Paid Social Archives - NoGood™: Growth Marketing Agency https://nogood.io/category/paid-social/ Award-winning growth marketing agency specialized in B2B, SaaS and eCommerce brands, run by top growth hackers in New York, LA and SF. Tue, 14 Jan 2025 13:21:59 +0000 en-US hourly 1 https://nogood.io/wp-content/uploads/2024/06/NG_WEBSITE_FAVICON_LOGO_512x512-64x64.png Paid Social Archives - NoGood™: Growth Marketing Agency https://nogood.io/category/paid-social/ 32 32 Ultimate Guide to Creative Testing for Paid Social Campaigns https://nogood.io/2025/01/14/creative-testing/ https://nogood.io/2025/01/14/creative-testing/#respond Tue, 14 Jan 2025 13:21:58 +0000 https://nogood.io/?p=44218 What’s the number one most important lever we have to drive success on paid social campaigns? Based on the title of this blog you probably guessed it – creative. To...

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Graphic illustrating the impact creative can have on a paid social campaign

What’s the number one most important lever we have to drive success on paid social campaigns? Based on the title of this blog you probably guessed it – creative. To set yourself up for success, your brand needs to have a clear vision for the creative, a data-driven testing strategy, and an execution plan that’s scalable. Although creative has always been imperative for success, it’s increasingly important due to the evolution of social platform algorithms in recent years.

If you wanted to ensure you were targeting your desired users several years ago, the best strategy was to design hyper-specific audiences based on interests, behaviors, or past purchases. But in a post-iOS 14 world, platforms have responded by introducing and expanding campaign types enabled by increased automation; Advantage+ campaigns are now top performance drivers on Meta, and Pinterest recently released a similar product.

With these changes, advertisers have less visibility and control over user targeting. This phenomenon has created the common phrase, “creative is the new targeting.” At this point, the best way to reach a desired audience is to craft creative tailored to them instead of using particular targeting dimensions at the ad set level.

For now and the foreseeable future, we still have control over the creative we put into the market and how we create iterations based on performance. We recommend putting time and effort into crafting a strategy that is scalable on paid platforms and reaches your target users.

We’ve already mentioned the three things you really need for winning creative: a clear vision, data-driven testing, and a scalable execution plan. Let’s dive into the details for each of these key 3 aspects.

Graphic illustrating the three main pillars of creative testing

Clear Vision for Creative

You can have the most talented designers in the world, but if you’re unclear in the direction you give them, there’s no way you’ll be pleased with their output. It’s best to give your creative team specific guidelines so they know how much room they have to ‘play’ in.

Your team must know what you’ve done before, what worked, what didn’t, and how you want to evolve in this next phase. Using examples from other brands you admire and want to emulate is extremely helpful to bridge the gap between your descriptor words and the vision you want to achieve.

On top of the aesthetic vision, it’s important to align on the purpose of creative within your marketing strategy. Is it produced to look pretty, drive results, or both? If the answer is both, can you be more specific with ‘results?’ Do you want a certain CTR or CPA?

Drill down to what’s important to your particular business and how creative can help you achieve your overall goals. Once you feel solid in that, clearly communicate your needs to your team so they can pitch ideas that ladder up to your measurable goals.

Data-Driven Testing

Creative, by nature, tends to be subjective. You can put 10 people in a room, and they may all have different thoughts on what the ‘best’ creative is from a particular batch of assets. On the other hand, data is much more objective.

It’s normal and good for stakeholders to have hypotheses about what will resonate best with audiences and why, but at the end of the day, it’s crucial to rely on data to make decisions about what should stay live, what should be paused, and how we should iterate for future variations.

Tracking this performance in real-time with a creative matrix is a great way to make sure everyone on the team is aligned on what’s working and what isn’t.

Scalable Execution

Once you’ve established your vision for creative and committed to data-driven testing, you want to be able to execute your strategy at scale. As you test hypotheses methodically and with data to call your tests, prioritize speed over perfection.

The more tests you can run with actionable results, the more you’ll learn about your users. This is crucial to growing your business and meeting the overall goals you’ve set. It’s no secret that the special sauce to sustainable growth marketing is rapid experimentation.

Every time you launch creative, you should be iterating on something that’s performing well and introducing a net-new concept to market. It may feel safer to only churn out assets that resemble ads that have ‘worked,’ but if you rest on your laurels, you’ll never find the next great ad for your brand. If you balance safer bets with bigger ones, you’ll be able to scale your creative testing and unlock new learnings along the way.

Graphic illustrating how not to perform A/B testing

5 Most Common Mistakes to Avoid in Creative Testing

1. Strict A/B Testing

Several brands will only call tests after they’ve run extensive A/B testing. We value speed over perfection and believe once you’ve spent against test assets in their own environment (ad set or ad group), you should have sufficient learnings to understand if they’re resonating or not.

Most clients will look at conversions or revenue driven at efficiency metrics such as CPA, CAC, or ROAS to determine success. Rigid A/B testing will slow you down and hurt performance in the long run because it will take you longer to get actionable results.

2. Falling into the AI Optimization Trap

Many platforms, but especially Meta, have recently been pushing AI optimizations that alter your creatives. They do this with positive intentions by promising increased conversions if you check the boxes in the platform that will give them power to alter your creatives how they see fit.

This is a good idea in theory, but these optimizations often make your creative look sloppy, and it can create a poor experience for your users. We recommend keeping these turned off until Meta is able to significantly improve the product.

3. Not Creating Roadmaps

You should build out a roadmap of the tests you want to run for the next month and follow it diligently. If you can sign off on briefs from your team at the top of the month, and they have the time and freedom to execute against them in batches, they’ll be much more efficient.

This goes beyond giving approval on general creative themes/tests. If you can approve in-asset copy, products featured, and the test proposed, you’re setting your team up for more success. These roadmaps should be fluid to the point that if you have a million-dollar-idea that must be tested, it can be slotted in. But barring that incredible exception, align on briefs with your team and give them autonomy to execute.

4. Pausing Creatives Too Quickly

We’ve all been in a position when Total Biz isn’t doing well and we’re looking for places to cut spend. Inefficient creative testing for newly launched assets may be one of the first places you’d want to get back some easy efficiency gains.

We recommend keeping assets live for at least a week before pausing anything, although of course there may sometimes be exceptions. Give them a chance to succeed, and if they don’t, then feel free to pause them out.

5. Not Testing Enough

If your creative team has capacity, you should be testing new concepts and iterations of past performers every week. This is even more important ahead of tentpole periods to ensure you can make the most of high-converting times for the business such as BFCM for e-comm. You shouldn’t be afraid of trying something new – it just might work and unlock incremental conversions for the brand.

How Does This Come to Life?

Below is an example of what this might look like for a typical brand just starting out with creative testing.

This setup focuses on one audience, Prospecting, which consists of users who are not familiar with the brand. One campaign called “Top Performers” has all the assets that perform efficiently at scale; these are tried and true concepts. The majority of the budget goes to these assets because they’re so strong.

The second campaign is the creative testing campaign, which tests several concepts at a much lower budget. Top performers are copied and pasted or ‘graduated’ into the top performers ad set to compete against other tried and true concepts. As a general rule of thumb, 30% of spend should go to creative testing.

New concepts should be tested every week or every two weeks, and top performers should be variated on to generate even more revenue/leads/purchases for the business.

Table demonstrating an example of creative testing

Supercharge Your Strategy with Creative Testing

Now you’re prepared to build a creative strategy that is tailored to your business. First you’ll set a clear vision, then you’ll commit to data-driven testing, and finally you’ll build a scalable execution plan. One last word of advice – keep in mind that it’s not necessarily bad if creative ‘fails.’ Instead, this result gives you another learning that will help you optimize future variations to drive stronger results with your target audience.

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Paid Social Trends to Look Out for in 2025 https://nogood.io/2025/01/05/paid-social-trends-2025/ https://nogood.io/2025/01/05/paid-social-trends-2025/#respond Sun, 05 Jan 2025 23:47:22 +0000 https://nogood.io/?p=44051 Paid ads on social media: they’re the thing we love to complain about but secretly love because they feed us exactly the products we didn’t know we wanted. A new...

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Paid ads on social media: they’re the thing we love to complain about but secretly love because they feed us exactly the products we didn’t know we wanted. A new skincare product that promises miracles? Click. A limited edition purse we absolutely do not need? Add to cart. Whether we like it or not, paid ads on social media are growing exponentially as more and more users spend their time on social platforms.

The fact is, social media ads are becoming increasingly important to thrive in the digital marketing space. As advertisers scramble to catch up with trends, it’s crucial to not only keep an eye on what’s happening now but also what’s coming next.

So, what are the most exciting trends to watch in 2025 when it comes to paid social ads? Here are some of the trends I’m personally excited about, what they mean for advertisers, and why you should take note.

1. Short-Form Video is Here to Stay

Let’s get straight to it: short-form video is the “it girl” for paid social. If there’s one thing that 2025 will solidify, it’s that TikTok (if it doesn’t get banned!), Instagram Reels, and YouTube Shorts are dominating the space, and for good reason. These placements, which thrive on bite-sized videos, manage to capture our attention in ways that traditional long-form content simply cannot.

But why is short-form video such a powerful tool for marketers? In short, our attention span matches that of a goldfish these days. The average attention span for most users has been steadily declining, according to studies such as those by Gloria Mark for the American Psychology Association, making long-form content tough to sell unless someone is already a fan of your brand. So, how do you reach new potential customers in a world where people swipe through content faster than you can say hi there? Short and engaging videos are the answer you’re looking for.

Short-format videos are more likely to hook audiences quickly, deliver key messages effectively, and drive meaningful engagement. With platforms like TikTok dominating the social landscape, marketers are getting creative by using videos that can convey their messaging in the shortest time possible. If you ask me, 15 seconds or less is ideal.

How can you succeed with short-form video? Focus on the first few seconds. This is the make-or-break moment where you either capture your audience or completely lose them. Tease the value upfront, use visually interesting elements, and make it clear what viewers can expect if they keep watching. It’s all about stopping the endless scroll and earning that rare moment of attention.

