3 Simple Steps that Amplify Your Facebook Ads

AdParlor Facebook Advertising

Reach the right audience with the right message – at exactly the right time.

That’s the golden rule of direct response advertising. Marketers live and die by this concept. But when it comes to digital media? We struggle – simply because it’s physically impossible to reach millions of people with personalized messages. We give up easily and convince ourselves that digital media has limited value beyond basic brand-building.

This perspective is wrong.

With the right technology –AdParlor’s tool for dynamic News Feed creatives– advertisers can use Facebook as a conversion-generating, direct response engine. The process follows a straightforward, three step formula:

Step 1: Find the Right Audiences

  • Segment your existing database to pinpoint existing customers on Facebook using Custom Audiences.
  • Use attribution data from on-site and in-app activity to create granular sub-segments of your audience.
  • Create Lookalike Audiences (who are likely to be interested in your business) based on your strongest performing customer segments at as granular a level that you can.

Here’s how the process works with some of our largest e-commerce clients:

We look at internal CRM data for different types of buyers, based on products that they’ve eyeballed or purchased. We then group these users into like-minded segments. We then use Facebook Custom Audiences to match your CRM database to Facebook users and identify similar audiences based on demographic and interest-based characteristics of these segments. All of a sudden, we have access to new audiences with these same qualities.

We can even control the precision of our Lookalike segments. We can choose to reach ‘similar audiences’ – the 1% of Facebook users who look like our Custom Audience. ‘Reach audiences’ expand this group to the 5% of Facebook users who look like our Custom Audiences (so there is slightly less precision, but a greater market reach).

Step 2: Deliver the Right Creatives

  • Once you’re confident in your segments, you can serve them with personally relevant creatives.
  • This stage involves rigorous testing made possible through AdParlor’s tool for dynamic creative. In other words, we can build creatives and tailor them to audiences in near real-time (It’s the actual ad creation process in which our technology can help). Keep in mind that by bucketing the segment of users who have expressed interest in a particular brand or product type, you have already narrowed down what types of creative will be most important in the testing process.

The experiment begins. We worked with an e-commerce retail client to create two audience groups:

  • Lookalike Audiences based on the advertiser’s entire user base
  • Lookalike Audiences based on users who have purchased or expressed interest in specific products

We planned to target group 2 with highly targeted creatives, suspecting that focused messaging would yield higher performing ads. And we were right.

Among product-specific Lookalike Audiences, CTR was 43% higher, and CPA was 82% lower. In other words, we targeted users with messaging that was likely to pique their interest – and it really worked.

All Users Audience $13.19 0.82%
Product Specific Audience $9.21 1.49%

Step 3: Drive the Conversion Home

  • Ad creatives are only part of the marketing equation. Now you need to focus on driving a transaction by sending your Facebook audiences to your website or mobile app.
  • Product-specific landing pages outperform generic landing pages. Advertisers that marry product-specific creatives with product-specific landing pages see a major improvement in both conversion rates and CPA compared to generic landing pages — i.e. if a user clicks on an image of shoes and the brand has those same shoes on the landing page, the probability of a conversion event will be higher than what it would have been on a generic page.

We tested this concept with two subscription-based advertisers (see below). When we married product-specific creative to product-specific landing pages, we witnessed 50% lower CPA costs and 60% higher conversion rates (compared to using generic landing pages).

Type Imp Clicks CPA CVR
Product Specific 199,871,948 948,797 $57.44 2.092%
Generic 6,119,585 19,312 $126.79 1.305%

The moral of the story? Audiences know what they want. The most powerful way to boost conversions is to speak to their unique needs – it’s basic psychology, amplified by technology.

Final Thoughts

Effective advertising is more than just reaching the right audience. You need to communicate your value proposition to the right people in a way that drives a measurable conversion event. With technology, this process is possible at scale – and it works. Want to get started? Just start testing.

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