facebook is changing how it counts people for ads measurement

How to Analyze Facebook Ad Results the Right Way!So you set up your first Facebook Ads campaign and


Updated on Jan 17,2023

How to Analyze Facebook Ad Results the Right Way!

So you set up your first Facebook Ads campaign and spent your first few dollars,,but your results are not yet outstanding?,What do you do?,Well now it's all about optimization.,Take the data that you have gathered, analyze it, and,then improve your campaign.,Sounds simple, but there's actually a lot to it.,That's why our Facebook Ads expert Cedric is here to help us understand how we can,do analysis in Facebook's Ads interface.,Now we've got lots to cover, so Cedric, take it away.,Thanks Julian.,Hey, my name is Cedric and in this video, I'll show you how to analyze,your Facebook Ads data the right way.,So what we will actually do together is I'll show you how to create a custom view.,And we'll add all sorts of metrics to that view and what,I call your important numbers.,Once we have that set up, we'll actually be analyzing a real,campaign that was running last year.,So we'll be analyzing that together and we'll be looking at real data.,And really my goal is by the end of this video, you'll be able to apply,the concept that you've learned in this video for any types of campaigns,,doesn't matter of the objective.,So now let me share my screen.,So I am now in ads manager, and this is a campaign slash strategy,that we will be reviewing together.,So it ran from September 2nd to September 18th, 2020, and this was,a lead generation campaign and it was optimizing for Facebook leads,and it was for a virtual event.,So this is a campaign that we will be analyzing.,But before we start talking about our important numbers and what sort of,numbers and metrics I would add to our view here for this example, I just want,to say that those important numbers,are going to change depending on your campaign objectives.,So if you're doing a brand awareness campaign, you're going to be looking,and you're going to want to add certain metrics to your view that are,different than a traffic campaign, because your objective is different.,And same thing with the conversion campaigns.,If you're doing a conversion campaign, let's say for an e-commerce store,where you're trying to send traffic to the website so that they can convert.,You're definitely going to be looking at metrics like the purchase,value or the return on ad spend.,But for lead generation campaign, we're diff we're looking at different metrics.,Yes.,We're going to be looking at metrics that are really similar, especially in,the upper funnel, like the click-through rate or the impressions, but some metrics,lower down the funnel, are going to be a little bit different because here we're,probably optimizing for the lowest cost per lead, especially if it's an event.,So I just wanted to mention that before we go and start adding those metrics.,So now to add are important numbers or metrics to review we're going to,click right here on columns, and we're going to want to click on customized,columns, but if you see above here.,Those are all I guess, templates that are already made for you, which,will add certain metrics to review.,Now we're not going to explore all of these in this video, but,if ever you want to see some of the pre-made I guess, templates,,this is where you could find them.,We're going to click on customize columns to create our own view.,Now, what you see on the left are all the metrics that you can,potentially add to your view.,On the right.,Those are all the metrics that you currently have in your view and you,can always just remove them or order them just by clicking it and dragging.,And the X button is obviously to remove them.,If you don't see a metric that you'd like to add to your view, there's also,an option to create a custom metric.,So you can just click that and then create your own metric, which is pretty cool.,But I won't be covering that in this video.,Now, what we're going to do is we're actually going to start with some metrics,that are a little bit higher in funnel.,And then I'll talk about some other metrics that are probably middle,funnel and then lower funnel.,So the first one that I want to add to my view is actually the click through rate.,And the click-through rate.,I won't actually add the CTRL.,You can add that to your view, but the one that I really like to see is the,CTR, but the link click-through rate, the reason for that is because if I add this,one, well, if someone clicks a comment or someone clicks a picture or any sort,of clicks, that's what we're going to.,That's what Facebook would count as a click.,And I only want to see the CTR for the people that are,actually clicking on the link.,So I'm going to be choosing this one here.,CTR link click through rate.,The next thing I want to add to my view is a CPM.,So CPM stands for cost per thousand impressions.,And the reason I want to add this to my view is especially if one ad or ad,set, isn't really getting conversions or results, I'll be able to see how much,I'm paying for a thousand impression.,And since I've been doing this for a long time, I know how much or about,how much I should