An important tip: having user-generated content (UGC) that resembles the look and feel of the brand’s organic presence tends to work best. It’s important for users to have a cohesive experience from what they see in an ad to what’s on the organic social page, to what they find on the website. Think about it — if you see an ad that’s clean and minimalist, but then land on an organic social page or website that’s the exact opposite, it sets false expectations for the user. This disconnect can lead to a high bounce rate, and losing the trust of a potential consumer from the get go.

While the explosive growth of short-form video has made it the go-to format for consuming content quickly, its evolution will hinge on balancing creativity, authenticity, and meaningful engagement in a very saturated market.

Here’s where I think short-form videos will differ in 2025:

  • Deep Interactivity: Short-form video will likely shift toward formats that invite audience participation. Think AI-generated, personalized responses within videos or interactive polls layered into the content, breaking the 4th wall per se, between creator and audience.
  • Purpose Over Trends: As audiences tire of watching the same trends and formats (ehem, Wicked…), creators who use short-form video in a more unique way will stand out. I’m not saying there’s no value in hopping on trends, but if you do, it has to be timely and still have some authenticity to your brand – otherwise it’s simply cringy and you’re better off just not doing it.
Graph showing decline in attention spans

2. YouTube Shorts: A Placement to Watch

Speaking of short-form videos, YouTube Shorts is quickly becoming a placement to watch for 2025. While TikTok remains a big player in the game, its uncertain future — thanks to potential bans and changing regulations — makes YouTube Shorts a smart option for advertisers. Even if TikTok sticks around, YouTube Shorts offers a prime opportunity to reach audiences on another platform.

Why is this placement worth your attention? For one, YouTube is the second-largest search engine in the world, and Shorts is tied directly to it. With over two billion users already engaging with Shorts, the potential reach for advertisers is massive. Brands that experiment with this placement now are likely to gain a competitive edge as the platform continues to grow.

With Google Ads now giving you the option to run ads strictly in the YouTube Shorts placements, I recommend testing your top-performing video ads from other platforms sooner rather than later to find what formats and themes stick best with this audience type, but from our experience, UGC videos that match the look and feel of the organic videos on the platforms will likely continue to dominate the space.

3. AI Tools: Where to Lean In and Where to Proceed with Caution

Let’s talk about AI. It’s everywhere — and for good reason. AI tools have made it easier than ever to scale paid social campaigns. Need five headline options? AI’s got you. Want to quickly test ad copy variations? Done and done.

Lean in by leveraging automated campaign options like Advantage+ on Meta and Smart Campaigns on TikTok. Frankly, you’re already behind if you’re not using these. But be careful when jumping headfirst into every AI update you see.

When it comes to generative AI, there are certain tools I trust. Others, not so much. As much as platforms are pushing for AI-driven enhancements, most are just not quite there yet. Let’s use Meta as an example – these are the tools from their Advantage+ Suite that I trust and those I do not:

  • Trustworthy:
    • Advantage+ Creative Text Generation
    • Adding Sitelink Extensions
    • Catalog Ads
  • Proceed with Caution:
    • Relevant Comments – make sure you keep an eye on what people are saying in the comment section. If it’s mostly positive, go for it, but make sure you have a pulse on this section.
    • Enhanced CTA – works most of the time, but if you have a very specific goal, I’d stay away from these. 
    • Adding Music – mostly good, but sometimes it can get a little weird. If you’re not super strict with what the overall feeling of the ad should be, it can add a little something to the ad, making the user scroll if they’re intrigued by the sound they’re hearing.
  • Simply Not There: I’ll preface this by saying that if you’re advertising for a brand that has strict visual guidelines, run away from these, fast:
    • Visual Touch Ups
    • Overlay enhancements 

I’ve said it once, and I’ll say it again: things can get funky with these real fast. I would not recommend using them. So while AI tools are great for efficiency, don’t hit “publish” without an actual human giving things a final check. 

My AI predictions for 2025? Automated campaigns will remain the go-to strategy for targeting users. Detailed targeting is gradually becoming obsolete as privacy concerns grow and smart campaigns, like Advantage+, continue to improve their accuracy in reaching the right audience based on consumer behavior. As far as the more visual aspect of AI on these platforms, I think these will get better but will likely work best for brands that have strong visual guidelines. A solid visual identity will give these AI tools more cohesive data points to draw from, allowing them to create ad variations based on the inputs they see in the account. Will this be perfect in 2025? Probably not, but I do believe we’ll see significant improvements over the next year or so.

Screenshots showing how AI features can mess up creatives

4. The Demand for Authenticity

Remember how we said paid social ads are everywhere? Well, the more saturated the space becomes, the more users crave authenticity. More traditional, polished ads are losing their appeal, especially among younger generations (I see you, Gen Z). Instead, people want content that feels real, relatable, and, well, human.

One of the most significant trends in this space is the rise of user-generated content (UGC). UGC is about showcasing your product through the eyes of your customers, and we’ve seen this time and time again on platforms like TikTok and YouTube, but in 2025 we can expect to see the rise in this format beyond your small screen. Two brands that are already leveraging UGC on a massive scale are Taco Bell and Amazon: these guys are tapping into creators’ ability to craft culturally relevant stories and hiring them to direct their ad campaigns.

Creators are also now key players in live events, activations, and experiential marketing. For example, Nike recently collaborated with a content creator to design an AR-enhanced basketball experience during All-Star Weekend, blending their online persona with in-person engagement. Food brands like Chipotle have invited TikTok chefs to co-host virtual cooking classes and direct the narrative around new menu launches.

Let’s face it – not every UGC video you see on the internet is actually a real customer, but in order to make it feel like it’s real, make sure that there is a level of cohesiveness between the content creator making the video and the product they’ll be selling. Would you believe Gordon Ramsey if he was selling you ballerina slippers? Absolutely not. So yeah, put some effort into it and find a creator who could authentically be using your product, and that will give you a great advantage.

An easy way to amplify the feeling of authenticity is through whitelisting ads. Viewers are more likely to stop and pay attention when content comes from a real person’s handle rather than a company’s. When they’re done well, whitelisting ads can be a powerful asset.

5. The Rise of Nano Influencers

While mega influencers may have broad reach, nano influencers — those with smaller but highly engaged audiences — are making waves in paid social strategies. With these influencers, you get something even more valuable than reach: trust and relatability.

Think about it this way: if your best friend told you they vouched for a product, you would be more likely to buy into it than if you saw it in a QVC commercial, right? The same concept applies here: nano influencers often have a more intimate connection with their followers. Their recommendations feel genuine and personal, and their audiences trust their opinions more than they would a big-name celebrity.

For brands, this translates to higher engagement, stronger relationships, and better returns. Plus, working with nano influencers is often more cost-effective than partnering with big names in the influencer space.

To leverage this trend, focus on building long-term relationships with influencers who align with your brand values. Give them creative freedom to showcase your product in a way that feels true to them.

Graph visualizing the reach nano influencers have

6. Platform-Specific Strategies Are Non-Negotiable

In 2025, a one-size-fits-all approach to paid social ads just doesn’t cut it anymore. Each social platform has its own unique audience and features, and it’s essential to tailor your ads to fit each one.

Take TikTok, for example. The platform thrives on casual, trend-driven content. If you want to succeed on TikTok, you need low-production, high-energy videos that feel native to the feed. Think quick tutorials, funny skits, or viral product demos. It’s all about creating content that naturally fits into the platform’s ecosystem.

On the other hand, Instagram still leans toward a more polished aesthetic. High-quality visuals, cohesive grids, and aspirational messaging perform better here. Your Instagram content should feel like an extension of your brand’s identity — visually appealing while still delivering value.

And while platforms like Pinterest and LinkedIn might not always come to mind when thinking about paid social, they offer unique opportunities for reaching specific audiences. Pinterest is perfect for lifestyle and DIY brands, while LinkedIn excels in connecting with potential B2B partners. Tailoring your content to each platform will increase its relevance and effectiveness.

7. Social Media Platforms Becoming Search Engines

Think about this: when was the last time you Googled something versus searching directly on TikTok or Instagram? For younger audiences, social media platforms are becoming the go-to search engines. Instead of using Google to find information, people are turning to TikTok for tips, Instagram for inspiration, and YouTube for how-to videos. This shift presents a massive opportunity for marketers.

Why is this happening? Social media platforms offer a more authentic, visually engaging way to discover information compared to traditional search engines. For example, a user looking for vacation ideas might search TikTok for real experiences from influencers or other travelers. It’s personal, it’s engaging, and it often leads to faster purchase decisions.

For advertisers, this trend emphasizes the importance of optimizing your content for in-platform search. Use relevant hashtags, keywords, and captions to ensure your content appears when users search for topics related to your brand.

Screenshots of searching for Paris travel tips on social media platforms

8. Hyper-Localization in Advertising

In 2025, hyper-local targeting is set to become more important than ever. This goes beyond basic geo-location — ads tailored to specific regions, cities, or even neighborhoods can make all the difference in resonating with your audience.

For example, a coffee chain might run ads emphasizing sustainability efforts in Portland while promoting a new iced latte in Miami. Aligning your messaging with local preferences and trends can help you build a stronger connection with your audience.

Success with hyper-local campaigns lies in data. Use insights about your target market’s location, interests, and behaviors to make ads that feel personal and relevant. Hyper-local campaigns benefit from a trial-and-error approach, so don’t be afraid to test and iterate to get the best results.

Illustration of hyperlocal ad campaigns

9. Using AR and VR Ads

Augmented reality (AR) and virtual reality (VR) ads are still in their infancy, but they’re poised to revolutionize paid social in the coming years. For industries like beauty, fashion, and home décor, these technologies offer an immersive way for customers to interact with products before making a purchase.

Imagine virtually trying on a new lipstick or placing a piece of furniture in your living room using AR. These experiences not only increase engagement but also help customers make more confident purchasing decisions.

If your brand operates in a space where AR or VR could enhance the shopping experience, consider incorporating these technologies into your ads. Early adopters of AR and VR have the chance to stand out and gain attention from customers who are excited about the novelty factor.

