Meta rolls out new tools to help businesses optimise their ad performance

To help businesses optimise their overall advertising performance, Meta has expanded their suite of products - such as Value Optimization, Incremental Attribution, and Value Rules - that allow advertisers to share information about the types of outcomes they value and how they are measuring success.

In a recent test conducted by the tech company, advertisers who used the "maximize value of conversions" performance goal instead of optimizing for the total number of conversions achieved on average a 12 percent higher return on ad spend (ROAS).

Defining the business KPI an advertiser wants to achieve

Advertisers can use the Value Optimization tool to help hit multiple KPIs, stated Meta. Meta has made updates to their existing value optimisation solution, which has helped contribute to the product delivering an average of 12 percent higher ROAS for advertisers compared to when they solely maximize the volume of conversions, stated the company in its statement.

For an example, a business using value optimization with a $200 campaign budget would prefer $500 in revenue from 3 sales for a ROAS of 2.5 over $400 in revenue from 4 sales for a ROAS of 1.25.

Meta is currently testing the ability for advertisers to send information through their Conversions API that highlights the profit driven from a sale. This can then be used to specifically help in focusing on driving ROAS where the return is based on profit, instead of the size of a purchase.

Not every advertiser looks at return on ad spend through purchase size or profit. Some calculate ROAS based on value associated with a custom event or a non-purchase standard event, such as getting someone to make their first purchase, or having someone sign up for a subscription. Advertisers can now use the “maximize value of conversions” performance goal across any event, helping them achieve the highest possible ROAS, added Meta.

Beauty brand Laura Geller aimed to improve their ROAS in campaigns focused on acquiring new customers. They used Value Optimization paired with a custom event of 'first-time purchaser' to instruct Meta's ads system to prioritise acquiring new customers who would generate high ROAS, rather than solely focusing on new customer acquisition. Compared to their business as usual campaigns focused on new purchasers, they were able to increase ROAS by 46 percent.

Meta recently completed the global rollout of Incremental Attribution that optimizes for and reports on incremental conversions in real time, highlighted the tech company. Advertisers who tested incremental attribution saw an average 46 percent increase in incremental conversions compared to their business-as-usual campaigns.

Meta is offering to advertisers to share more granular click-level attribution information with Meta via Analytics integrations with partners like Adobe Advertising, Northbeam, Rockerbox and Triple Whale.

This will enable them access to test a new Custom Attribution feature over the next year, where advertisers can incorporate insights from external measurement sources into Meta's optimisation and drive more outcomes as measured in their analytics tools.

Meta is also now expanding the availability of Value Rules, a product that gives advertisers the option to set up rules in Ads Manager that assign higher value to certain types of customers.

An advertiser who knows that a certain age group is typically more likely to be a repeat purchaser could create a rule that would have them bid more for these customers. In this situation, advertisers are directly communicating additional business information with Meta to specify how different dimensions drive value for their business.

Ben Schreiber, chief marketing officer, Latico Leathers, used Value Rules and said, "Value rules have been a game changer for us. We zoned in on the 45-54 female demographic, increasing bids to this demographic by 75 percent. This allowed us to put more focus on an audience that we know typically has higher purchase value, while also maintaining broad targeting that would unlock additional sales and help us discover new potential audiences.”

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