Analyzing the new Relevance Score metrics. Are CPC, CPM vanity metrics? Beware of these bugs
FB started to roll out the new Relevance Score metrics, and Depesh is on hand to show you how to leverage them. Controversial opinion that metrics such as CPC and CPM don’t matter! Finally, if your stats are looking weird it could be because of one of these bugs.
Relevance Score Rankings
It’s likely that most of you are already aware that FB is replacing the Relevance Score with 3 new metrics: Quality Ranking, Engagement Ranking and Conversion Ranking.
This update may or may not have already been rolled out to you. Either way, it’s coming to everybody soon and you should know how to analyze these three new metrics and use them to your advantage.
To help you with this, Depesh Mandalia shared some insights into these new metrics, including how to troubleshoot them and use them to enhance your ad campaigns.
The three metrics can be classified as “Average or above” or “Below Average”, And the combination of these 3 metrics can give you 8 different insights about your ads.
Take a look at the image below. As Depesh states, this info comes directly from Facebook, so it’s definitely something you might want to save and keep to hand.
That should help you understand and analyze the new metrics! Thanks Depesh!
Just Another Bug
Have you been seeing wild swings in the stats of your FB campaigns? Instability on a level that would put the fluctuating value of Bitcoin to shame? Don’t worry, it’s not your fault!
It’s not because of your creatives, copy, bidding or anything else.
Apparently, it’s just a bug that has been affecting a bunch of ad accounts.
In fact, many others confirmed that they’re facing similar issues, in this post from the Facebook Ads Experts Academy group. Just so you know, the bug involves CPMs and targeting options in the ad set section.
Just Facebook doing its thing… Again!
CPM and CPC: get rid of them…
If you have been in the digital marketing space for any amount of time, you’ll probably have realized by now that everybody has their own theories about what does and does not work.
These beliefs will be based on our own experiences and the source material that we learn from.
However, it’s important to remember that this is a constantly evolving landscape. Whatever your beliefs are, it’s crucial that we expose ourselves to new thought processes, theories, and points of view. Learning never stops, right?
This article, written by Savannah Sanchez on the Sumo blog, brings up a potentially controversial opinion. It claims that the usual metrics we look at when we’re analyzing Facebook campaigns are actually useless.
Basically, Savannah suggests removing the CPC, CPM and Relevance Score metrics from your dashboard.
Before dismissing this theory, let’s first dive into her reasoning behind this.
She starts by explaining what really influences Facebook ad auctions. Unlike traditional ad auctions, the ad spot doesn’t go to the highest bidder. In fact, Facebook shows ads that generate the highest total value for advertisers and users.
Factors that influence the auctions are:
- Advertiser bid.
- Facebook’s estimated action rate for your ad.
- Ranking of the ad quality and the user value it generates.
The second point is about the traffic cost. Facebook knows the users who are more likely to buy. Therefore, showing your ads to these high-intent users will obviously cost more.
Savannah then uses an example of a campaign she launched for a wallets brand.
The results on one of the ads were:
- CPC: $5.23
- CPM: $25
- Clicks: 190
- Ad spend: $1000
- Purchases: 16
- Return: $2500
- ROAS: 2.5
She says that the CPC and CPM of this ad would have scared a novice FB ad buyer off, potentially resulting in them pausing the campaigns and making changes to drive the CPCs and CPMs down.
However, making changes here would have been a mistake. Why? Because, despite the high CPM, the campaign still drove a 2.5 ROAS.
So, the bottom line is this: High converting traffic costs more, and there’s no correlation between CPC and ROAS.
This isn’t just Savannah’s theory either.
The data analytics team at Common Thread Collective went into detail about the correlation between CPC and ROAS. After analyzing a data set of over $100M in FB ad spend, they found zero correlation between CPC and ROAS.
“There’s no metric that currently indicates whether the high CPC and CPM costs are because of poor ad quality, or whether it is more expensive because your ad is running to a high-converting audience.”
Therefore, the three ad metrics that you should take notice of are:
- Website Purchases.
- Unique Adds to Cart.
- Unique Checkouts initiated.
Specifically, Unique Checkouts Initiated and Unique Add to Carts have the strongest relationship with ROAS.
What should you look at when deciding to kill or keep ads then?
Here’s what Savannah suggests:
- If an ad doesn’t get at least one purchase after spending 1x AOV (and Unique Adds to Cart and Unique Checkouts Initiated metrics are not high enough to convert one sale), turn it off and launch a new ad creative or audience.
- If an ad gets at least one purchase after spending 1x AOV (or Unique Adds to Cart and Unique Checkouts Initiated are high enough to convert one sale), let the ad spend to the next AOV (2x, 3x, 4x etc…).
The actual article is quite lengthy, but we’ve tried to summarize it for you in the best possible way.
Anyway, suggesting that you completely ignore CPC and CPM is a very bold statement. Some may agree, while some may completely disagree. Everyone has their own beliefs, after all.
Even if you disagree, don’t completely disregard everything Savannah has said. You could still make use of her rules on when to kill ads while continuing to take note of your CPC and CPM in order to judge your creative/copy value.
Meeting in the middle is usually a good course of action!
