engadget)

Why this is important for your business:

As an American flyer I've struggled for many years with Gogo's inconsistent service and it's all but driven me off the Internet when flying. Now, I may have reason to jump back on.  Maybe you do too.

 

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