Broad Targeting on Meta Advertising Without Exclusions – A Guide to why it works
This content was originally posted in the Foxwell Founders Membership by member Tomasz Pasko. Want this type of content (and so much more) every single day? Join us!
Recent observations from Meta advertising campaigns in a test done by Founders Member Tomasz Pasko have shed light on critical shifts in ad performance and buyer engagement, highlighting the need for advertisers to refine their strategies for filling up the top of the funnel with fresh buyers.
A significant insight has emerged from analyzing the First Time Impression Ratio (FTIR), which has seen a dramatic decline from approximately 60-70% to 10-25% over the past 6-12 months. This drop suggests a saturation point where the same audiences are being reached repeatedly, leading to what can be termed as 'audience fatigue,' rather than just ad fatigue. The root causes identified include a lack of creative differentiation, reduced influencer marketing budgets, and underinvestment in emerging platforms like TikTok, despite evidence suggesting it's a highly effective channel for driving purchases.
The Experiment
To combat these challenges, two experimental approaches were undertaken:
Creative Testing: Comparing the performance of ads set to 'Broad' targeting with and without 'Max Exclusions' to determine the optimal setup for testing new creative material. The hypothesis that 'Broad' targeting without max exclusions would yield a higher Return on Ad Spend (ROAS) was confirmed. This suggests that continually testing new ads in both setups could be beneficial, particularly for attracting brand-unaware individuals into the marketing funnel.
Max Exclusion Testing: Focused on increasing the FTIR by using 'Max Exclusion' ad sets. The results were promising, with a 3-4x average increase in FTIR, indicating that dedicating a portion of the Meta budget to 'Max Exclusion' campaigns with winning or stage-appropriate creatives can effectively bring more fresh buyers into the funnel.
Action Items for Advertisers
Based on these findings, here are actionable steps for expert ad buyers looking to replicate these successes:
Diversify Your Creatives: Regularly introduce new creative concepts to avoid audience fatigue. This includes leveraging different content formats, messaging angles, and visual styles to maintain engagement and attract new buyers.
Incorporate Influencers Strategically: Even with budget constraints, the selective use of influencers can significantly enhance ad performance. Focus on partnerships that align closely with your brand values and target audience.
Reevaluate Platform Allocation: Given TikTok's emerging dominance in driving purchases, reassess your budget distribution across platforms. Consider increasing your investment in TikTok, even if traditional attribution tools undervalue its impact.
Leverage Broad and Max Exclusion Targeting: Experiment with both broad targeting and max exclusion strategies to find the optimal balance for your campaigns. Use broad targeting to test new creatives and max exclusion to increase your FTIR by reaching new potential buyers.
Tailor Creatives to Market Sophistication: Create ads with the market sophistication level in mind, differentiating strategies for those who are brand-aware versus those who are not. This involves crafting messages that range from direct brand comparisons for mid-funnel audiences to problem-solution narratives for top-of-funnel prospects.
By applying these strategies, advertisers on Meta platforms can rejuvenate their funnel with fresh buyers, ultimately enhancing their overall campaign performance. The key lies in continuous testing, creative innovation, and strategic platform utilization to capture and engage a broader audience base.
New to FTIR? Here’s how to calculate it with a custom metric:
This content was originally posted in the Foxwell Founders Membership by member Tomasz Pasko. Want this type of content (and so much more) every single day? Join us!