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Diversification is a must, but also is developing more advance measurement that can show the relationship between paid social and sales. Most companies have great acquisition strategies yet their measurement is 5-8 years behind.
Doing a combination of things. Using Meta primarily for broad awareness and reach. Regardless of the targeting changes, it still offers the greatest scale and cost efficiency. For down funnel activity, looking to diversify by leveraging Twitter and Snap for traffic and conversions based campaigns. This year they will capitalize on the loss of targeting across Meta but my hunch is they will follow suit eventually and for my pharma client, we will end up seeing health/condition-based targeting options go away on all platforms. This will require marketers and planning teams to rethink their targets and find better proxies in more broad lifestyle interests.
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TBF, FB and Meta are over, they just don't know it yet. Sure, lots of folks still use Instagram, but you'll be hard pressed to find a 20-something that doesn't view Facebook as old crap full of family members who talk about utter BS.
I'm looking at migrating my business off of Facebook as well as some of my clients. I stopped using it about 6 months ago for personal stuff, and I don't miss it. My one issue with completely dumping Meta as a company is Instagram, which still has a huge audience.
As for specifically how broader targeting will affect campaigns, well, that was already a problem about 9 years ago when they started making location targeting based on interest in a location as well as the user's actual location. MF, I can't sell a regional electricity plan to someone on vacation. This parameter does me no good.
Having worked in ad ops, I am confident in stating that there are only 2 reasons you broaden targeting:
1.) Something can be used as PII.
2.) You don't have enough active audience members to fulfill a flight.
My money is on reason #2 for Facebook's rationale.
Tl;dr: Facebook's targeting changes aren't as big a problem as how bad the platform is now.