{"id":1987,"date":"2021-11-18T10:58:17","date_gmt":"2021-11-18T15:58:17","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2021\/11\/18\/could-social-ads-be-hurting-your-brand\/"},"modified":"2021-11-18T10:58:17","modified_gmt":"2021-11-18T15:58:17","slug":"could-social-ads-be-hurting-your-brand","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/could-social-ads-be-hurting-your-brand\/1987\/","title":{"rendered":"Could Social Ads Be Hurting Your Brand&quest;"},"content":{"rendered":"<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc376258 = window.plc376258 || 0;\n            document.write('<' + 'div id=\"placement_376258_' + plc376258+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,376258, [300,250], 'placement_376258_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc376258++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n\n<p class=\"wp-block-paragraph\"><strong><em>By Rob McGovern is the CEO and Founder of <a href=\"https:\/\/www.precisetarget.com\/\">PreciseTarget<\/a><\/em><\/strong><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Facebook has become the mainstay advertising venue for fashion brands. If you ask why the digital marketer will say it works the best. They\u2019ve conducted A\/B tests showing Facebook (et al) has the lowest cost-per-click or cost-per-conversion. Is it case closed, Facebook wins?\u00a0 Let\u2019s take a look at how Facebook advertising could be hurting your brand, including leading you to overspend in your marketing budget.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s start with what <em>you <\/em>want. If I administered truth serum to your team I\u2019d hope to hear them say acquiring high LTV customers is the goal. You want customers who will be high repeat purchasers, have larger basket sizes, and most importantly, reduce the pressure to constantly acquire new customers.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">What if Facebook has a financial incentive to garner clicks from consumers who won\u2019t be high LTV customers? What if their incentives run counter to what\u2019s good for you? The Facebook ad network, which includes Facebook, Instagram, and their open web ads, has a primary incentive of getting clicks on ads. Most all ads are pay-per-click, meaning a brand will pay $1 to $4 for a click on their ad. Facebook has a direct incentive to get a click on an ad, which is different than saying they are focused on finding you high LTV customers. In fact, they have a disincentive to chase the harder to get high LTV customers.<\/p>\n\n\n\n\n<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc428354 = window.plc428354 || 0;\n            document.write('<' + 'div id=\"placement_428354_' + plc428354+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,428354, [300,250], 'placement_428354_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc428354++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n\n<p class=\"wp-block-paragraph\">There are two fundamentals you should know about Facebook advertising. Rest assured; this won\u2019t be ad-tech mumbo jumbo. Instead, I\u2019d like you to understand it in the context of your brand:<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The first fundamental is the Facebook ad network is based on lookalike marketing. You might not realize this, but your digital team has allowed Facebook to embed a tracking pixel on your ecommerce site. This tracker enables Facebook to identify nearly every person who visits your ecommerce site. I\u2019m not talking about low fidelity cookies, rather Facebook\u2019s tracker enables them to identify each visitor to your site, including their name, address, and contact information. Sadly, this tracking pixel was missed by the California Privacy Protection Act (CCPA). By identifying the visitors to your ecommerce site, Facebook can run lookalike algorithms, which identify ad targets who are most like the visitors to your site. Incidentally, I suspect your privacy lawyers missed this, Facebook can and does use data collected on your site\u2019s visitors to help your competitors poach them.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Facebook\u2019s lookalike algorithm is trying to find clones of your site\u2019s visitors. This raises a question. What if the wrong people are coming to your site? Sadly, they will indeed clone the wrong people. One of our clients recently introduced a new women\u2019s activewear product line and was perplexed why their Facebook ads were performing poorly. The answer was simple, Facebook didn\u2019t have the brand\u2019s female activewear customers visitors to clone.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The second fundamental is that Facebook has an incentive to advertise to people who click on ads. Believe it or not, there are ad-clicker people in the world. Most advertisers, and their ad agencies, push the \u201coptimize\u201d button when placing their ads on Facebook. This authorizes Facebook to run the ad in a way that maximizes the number of clicks, irrespective of the quality of the ad clicker. I\u2019ve never watched the home shopping network, nor have I clicked on a Facebook ad. The ad clickers are out there, although almost certainly, your high LTV prospects aren\u2019t ad clickers.