Examples of virtual reality shopping

10. Sustainability-Focused Campaigns

Consumers today are more conscious of the environmental impact of their purchases than ever before (or at least they try to be!). Sustainability is a value that more and more consumers seek out when making purchasing decisions, and brands that highlight their commitment to eco-friendly practices through paid social ads can tap into this growing trend. Whether it’s showcasing sustainable packaging, ethical sourcing, or initiatives to reduce environmental impact, transparency and authenticity are increasingly important to consumers.

Integrating sustainability into your paid social campaigns not only appeals to socially conscious consumers but also fosters deeper brand loyalty. By showcasing your efforts in a meaningful way, you can create stronger connections with your audience.

Examples of brands with successful ads

Paid Social Trends for 2025: Final Thoughts

At the end of the day, paid social is all about meeting your audience where they are, serving them content they care about, and making it as easy as possible for them to say, “Wow, I’m buying that.” The trends heading into 2025 — short form videos, user-generated content, nano influencers, AI tools, and beyond — are all about staying nimble, authentic, and strategic.

Whether you’re testing YouTube Shorts, diving into hyper-local campaigns, or exploring AR ads, the key is to stay curious and open to new things. Social media is a constantly changing landscape, and the brands that thrive are the ones willing to adapt, experiment, and grow. Here’s to making 2025 your best year yet in paid social!

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AI in Paid Social: How to Leverage AI to Supercharge Your Paid Social Campaigns https://nogood.io/2024/12/30/ai-in-paid-social/ https://nogood.io/2024/12/30/ai-in-paid-social/#respond Mon, 30 Dec 2024 20:52:12 +0000 https://nogood.io/?p=44004 Artificial intelligence (AI) is revolutionizing paid social advertising by introducing advanced features that improve targeting, optimization, and efficiency. With AI, advertisers can analyze vast amounts of data to gain insights...

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Artificial intelligence (AI) is revolutionizing paid social advertising by introducing advanced features that improve targeting, optimization, and efficiency. With AI, advertisers can analyze vast amounts of data to gain insights into consumer behavior, preferences, and trends. This allows for more precise audience segmentation and personalized ad delivery, resulting in higher engagement and conversion rates.

How Can You Use AI in Your Paid Social Media Strategy?

How to Use AI Content Personalization in Social Media Marketing

AI algorithms analyze user data – including past interactions, likes, shares, and comments – to create content that resonates with your audience and boosts engagement.

Graph showing how companies currently use AI

For example, consider an e-commerce company using AI to review user interactions. The AI can identify patterns, such as a preference for yoga over high-intensity workouts.

With this insight, the company can tailor its content to focus on yoga-related products and tips, appealing directly to its target audience.

These recommendations may appear in a variety of ways, including:

  • Product suggestions
  • Suggested posts
  • Ads
Screenshot of Instagram Ad

Wowcher is a large UK-based “deal of the day” e-commerce company. They used AI to enhance their Facebook ads with personalized copy. If a user frequently clicks on vacation deal ads, AI identifies this interest and highlights relevant deals. As a result, Wowcher achieved a 31% reduction in cost per lead and improved ad relevancy scores.

AI can continuously monitor user interactions and provide real-time content recommendations. For instance, if a new social media campaign for an accessory is underperforming, AI tools can identify issues with your captions or format that need adjustment.

For example, Olipop uses a variety of content formats such as carousel posts and user-generated content to enhance reach, engagement, and social shares.

Examples of different types of ads

This real-time customization ensures your content remains relevant and engaging as user interests and preferences evolve.

Chatbots Improving the Customer Experience

Screenshot of a conversation with an AI-powered support bot

AI chatbots are available 24/7 to support your customers, providing instant answers and handling large volumes of requests, which improves the customer experience.

Through data analysis, they deliver personalized interactions and ensure consistent and accurate information. These technologies excel at automating routine tasks, such as scheduling appointments, responding to basic inquiries, and providing tailored product recommendations.

The makeup brand Sephora uses AI to improve the customer experience. After realizing that users were feeling overwhelmed by their vast product range, Sephora introduced an interactive quiz driven by chatbots. These chatbots guide customers through their purchases and offer personalized advice and recommendations based on their answers.

And with the ability to personalize interactions based on user data, they can engage users in a more meaningful and tailored way. They can suggest products, offer discounts, and provide interactive content, making the user experience more enjoyable and engaging.

Saving Time with AI

AI can perform time-wasting, repetitive tasks, like responding to simple questions, posting posts, and creating content, which frees up valuable time for you to focus on the strategy and creativity of your social media presence.

Visual Content Development

Generative AI tools such as Midjourney, DALL-E and Runway are revolutionizing the way marketers create personalized images for targeted campaigns.

By analyzing customer data, AI can suggest changes or generate images tailored to the preferences, past behavior, and demographics of specific segments, increasing engagement and conversion rates.

These tools can also generate unique images and graphics from text descriptions, enabling the rapid creation of customized imagery for campaigns, social media posts, and ads without the need for extensive graphic design resources.

By utilizing these AI applications, you can significantly improve your social media marketing efforts.

AI Optimizes Ad Budget Allocation By Adjusting Spending Based on Performance

Accurate forecasting is crucial for budgeting your campaigns. Understanding how changes in strategy could impact performance will help you better allocate your budget to maximize return.

Manual forecasting can be difficult, time-consuming, and quickly outdated. It requires continuously updating data with the latest statistics, which is often impractical. However, anomaly detection, a form of automation, can identify and address issues before they impact your campaign performance. This ensures that your budget is not wasted due to unforeseen issues.

AI Improves Paid Social Campaigns in Real-Time

AI improves paid social campaigns in real-time by dynamically optimizing content, adjusting bids, and refining audience targeting based on current data.

It continuously analyzes user interactions and engagement metrics to ensure the most effective ad versions are displayed, and it personalizes content to increase engagement rates.

How Can Data Be Utilized with AI in Paid Social Advertising?

Streamlining A/B Testing with AI: Faster Insights and Real-Time Optimization

AI streamlines the creation, deployment, optimization, and analysis of A/B tests and enables companies to achieve their goals faster and more effectively.

Tools such as Twilio Segment and Evolv AI collect and manage data from social media platforms. AI uses this data to identify patterns and insights to improve A/B testing strategies.

For example, if a successful combination of headlines and images increases order volume but decreases the number of items per order, AI can adjust the test so that more items are added to the cart without having to start a new experiment.

AI Enhances Audience Targeting By Analyzing Data to Reach Relevant Segments

Traditional market research methods, which rely on small samples and surveys, offer limited insight into your target audience. In contrast, AI processes data from millions of consumers, providing a much more detailed and accurate segmentation.

AI examines various types of consumer data, including:

  • Demographic details such as age, gender, location and income
  • Purchase history and transaction data
  • Browsing and search history
  • Social media activity
  • Mobile app usage
  • Loyalty program data

AI analyzes this behavioral and preference data from millions of customers to identify clusters with common attributes, define detailed audience segments, and create tailored individual profiles.

While most ad networks provide basic demographic data, AI can, for example, create a similarity score to improve targeting. For example, Strike identifies optimal interests and keywords and discovers relationships between seemingly unrelated targeting affinities.

For a company selling a widget that feeds cats, typical targeting might include pet lovers and frequent travelers. However, Strike can uncover deeper correlations, such as specific websites that pet owners visit or age-related trends that are often overlooked by manual methods. AI excels at recognizing these nuanced patterns at scale, allowing for highly effective and precise targeting.

Marketers are using these AI-driven insights to gain a deeper understanding of their customers and tailor their ads and messages for maximum relevance. AI has taken targeting to a new level of precision and effectiveness.

How Can Businesses Prepare for the Future of AI-Enhanced Advertising?

To successfully navigate the future of AI-powered social media advertising, companies should adopt the following strategies:

Leverage Comprehensive Data

AI thrives on data. Gather detailed insights into your customers’ behavior, preferences, and interactions by investing in tools and systems that can collect and analyze big data. This allows you to use AI for precise audience segmentation and personalized advertising delivery.

Adopt AI-Powered Platforms

Platforms that offer AI-powered features such as dynamic content creation, real-time bid adjustments, and predictive analytics will help you streamline your efforts and improve results.

Focus on Personalization

Use AI to deliver highly personalized advertising experiences. By analyzing user data and previous interactions, AI can help you create messages that are tailored to individual preferences, increasing engagement and conversion rates.

Explore Immersive Technologies

Integrate new technologies like augmented reality (AR) and virtual reality (VR) into your social media campaigns. These technologies can create interactive and engaging experiences that pique consumer interest and set your brand apart.

Foster Authentic Influencer Partnerships

Use AI to identify influencers that align with your brand values and target audience. Ensure collaborations reflect authentic recommendations that build trust and credibility with your target audience.

Optimize Ad Spend

Manage your advertising budget efficiently. AI can adjust bids and budgets in real-time based on campaign performance. This ensures that your advertising spend is optimized for maximum return on investment.

AI Tools to Use in Paid Social Media

Meta’s AI-Powered Ad Suite

According to Meta, businesses are seeing improved performance with Meta Advantage.

Statistics about using Meta's suite of tools

Meta’s suite of AI-powered ad tools can get you the best results with fewer and more efficient campaigns, allowing you to reach more potential customers and save time and effort.

Screenshot of Meta's AI tools

Generative AI: Text Generation

Meta’s AI text generation feature now creates variations for the ad headline and the primary text. It’s currently testing the ability to tailor the generated text to your brand’s voice and tone by emphasizing key selling points based on your previous campaigns and text input.

This feature will soon incorporate Meta Llama 3, the next generation of Meta’s language models, enhancing ad performance and introducing new capabilities.

Advantage+ Creative Optimizations

When you use Advantage+ creative in Meta Ads Manager, your images and videos are automatically optimized to versions that are more likely to engage your audience. Depending on the ad format or placements you choose, various creative enhancements may be available.

