Facebook has decreased underreported iOS web conversions
Yay! They’re still far from ideal, but they’re getting there…
Facebook just updated its estimate of underreported iOS web conversions, from 15% in September to 8% currently.
The reason: You. Facebook says this reduction in underreporting is due to advertisers following the best practices they outlined several months ago. The company also added a few additional best practices:
When optimizing for web conversions: Make sure you integrate with the Conversions API, verify all domains, align conversion events to business objectives and be patient when evaluating campaign performance.
Reporting campaign performance now takes at least 72 hours given the nuances of delayed data and modeled reporting.
When optimizing for app conversions: Use a 24-hour conversion window, optimize for your business objectives (getting more likes is probably not one of them) and try Automated App Ads.
According to Facebook’s internal tests, advertisers who used Automated App Ads saw a median 6% lower cost-per-install and 9% lower cost-per-action compared to manual app install campaigns.
“Let us decide where to show your ads”: Facebook recommends showing your ads across six or more placements and let them figure out the placements that perform best. Based on our experience with Facebook Ads, The Crew endorses this recommendation.
What are the best ad formats on Snap?
Some of them are expensive, but they’re worth it.
This is the gist of Snap’s message in a recent blog post outlining some of its most successful ad formats.
The data: Snap commissioned Kantar, a data analytics company, to analyze the value of its “high impact” ad formats. The ad formats analyzed were First Commercial Ads, Takeovers and National Lenses.
The results: Each of these “high impact” ad formats increased brand awareness, ad awareness, and message association anywhere from 1.3x to 4.3x.
Don’t expect to pay pennies for these ads: If you read some of the descriptions for these ad formats, you’ll see a “reach out to a Snap representative to learn more” message. This usually means one thing: high minimum spend.
Stop wasting time looking for mediocre influencers
Did you know that there are about 50 million influencers in the world?
This means that if you’re looking for the right creator, you need to go through a pool of millions of creators.
If you do the research manually… it’s like digging for gold in an exploited mine.
Don’t waste your days scraping the soil with your nails and fingers.
Instead, turn to the tool 1,600 brands use – Upfluence will help you find cut-throat influencers in a matter of minutes.
How? Upfluence runs through your customer base and identifies the people that already like your brand and have a strong social media following.
Just starting out with no customer base? Find your next positive ROI partnership among Upfluence’s database of vetted influencers. It only takes minutes to find your match using their custom filters.
Lower the risk by making data-based decisions: With Upfluence’s analysis tool you can analyze creators’ audience demographics, engagement rate, posts performance, posting habits, past collaborations, and more.
Do you know exactly when your ad spend stops generating more profit?
Defining your ideal ad spend is a tough job.
If you underspend, you’ll leave money on the table. If you overspend, you’ll burn right through breakeven. Dave Rekuc states that it all starts with asking yourself the right question:
When does my next dollar of advertising stop making me money?
There’s a logical way to know it, and Dave Rekuc from Common Thread Collective outlined the necessary steps.
It starts with defining your marketing efficiency ratio, aka MER: This is the ratio between total revenue and total ad spend of your business. $15k in revenue on $5k in spend equals an MER of 3.0.
This metric is one step above ROAS as it gives you a better look of how each dollar of ad spend from every channel impacts your revenue.
Taking the MER one step further: Most of your ad spend aims at acquiring new customers. Therefore, to have a better view of the results generated by your ad spend, you must separate the revenue generated by new customers from revenue generated by recurring customers.
This is achieved by calculating the acquisition marketing efficiency rating, aka aMER.
aMER = new customer revenue ÷ total ad spend.
But the aMER still won’t tell you exactly when you ad spend stops being profitable.
For this, you need to break the aMER down into marginal aMER and blended aMER.
And then compare the marginal aMER with your break even point.
- Marginal aMER = Marginal acquired revenue ÷ Marginal ad spend. This measures the relative performance of each additional ad dollar.
- Blended aMER = Total acquired revenue ÷ Total ad spend.
You’re getting close. When you compare the marginal aMER to the blended aMER, you’ll notice that the first drops way quicker than the second.
This happens because the efficiency of every additional dollar in ad spend is dropping.