“Got any more of them jobs?”
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‘Grow My Store’ tool for e-comm owners
How often do we see e-commerce owners post their stores in FB groups and asking people to review them?
Maybe you already have a decent store running online, but wouldn’t an expert review add more value to your store?
Someone who could dive into the nuances of your store and highlight the areas where things are going well and areas where improvement is needed.
Well, say hello to Google’s new “Grow My Store” tool, which aims to help retailers boost their business by improving their online and omnichannel customer experience.
All you gotta do is enter your site URL, select whether you sell online, in-store or both and Google will evaluate your store against up to 22 metrics based on in-depth studies on customer experience best practices.
It will then assign a score to your website based on these results, and an extensive report will be emailed to you. All of this completely free of charge!
Recommendations include clear pricing, intuitive navigation, personalized experiences, customer support, and mobile-friendliness to name just a few.
Some of the recommendations are market specific and based on country-level research, and although this is only available for European markets at the moment, it’s still worth a look. Anyway, we know how curiosity works, so you’re all going to give it a shot anyway.
Art of writing high converting ad copies
How do you come up with ad copies for your ads?
Surely there’s a process you go through in order to write ad copies that perform well, right?
Well, if the answer is no then that could be one of the biggest reasons why your campaigns aren’t performing well.
Ad copy, along with audience targeting and creatives, is one of the most crucial elements for running successful ad campaigns on every platform.
Stepan Hlinka has been managing ad campaigns with over $2M in ad spend, and he shared some of the top copywriting tips that he’s picked up after years of studying some of the best direct-response copywriters in the world.
Let’s dig into it.
Know your ideal customers: No surprises here. This is what every successful marketer, every blog post, and every YouTube video you watch will recommend to begin with. If you don’t know who your ideal customers are, how they talk, their problems and the solutions they are looking for, you won’t know the ideal way to speak to them.
Focus on the hook: Use your headline to ask a question that only your ideal customers will say YES to. People who are not your ideal clients will answer NO to this question, which means they will lose interest in the ad. That’s completely fine.
Use long-form copy: Stepan conducted various tests and found long-form copy to be the top performer in almost every case, especially when targeting cold traffic. If you think people don’t read long copies, that’s either your preconceived assumption or the copy isn’t well written.
Use long copies to build a complete, cohesive story around your products/services.
“The more you tell…the more you sell.” Never limit yourself when writing a copy and use as many words as needed.
Be specific with your copy. Rather than using vague, generalized statements, be as specific as you can.
For example: “This unique process worked extremely well for my business” and “This 3-step process generated $104,265 for my business in the last 30 days”.Which one do you think is more believable? You got it!
Don’t sell features, sell benefits: People don’t care about your product and how awesome it is. They just want to know how can it help them. Use the “Buy this so you can…” approach.
For example: “Get our proven Done-For-You email templates that generated $xxx for us, So You Can easily build high-converting systems to generate more business.”
Make them feel understood: Use this age-tested, proven strategy called FEEL, FELT, FOUND Technique for building a rapport with your audience and to gently move them to a new way of thinking.
Here’s how this works:
- “I understand how you feel…” – This part lets your prospect know that you heard him or her and you can relate to them.
- “I/He/She/They felt the same way…” – Here you confirm that this problem is common, but the situation can change.
- “Until I/He/She/They found (your offer)…” – The final part where you will reveal the solution.
Creating a story like this is really powerful, but don’t just make it up – It needs to be real!
Create Urgency: Create a time sensitive offer that lets your audience know that they need to act quickly. The simplest thing you can do is to use words like “Today”, “This week”. Again, be real and don’t fake this urgency.
Make the goals clear: Whether it’s to get a sale, lead or engagement, you need to explicitly tell them what do they need to do next. Make it stupidly simple for them to take action. What they should do next, where they should click and what will happen after that.
There you go! Maybe you already knew these points, maybe you didn’t. The results don’t come from knowledge though. They stem from implementation. So, practice the art, test as much as possible, and never stop learning.
If you found the above tips valuable or have any questions, Stepan is happy to help on his post here.
Amazon added negative keywords
For those rare breeds of marketers out there using Amazon Ads, we have an unannounced update for you.
Amazon has introduced Negative Keywords to Sponsored Brand ads for both Seller Central advertisers and Amazon Advertising advertisers.
Similar to other Search ads, negative keywords will help in avoiding search terms that you don’t want your ads to show up for.
Search term queries for Sponsored Brand Ads are still not visible, so you still can’t find what people are actually searching to trigger your ads, however you definitely know the terms you don’t want your ads to show up for and that’s where negatives can help.
Cool tech, (funny) business, lifestyle and all the other things affiliates like to chat about while sipping cocktails by the pool.
Get your McPass ready!
US citizen? Next time you are visiting Austria and find yourself in need of any distress help, look out for the nearest McDonald’s outlet.
Yup, you heard that right!
The new services offered along with your Big Mac include reporting a lost or stolen passport or seeking travel assistance.
But why? Well, it might be that the US feels that McD’s is the best representation of the country?
Nah, looks like more of a marketing stunt for McDonald’s than anything else.
The more you know!