Facebook offers new tools to boost marketing efficiency
Facebooks is rolling out two new tools that will help CMOs and agencies to target their audience better.
Currently, CMOs need to buy data from Facebook through tracking solutions that measure whether their social media ads are creating better sales. It takes time and money to do research and find out who are really interested to buy, who is buying the most and who are not.
Without this effort, ad campaigns create a lot of wastage, where too much money is spent on the wrong audience segment. The new tools aim to reduce this wastage right at the social media platform.
The first tool is Value Optimization. It uses purchase history data to find out how much money an online visitor will spend at an online store over a seven-day period. The tool then adjusts the marketing campaign to target those visitors that the tool thinks will likely spend more money.
The second tool, called Value-Based Lookalikes, builds on a currently-available tool called Lookalike Audiences. It finds people on Facebook who have similar traits to existing customers, allowing CMOs to reach out to more potential customers who may not be in their follower list or database.
Value-Based Lookalikes takes the same concept to audience targeting optimization. It will find Facebook users who not only have similar traits but will also be most likely to spend after seeing an ad.
Both tools will eventually help CMOs to maximize their Facebook spend, as the social media giant tries to increase its ad potential amidst rising competition and social media spend fatigue.