ROAS vs LTV

 

FACEBOOK

10.5M videos analyzed: Which ones get the most engagement?

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Videos are becoming increasingly important and popular on Facebook. Unsurprisingly this means they tend to perform better, but exactly what kind of videos receive most user engagement?

This study of 10.5M videos conducted by Socialinsider aims to answer this question. Well, that should be enough data, huh?

The main stats

  • 15% of all Facebook content is video. In 2014 this was 5.47%.
  • Vertical videos get 10% more engagement than landscape videos and 17% more than square videos. Go vertical.
  • It’s not all about the creative: Videos with long descriptions (300 words) achieve the highest engagement (0.39%).
  • The optimal video length is between two and five minutes.
  • Only 12% of all videos are Live, despite driving double the engagement.

Well, nothing crazy surprising here, but definitely something to think about, even when creating video ads. For more stats and the analysis methodology, you can check the post.


E-COMMERCE

Just another reason to increase prices

Do the prices of your products influence the kind of customer you attract and the final LTV?

Maurice Rahmey ran a test to find it out, and the answer is a clear YES. But let’s dig a little deeper.

The test was split between four different versions of the store’s hero product at four different prices. Here are the ROAS results for the different prices:

  • $90: 2.39x ROAS (best performance).
  • $95: 1.59x ROAS.
  • $99 with a gift card: 1.69x ROAS.
  • $99 with no gift card: 2.15x ROAS (likely higher margins).

Even though customers who chose the last option spent more upfront, the cheapest variant ($90) actually achieved the highest ROAS. Buuuut….

What happened two weeks later?

After two weeks, Maurice measured the LTV on these orders and the numbers were enlightening:

  • $90 – ROAS two weeks later: 2.75x.
  • $99 with no gift card – ROAS two weeks later: 2.86x.

Moral of the story?

Marketers might use free samples and limited-time offers to get people in the door, but these baits attract the small fishes – customers attached to the price but with no brand loyalty.

So, you should focus on long-term margins rather than high ROAS and low CPA. By using higher prices you can filter out these low LTV customers.


SEO

Core Web Vitals as a ranking factor under new algo update

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Google has announced an updated ranking algorithm called Page Rank Experience which will measure web pages based on the user experience.

This means if Google thinks that users are having a poor experience on your website, your page ranking might decrease.

Details on Page Rank Experience (PRE)

Google already uses many existing factors such as Mobile-friendly update, Page Speed update, HTTPS ranking boost, intrusive interstitials penalty, and safe browsing penalty as ranking factors.

However, they are now refining these metrics around speed and usability. Together, these refinements have been put under a new umbrella term called Core Web Vitals.

What are all these factors?

The first three of these factors come under Core Web Vitals and include:

  • Largest Contentful Paint (LCP): This measures your page loading performance. For better user experience, LCP should occur within 2.5 seconds of when the page first starts loading.
  • First Input Delay (FID): This measures interactivity. For a better user experience, web pages should have an FID of less than 100 milliseconds.
  • Cumulative Layout Shift (CLS): This measures visual stability. For a better user experience, web pages should maintain a CLS of below 0.1.

There are other existing factors that have now been clubbed with Core Web Vitals. These factors determine the Page Rank Experience for all web pages and can be seen below:

  • Mobile-Friendliness. Needless to say, all pages should be mobile-friendly. You can check this with a mobile-friendliness test.
  • Safe browsing. Web pages shouldn’t contain any malicious or deceptive content. You can use the Security Issues report to look for any safe-browsing issues within your website.
  • HTTPS. All pages should be served over HTTPS. Make sure your site’s connection is secure.
  • No intrusive interstitials. The content of the pages should be easily accessible to the user.

As part of this update, Google will no longer require AMPs (accelerated mobile pages) for the mobile version of the Top Stories section in Google search.

This update will not go live until sometime in 2021, leaving you plenty of time to prepare for the changes and hope for the best.


ROUNDING UP THE STACK

  • INSTAGRAM: Instagram is testing a double-story Stories Feed.
  • TIKTOK: How much are TikTok Ads? This post walks you through the minimum fixed fees of the several TikTok Ads formats.
  • SOCIAL MEDIA: This TikTok-like app is gaining traction in the USA and is one of the most downloaded this month. They have a compelling strategy though: They pay you for using the app. $1 for creating an account and $110 when you invite five friends.
  • FACEBOOK: As a follow up to yesterday’s Ad set LLAs, Cory posted that they are only available via the API for now.
  • SOCIAL MEDIA: Trump has signed an executive order that could drastically change social media platforms.

BRAIN TEASER

Which word does not belong? Hat, What, Spat, That, or Chat?

You can find the solution here.


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POOLSIDE CHAT

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

Look who got busted!

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Redditer posted a video in which he walks us through how Facebook has been obfuscating the word “Sponsored” in order to fool ad-blockers from seeing it.

Nothing new here. Just some cute ways FB uses to bypass ad blockers.

Maybe someone should send this to Facebook’s review team?

Would they get flagged? And what would happen if they hit the Chat Support to try and get an explanation?

Okay, enough of the rant! Gotta go back to the editing part of the newsletter and then we’re off to grab some chilled beers. Happy weekend!


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