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SOCIAL MEDIA

Facebook and Snap grew slower than expected in Q3 2021. The reason: Apple

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Two days ago, Snapchat announced its third-quarter earnings, falling short of revenue and growth expectations.

Yesterday, a similar thing happened with Facebook.

The reason for both companies’ slow growth was the same: Apple’s Privacy Changes.

According to Snap CEO Evan Spiegel, the iPhone’s privacy settings had a greater impact on their advertising business than expected.

It looks like Facebook responded more quickly to Apple’s changes, causing them to beat analyst expectations on earnings, but miss revenue goals.

What we expect to happen in the near future: Companies such as Facebook and Google will invest heavily in privacy-based replacements in order to “recover” attribution data lost due to Apple’s privacy change.

Smaller companies such as Snapchat may suffer in the short term, but things will likely even out in the long run as everyone eventually gains access to the same technology.

What this means for you: You’ll probably get a higher ROI on your ads on larger platforms in the short run due to better data, but things should even out in the long run.


GOOGLE

Google Ads: More recommendations, less developer reliance

Google has just released two updates, one for recommendations and the other for app campaigns.

Our recommendations are smarter than you: That’s what Google seems to be saying. According to the company, “advertisers that used recommendations to increase their account-level optimization score by 10 points saw a median 14% increase in conversions.”

More recommendations: Google has rolled out recommendations to help you set up enhanced conversions, consent mode, and Google Analytics 4.

Moreover, they added recommendations for Shopping campaigns, such as setting a target ROAS, setting up customer acquisition goals, and providing warnings for Merchant Center account suspension.

Linking without deep linking: If you run app engagement campaigns, you can now link to your app’s homepage without deep linking (for which you often need to ask your developers for help). Using this, you can direct users directly to your app’s home page from an ad.


SPONSORED BY #PAID

Stop searching for influencers. Let them find you instead!

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And in 10 minutes you could find 15 creators pumped to promote your brand.

This is what marketers have been able to achieve with #paid!

Never heard about #paid?

They are like a matchmaker for influencer marketing. As a brand, you use #paid to identify influencers that already want to work with you. You don’t have to scrape social networks, negotiate prices, sign agreements, or exchange any emails. It’s all done within the platform.

How does #paid work? It’s three steps.

  • You provide the campaign details.
  • You pick from a list of the top 10 creators that match your goals and already love your product.
  • You approve your favorite creators and content then watch the results come in.

And do you know the best thing? #paid is offering you $550 worth of free content on your first campaign – just because you read our newsletter!

Find your creator matches.


ADVERTISING

Should you stop squeezing that lemon?

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Or, in media buyers’ words, should you decrease your ad spend?

As Mathias Schrøder talks about in this piece, he decreased his ad spend, despite a positive ROAS, with the goal of making more money.

Why?

You shouldn’t push ad spend to a place where you’re only getting a ~1.7 ROAS.

If your ROAS is 1.9 while your break-even ROAS is 1.4, you might think that you’re in a good place… However:

  • What is the marginal return on every extra dollar you spend? In other words, if you increase your budget by 20%, what if your overall ROAS decreases by 50%?
  • What if the revenue coming from acquired customers is inflating your ROAS on prospecting campaigns?

Now, these are just assumptions. But Mathias Schrøder created a model to predict what would happen to his net profit in a four years span if he reduced his ad spend.

The scenario is this one:

  • You spend X dollars on Facebook Ads with a Y ROAS through three years.
  • Each year, 35% of customers acquired the previous year will come back organically.
  • In year four, there’s no ad spend on prospecting.Therefore, all the revenue is coming from customers acquired the previous 3 years.

Then, he ran the numbers to compare what would happen to the profit in two different cases:

  1. A $100k per year ad spend with a 2x ROAS for the first 3 years.
  2. A $50k per year ad spend with a 3x ROAS for the first 3 years.