pay for a thousand impressions for a certain industry.,So that's why I always like to add CPM to my view, now, another,one that I'll add is a CPC a little bit like the click through rate,I don't like to add the CPC all.,You can definitely add it to your view, but what I personally prefer,looking at is a CPC, but the cost per link click for the same reason,,I choose a CTR for link clicks.,The other metric I want to add to the view is the frequency.,So the frequency, I'll talk a little bit more about this one later, but this,is actually what tells you the average number of times each person saw your ad.,And the reason I want to add the frequency is because usually I,find that when the frequency hits a specific ratio, It also increase my,cost per result, which I don't want.,So that's why I always like to keep a close eye on the frequency.,Now that our custom column is there.,We can actually start analyzing the campaign.,Now, I just want to mention that I'm actually not the person that created,this campaign or manage this campaign.,So I'm just simply reviewing the data with you guys.,So let's start on the campaign level.,So I will obviously, going to take a look at the results.,When I'm looking and analyzing my data on the campaign level, it's,more of a high-level overview of how my campaign is performing.,Right.,Cause I can't really make too many modifications on the campaign level.,That's all done on the ad set and on the ads level, but I'll take a look,at the results and see, oh, perfect.,Were we got 430 results, uh, here's my reach.,Here's how many impressions I've got and my cost per result.,So again, before launching the campaign, I should have a good idea of what,am I willing to pay for that lead.,Some industry are going actually going to be willing to pay, let's say 20,or 30 or $40 for the lead, but for some other industry, especially if,it's like, let's say a free event.,Well, you definitely don't want to be spending 20 or $30 for the lead.,You're going to want to probably pay something way lower than that.,Because again, it's something free.,You're not earning something for every time you get a lead.,So this is why you got to know these numbers before you start,advertising, but then I'll keep scrolling and keep taking a look.,And again, it's really just a high level view of how it's,currently performing after that.,What I'll do is I'll go on the ad set.,So in these ad sets right now, we have three different ad sets.,If I go all the way to the left, I just want to mention that these,ad sets actually all use the same audiences in case you're,wondering what is the PP or no PP.,It actually stands for people.,So they are describing if some of the ads have actual image of people or not.,So we're going to get and see that once we get to the ad section.,But I just want to mention that to you.,So the first thing I'll look as the result, right.,Seeing.,Okay.,Well, which of these campaigns are generating more results.,So obviously this one right here, all site visitors, PP is definitely generating,a lot more results than the other one.,And if I were only to look at that, I would probably pause the other ones.,Right?,But that's why it's also important to keep scrolling and keep looking,at the rest of the results.,Take a look at the impressions and also take a look at the cost per result.,So what's happening right now is that this first ad set.,Is getting a lot more leads, but if you look at how much they're paying compared,to these other ad sets, they're actually, you're actually paying a little bit more.,Now.,It's not a crazy amount.,Like there's not a huge, huge gap between let's say this one,and the a dollar and 17 cents.,But it's still definitely something to take a look at, because just,based on seeing the cost per result and the results, I would definitely,not pause this ad set now because as I can see, it's generating a,cost per result of a dollar and 17.,Now what I usually do, and if I were to create a campaign like that, and,because at this point what the person that created that probably tried to do is,testing and when I'm testing and I'm not sure of something I always like to use.,Ad set budget optimization and not campaign budget optimization.,Not so now this campaign, when it was created, if I click edit, you'll see,that they are using campaign budget optimization it's on, but when you,leave it off, you can actually control,how much money you're going to be spending in each ad set and most likely.,And I think what kind of happened here is that they check to CBO.,That means that Facebook now had the choice and the option to spend their,money on whatever ad set that they wish and whatever ad set that they want.,But when you do that, you potentially are spending less money on some,other ad sets that could potentially perform better than another ad set,and that's kind of like what happened here.,So as you can see, we've only spent $26, but this one spent $369.,So what I'd like to do is control how much money I'm going to,be spending in each ad set.,And as a general rule, usually from what I see, you need at least 50 events to,start seeing a drop in cost per result.,And 50 events could mean a lead.,It could be a purchase that is just like what