Imagine you’re planning to buy something, and you start your online quest on Google, Pinterest, or a marketplace. You then turn to Facebook or Instagram to see what keeps the world busy and then hu?! You see a series of inspiring ads for what you’ve just been searching for. Is Facebook spying on you? Did someone hack your browser’s history? Is Siri eavesdropping on you? How do they know you are planning to buy that exact same product? The secret is Facebook’s machine learning and you better take advantage of it. We tell you why!
It’s true, Facebook holds a massive amount of data. It’s the power of Facebook, Instagram, and WhatsApp combined, and that’s why they should always be in your marketing mix. As we move around the platform, we all leave pieces of information behind. Think about brand preferences, your taste in e.g. fashion, drinks or technology, shopping behavior and so on.,... Next to its own data collection, Facebook also leases information from other third party sources like Epsilon, Acxiom, Datalogix, and BlueKai.
This data is paired up with your demographic data to predict your interest in products and services. Thanks to constant testing, Facebook optimizes the ad delivery for people who are most likely to convert within the chosen objective:
Before launching any campaign, you always start with a strategy. You start visualizing the classic sales funnel that goes from Brand Awareness to Consideration and ends in Conversion (or retention). When someone has already interacted with your content, the likelihood of conversion goes up. That’s why we normally scale down the funnel to the acquired remarketing audiences since they tend to have a lower cost per acquisition. But it’s time to disrupts this classic funnel approach and leverage the advantages of machine learning from Facebook. This is how we do it:
Why? The system needs to collect enough data, so it can optimize for your chosen objective and the likelihood of conversion. We let all ads run simultaneously and by closely monitoring and optimizing towards the lowest CPA (Cost Per Acquisition), we get faster conversion results than before. Muchas gracias machine learning!
Can we prove it? Yes, we can! Take for example an e-commerce customer selling a relatively unknown vitamin supplement. We launched a campaign that would boost the sales for 4 products on their site. The campaign took off and KPI’s like CPM (Cost Per 1000 Impressions), CPC (Cost per Click), CTR (Click Through Rate) all looked very good. But when it came to conversions, they were lagging behind a little. We then decided to show every possible A/B test and format to all audiences, no matter which phase they were in. This resulted in an increase in conversions of 300% in the second week of testing.
If you want to maximize your results, you have to add these elements to your campaign:
As technology gets more refined, systems like Google and Facebook will always learn more and optimize more. We (and you) as online marketing specialists benefit enormously from all this data and it allows us to keep on personalizing our content and to stay relevant for our customers. Combine the force of machine learning with contextual targeted ads and you have the perfect cocktail for maximized results.
Lissa Simons, Digital Marketing Strategist, WAX Interactive, SQLI Group