These would be the results:

First case: $914k revenue and $72k in net profits.
Second case: $685k in revenue and $129k in net profits.

In the second case, despite a lower ad spend and revenue, the margins are higher.

According to Mathias Schrøder, this happens because a smaller budget allows Facebook to spend it more effectively.

Obviously, what he demonstrates here is true for his business, and it’s not a universal effect. The best thing to do? Test. Hence, if you think your budget is not being maximized, you might want to reduce it and see what happens to your bottom line.


SPONSORED BY MISO ROBOTICS

You have just 3 weeks left to invest in the hospitality industry revolution

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The robots are here, and they are created by Miso Robotics.

With their three robotic kitchen assistants (Flippy, The Automatic Beverage Dispenser, and CookRight), and their partnerships with White Castle, Lancer Worldwide, and 10 of the top 25 brands in the QSR industry.

Dozens of pilot programs underway, more than 550 new investors, over 11,300 shareholders – and you can join them until November 18th, 2021.

Invest in Miso Robotics and join the revolution!


THE CREW’S INSIGHTS

Most introductions are boring

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… But yours don’t have to be.

If you’re writing a blog post about Facebook Ads, the last thing somebody wants to read is:

Facebook Ads are one of the most popular ways to get customers these days.

These types of generalizing introductions infest most of the content space. So how do we fix it? For one, think about it this way: When you’re writing an intro, imagine you’re writing the script for a TED Talk to thousands of people.

You’re not going to start a TED Talk with a boring introduction, are you? Good.

Once you’re in that mindset, here are three simple ways to start a piece of content:

  • Make a pop culture reference. Just make sure it actually fits the content that follows.
  • Describe something relatable. Walk through a situation or a story that ties in with the problem your content is solving.
  • Make an analogy. This doesn’t just have to be pop culture – compare your topic or problem to something entirely different. Only do this if the analogy is a great fit for the content that follows.

And, there’s one final tip. But you’ll have to head over to our Twitter thread to see it. And don’t forget to turn that notification bell on when you subscribe.


ROUNDING UP THE STACK

EMAIL MARKETING: There’s an email marketing tool built with agencies in mind and its name is Campaign Monitor. Private labeling, master view of accounts, granular user permissions, shared automation and templates, and much more. It’s the email software agencies deserve. Try it for free.*

FACEBOOK: Here’s a list of the “Facebook Papers” that have been released so far.

PINTEREST: Pin impressions and display Pin clicks get “accredited” next to their name. Pinterest has been accredited by the Media Rating Council (MRC) for these two metrics.

YOUTUBE: The video company is giving new creators a chance to be discovered by rolling out a “New to you” tab.

SEO: Google Search Analytics API has some improvements. It now supports Google News, Discover, and Regex.

TIKTOK: Are your TikTok Ads “made for TikTok?” Here’s how to make sure they are, according to TikTok.

PAYMENTS: Your next cashback may be in crypto. Mastercard will begin to allow any bank or merchant on its network to provide crypto services.

BUSINESS: PayPal dispels rumors it is buying Pinterest.

*This is a sponsored post.


BRAIN TEASER

It is flat as a leaf, round as a ring, Has two eyes, yet cannot see a thing. What is it ?

You can find the solution here.


POOLSIDE CHAT

Cool tech, (funny) business, lifestyle and all the other things marketers like to chat about while sipping cocktails by the pool.

Prison > Wife

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Don’t mess with women.

According to reports, a man in Italy asked the authorities to return him to prison so that he could get away from his wife.

“I can’t stand it anymore. The jail is better,” said the 30-year-old man.

The Albanian national was on house arrest due to drug offenses, but his domestic life reached the point where he could no longer bear it.

The man apparently got his wish granted, but not because he wanted to. Apparently, he violated his house arrest by asking to be jailed. In any case, mission accomplished.

Despite the fact that this story appears to be amusing, it contains an important lesson: choose your partners carefully.

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