Facebook is announcing two new tools to help advertisers serve ads to customers who spend the most money. Essentially, the two new features can be used together – one to target your highest spending customers and another to target new leads with similar behaviours to your most profitable clients.
Facebook says it understands advertisers want the best possible ROI from their ad spend, which inspired these two new tools.
Reach high spenders with value optimisation
The first new tool is called “value optimisation”, which uses Facebook pixel and purchase histories to estimate how much people are likely to spend over a seven-day period. Facebook then automatically adjusts bids to serve ads to those likely to spend the most money.
The network says this is a move away from relying purely on metrics like clicks and impressions, closer to attributing an actual value to individual prospects. Here’s what Facebook has to say:
“When marketers advertise with Facebook, they want to build campaigns that ultimately drive efficient return on their ad spend. Yet managing and optimizing their campaigns previously required using proxy metrics such as clicks, impressions, and installs to gauge whether or not a campaign had driven meaningful business impact. Today we’re introducing value optimization so that marketers can focus their campaigns on anticipated purchase value.” – Facebook Business
That’s about all the information Facebook is giving us right now, but we do know value optimisation is design to work in conjunction with another new tool: “value-based lookalikes”.
Value-based lookalike audiences
Lookalike Audiences were first introduced four years ago now, which helps you target new potential customers with similar online behaviours as your existing clientele. Now Facebook is enhancing this system to combine with value optimisation so you can reach out to new prospects with similar online behaviours to your highest-spending customers.
“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, which Facebook can use to create an additional weighted signal for people most likely to make a purchase after seeing your ad. Value-based lookalikes can be found across all objectives in Ads Manager or Business Manager.” – Facebook Business
Both value optimisation and value-based lookalikes are rolling out now, so you can expect to see the new tools available over the coming weeks.