Facebook says in their,documentation that after 50 events you can start seeing it normalized or,actually see a drop in cost per result which this one was only at 23 results.,And if we would have used maybe someting like ABO, maybe we could,have actually seen more results for whatever the daily budget was.,If we would have set it to ABO, that is just an idea.,Um, potentially we would actually end up with the same results, but,from what I've seen, and from my experience, I like to set it up as ABO,when I'm first launching a campaign.,Now I don't want to spend too much time on campaign structure, but the second,thing that I see here, and I took a look at all these different ad sets,is that they're actually all the same.,What I personally like doing is creating different ad sets and then,having the same ads or depending on the ad sets, having pretty similar ads,so that I can only have one variable.,So if ever one ad set is performing better than the other one.,I'll know that it's because of the audience and not the ads, but,here it's more of a ad variable.,So they're using all the same ad sets and then they're using different ads,in each ad sets, which I guess could be good for testing and seeing which,ads are going to be performing better.,But I usually like, and start with the audience and then I use the same,ads, but maybe that's just more of a preference, but let's keep taking,a look at it here so I can see.,That obviously this one got more results, but it has a higher cost,per result, but it also has a lot more impressions and reach.,So let's actually take a look and see why does this ad set?,Like, why is this ad set is performing better than other ad sets?,And you did give the option to Facebook to use that budget for whatever ad set.,And why did it decide to actually spend the money on this ad set,when they're all the same audience?,So let's take a look actually at the ads now.,So I'm going to check this one and go to the ad level.,And if I look at all the ads, there is a lot of ads.,Now, if I look at another ad set, let's see, uh, this one right here.,Let's take a look and see, right.,Could that be it?,Could that actually, the reason why Facebook is spending and got more,leads with the first ad set is just because that ad set had a advantage,,it just had way more and more ads.,So then if you're giving more ads to Facebook, Facebook has like, I guess,,More weapons to go to battle with,. They have so many different variables and formats that they can potentially,use to try to find someone that would potentially convert and become a lead.,So that could potentially be one of the reason why the first ad,set is actually performing better.,And it's just because.,We gave it more information and more content so that Facebook can use that,and decide which one they want to take.,And which one do they think that a certain person would like to see.,So if we're not doing the same thing with potentially another ad, that could,potentially be the reason why it won't spend as much and potentially also not,get as good results, but let's keep analyzing things on the ad set level.,So I'm going to keep scrolling,and I actually really want to take a look at the frequency.,So the frequency and the reason why it's really important to,look at it on the ad set level.,Now keep in mind that this ad or this campaign wasn't running for too long,,but if you're running a campaign for at least a month or over a month,,you're going to see some times if you're not frequently changing,the ad your frequency going up.,And if it does go up, you could actually encounter something,that is called ad fatigue.,And that's when users are just tired of seeing the same ad and yeah, they,get annoyed and that could actually increase your cost per result.,And it is something that a lot of advertising are noticing.,That's why it's really important to keep a close eye on the frequency and a,good rule for the frequency is whenever it goes over two, take a look at it.,So you can actually use the inspect tool and take a look and see if,it increased the cost per result.,But it's good to look at the frequency on the ad set, but also on the ad level.,And usually what I'll see is on the ad set level, if ever I'm,using a retargeting audience.,So retargeting everyone that has been to a specific page on my website,,especially with iOS, I found that these audiences got a lot smaller and if,I have a really high budget, I could have maybe 20 ads in that ad set.,But if that audience is small and I have a high budget, that budget might actually,be a little bit too big for this audience.,And that's what the frequency is high.,And it's not a question of changing the ads.,It's just that the audience is potentially a little bit too,small or the budget is too big.,That's also why I like to use ad set budget optimization,when I'm starting in learning.,And it's just because I could control and potentially lower the budget.,If I see the frequency is a little bit too high on the ad set level.,So that is in terms of the frequency and that's how I would look at these metrics,,uh, when analyzing the ad sets level.,Now there's other things that you could look at, but that is how I would,go at, I guess, analyzing it