Enhancements for single image or video format:

  • Standard enhancements such as image template, visual touch-ups, text improvements, and relevant comments
  • Image brightness and contrast
  • Music
  • 3D animation
  • Image expansion
Before and after of using AI enhancements

Enhancements for carousel format:

  • Profile end card
  • Music
  • Highlight carousel card
  • Dynamic description
  • Relevant comments
  • Info labels

Certain enhancements are only accessible when you select “Manual Upload” in the ad setup. If you choose Catalog to dynamically create a carousel with your products, these optimizations may not be available.

Advantage+ Catalog Ads

Example of a carousel ad

If you have a catalog, you may see options like Advantage+ creative for catalog, which uses the catalog to display different formats and creatives based on what the audience is most likely to respond to, or Dynamic media, which shows either images or videos of your catalog items depending on what each viewer is likely to find engaging.

When using the Sales or Traffic objective with a single image or video, and the catalog option is not enabled, you may see “Add Catalog Items.” This feature displays items from your catalog alongside your selected media, directing viewers to your chosen URL when it’s likely to enhance performance.

For example, your selected media might appear with product cards underneath it, or it might be the first card in a carousel of popular products from your shop, with the second card shown first on the second viewing of the same ad.

Screenshot of a case study success

Advantage+ Creative with Advantage+ Catalog Ads

You are now able to upload a “hero” image or video in the center of your catalog ad, and Meta’s AI will be used to dynamically show people the best products from your catalog to drive performance. You can use this tool by clicking “Add Catalog Items” under Advantage+ creative within Ads Manager.

AI-Powered Content Creation and Management

Flick

You know the importance of repurposing your best ideas to maintain consistency and engage followers. Flick’s Content Lab is your hub for brainstorming, storing, and producing content for all social media channels.

Click the “Brainstorm Ideas” button, enter your topic, and select promising ideas. Flick generates four post ideas with suggestions and tips. Save your favorites and generate more if needed.

Use the Content Assistant to refine your base post and repurpose it for all channels with AI-powered tools for rewrites, tone adjustments, and hashtag generation. Scheduling posts is quick and easy, filling your content calendar efficiently.

ChatGPT

While ChatGPT isn’t designed specifically as a marketing tool, it can be highly useful for various marketing tasks. Digital marketers use ChatGPT for keyword research, drafting meta descriptions, and creating product descriptions, and it can also assist with paid media efforts.

For instance, if you’re having trouble with a caption for your next Facebook ad, ChatGPT can help. Provide it with the necessary details, and it will generate the caption for you. Let’s say you need a caption for an ad promoting a children’s board game like Candyland. You might prompt:

“Create a caption for a Facebook ad under 60 words that encourages parents to buy Candyland for their kids with a supportive and fun-loving tone.”

ChatGPT will generate the caption, saving you time. Just remember to give specific prompts and thoroughly edit the output to ensure accuracy.

AdCreative.ai

AdCreative.ai generates AI-powered ads for various platforms, including banner ads, social media, and display advertising channels. With just a few inputs from your marketing team, it produces professional-grade ads within minutes.

In addition to creating visually appealing ads, AdCreative.ai can generate compelling ad copy, including text, headlines, CTAs, and sales copy for product descriptions or email promotions. It also handles social media ad captions.

Moreover, AdCreative.ai tracks campaign performance, learning from audience engagement to refine future ads and suggest improvements, enhancing the efficiency of your campaigns.

Midjourney

The tool is particularly valuable for creative content generation, allowing users to input detailed text prompts and receive images that reflect those descriptions. This can be especially useful for producing visual content for social media, advertisements, and other marketing materials.

DALL-E

DALL-E is an AI model developed by OpenAI that generates images from textual descriptions. By interpreting detailed text prompts, DALL-E creates highly imaginative and diverse visuals that reflect the given instructions. This model is part of the broader trend in AI towards generative models, which produce new content based on learned patterns and data.

Runway

Runway is an advanced AI tool designed for creative professionals. It can help with video editing, image generation, and content creation.

Runway’s capabilities include real-time video editing, automatic background removal, and style transfer, which allows users to apply artistic effects to their visuals. One of its standout features is its ability to generate new content based on existing data, such as creating realistic and high-quality images or videos from textual descriptions or rough sketches.

AI-Enhanced Influencer and Social Media Management

Emplifi

Screenshot of Emplifi

With Emplifi (formerly Socialbakers), managing influencer partnerships is streamlined and efficient. The platform offers advanced reporting to help you better understand campaign performance.

Ideal for marketers running paid social media ads, Emplifi consolidates all posts into a single dashboard, eliminating the need to switch between accounts to track ad performance. You can also monitor follower engagement for each post directly through the platform.

Its AI-powered dashboard helps you find influencers that match your criteria, such as demographics and follower count, and allows you to sort them by categories like lifestyle or fitness.

AI-Driven Customer Data and Personalization

Twilio Segment 

With Twilio Segment, companies can track user activity across various channels, segment their audience based on behavior and preferences, and deliver personalized marketing messages. The platform integrates with numerous third-party tools and services, allowing for seamless data flow and real-time insights. This integration capability helps businesses enhance their marketing strategies, improve customer experiences, and drive more effective decision-making based on a unified data set.

Evolv AI

Evolv AI uses machine learning algorithms to automatically run and analyze A/B tests, multivariate tests, and other forms of experimentation. This allows businesses to quickly identify which design elements, content variations, or user flows yield the best results. By continuously testing and refining digital experiences, Evolv AI ensures that users encounter the most effective and engaging versions of creative.

The platform also provides insights and recommendations based on real-time data, enabling businesses to make informed decisions about their digital strategies. This leads to improved user engagement, increased conversions, and a more personalized customer experience.

AI-Enabled Automation and Optimization

Trapica

Screenshot of Trapica

With Trapica’s marketing automation, you can eliminate the need to manually define your marketing strategies. This fully autonomous AI handles everything, targeting the right audiences based on your conversion goals and real-time events for optimal performance across channels.

Additionally, you can gain insights into your competitors’ audiences to stay ahead. Its data-driven tools enable you to make informed decisions and achieve your marketing goals effectively.

Strike Social

Strike Social leverages artificial intelligence to enhance targeting by analyzing large datasets to identify and segment audiences more effectively. This capability enables the discovery of intricate connections between different targeting affinities, leading to more precise and impactful ad placements.

The platform also focuses on creative optimization, using AI to automatically refine ad visuals and text to better match audience preferences. This ensures that ads are engaging and relevant, improving overall performance. Additionally, Strike Social utilizes predictive analytics to provide insights into future campaign outcomes, allowing businesses to make informed decisions and adjust their strategies proactively.

Real-time adjustments are another key feature of Strike Social, with the platform continuously monitoring and optimizing campaigns. It dynamically adjusts bids, budgets, and content based on current data to maintain campaign effectiveness. The platform also offers detailed performance reporting, giving businesses comprehensive analytics to track and evaluate their advertising efforts.

Leveraging AI in Paid Social: Final Thoughts

By using AI tools, marketers can improve audience targeting, creative optimization, real-time adjustments, and budget allocation. AI can take on a lot of the time-consuming repetitive tasks while also providing helpful, actionable insights, which allows advertisers to focus on strategy and execution.

With tools like the ones we’ve mentioned in this post, businesses can adopt AI-powered support throughout the paid social ad campaign process to optimize and scale campaigns effectively.

The post AI in Paid Social: How to Leverage AI to Supercharge Your Paid Social Campaigns appeared first on NoGood™: Growth Marketing Agency.

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Creative Media Matrix for Effective and Measurable Advertising https://nogood.io/2024/08/29/creative-media-matrix/ https://nogood.io/2024/08/29/creative-media-matrix/#respond Thu, 29 Aug 2024 23:49:39 +0000 https://nogood.io/?p=42942 What is a Creative Media Matrix? The Creative Media Matrix is a structure that helps visualize or navigate creative assets across key dimensions. The matrix rows represent creative assets (e.g.,...

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What is a Creative Media Matrix?

The Creative Media Matrix is a structure that helps visualize or navigate creative assets across key dimensions. The matrix rows represent creative assets (e.g., image, video, or text ad) while the columns are one of many audience segments or demographics. Additionally, the intersections of this matrix are filled with key performance metrics (e.g., click-through rates [CTR], conversion rate, engagement %, and acquisition cost). Marketers can use this framework to observe how any piece of creative performs among or against different segmentations, leading to options for optimization.

Components of a Creative Matrix

A well-structured Creative Media Matrix not only organizes and examines creative assets across various audiences and advertising channels but also allows for the inclusion of additional relevant data, ensuring a comprehensive analysis that can guide future campaign strategies.

Creative Asset-Related Data

When sourcing creatives, every detail must be carefully considered, especially regarding where the ads will be placed. Different platforms like TikTok, Instagram, Google, or LinkedIn, have unique requirements and audience behaviors, making it essential to tailor your creative assets accordingly. By adding columns to your Creative Media Matrix for specific ad placements within these platforms, such as Stories, Feeds, or In-Stream videos, you can ensure that each creative is optimized for its designated spot.

This approach prevents common errors, like mismatched formats or inappropriate content for a particular placement, which can undermine the ad’s effectiveness. For example, a creative designed for TikTok’s vertical video format might need a completely different approach if it’s intended for Instagram’s carousel ads. This meticulous planning ensures that your campaigns are aligned with best practices for each platform, maximizing engagement and delivering the right message to the right audience in the most effective way.”

Types of Assets

Google

  • Assets: Text Ads, GIFs, Image Ads, Video Ads
  • Placements: Search Network, Display Network, YouTube

LinkedIn

  • Assets: Image Ads, Carousel Ads, Message Ads
  • Placements: Feed, InMail, Right Rail

TikTok

  • Assets: Video Ads, Branded Challenges, TopView Ads
  • Placements: For You Page, TopView, Branded Effects

Instagram

  • Assets: Image Ads, Carousel Ads, Video Ads
  • Placements: Feed, Stories, Reels

By dissecting performance data, you can identify nuanced patterns that reveal how specific creative elements perform within various contexts. For example, a carousel ad that excels in engaging users on LinkedIn’s feed may not have the same impact on Instagram Stories, highlighting the need for tailored approaches. Furthermore, understanding these dynamics allows for precise audience segmentation and asset optimization, ensuring that creative strategies are aligned with platform-specific behaviors and user expectations.

