Facebook is introducing “two new solutions” to help marketers derive more value from their campaigns – Value optimisation and value-based Lookalike Audiences.
The ability for marketers to focus on and reach the people who are more likely to make valuable actions, is very important. That’s why Facebook launched App Event Optimisation or lifetime value Lookalike Audiences recently. Now, it’s introducing two new tools to help advertisers get the most from their campaigns:
- – Value optimisation, which gives you the ability to optimise your ad campaigns based on the purchase value – passed on by the Facebook pixel – of a particular audience set.
- – Value-based Lookalike Audiences, which allows you to add a value column to your customer list when creating a custom audience, so that you can then create a Lookalike audience of people that are just like your highest spending customers.
Efficient return on ad spend is a very important part of advertising on Facebook. But in order to optimise your ads to be efficient, you’d have to rely on metrics like clicks, impressions, and installs, to tell whether your ads had an impact. In Facebook’s own words, with value optimisation, marketers “can focus their campaigns on anticipated purchase value.” A recent Facebook Business post explains how this works:
Value optimization works by using the purchase values sent from the Facebook pixel to estimate how much a person may spend with your business over a seven-day period. 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.
Value optimisation is not available to all businesses just yet, but will be within the next few months. When available, it will be accessible through website conversion ad sets in Ads Manager optimised for purchases.
Value-based Lookalike Audiences
Lookalike Audiences were launched in 2013 and have since helped many marketers reach people who look and/or think like their core audiences. Recently, Facebook included LTV (lifetime value) Lookalike Audiences for marketers to reach the people who are more likely to have a specific lifetime value. Now, marketers will be able to also include a value column to their customer list, “which Facebook can use to create an additional weighted signal for people most likely to make a purchase after seeing [their ads].” As Facebook explains,
With this enhancement, advertisers are no longer limited to creating small groups of audiences based on their spend or LTV prior to creating a Custom Audience. Now, they can include a value column to their entire customer list.
Value-based Lookalikes are available for all objectives in Ads Manager or Business Manager.