without spending too much time doing it.,So let's take a look at the ads now.,So the first thing I noticed when I took a look at this ad is that mean,,this one here got all the leads.,And if I look at it, I'm pretty sure it's the same ad.,So this one compared to this one and I love the test they made because it's,basically the same thing, but I think they just used a different background color.,So this just tells you, and from what I'm seeing here is that it's only just the,color and I mean, they flip, the like the images on the other side on this one,,but if I were to manage this, I would, what I would probably do is pause this ad.,Now use the same ad and try to potentially add other images or other texts and,based just on the data that I can see here, it's probably because the white,really looks good when someone is scrolling on, let's say Facebook, it,kind of like matches with the platform.,And that could potentially be one of the reason that the ad with the,white background is performing better.,But I would look at this.,And see, how can I create something like that?,That is potentially a little bit better, but using maybe the same colors.,And then I would launch that ad and see if it's actually,performing better than this one.,So that's what I would do with this ad set.,Now let's go back to the ad set level.,And let's use this one.,So I'll site visitors general, no pep.,So this one is again the same, same audience, but instead of,showing a face of an actual person, they're just showing the ad.,And if we take a look at here, so this one got, uh, the lower,one, got a lot more results.,So let's click on view chart and see what's going on.,Okay. So that's the image.,Take a look at the other one.,So it's pretty much the same thing.,I'm not sure if I'm seeing big difference.,So it's more of the positioning.,So there's something with where they position, the information, and for,whatever reason they prefer this one.,And if I open it again, I think the logo is bigger here.,Hmm, I think it could be the logo.,So you can still see the logo here, but it's almost like hidden in the background.,So that could be it.,Honestly, if you would show me this, I think it looks different than a logo.,So just based on what I'm seeing here, I think there has to be with,something with the audience that this specific campaign is targeting.,They potentially already know the logo.,And when they're seeing this ad, they can see the full logo and it isn't,being cut out or the other one kind of blends in with the background.,And I think that could potentially be it because again, this audience,is familiar with this event and when they see the logo, they recognize it.,But when it's blended as the background, they potentially, they might not see it.,So I think that could be one of the reasons why uh, this ad,performed better than the other ad, but again, it's just an opinion.,We would have to test that out by creating another ad that truly,shows the logo inside the ad.,So, so analyzing the ads of the last ad set, that's actually the,one where all the action happens.,So let's take a look at that together.,And if I just scroll down here, I can see that this ad,definitely got a lot of results.,And if we keep looking here this one as well, and just by looking at this,,I think what's going on here is that the community, that the Measure Master,community, we're all really data driven.,Right.,And a lot of us love to learn about technical things.,And I know that Simo is really all about that.,So I personally think that the reason why this ad potentially perform,better than some other ads is with the featured image we have here of Simo.,So what I would do and how I would improve, uh, this campaign and, or,sorry, this ad set and these ads and an ad set is by creating another ad,with him as the front of the ad and try different things.,And, and I've seen in another ad set that a white background,potentially performs better.,So maybe it would actually be a good idea to just honestly do the same ad, maybe,flip the image here and put the Measure Summit on the other side and maybe do a,white background and see if that could potentially decrease the cost per result,and just get us more leads overall,and the last thing that I would recommend you to look.,And when you're analyzing things on the ads level is the frequency.,So this campaign wasn't running for too long, so the frequency won't be so high.,And especially in this ad set, because there's a lot of ads,,I'd be really surprised to see a frequency of 2.5 or over.,And if I see a frequency of two or 2.5 or even anything higher, I would take a look,and see when that frequency got to 2.5 or two, did it increase the cost per result?,And if it's still, if it's still performing really well and giving us,a lot of leads, then don't pause it.,But if it's becoming to a point that, oh, well, if I look at all time, this,ad is our winner, but in the last seven days or even 14 days, while the,frequency got way higher, and then it also started increasing the cost,per result to the point that now it's actually more expensive than other ads,,well, I'll actually do is potentially pause this ad or grab that same,ad, but change a few things in the ad so that