Analyzing asset types and their placements not only provides actionable insights into which asset types and placements drive optimal results but also facilitates a more strategic allocation of resources. By leveraging these insights, you can refine your creative approach, enhance targeting accuracy, and improve overall campaign efficiency, ultimately driving higher returns on investment and more effective marketing outcomes.

Copy & Creatives

What are some main copy and creative variables that we tend to examine on a Creative Matrix?

Examining the Main Copy involves assessing how different versions of the text perform across platforms and audience segments, using metrics such as click-through rates, conversion rates, and engagement levels. This helps identify which messaging resonates most effectively, allowing you to tailor strategies for different platforms. For example, a call-to-action might perform better on LinkedIn but less so on Facebook, guiding you to adjust your messaging accordingly by channel or even by placement type.

Variants of the main copy are compared to determine which version drives higher engagement or conversions. By identifying the top-performing variants, you can focus on scaling successful messages and discarding less effective ones, thereby enhancing overall campaign performance.

Formats such as video, carousel, or static images as mentioned in the previous section, are analyzed to see how they perform in terms of engagement and conversion rates across different platforms or even ad placements. This analysis aids in selecting the most effective format for each platform. For instance, if video ads outperform static images on TikTok, prioritizing video formats for TikTok campaigns ensures better engagement and higher returns on investment.

Tracking Creative Names helps monitor and compare performance metrics associated with different assets. Effective naming conventions facilitate easier tracking and analysis, enabling quick identification of top-performing assets and replication of successful elements across campaigns.

Reviewing Asset URLs ensures that creatives are linked correctly and performance is accurately measured. This prevents misreporting and maintains data integrity, ensuring that each creative is properly attributed.

The Tone of an ad, whether empathetic, informative, or another style is analyzed to see how it impacts engagement and conversions across different audience segments. Understanding which tone resonates with specific demographics enables more effective personalization. For example, an empathetic tone might engage younger audiences on social media more effectively, while a more informative tone could be better suited for professional audiences on LinkedIn.

Analyzing the Hook of an ad—such as shocking facts or humorous elements—reveals which hooks capture attention and drive interaction. This helps in crafting compelling ads that increase engagement. For instance, a humorous hook might perform well on Instagram but not on Twitter, guiding you to tailor your hooks to platform-specific behaviors.

Content Buckets (or Content Pillars), or categories like seasonal promotions or customer stories, are reviewed to understand which themes resonate most with your audience. This helps in planning content strategies based on what drives higher engagement during specific times of the year or for particular audience segments.

For example, for NoGood, we use the following Content Buckets or Content Pillars when planning our content strategy:

  • Client Success Stories: Where we showcase successful campaigns across various marketing channels, highlight client testimonials, and more.
  • Marketing Insights: A pillar where we focus on educating our audience with tips, best practices, and trends in the broader marketing landscape.
  • Agency Life: Photos and stories featuring our team behind the scenes, showing the collaboration across departments, brainstorming sessions, and more.
  • Industry Inspiration: Where we highlight emerging trends, inspiring marketing concepts, and fresh ideas that influence not our holistic approach to marketing strategies.
  • Service Highlights: The bucket where we promote our core services, from multi-channel performance marketing to data analytics, explain our unique offerings.

Finally, examining the Edit Style/Visual Description of ads—whether dynamic editing, aesthetic visuals, or specific visual elements like product close-ups—allows you to see which styles are most effective on each platform and for different audiences. For instance, dynamic editing might boost engagement on YouTube, while clean visuals may perform better on Instagram.

By analyzing these variables separately, you gain a granular understanding of how each element influences performance, allowing for precise optimizations and strategic adjustments. This comprehensive analysis leads to more effective campaigns tailored to audience preferences and platform norms.

Audience Asset-Related Data

Including audience asset information in your matrix is extremely important to ensure you create the perfect creative for specific audiences. Knowing who your target is—and isn’t—will shape the creatives and messaging that speak to specific demographics, psychographics, and behaviors. Whether you’re focusing on a younger audience or a more mature one, the creative elements should reflect the preferences and characteristics of the targeted group. Being precise with attributes like age, gender, income, and education allows for more personalized and impactful campaigns.

Demographics

  • Age: Focusing on a certain age range (e.g., 18–24, or 25–34) allows you to produce content that resonates particularly well with the unique interests and challenges experienced in these life stages. Younger audiences are more attracted to vibrant and fast content, while older ones may be inclined toward informative, direct messaging, or you might find the opposite with creative experimentation.
  • Gender: Dedicated creatives based on gender allow you to speak to the unique preferences and needs of males, females, or non-binary individuals. Gender-specific content can improve relevance and user engagement.
  • Income Level: Distinguishing between creatives that speak to different income groups ensures you are communicating in the financial language of your audience. This way, value propositions in your ads will align with the buying power and lifestyle of potential leads.
  • Education: Focusing on education segments (e.g., high school, college, or graduate) helps build a message that speaks more to the knowledge base, values, and goals of your audience. This is especially important in industries where education correlates with the relevance of your product or service.

Psychographics

  • Interests: Ensure your creatives resonate with the interests of the audience (e.g., sports, technology).
  • Values: Targeting values related to your brand’s mission (e.g., sustainability, innovation) allows people to connect with your brand on a deeper, emotional level. Testing value propositions on creatives is essential because it helps determine which messaging resonates most effectively with your target audience. By experimenting with different value propositions, you can identify the specific benefits or solutions that drive engagement, conversions, and customer loyalty.
  • Lifestyle Choices: Modifying creatives to fit specific lifestyle segments (e.g., health-conscious vs. luxury-focused) ensures your messaging aligns with your audience’s daily lives and aspirations.

Behavioral Segments

  • Online Behavior: Personalizing creatives based on users’ browsing and purchase behavior (e.g., frequent shoppers, and first-time visitors) increases message relevance and impact. For instance, retargeting ads can help convert those who viewed a product but didn’t purchase it.
  • Engagement Levels: Differentiating creatives for highly engaged users versus less active ones allows you to tailor your messaging to the level of engagement within your audience, maximizing content effectiveness. Highly engaged users may appreciate more detailed content, while casual viewers might respond better to simple and direct messaging.
  • Purchase History: Customizing creatives for repeat customers or cart abandoners can enhance engagement and conversions.

Geographic Segments

  • Location: Targeting creatives by location (city, region, or country) helps make your content more relevant, increasing its effectiveness. Localized content can include cultural references, regional dialects, and seasonal trends, making your creative more relatable and engaging.
  • Cultural Relevance: Tailoring creatives to fit the cultural norms and preferences of different regions increases the relevance of your brand to a diverse audience. Demonstrating sensitivity to and appreciation for the cultural context of your audience can significantly improve brand perception and connection.

Analysis & Visualization of Creative Matrice’s Data

When evaluating the effectiveness of creative assets within a Creative Media Matrix, several methods are commonly used to gather insights and optimize performance. Below are some of the most widely used techniques:

Performance Segmentation

This involves breaking up creative assets into different elements to determine where each creative performs well and how it integrates with various categories. Segmenting performance data enables marketers to see which creative variations are most effective and for whom, or on what platforms. This is especially helpful for optimizing creatives by different audience groups.

Performance Segmentation

Heatmapping

Heatmapping is a visual analysis process that shows where users are clicking more within a creative asset. This way, you can identify which areas of your image, video, or webpage are most captivating. Heatmaps are particularly valuable in video ads, landing pages, or interactive content, helping marketers pinpoint the most engaging elements of a creative.

Conversion Rate Analysis

Conversion rate analysis measures how well a creative asset drives users to take action, like making a purchase or subscribing. By comparing conversion rates for different creatives, you can determine which assets are best at converting viewers into customers. This method focuses on the end goal of the creative, making it crucial for performance-oriented campaigns.

Sentiment Analysis

Sentiment Analysis

Sentiment analysis involves analyzing user feedback and social media comments to gauge the emotional response to a creative asset. This process gives marketers insights into how their audience feels about the creative—whether the response is positive, negative, or neutral. Sentiment analysis is particularly effective for brand campaigns where the emotional resonance of a creative is a key performance indicator.

  1. Time Spent Analysis

Time spent analysis calculates how much time users spend watching a video or interacting with an creative. The longer an audience stays engaged, the more interesting and engaging the creative is. This metric is valuable for content that requires more in-depth interaction, as longer engagement times typically indicate higher interest.

  1. ROI Attribution

ROI attribution assigns a return on investment (ROI) to specific creative assets, showing how much revenue marketers are getting for their investment. This method allows companies to determine the financial impact of their creative efforts and direct resources toward higher-return assets.

When to Use a Creative Media Matrix

A Creative Media Matrix works best for creatives if you have to prove yourselves with a structured and data-driven approach. Here’s when and why to use this framework:

1. Comparative Analysis

When you must visually compare how creative performs in various audience segments, a Creative Media Matrix is priceless. Putting all creatives beside KPIs allows marketers to spot top and low-performing assets very fast. Having this comparative view is critical for you to catch trends, outliers, and patterns in creative performance so that you can determine from there how your campaigns should be adjusted. By having a robust Creative Media Matrix system in place for each of your clients, you can quickly spot high-performing creatives through detailed analysis, whether using a spreadsheet or a visual tool like a bubble graph.

For example, if you plot Conversion Rate (CVR) on the y-axis and Cost Per Acquisition (CPA) on the x-axis, the creatives positioned closer to the top left—high CVR and low CPA—are your best performers. Once you’ve identified these top-performing creatives, the next step is to analyze the specific elements that led to their success. This could involve examining the color scheme, design, the use of male or female models, or the ad copy, depending on the variations that were tested. By understanding these key elements, you can determine what resonates most with your audience and come up with insights that will lead you to campaign optimizations and additional design testing.

