Facebook is NOT limiting ads!
There have been some noisy, alarmist headlines recently as Facebook is announcing that they are limiting Ads for many advertisers. As is often the case, the reality is actually lost in the headline and probably makes sense when viewed in context.
Couple of points to start:
- Facebook organic reach runs at around 6% right now
- Based on those numbers, Facebook’s algorithm foundationally would show any post to about 6 of every 100 of your Friends
- That number is dependent upon engagement so, the more you interact with someone or some type of content, the more likely you are to keep seeing it
- Based on those adaptations, your post has a greater likelihood of being shown to those who engage with you (and lower to those who do not)
- Facebook organic reach has steadily declined as Facebook has expanded and prioritized its Ad platform
- They are actively monetizing the time that we spend on the platform
These points would seem to contradict the idea that Facebook would limit ads. Actually, it does and Facebook is actually not limiting ads, but trying to limit the number and diversity of ads running on the platform.
To understand what Facebook is doing, one has to understand the Facebook Advertising ecosystem that has been operating in recent years.
Advertising on Facebook has become an extremely complex and competitive atmosphere where companies spend tens & hundreds of thousands of dollars on a monthly basis targeting ads at Facebook users. Many of these Ad accounts have extremely detailed and demographically isolated ad sets targeting very specific age, gender, interest, and association groups.
While this capability has been valuable to many large advertisers, it creates a high barrier to entry for any business (especially small-to-medium sized ones) to advertise on the platform.
In answer to this, Facebook has been building a machine learning platform whereby users can provide images, titles, and ad copy to the platform and it will dynamically create ads.
While the functionality had issues originally (allowing humans to effectively “game” the algorithms and “beat” the system), the requisite data sets have been built to the point that the Facebook Dynamic Ad platform is a good tool for small-to-medium sized businesses.
Note: Larger brands with extremely high ad budgets can often still “beat” the algorithm, but for the budgets that we’re going to be spending, we don’t need that level of intricacy to get consistent, positive returns advertising on the platform.
I included a link to a YouTube interview below where they go into this announcement in detail. Feel free to check it out and let me know your thoughts.
I’ve really liked this quote from Chwast. It’s the opposing consideration that usually cautions people against quitting because so many people “quit digging a foot short of gold”.
This year has been a real challenge for many. You do not have to look far to see large numbers who struggle mightily for seemingly diminishing returns or equally large groups who seem to be using recent events as an excuse to quit trying.
I believe it was the Lean Startup by Eric Reiss that highlighted a better model of Goal Setting, Measuring Results, and either Continuing or Pivoting.
Starting with the Goal Setting / Mission Building, there is an overarching objective to which we strive. After Measuring Results, we have opportunities to continue or adapt.
However, unlike quitting, Pivoting (if things are not meeting expectations) sets change in motion still targeting the higher-level vision.
It is usually out of big challenges that our biggest achievements come about.
What things are you still looking to achieve and accomplish as we near the closing of 2020? Wishing time away is simply something I’ll not be doing as I am nearing my 50th birthday in November.
I have learned ALOT over the past couple of years from Justin Brown and his team at Primal Video.
If you’re looking to up your video creation and production game, he is someone you should be checking out.
His YouTube videos deliver for value for free than many paid workshops and training programs. Any time you spend will be wisely invested.
They have content and How-Tos for both Android as well as Fruit Toys…..sorry, Apple.
P.S. That reference was for my good friend, DJ Rockwood!!
Here are a few other things that I have caught my eye this week! I included a quick synopsis, but I would love to hear your thoughts on them as well!
Foreclosures & Evictions
I’m not a gloom-and-doomer, but some things are unsustainable. The CDC’s restrictions on evictions and the widespread allowances for mortgage forbearance are setting the stage for an avalanche of financial and fiscal problems.
It is one thing to get a reprieve. It is totally another if people are not preparing for the eventuality that things have to be paid back!
Empty Malls
The challenges of America’s malls have been a concern that has only heightened in the face of Covid-19. I’ve seen the so-called “Ghost Malls” turned into indoor Paintball arenas, but there’s a reckoning coming when we realize the challenges that commercial and retail spaces are facing.
Apple & Epic Games
I’ve been following this battle along for a few weeks and adding notes here for those watching. This serves both a technical/business as well as a personal one for me. My son does E-Sports through his school so online gaming is a reality in my house. Having some understanding of the legal and build platform issues at the heart of this battle adds to my interest.
That said, a few weeks ago, I noted that the bigger and more-widespread risk here was less about Epic Games’ flagship Fortnite and more about the host of other games built upon Epic’s Unreal Engine (and also, now seemingly involved). This will continue to get interesting!!
Organic Reach declining
This is an interesting post from our friends at Hootsuite. While the title highlights the perception (and reality) that organic reach gets more and more challenging, it also correctly highlights that good organic-focused practices are the best foundations for an effective paid advertising strategy. (Note: The more effectively you can dial in your models, the more cost-efficient and effective your campaigns – both organic and paid – are going to be!)
Shoot me an email or drop a comment below if you come across a link that you’d like to see in a future newsletter!