it's not just the same,,same image and same ad for the user.,So it's really thinking about the user and think about it whenever,you're going on YouTube or Facebook.,And you're constantly seeing the same ads, it's annoying, right?,They're just like you they're humans too.,They don't like seeing the same thing over and over.,So to kind of recap this video so that, you can kind of consume it.,And after that go ads manager and kind of apply what you've learned and,how I'm personally analyzing things is that it's all about being able,to come up and generate new ideas.,So take a look at an ad set, take a look at the audience.,And see, okay, well, this one is performing well, can I try, uh, an,interest based audience or something that is kind of similar to that audience,,but not the exact same thing and test it out and you got to test it out.,And then after that, being able to do the same thing that we did today,and analyze it and look at the data,and see if it was a good idea.,And sometimes you're going to have good idea.,Sometimes you're going to have not bad ideas, but your ideas won't just,turn out to, uh, give you the results you wanted and that's totally normal.,And the same thing with ads, it's all about looking at what's currently working.,Generate new ideas, having a team or either doing yourself and being,able to implement these ideas and actually launching them pretty fast.,And then after that, just looking at the data and see if it worked or not.,And it's really all about that.,And as long as you keep doing that, you might actually start with not,the greatest results, but, but as you keep repeating this process and it's,like a circle in the loop, eventually you're going to end up with some,really good results with Facebook ads.,All right.,Thanks Cedric for this great explanation.,If this video helped you out, give it a thumbs up and I also quickly,wanted to let you know about Measure Summit, which is coming up very soon.,We have over 20 speakers talking all about measurement.,So don't miss out and get your free tickets right over here or,also, there's a link in the description down below.,Now.,My name is Julian, till next time.

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Facebook Ads Measurement in the evolving consumer ecosystem

Facebook Ads Measurement in the evolving consumer ecosystem

hi,welcome to this session in this session,i will be talking about,ads measurement in the context of,evolving ads ecosystem,before we move forward let me introduce,myself,i am abs and i am part of marketing,science team in apac,in meta the brand which was known as,facebook a while ago,so how this session will help you,following this session i hope that it,will help you start preparing for a,privacy first,ad ecosystem via flexible measurement,tools and techniques,it will help you understand how to,optimize decision making for you and for,your stakeholders using incrementality,measurement,and finally,it will be able to,help you to approach answering your,stakeholders key business questions with,solutions that serve their business,needs and constraints,so let's get started,we will all agree that marketing today,is creative it's more complex and,innovative than ever before with more,opportunities for businesses to connect,with people but at the end of every,campaign,you or your stakeholder will still want,answers to the questions around did the,campaign work how can um it be made,better and these questions are becoming,more difficult to answer,the right measurement strategy helps you,understand what is working and what's,not and identifies opportunities for,increased investment and better,performance,good measurement is essential to making,good,marketing decisions and ultimately,driving result,but what does it mean now when ads,measurement is changing as rapidly as,rest of the advertising ecosystem,so let's dig into what is we what do we,mean by evolving ads ecosystem,to meet people's growing expectations,around privacy governments are,implementing new regulations such as,gdpr in europe ccpa in california and,lgpd in brazil,companies are modifying their policies,to put more control in people's hand,in some cases these changes have,impacted the long-standing advertising,mechanism like third-party cookies and,mobile device ids,requiring businesses to think,differently about how they reach people,and how they measure the impact of,advertising,so good measurement has become,especially difficult because as we move,to a more complex digital first,multi-screen multi-device world the list,of available matrix and measurement,tools grew and advertisers and agencies,struggled to build strategy that,accurately measured their campaigns,this means that today measurement,solutions and tools often deliver,insights not clearly related to client,business goal or use techniques like,last click attribution that can provide,a very skewed picture of which campaign,and challenge channels are actually,adding value,given increasing complexity of marketing,and marketing measurement it's not,surprising the three out of,uh five of the top challenges media,professional identified in a recent,emarketee survey were related to,understanding marketing effectiveness,the other two