To adjust the campaign, you would double down on these winning creatives, incorporating the successful elements into new variations that we just discussed above. This approach allows for continued iteration and testing, refining the campaign to enhance performance further.

For example, if a particular color scheme or design consistently performs well, you can use it more broadly across other creatives. Similarly, if a specific ad copy or imagery resonates more with a certain audience segment, you can tailor future creatives to leverage these insights. This method ensures that your campaign remains dynamic, optimizing based on real-time performance data to maximize results.

2. Resource Allocation

When you need to decide which resources to prioritize due to funds, the matrix will help highlight clear winners with high ROI. This enables you to allocate resources strategically, so your budget can go where it matters most: on producing and scaling top-performing creatives, minimizing waste in overall campaign spending.

For example in the context of Paid Social, this approach is crucial. A/B testing allows us to reallocate budgets based on the winning messaging and creatives, ensuring that we don’t waste money on low-performing assets. By identifying the best-performing creatives through A/B testing, you can focus your spending on what truly resonates with your audience, maximizing the impact of every dollar spent. By allocating more budget on the winning assets, this is where growth marketing begins, and the campaigns start scaling period over period. This not only improves campaign efficiency but also drives better overall results by focusing your efforts where they matter most.

3. Structured Hypothesis Testing

In the world of A/B testing or multivariate testing, the Creative Media Matrix enables hypothesis building and structuring. To effectively structure your Creative Media Matrix, it’s essential to start by organizing your ad naming conventions in a way that reflects the key elements you want to analyze. By adding the appropriate messaging, colors, audience segments, and other variables directly into the ad names using underscores or other delimiters, you can easily segment and filter these elements later on.

For instance, an ad name could be structured as CampaignName_Audience_Color_Message_CallToAction. This approach allows you to segment and isolate different components of your creatives using data analysis tools, enabling you to quickly determine which combinations are driving the best performance.

Once your ads are appropriately named and segmented, you can proceed to visualize and analyze the data. Heat maps can then help you understand which areas of your creatives resonate most with specific audiences, while bubble charts can plot performance metrics such as Conversion Rate (CVR) against Cost Per Acquisition (CPA) to quickly identify top-performing creatives. Pivot tables allow for a detailed breakdown of these elements by demographic or psychographic segments, revealing which strategies are most effective for different groups.

By combining a well-structured creative naming convention with powerful visualization and analysis tools, you can systematically identify which colors, messaging, and calls-to-action work best for your target audiences. This method enables faster, data-driven decision-making, ensuring that your campaign optimizations are both precise and impactful. This whole process makes decision-making more enlightened and data-oriented rather than speculative.

4. Personalization at Scale

To truly leverage the power of audience targeting at its current level of sophistication, a Creative Media Matrix can be instrumental in driving hyper-targeted creative content across different segments. Beyond the well-known fact that personalization leads to higher engagement and conversion rates, a Creative Media Matrix provides concrete, actionable insights that can significantly elevate your marketing strategy.

One of the core principles of effective personalization is the testing of different audiences in conjunction with tailored creatives. Instead of using the same exact creatives and messaging for everyone, a strategy that’s no longer viable in today’s highly segmented marketing landscape, you should focus on aligning creatives with the specific interests and behaviors of different audience groups.

For instance, you have a campaign targeting both fitness enthusiasts and wellness seekers. By using a Creative Media Matrix, you might discover that a specific color palette and messaging combination resonates particularly well with the fitness audience, leading to a 20% higher conversion rate among 18-24-year-olds. Meanwhile, a different creative set with a focus on calm imagery and instructional language might drive a 15% increase in engagement among the wellness segment aged 35-44.

Once these insights are uncovered, you can implement personalized ad variations tailored to these specific segments. For instance, you might run one set of ads focused on high-energy visuals and motivational copy for the fitness-focused demographic, while another set uses calming, wellness-oriented content for wellness seekers. This method ensures that your messaging is not only relevant but also deeply resonates with each audience’s unique interests and needs.

By moving away from a one-size-fits-all approach and embracing audience-specific testing, you can achieve significant improvements in campaign performance. In the example above, the creative adjustments based on matrix analysis led to a 25% overall increase in conversion rates and a 30% reduction in Cost Per Acquisition (CPA) across the campaign. This targeted approach, guided by the insights from a Creative Media Matrix, ensures that your marketing efforts are optimized for maximum impact, delivering stronger engagement and conversion rates across all audience segments.

5. Feedback Loop for Creative Development

For creative and design teams, the matrix provides a structured, data-driven approach to evaluating which creative elements—such as colors, messaging, or visual styles—are resonating most effectively with the target audience. This clarity eliminates the guesswork that often accompanies creative projects, allowing the team to focus on refining and scaling the most impactful designs. By having a visual representation of what works best, the design team can streamline their process, reducing the time spent on trial and error and increasing the precision of their work. This not only enhances productivity but also ensures that the creative output is aligned with what the audience responds to, making the team’s efforts more effective and rewarding.

In addition, when creative teams can rely on empirical data rather than subjective interpretations, their work gains a level of credibility and trust within the organization. The matrix provides clear evidence of what’s driving performance, which helps to justify creative decisions and secure buy-in from other departments. Instead of relying on verbal insights or assumptions that may be misinterpreted, the team can present concrete results that guide the creative direction with confidence.

For clients, the matrix serves as a powerful tool for understanding and validating their brand strategy. During meetings, it offers a clear, visual summary of campaign performance, making it easier for clients to grasp the impact of different creative elements. This transparency builds trust in the strategy, as clients can see firsthand how their brand is being received by the target audience.

Furthermore, the matrix helps bridge the gap between a brand’s vision and audience preferences. While the brand should always have the first say in defining its identity, the feedback provided by the matrix can either confirm that the brand’s messaging is on point or highlight areas where adjustments might be needed. This ensures that the brand remains true to its core values while also adapting to what resonates with its audience, leading to a more authentic and effective branding strategy.

In summary, the Creative Media Matrix adds value by making the creative process more data-driven, streamlined, and credible, while also helping clients understand and refine their brand identity based on real audience feedback. This collaborative, evidence-based approach ultimately leads to stronger campaigns and more successful outcomes for both the creative team and the client.

4 Tools for Automating Creative Analysis

Automating creative analysis via machines can drastically increase efficiency and accuracy, empowering marketers to quickly pinpoint top-performing assets and optimize their marketing efforts on the fly.

1. Motion

Motion is a creative analysis tool that centralizes data from all your platforms (ad platforms, analytics, etc.) under a single roof. It provides detailed insights using custom tagging, visual reports, and real-time updates. With automated analysis, Motion surfaces the best-performing ads and helps marketers quickly optimize ad campaigns and make data-driven decisions more efficiently. This platform features an easy-to-use interface and rich creative insights.

2. Alison.Ai

Alison.ai enhances creative evaluation by examining multiple factors simultaneously. Through deep machine learning, Alison.ai provides real-time performance insights and identifies optimization opportunities. The platform also offers competitive insights and intelligent recommendations, helping marketers refine their creative strategies efficiently. Alison.ai is unique in its ability to measure many aspects of creativity immediately, enabling data-driven optimizations to advertising campaigns.

3. Smartly.io

Smartly.io

Smartly.io simplifies social media advertising using AI-powered automation for ad creation and customization. The solution offers real-time performance tracking and automated A/B testing, allowing marketers to optimize their ads quickly. Smartly.io provides a comprehensive software solution for efficiently managing and monitoring social media ads, compatible with platforms like Facebook, Instagram, and Pinterest.

3. Creatopy

Creatopy

Creatopy automates media design and analysis with a library of templates and powerful design tools. It includes detailed insights to measure creative performance and is enabled by dynamic content updates. Collaboration tools and automated workflows streamline the ad creation process, making Creatopy ideal for quickly delivering fresh content.

All things considered, creativity and measurability in marketing are the be-all and end-all. The Creative Media Matrix helps marketers effectively bring both elements together, converting intuition-based strategies into data-driven insights and optimizing creative tests that are essential for paid social teams. By systematically testing and evaluating creative content, marketers can achieve higher engagement rates, better ROI, and more personalized advertising experiences for users. In this evolving advertising landscape, the Creative Media Matrix stands as a crucial tool for staying ahead, ensuring that creative strategies are not only innovative but also measurable.

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How to Optimize Facebook Ads Campaigns for Lower Customer Acquisition Costs https://nogood.io/2024/04/26/how-to-optimize-facebook-ads/ https://nogood.io/2024/04/26/how-to-optimize-facebook-ads/#respond Fri, 26 Apr 2024 22:29:48 +0000 https://nogood.io/?p=30685 Facebook Ads and Customer Acquisition Costs: two completely different concepts, both incredibly nuanced and useful. Despite being completely different, they are used hand in hand, especially amongst marketers like yourself...

The post How to Optimize Facebook Ads Campaigns for Lower Customer Acquisition Costs appeared first on NoGood™: Growth Marketing Agency.

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Facebook Ads and Customer Acquisition Costs: two completely different concepts, both incredibly nuanced and useful. Despite being completely different, they are used hand in hand, especially amongst marketers like yourself that are not only interested in improving their lead generation efforts, but also seeking transparency in their leads reporting.

But before we jump into the details of Customer Acquisition Cost (CAC) and how it functions within Facebook Ads, it’s crucial that we understand the fundamentals of what CAC really is and what it means for you.

CAC…what is it?

Not to be confused with the Corporate Affairs Commission, CAC stands for Customer Acquisition Cost, a metric that allows companies to calculate the overall cost to acquire a customer. In order to measure CAC properly, you will need to divide the total cost of your marketing and sales efforts by the number of acquired customers.

Two very close metrics to CAC are CPA and CPL which, despite being similar in measuring the cost of two key marketing metrics, CPA and CPL measure the cost of acquiring leads/prospects from marketing channels that may not be converted to paying customers yet.

CAC…why is it important?

