In order to drive effective targeting based on value, and not slightly arbitrary metrics as implied by Facebook, the company recently unveiled two new tools, Value Optimization and Value Based Lookalike Audiences.
Through Value Optimization, advertisers can sufficiently expect an adequate return on the amount of money they spend with reliable Facebook data that considers a consumer’s buying behavior. Based on data from Facebook pixel, it estimates how much a person is likely to spend towards an advertiser during a seven day period.
Thus, Value Optimization enables an advertiser to deliver ads to the consumers most likely to spend money on their business and eliminate frivolous costs, creating a maximized impact on sales. “The ad’s bid is then automatically adjusted based on this estimation, allowing campaigns to deliver ads to people likely to spend more with your business at a low cost.” the company said in a blog post from 12th June, 2017.
Value Optimization was launched on 12th June, 2017 and will be made available to eligible businesses over the next few months. “Businesses can access value optimization when they create website conversion ad sets that are optimizing for purchases in Ads Manager.”
One of the companies working with Facebook and utilizing Value Optimization is Overstock.com, an American internet retailer.
Jason Walsh, Director of Acquisition Marketing, Overstock.com says, “Attracting customers to our site is crucial to Overstock’s continued success, but it’s even more important to attract the right customers. Facebook’s value optimization solutions help us target the most valuable groups of potential and existing customers for our campaigns, giving us more efficiency and value from our advertising.”
The second new tool from Facebook, Value based Lookalike Audiences, enhances the features of Facebook’s Lookalike Audiences based on value.
Facebook explains the need for Value based Lookalike Audiences, “While Lookalikes are a powerful tool to help grow a customer base, businesses often want to grow specific cohorts of their audience based on the value to their business. In order to provide a more effective solution to do this, we are rolling out value-based Lookalikes globally.”
A new value column is being introduced for a business’ entire customer list “which Facebook can use to create an additional weighted signal for people most likely to make a purchase after seeing your ad.” The blog post explains further.
Pocket Games, a computer software company is using Facebook’s Value based Lookalike Audiences.
“Throughout the year, we will continue improving our targeting and delivery systems so that we can help you focus on the outcomes that truly matter, and so that you can get even more value from your campaigns,” the blog post signs off.