Get enlightened: When you compare your break even point with your marginal aMER, you understand at which point when you increase ad spend, you start losing money, even though your blended aMER is positive.
Have a look at the full explanation with a few more examples by Dave Rekuc here.
This is so powerful, it’s like being allowed to cheat in exams…
Imagine taking a college exam already knowing what topics the professor will ask you. It’s a guaranteed win, right?
Attest does exactly this but for consumer research: They provide consumer insights that help brands minimize risk, remove the guesswork, and grow their sales.
Bloom & Wild decided to stop selling red roses for Valentine’s Day backed by data from Attest. This resulted in a 4x increase in sales, 51% more press coverage and becoming the most talked about brand in their category.
The magic of compounding exists in marketing too
You have probably heard of the compounding effects when it comes to investments and interest. It’s a powerful, yet mostly unintuitive effect of seemingly small but regular improvements.
A talk we had in our Slack made us realize this is something not all marketers think of, so we want to show you how small improvements in your acquisition strategies can be significantly better than trying to hit that one magical change. Warning: math incoming!
Let’s use a simple funnel as an example where you look at CPC, CVR and AOV. Your CPC is currently $1, your CVR is 2%, and your AOV is $100.
A $100 spend would bring you $200 in revenue, on average.
What if you improved your AOV by 30%? You would get $260 in revenue.
But 30% AOV increase is not that easy. What if you had 10% improvement for CPC, 10% for CVR, and 10% for AOV?
So your CPC goes down to $0.909, your CVR goes up to 2.2%, and your AOV goes up to $110.
Now, for $100 spent you get $266.22 in revenue, on average. Here’s the calculation.
100/0.909 means 110.(011) visitors to your website. Out of those, 2.2% convert, so 2.42 become buyers for an AOV of $110. So $110 x 2.42 = $266.22.
Is it easier to improve one stat by 30% or is it easier to improve three parts by just 10%? And what if you had >10 such factors you could improve just by 10%? And what about improving them every month. That’s how those hockey stick growth graphs are built in reality!
If you have limited resources, and you know one part is just very bad, it’s probably best to focus on it. Once you have everything close to “industry average”, and can’t get big wins in one place, it’s time to compound those small improvements into your next big win.
ADVERTISING: Affiliate marketer or website owner? Partners.House can help you increase your income by monetizing your traffic with push ads. And this guide explains to you exactly how to do it. Give it a read.*
TWITTER: Who won the Super Bowl on Twitter? Pepsi, with its halftime show but there’s more. Here’s the data straight from the source.
PPC: This doesn’t happen often. Ginny Marvin, Google’s Ad Liaison is hosting a Twitter Space tomorrow, 17th February, on Performance Max Campaigns.
LINKEDIN: Should you use hashtags on LinkedIn? Here are the results of a poll of 3000 marketers that says a resounding 85% “Yes”, you should.
FACEBOOK: New changes happening in the Facebook-verse, the News Feed is dropping the “News” in its name and becoming just the “Feed”.
NATIVE ADS: Outbrain is making yet another acquisition. This time it’s Video Intelligence for a reported $55 million.
MICROSOFT: This is getting interesting. Microsoft has opened up its Store. Will they become a “de facto” alternative to Apple’s App Store and Google Play?
PRODUCTIVITY: Google Docs gets a bunch new features, including AI-generated summaries. Maybe this newsletter will write itself soon…
*This is a sponsored post.
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You can find the answer here.
Cool tech, (funny) business, lifestyle and all the other things marketers like to chat about while sipping cocktails by the pool.
Tesla vehicles will no longer be able to fart and mimic goat sounds
Uh-oh. Last week, the National Highway Traffic Safety Association announced the recall of 578,608 Tesla vehicles.
The reason? Not what you’d expect.
Apparently, some Tesla vehicles have a so-called “Boombox” feature that allows them to play sounds outside of the vehicle. You know, usual car sounds like farts, goat sounds and saxophones.
According to the NHTSA, this feature affects pedestrians’ ability to hear a required “Pedestrian Warning System” sound.
Musk blamed the recall on the “fun police”. The good news is that this “recall” can be done with an over-the-air software update so you won’t have to worry about driving it to a repair shop.