CAC is one of the leading metrics that helps companies determine the Return on Investment (ROI) of an acquisition. At its core, CAC is an essential metric for businesses, as it helps businesses understand whether their business model is conducive to increasing profits while keeping acquisition costs low. Beyond that, CAC is a metric that can help you identify strengths and weaknesses of your businesses outside of the cost to acquire a new customer.

CAC…when to use it?

There are countless metrics to choose from when determining how you’re going to optimize your campaigns. CTR, CPC, CVR, CPL, the list goes on. It’s important to learn about the purpose of each metric and what they measure so you don’t use the wrong metric when measuring a certain KPI. For example, if you’re measuring the effectiveness of your campaign for bottom of funnel performance such as conversions and Customer Acquisition Cost, you’ll want to avoid factoring metrics like click through rate, which measures the rate at which users clicked on your ads after viewing them.

CAC is a powerful metric that can help you understand the success of your marketing and sales efforts in acquiring new customers More broadly, CAC can help you evaluate the scalability and sustainability of your growth strategies. Here are some practical, real-world examples of when CAC would be useful to your business:

Evaluating Marketing and Sales Efficiency

CAC helps determine how efficiently your marketing and sales efforts are converting potential leads into paying customers. If company A’s CAC is $10 and company B’s CAC is $50, company A is operating at an 80% cheaper level of efficiency than company B.

CAC Efficiency Graph

Financial Budgeting and Forecasting

Understanding CAC and its purpose helps businesses in planning their budgets more effectively. Companies can decide how much they can afford to spend on acquiring a customer while still maintaining profitability. Additionally, CAC lets businesses know if their current marketing budget and efforts are efficient at acquiring new customers. If customer acquisition costs are too high, consider reducing marketing spend or optimizing your existing campaigns (which we’ll get into later).

Pricing Strategy

CAC can inform businesses on the effectiveness of their existing pricing strategies by providing insights into how their current model’s pricing affects their acquisition costs. Knowing CAC helps businesses set prices and adjust pricing to ensure that they can remain competitive and profitable simultaneously.

Performance Tracking

There are a plethora of useful ways to leverage CAC outside of directly measuring your business’s cost to acquire a new customer. Analyzing CAC can help you identify the effect of trends such as seasonality differences, campaign changes, or customer acquisition issues on your customer acquisition efforts.

CAC Tracking Graph

CAC and Facebook Ads

Facebook Ads is a powerful advertising tool that advertisers can leverage to help their business scale and go to market. But with great power comes great responsibility. It’s very easy for advertisers to dump $100,000 into Facebook Ads and achieve a negative return on investment, especially with the lack of visibility around attribution, audience details, and advertiser’s true return on ad spend. That’s why looping CAC into your Facebook Ads strategy can be one of the most powerful tools for seeing the honest and transparent performance of your advertising campaigns.

Why Use Facebook Ads?

After all, Facebook has been all over the news in the past decade, oftentimes without the most positive headlines to back them up. Between the Cambridge Analytica scandal of 2018, the surge of misinformation amidst the 2016 election, and the $5 billion FTC fine for violating user privacy data in 2019, you may ask yourself if advertising on Facebook is a good idea for your business. Despite the negative headlines, we highly recommend adding Facebook Ads to your existing marketing stack, and here’s why:

  • Facebook currently has 3.049 billion users as of this year
  • More than 200 million businesses use Facebook
  • As of 2020, more than 10 million advertisers used Facebook
  • Facebook is the most popular social media network in the world
  • By 2027, Facebook is projected to reach 75% of the world’s population
Popular Social Media Monthly User Graph

The numbers don’t lie. By avoiding advertising on Facebook, you’re missing out on a golden opportunity to reach an enormous amount of potential customers and ultimately a chance to identify new opportunities for reducing CAC.

Is Facebook Ads good for customer acquisition?

When discussing CAC, customer acquisition is at the heart of the conversation. Without a seamless way of acquiring new customers, you’ll never get to optimize your CAC. Luckily for advertisers, Facebook is one of the most robust platforms in terms of methods for reaching new audiences and millions of people, even through one campaign. In this article, we’re going to discuss two primary categories where Facebook provides a copious amount of tools for advertisers to use.

Audiences

Facebook offers a sophisticated and robust set of targeting capabilities for advertisers to get their ads in front of the right audience based on features such as demographics, interaction, position, and more. Here are the primary audience types available to advertisers, and how they can improve CAC for your business:

Core Audiences

These audiences are defined based on criteria like age, interests, geography, and more. Core audiences enable advertisers to improve CAC through the vast data available on Facebook’s platform, allowing advertisers to get their ads in front of users that wouldn’t be accessible on any other platform.

Custom Audiences

This audience type allows advertisers to reach people who have already interacted with their business, either online or offline. This could include visiting a website, engaging with a Facebook page, or using a mobile app. Custom audiences are created by uploading a customer list, capturing website visitors with the Facebook pixel, or engaging users of a mobile app. Custom audiences enable advertisers to improve CAC by engaging users who interacted with various company pages but didn’t convert to a paid customer, therefore ensuring that ad dollars aren’t wasted. When using custom audiences, to ensure that your custom audience is operating as effectively as possible, simply create your custom audience, add in an exclusionary layer of existing customers, and you’re all set.

Lookalike Audiences

Lookalike audiences enable advertisers to reach new people whose interests are similar to those of their best customers. You start with a custom audience, and Facebook then uses its algorithm to find people who have similar characteristics but are not already interacting with your business. Seeing as other platforms such as LinkedIn have sunset Lookalike audiences already, advertisers can improve CAC on Facebook by utilizing Lookalike audiences that aren’t available on other platforms.

Engagement Audiences

Target people who have previously engaged with your content across the Facebook family of apps and services. This could include interactions such as liking a post, clicking on an ad, or attending an event. Similar to custom audiences, engagement audiences can improve your CAC through re-engaging users who interacted with your ads but didn’t convert.

So…how do you optimize Facebook Ads for CAC?

At this point, you’ve probably already decided that Facebook Ads is right for your business. Congratulations! You’ve made the right choice. With that being said, now it’s time to ensure that your ads are optimized properly for improved customer acquisition costs. Here are some basic ideas to improve CAC with Facebook Ads, as well as some out of the box ideas that you might not have heard of before.

A/B Test Creative

Continuously test different elements of your ads, including images, headlines, ad copy, and call-to-action (CTA) buttons. A/B testing helps identify the most effective ad components, improving performance and reducing costs. Ensure that, when A/B testing, that you only test one variable at a time, and that your A/B test runs for at least a week. Otherwise, your results may be skewed and inconclusive.

Experiment with New Ad Types

While the previous point discusses testing new creative, this point is a bit different. While testing different creative is essential, it’s also important to test new ad types. Different ad types such as video and instant experience are typically great for reducing CAC, as ads are shown to users for a much cheaper cost for those ad types. Avoid limiting yourself to testing 1-2 ad types in your account, as testing different ad types can provide a deep level of insight into your audience’s preference for receiving ads, ultimately reducing CAC.

Improve Audience Targeting

Always approach CAC optimization in Facebook with a full-funnel mindset. From what ads users see to the landing page experience they receive, it’s important to consider each step of the user journey when optimizing CAC. In this case, consider refining your audience targeting by excluding any irrelevant audience details or attributes. Additionally, you can A/B test your audiences by running different audience attributes in two separate campaigns. For example, leveraging interest targeting in one audience, and job title targeting in another.

Test Different Placements

Unlike other platforms, Facebook gives you more control over where your ads are seen. There are several placements available, ranging from in-stream to story placements. Testing the placements of your ads against each other will help give you insight into where your ads perform best, and where your audience typically hangs out.

Connect your CRM

Without visibility into your lead statuses, there’s no way that you’ll know if your leads have converted to paying customers. Without knowing if your leads are converting to paid customers, there’s no way to optimize your Facebook campaigns for CAC. That’s why it’s important for you to connect your Facebook account to a CRM like HubSpot or Salesforce to track the progress of your Facebook leads through your lead nurture process. For example, if campaign A has 50 leads but only 2 have converted to closed/won, and campaign B has 25 leads and 10 have converted to closed/won, then campaign B is the better-performing campaign and you should give more budget to this campaign to optimize for a lower CAC.

Incorporate User-Generated Content (UGC)

Previously we spoke about testing different creative types, and specifically didn’t mention UGC. UGC is known to significantly increase trust and conversion rates, as the nature of the content comes from a human, rather than a company or AI. When utilizing UGC, leverage content created by your customers, such as reviews or product images. UGC is known to improve CAC through bolstering a trustworthy and relatable feeling amongst viewers of UGC content.

Utilize Conditional Questions

There’s nothing advertisers despise more than spam. It minimizes quality rate, leaves a bad taste in your client’s mouths, and most importantly, drives up CAC, as your spend is consistently going to disqualified, spammy leads. While it’s important to maintain a full-funnel mindset when approaching these issues, one area you can look towards for reducing CAC in Facebook Ads is your landing page. Specifically, implementing conditional questions that weed out disqualified traffic that answer certain questions incorrectly.

For example, you could ask a question such as “To confirm that you are not spam, please answer this question: what is 5×5?”. Questions like these not only help to weed out spam, but they provide friction within your lead form/landing page that may incentivize spammy traffic to navigate away. Additionally, adding multiple conditional questions to your lead form/landing page will help increase quality rate, resulting in a decreased CAC. You can find an example of a lead form/landing page that contains conditional questions below.

Lead Gen Form

Final Thoughts

Optimizing Facebook ads for Customer Acquisition Cost (CAC) is a critical strategy for businesses aiming to enhance their digital advertising ROI and ensure sustainable growth. This process improves cost efficiency by allowing businesses to acquire more customers without increasing their advertising spend, or by reducing their overall spend without sacrificing growth. A lower CAC directly boosts profitability, as it decreases the cost associated with acquiring a new customer, thereby increasing the customer’s lifetime value (LTV) and contributing to a healthier financial outlook.

In competitive markets, the ability to acquire customers more cost-effectively provides a significant competitive advantage, enabling businesses to reinvest savings into acquiring more customers or other areas of operation, thus fostering a cycle of growth. Scalability is another crucial benefit of optimizing CAC, as it allows businesses to expand their customer base without a corresponding increase in marketing costs.

