Damian Kim
Meta, the parent company of Facebook and Instagram, is rolling out three tools – Value Optimisation, Incremental Attribution and Value Rules – which allows advertisers to targt specific campaign outcomes..
These products allow businesses to feed Meta’s AI with more business data, including profit margins, customer lifetime value and cross-channel attribution metrics.
Meta’s APAC lead for monetisation Damian Kim said AI is helping businesses scale by tailoring creative and messages to improve performance.
“AI has dramatically strengthened our ability to process very, very large amounts of data and signals, but then effectively translate that into more accurate predictions,” he said.
“Connecting this kind of Holy Grail – the right products or services with the right person at the right time – is also enabling much greater sophistication and optionality for businesses.”
Value Optimization, now globally available, aims for return on ad spend (ROAS) instead of total conversions.
A study commissioned by Mata shows that advertisers using the “maximise value of conversions” setting saw on average a 12% higher ROAS compared to those optimising solely for conversion volume.
A new profit-based ROAS optimisation tool is in testing. Advertisers can now send profit data via Meta’s Conversions API, allowing the platform to prioritise conversions based on profit margin rather than sales value.
Meta has also expanded the ability to assign value to non-purchase events, such as new user signups or subscriptions, which lets advertisers optimise for a broader set of business outcomes.
In one case study, beauty brand Laura Geller used Value Optimisation with a custom event targeting first-time purchasers, resulting in a 46% increase in ROAS compared to traditional acquisition-focused campaigns.
Meta recently completed the global rollout of Incremental Attribution, which reports on conversions in real time.
Meta is now enabling advertisers to share more detailed click-level attribution data through integrations with analytics partners such as Adobe Advertising, Northbeam, Rockerbox and Triple Whale.
The move supports testing of a new Custom Attribution feature, allowing advertisers to feed insights from third-party measurement tools into Meta’s ad systems to optimise for outcomes tracked in their own analytics.
Meta is also expanding the availability of Value Rules, a product that allows advertisers to assign higher value to certain types of customers in Ads Manager.
Advertisers can inform Meta which customer segments, like certain age groups, drive more value - so the system can automatically bid more for those likely to make repeat purchases.
Ben Schreiber, CMO of Latico Leathers, said Value Rules has been a “game changer”.
“We zoned in on the 45-54 female demographic, increasing bids to this demographic by 75%,” he said.
“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.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.