On today's episode, Steve goes into detail on some of the most recent changes on the Facebook Platform. Tune in to learn how to lower CPM costs and take advantage of new ad units for direct response marketers. Steve also talks about upcoming changes to the algorithm for Facebook and Instagram.
Episode Transcript — Changes Coming to the Facebook Platform
Speaker 1: You're listening to the Spend $10K a Day podcast brought to you by the performance marketing experts at MuteSix. This is your source for cutting edge insight into the world of online advertising from the team with more Facebook case studies than any other agency on the planet. Here's your host, Steve Weiss.
Steve Weiss: Hello everyone. Welcome back to another day in the light Spend $10K a Day podcast. Today we have an awesome topic. It's just me alone and I'm going to talk about the changes coming in the wide world of Facebook and performance marketing on the Facebook platform.
Number one. Sad news today, obviously for all of you who are foodies like myself, Anthony Bordain passed away today. So just want to give a big rest in peace to Anthony Bordain. He was someone that I really appreciated watching, someone that I would watch to get my mind off whatever I was thinking about when it came to business, Parts Unknown, Kitchen, Confidential, amazing shows for all those foodies that are listening. We lost someone amazing today, so hope he rest in peace.
Let's get into it. Two new innovations coming out on the Facebook platform that we're testing out that I think are going to be kind of interesting.
Number one, Instagram stories released I guess a dynamic ad unit, like a carousel ad that when you actually scroll onto the story you could actually see almost like a carousel version of the ad when you click on it, which I think is really interesting. Now the carrot, the story isn't, when someone watches this story they can click up and go to the site, but now you can actually see pieces of it. Now you can actually show more ad units in the Instagram story, which I really like.
I think from everyone I talk to at Facebook and from all the, until I have Instagram story, something they're pushing really hard. Obviously CPM costs on Instagram stories are still a lot lower than most other ad placements. This is kind of their kind of play to make Instagram stories work for direct response marketers.
Obviously we're doing test mode with it. We haven't gotten Instagram stories to scale the way we want on prospecting. We find that it works incredibly well if someone has already seen us, been in our web funnel. It does induce a purchase. It's a very experiential ad type. I do think that the future though, Instagram stories will work for prospecting. I think Facebook's ad team is really doing a good job of trying to iterate new experiences of how people experience Instagram stories.
Obviously you don't want to mess up this story experience. A lot of times I click through stories and I won't even see some stories. The question is is always not only when you're thinking about performance marketing, but are people looking at your story. The question is how do you blend your story into other stories and get people to stop?
But something one new iteration going on is just obviously number one, Instagram Carousel. We call them Instagram stories, carousel ads. So highly recommend. If you haven't been testing that out, start playing around with it. Obviously they're going to show a lot of cheaper impressions for right now, just as they get more data. For all you crazy marketers out there, get on it.
Number two. Obviously you're going to start seeing, I think over the next three months, some changes to the algorithm, some positive changes. What I learned recently just from talking to the the people smarter than me at Facebook is that they're not actually using all the data on the pixels to positively impact user targeting. You're going to see that a lot of people have the universal audience pixel on every page of their website, which you should have, which is great.
Retargeting is great obviously, but they're not using all those user actions to impact targeting on the algorithm. I was told that the algorithm is getting better because they're going to start bringing in all these different user actions into the algorithm, what we call signals. Obviously the word signals is going to be a new buzzword in the next three to six months. Social signals, what signals intent to drive a decision to purchase a product.
I think that something to keep in mind is that the algorithm is going to get better. Every time people talk about, "Oh, CPMs are through the roof," well CPMs are never going down, never, ever, ever going down. They're only going up. So sadly, you're going to have to become a great content creator and a great marketer. The people that are going to be succeeding on Facebook, the next hundred plus million dollar brands are going to be the brands that really focus on creating content that speaks to people, that positively disrupts people on the platform, whether it's Instagram or Facebook.
Those are the two main things I really want everyone to listen to this progress, to watch out for. Number one, Instagram story carousels and number two, algorithm changes, which are going to positive algorithm change, should I say, which are going to come to the algorithm over the next three to six months.
That's pretty much it for today. Coming up in the next couple of weeks we're going to be talking a little more about which specific ads and what type of ads work in the summertime. Obviously we're going into June, we're going into July. These are historically slow times a month in E-commerce so the question is, what type of ad units can actively engage people when they're not behind the computer and they're not in purchasing mode? We're going to talk about this, how to create ads for seasonal times a year. I'm excited to really dig into that. It's a topic that a lot of people are asking me about. Thank you so much, and we'll talk soon.