Furthermore, the process of optimizing for CAC often leads to improvements in ad targeting, creatives, and overall user experience, which leads to better engagement for your ads. Adopting a focus on lowering CAC encourages a data-driven marketing approach, allowing businesses to make more informed decisions based on analytical insights. This not only reduces costs but also improves customer satisfaction and retention rates by ensuring ads are more relevant and engaging.

Happy customers are more likely to become repeat buyers and brand advocates, further contributing to a company’s success. In essence, optimizing Facebook ads for CAC is not merely about cutting costs; it’s about implementing a more efficient, effective, and profitable marketing strategy that supports long-term, exponential growth and competitiveness in the digital landscape.

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How to Properly Use Facebook Lookalike Audiences: A Complete Guide https://nogood.io/2024/02/29/lookalike-audiences/ https://nogood.io/2024/02/29/lookalike-audiences/#respond Thu, 29 Feb 2024 17:10:41 +0000 https://nogood.io/?p=29443 For over 10 years, Facebook has been no stranger to wild advertising capabilities. Despite the ongoing restrictions on how much user data advertisers can access, Facebook remains one of the...

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For over 10 years, Facebook has been no stranger to wild advertising capabilities. Despite the ongoing restrictions on how much user data advertisers can access, Facebook remains one of the most powerful platforms on the market. The sunsetting of third-party cookies and Apple’s iOS heightened privacy features would seemingly make it impossible to reach new audiences.

Nevertheless, there are still effective ways of doing so without the extra grunt work of comprehensive, manual audience research and buying into other 3rd party platforms. That’s where lookalike audiences step in.

What are Lookalike Audiences?

Hence the name, lookalike audiences look like your parent audience or data source. More technically, lookalike audiences identify similar attributes to the data you feed it and build an audience off of those similar attributes. These similar attributes can include demographic data, online behavior, and personal interests.

For example, if you run a business selling couches and decide to create a lookalike audience based on your existing customers, then Facebook will match your existing customer data with other Facebook users that share similar attributes as your existing customers. These individuals most likely have an interest in couches, have purchased couches previously, or have interacted with brands similar to your own. 

Should Anyone Use Lookalike Audiences?

Whether you’re a seasoned paid social marketer or a junior growth marketing intern just getting your paid media journey started, it may be difficult to determine if lookalike audiences are right for you and your business.

After all, lookalike audiences identify audience attributes based on existing data that you feed it, so you don’t want your lookalike audience’s ads to be shown to millions of irrelevant users.

Therefore, it’s important that you identify your goals to ensure that lookalike audiences are the right audience type for your objective. Here are some examples of objectives that would be a great fit for a lookalike audience use case and some other examples that may be a not-so-great fit:

Should you use lookalike audiences?

If you’re still here, a lookalike audience likely fits your advertising use case. But you must understand the pros and cons of using a lookalike audience to ensure that your ad dollars are put in the right place.

Trying to build an impactful Facebook marketing strategy?

Lookalike Audiences: The Good

While there are many granular benefits to using lookalike audiences, the overarching benefit is that lookalike audiences are effortless. Lookalike audiences take the effort out of comprehensive audience analyses and manually searching for new markets to penetrate.

Lookalike audiences do all the heavy lifting for you. Apart from being entirely effortless, lookalike audiences enable advertisers to:

  • Reach New Customers
    • Once your ads’ frequency starts to climb week over week, that’s a sign that your ads keep getting shown to the same people. To get your ads in front of a new audience, lookalike audiences are the perfect solution.
  • Save Time and Money
    • Don’t waste your time conducting extensive audience research or money on third-party tools that will tell you everything you already know about your audience. Simply plug in the list or CSV of your choosing and let lookalike audiences do the work.
  • Improve Performance
    • Avoid staying siloed in one area of the funnel. If switching up creative isn’t working, your audience might be stale. Leveraging a lookalike audience can help you give your creative performance a hefty uplift.

Lookalike Audiences: The Bad

If we haven’t stressed it enough already, lookalike audiences must be used cautiously. Besides ensuring that a lookalike audience is right for your marketing objectives, you also need to be fully aware of the quirks of lookalike audiences.

And we want to be clear there are some very important ones worth taking into consideration:

  • Lookalike audiences are broad
    • While you have the option to decide how broad you’d like your lookalike audience to be, it’s important to understand that lookalike audiences are generally very broad, which means that you don’t have that much control over who sees your ads in your lookalike audience. Having less control could lead to lower CTR and fewer conversions.
  • Less visibility 
    • Beyond what you use for your parent audience or data source, there isn’t much visibility that you can get into the attributes of your lookalike audience. Ultimately, Facebook does all the work for you, which sometimes isn’t a good thing. Leaving your audience in the hands of a platform that is eager to spend your precious ad dollars can be a risky or useful choice, depending on how cautious you treat your lookalike audience.
  • Less control
    • As we discussed in our first point, lookalike audiences are typically very broad, which may interfere with the most crucial component of a successful advertising strategy: control. Without control, your ads can spend your budget aimlessly and could potentially serve the wrong audience. That’s not to say that lookalike audiences aren’t worth it; that’s just a testament to making lookalike audiences as narrow as possible (if that’s your goal, of course).

A Handy Guide for Building a Lookalike Audience

Before you jump into building out a lookalike audience, we wanted to ensure that you were properly prepared. Utilize this handy guide for building out a lookalike audience so you don’t get lost in the sauce of countless terms and conditions sheets or steps in the lookalike audience-building process.

Step 1: Go into Facebook Ads Manager, navigate to the left-hand-side toolbar, and click Audiences.

Building a lookalike audience

Step 2: Click the “Create Audience” button in the top right corner, and choose lookalike audience from the audience selections.

Building a lookalike audience
Creating lookalike audiences

Step 3: Choose your lookalike source.

This is where you get to decide what the foundation of your lookalike audience will be. Whether that be an existing audience that you’ve been testing for your campaigns or a list of qualified leads from your CRM, your foundation will formulate the performance of your lookalike audience, so choose carefully. Here are some examples of audiences or lists that you can use:

  • Demographics-based custom audience
  • Current customer CSV
  • Existing job title-based lookalike audience
  • Users of your app
  • Subscribers to your blog

Step 4: Choose your audience’s location.

If you aren’t sure of exactly where you’d like your lookalike audience users to come from, you’re in luck. Facebook has a built-in feature where they match regions of the world with potential marketing objectives. “Free trade areas” and “emerging markets” are among the list of pre-selected regional categories that you can include in your lookalike audience.

Regardless of whether you choose one of Facebook’s pre-built regions or your own list of countries, it’s important to consider which locations you will include in your lookalike audience.

Step 5: Choose your audience size. 

Apart from choosing your parent audience or data source, this might be the second most important step in the lookalike audience-building process. This step is where you determine how broad your lookalike audience will be. It helps to refer back to your original advertising goals and determine whether your audience needs to be broad or narrow. 

Building a lookalike audience: select audience size

Facebook provides a scale of 1% to 10%, with 1% being the most narrow and 10% being the most broad. Our best practice is to generally not exceed 3%, as 3% is already very broad. At the end of the day, it ultimately depends on the size of your existing audience or data source. If your audience is small, you might want to extend the percentage higher. If it is very large, keep it small.

Step 6: Click “Create audience.”

Creating a Facebook lookalike audience

Step 7: Let your audience populate.

Your audience won’t be ready for use immediately. You’ll want to let it populate users for 1-2 days, especially if you’re using a smaller parent audience. After this waiting period, your audience is ready to use in your campaigns and ad sets!

Lookalike Audiences: Audience Optimization

You’ve done it. You’ve successfully created a lookalike audience, and you’re ready to use it for advertising. But what does the future look like?

The name of the game is audience optimization. If it isn’t broken, don’t fix it, but 9 times out of 10, your audience may not perform in the way that you intended it to. If this is the case, you’ll want to act quickly enough (while still letting your audience run for long enough to garner sufficient results) to ensure that your ad spend is used effectively. Here are some tips to help you optimize your lookalike audience:

1. Closely Monitor Your Ad Set’s KPIs

As a marketer, you’re probably no stranger to the KPI acronym. In the case of lookalike audiences, we can’t stress consistently monitoring your KPIs enough, especially since lookalike audiences tend to be broad.

KPIs like CTR and CVR can provide essential insights into how relevant your audience is to your business offering. For example, if the click-through rate is low, you might want to test a lower-lookalike audience size or a different parent source. 

2. A/B Test Your Lookalike Audiences

You say “valuable insights” and we say “A/B testing”! A/B testing is an effective way to learn more about the impact of lookalike audiences on your advertising, as well as improve your campaign’s performance. There are several elements of a lookalike audience that you can A/B test, the easiest being different lookalike audience sizes.

Simply create a lookalike audience with a size of 1%, and create an identical lookalike audience but with a different size, such as 5%. Let these audiences run with an identical set of ads and targeting options for a few weeks and assess performance differences afterward.

3. Test a Different Parent Source

If your lookalike audience isn’t performing in the way that you intended, the issue may not be the size of your audience but rather the source of your audience. Do a deep dive into your parent source and think about whether it would produce a strong result for a lookalike audience. Is your market too niche?

Are you using a lookalike for retargeting purposes? Is your parent source too small? All of these questions may be the answer to why your lookalike audience is underperforming.


In conclusion, let’s confront a stark reality. In today’s landscape, the options for discovering fresh audiences are rapidly diminishing. The imposition of privacy regulations and constraints on user data has made it increasingly challenging for advertisers to connect with not just any audience but the right one. Fortunately, Facebook audiences offer a beacon of hope in a world of uncertainty.

Yet, time is of the essence, for the lifespan of Facebook lookalike audiences may be limited. By the end of February 2024, LinkedIn will be sunsetting lookalike audiences entirely. Nevertheless, in this ever-changing world, advertisers still have valuable alternatives at their disposal for audience building. Therefore, seizing upon these opportunities while they’re available is crucial. 

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