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1. Facebook stock is down 50% over the past 6 months, and advertisers are fearful that FB is no longer the platform that empowers them to reach their audience cheaply and accurately.
Here are 5 ways FB can reverse their fortunes and improve their ad platform:
Here are 5 ways FB can reverse their fortunes and improve their ad platform:
2. Let me start by saying I own a lot of Facebook stock. Millions of dollars worth. And I’m buying millions more. So I am biased. Because I believe in the long term viability of the company.
3. But I know FB better than most. I’ve personally spent more than $50 million advertising on FB. And I mean I spent it by running the ads and making the creative myself - not hiring some agency. I’ve also spent millions on Pinterest, Snap, and Google. I understand digital ads.
4. And advertisers are right to be fearful. Since the release of iOS 14.5, FB has become a hot mess. And it seems like each month, it is getting worse - not better. But FB remains the only platform in the world that has the scale to reach everyone and the data to reach anyone.
5. Here are 5 ways FB can change their fortunes:
6.1 More Transparency
Facebook is a huge black box to every advertiser. While we spend most of our days in ad manager and look at results daily (or even hourly), we only know what Ad Manager tells us, and that isn’t much.
Facebook is a huge black box to every advertiser. While we spend most of our days in ad manager and look at results daily (or even hourly), we only know what Ad Manager tells us, and that isn’t much.
6.2 More Transparency
For instance, Facebook may tell me that my ads cost me 50 cents per click yesterday, but $1 per click today. Why the sudden change in price? I have no clue and FB doesn’t say.
For instance, Facebook may tell me that my ads cost me 50 cents per click yesterday, but $1 per click today. Why the sudden change in price? I have no clue and FB doesn’t say.
6.3 More Transparency
FB can provide more transparency by providing us at least some metrics compared to our peers. What does my cost per impression look like compared to the other million advertisers? What about my cost per click or click through rate?
FB can provide more transparency by providing us at least some metrics compared to our peers. What does my cost per impression look like compared to the other million advertisers? What about my cost per click or click through rate?
6.4 More Transparency
How does my CPM rate against other people spending the same amount as me? Or that are in the same category as me? This type of transparency will help advertisers get more comfortable and understand some of the surge pricing that happens within FB.
How does my CPM rate against other people spending the same amount as me? Or that are in the same category as me? This type of transparency will help advertisers get more comfortable and understand some of the surge pricing that happens within FB.
6.5 More Transparency
Amazingly, this already exists for other channels, like emails. @klaviyo has done a great job benchmarking open rates, click through rates, and even purchase rates with emails.
Why can't FB do this?
Amazingly, this already exists for other channels, like emails. @klaviyo has done a great job benchmarking open rates, click through rates, and even purchase rates with emails.
Why can't FB do this?
7.1 Better Account Management
If you have an ecommerce business and you are assigned a FB ad representative in Austin Texas, it’s very hit or miss. These representatives are usually fresh out of college and aren’t super knowledgeable about the ad platform.
If you have an ecommerce business and you are assigned a FB ad representative in Austin Texas, it’s very hit or miss. These representatives are usually fresh out of college and aren’t super knowledgeable about the ad platform.
7.2 Better Account Management
Most have never run an ad. Their advice is always taken with a grain of salt. There is a FB Disruptors Team for high value spenders, but even at $10M a year in spend, I never got access to it.
Most have never run an ad. Their advice is always taken with a grain of salt. There is a FB Disruptors Team for high value spenders, but even at $10M a year in spend, I never got access to it.
7.3 Better Account Management
FB should do a better job training account representatives, and after you spend more than $5M a year, assign you someone who is really really knowledgeable about the platform.
FB should do a better job training account representatives, and after you spend more than $5M a year, assign you someone who is really really knowledgeable about the platform.
7.4 Better Account Management
That rep should be looking at global metrics daily - are look a like audiences working all of a sudden? Are IG stories doing better than feed static images? They should notice these trends daily and tell you what is working.
That rep should be looking at global metrics daily - are look a like audiences working all of a sudden? Are IG stories doing better than feed static images? They should notice these trends daily and tell you what is working.