<\/p>\n\n\n\n\n\n<div class=\"wp-block-group aw-mig-inline-images is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-c88056ad wp-block-group-is-layout-flex\">\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"642\" src=\"https:\/\/network.advertisingweek.com\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FallAssortmentCampaighGraph.jpg\" alt=\"\" class=\"wp-image-1989\" srcset=\"https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FallAssortmentCampaighGraph.jpg 960w, https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FallAssortmentCampaighGraph-300x201.jpg 300w, https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FallAssortmentCampaighGraph-768x514.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"432\" src=\"https:\/\/network.advertisingweek.com\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FootwearBrandCRMPotential.jpg\" alt=\"\" class=\"wp-image-1990\" srcset=\"https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FootwearBrandCRMPotential.jpg 960w, https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FootwearBrandCRMPotential-300x135.jpg 300w, https:\/\/advertisingweek.com\/aw360\/wp-content\/uploads\/sites\/3\/2021\/11\/PreciseTarget_FootwearBrandCRMPotential-768x346.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n<\/div>\n\n<p class=\"wp-block-paragraph\">What\u2019s the net result? First, Facebook ad campaign performance will almost always degrade over time. Simply put, they run out of ad clickers. In week one they\u2019ll show your ad to the easy marks and your marketers will be joyous \u2026.and then reality hits. The downward trend begins, illustrating they\u2019ve run out of ad clicker people. Always insist that A\/B tests run for several weeks, to see your true performance after the ad clickers have been exhausted. The second thing we see is low repeat purchase rates. A scoring system that evaluates customers in a brand\u2019s CRM to determine how good a match the customer\u2019s taste is for the brand\u2019s product assortment is the system companies need. You might discover 50 to 70%, have low LTV potential. \u00a0Most brands have CRM\u2019s filled with mostly one-and-done customers. You\u2019re seeing the negative flywheel, poor quality site traffic leads to cloning the wrong people, leading to low-quality acquisition.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Does this mean you should stop advertising on Facebook? No, it means doing it differently. You may not realize it, but Facebook will accept complimentary data when your ad is placed. Essentially it allows you to instruct Facebook to take a different approach. It\u2019s if you are saying instead of doing lookalikes, I\u2019d like you to use this targeting file. We\u2019ve learned that when Facebook is handed the right data advertising expenses will typically fall 30 to 40%, and the brand will acquire customers with far higher LTV potential.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Lastly, brand marketers should take a more thoughtful approach to use Facebook ad optimization. Campaigns should be tuned to acquire customers with the highest LTV potential, not for finding the easy mark ad clickers. \u00a0Today\u2019s easy click can lead to tomorrow\u2019s low potential customer in your CRM.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Rob McGovern is the CEO and Founder of <a href=\"https:\/\/www.precisetarget.com\/\">PreciseTarget<\/a>, a retail data science company that helps retailers and brands identify and target their highest-quality customers through data enrichment of existing customer information and through acquisition audiences curated specifically to their assortment. Rob was also the CEO and Founder of Careerbuilder.com.<\/p>\n\n\n\n\n<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc376259 = window.plc376259 || 0;\n            document.write('<' + 'div id=\"placement_376259_' + plc376259+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,376259, [300,250], 'placement_376259_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc376259++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n","protected":false},"excerpt":{"rendered":"<p>Facebook has become the mainstay advertising venue for fashion brands. If you ask why the digital marketer will say it works the best.<\/p>\n","protected":false},"author":7,"featured_media":1988,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-1987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Could Social Ads Be Hurting Your Brand&amp;quest; | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/could-social-ads-be-hurting-your-brand\/1987\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Could Social Ads Be Hurting Your Brand&amp;quest;\" \/>\n<meta property=\"og:description\" content=\"Facebook has become the mainstay advertising venue for fashion brands. 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