7.5 Better Account Management
The rep should be incentivized monetarily from FB and make more money as you scale your spend. FB Executive Team is top notch - their Account Management team can be too.
The rep should be incentivized monetarily from FB and make more money as you scale your spend. FB Executive Team is top notch - their Account Management team can be too.
8.1 Better Data
No question that FB has lost some of its marketing might as a result of iOS changes. But that doesn't mean that FB is impotent.
No question that FB has lost some of its marketing might as a result of iOS changes. But that doesn't mean that FB is impotent.
8.2 Better Data
If possible, Facebook should incentive people into opting in and letting FB track them on their phones. It can do this with limited edition or unique IG filters or story capabilities, or special access to other features it builds specifically for this.
If possible, Facebook should incentive people into opting in and letting FB track them on their phones. It can do this with limited edition or unique IG filters or story capabilities, or special access to other features it builds specifically for this.
8.3 Better Data
It should also double down and start buying more information like Nielson (Nielson owns the barcode sales data at most stores). FB should just buy Nielson.
It should also double down and start buying more credit card/hotel/travel data.
It should also double down and start buying more information like Nielson (Nielson owns the barcode sales data at most stores). FB should just buy Nielson.
It should also double down and start buying more credit card/hotel/travel data.
9.1 Better Features
FB has an incredible ad manager platform that is entirely self service. It is far superior to that of Google, Snap or Pinterest.
Still, it is still lacking some basic features.
FB has an incredible ad manager platform that is entirely self service. It is far superior to that of Google, Snap or Pinterest.
Still, it is still lacking some basic features.
9.2 Better Features
It could release new features that customers have always wanted, like the ability to start/stop ads automatically during certain times of the day. I bet deodorant ads work better at 7AM than they do at 11PM. Same goes for coffee!
It could release new features that customers have always wanted, like the ability to start/stop ads automatically during certain times of the day. I bet deodorant ads work better at 7AM than they do at 11PM. Same goes for coffee!
9.3 Better Features
Outside of Ad Manager, FB should also start building (or purchase) its own Shopify. The long term goal for FB must be that everything happens in the FB ecosystem so that FB can has the data it needs to excel.
This includes actual transactions from customers.
Outside of Ad Manager, FB should also start building (or purchase) its own Shopify. The long term goal for FB must be that everything happens in the FB ecosystem so that FB can has the data it needs to excel.
This includes actual transactions from customers.
10.1 Better Reporting
I get the iOS changes made it harder for FB to get information from Apple, but the reporting on Ad Manager is laughably bad. It is materially worse than just using UTM parameters and tracking last click, which is now how I measure ads (using @triplewhale).
I get the iOS changes made it harder for FB to get information from Apple, but the reporting on Ad Manager is laughably bad. It is materially worse than just using UTM parameters and tracking last click, which is now how I measure ads (using @triplewhale).
10.2 Better Reporting
FB should start looking at UTM parameters, and build that as a baseline into Ad Manager to restore some credibility and accuracy into Ad Manager.
It should also make the Conversion API easier to build/install, and incentivize integration of that.
FB should start looking at UTM parameters, and build that as a baseline into Ad Manager to restore some credibility and accuracy into Ad Manager.
It should also make the Conversion API easier to build/install, and incentivize integration of that.
11. Conclusion
For the first time ever, FB is facing an existential threat to its existence that it cannot buy its way out of.
The FB team has to double down on the world as it is today if it wants to have an opportunity to build the world of tomorrow.
For the first time ever, FB is facing an existential threat to its existence that it cannot buy its way out of.
The FB team has to double down on the world as it is today if it wants to have an opportunity to build the world of tomorrow.
12. If you liked this thread, please:
A. Retweet the first tweet in this thread
B. Follow me!
I started a deodorant company called Native, and sold it to P&G. I'm an investor in 50 startups and love to tweet about ecommerce.
A. Retweet the first tweet in this thread
B. Follow me!
I started a deodorant company called Native, and sold it to P&G. I'm an investor in 50 startups and love to tweet about ecommerce.