top challenges were,related to concerns around data and,privacy and reflect what the marketing,world is focused right now which is,really understanding the impact of,changing data access and the shift to a,more privacy digi,more private digital world,so these changes,highlight that the ecosystem is becoming,more complex and effective measurement,is built on interpreting data in order,to understand performance and that will,be impacted by evolving regulations and,privacy standards,with all these changes good measurement,continues to be about understanding the,true business value,of clients marketing uh,activities by using incremental,measurement as north star,but today good measurement should also,be privacy conscious,and by marrying these two principle one,can build a measurement strategy that,can evolve with the advertising,ecosystem while consistently driving,better decision making,we and the rest of the advertising,industry are still learning exactly how,measurement and marketing itself will,ultimately evolve,to meet people's expectation around,privacy,but what we do know for sure is that,measurement still will be key to,understand the value of marketing and,advertising efforts,so in next 15 minutes or so i will focus,on laying a good measurement foundation,in a world where privacy is paramount,and measurement tools and solutions are,plentiful,and i will break this down in three,sections the first one is plan for,privacy via using flexible measurement,tools and techniques the second one is,on anchoring,on true value by optimizing decision,making with the most incremental methods,and matrix available,and the third one is choosing the right,approach by answering key questions with,solutions that accommodate,your business needs and constraints,so let's jump into the first one so,which is starting,around how to plan for privacy so as we,move to a more privacy conscious world,all businesses will experience changes,in their ability to measure the outcomes,of campaign,anticipating those changes will enable,us to guide and advise our stakeholders,on how to continue making good marketing,decision and hence planning for privacy,is the first stepping stone towards,making a resilient measurement approach,but first it's important to understand,that changes to measurement are part of,a larger story,people are concerned about privacy and,the industry including facebook or meta,is adjusting to meet this expectation,privacy is also top of mind for,consumers as you can see in the survey,done in 2019 84 of consumers say they do,care about you know privacy and they,desire more control over data and how it,is being used,so as a result of changing ad ecosystem,the impact of,the impact on the availability of data,used for advertising and businesses may,find it more difficult to do jobs which,was done a lot more easier earlier which,is reaching people who have already,expressed express interest in the brand,deliver highly relevant ads to existing,customers,optimizing ads towards conversions and,most importantly accurately measure the,result of ad campaigns,protecting people's privacy means,giving them the visibility and the,ability to change how their data is used,and as a result the data advertisers,rely on and the systems that use the,data are evolving including data and,systems related to measurement,for example mechanisms like cookies are,becoming less available as they rely on,passive data collection,and businesses may need to think,differently about the data that they use,for advertising,business can,opt to use methods that rely on,aggregated,rather than person,level data which are more privacy,conscious,it's not just that the data and methods,are evolving even matrix draw drawn on,data used needs also a rethink when we,think about measurement as a whole,it is really difficult to say for,certain,about the impact on specific measurement,techniques with the ecosystem changes,but as businesses prepare for a more,privacy conscious future they will need,to anticipate that some measurement,approaches will be more affected than,others and this might change over time,for example impact of cookie loss on,econometric modeling and mmm will be,fairly low compared with the impact on,multi-touch digital attribution which,will be much more significant so,understanding how the ecosystem changes,will impact different methodologies will,help you planning for privacy in a much,better way,so the question comes is what steps you,can start taking in the short term it's,best to allocate measurement resources,within your organization to understand,the potential scope of impact of these,changes on your measurement strategy,and we'll also explore the steps one can,take to understand the impact over the,next couple of slides,the other thing in the short term which,you can do is to have some tests done on,side by side campaigns to really,understand the extent of impact you are,going to have with the technological,changes for example,with the cookie loss you know if you run,side by side campaign,you will be able to quantify the impact,possible impact of cookie loss on the,measurement approach you are taking,however,understanding the impact is only one,piece of the puzzle in the long term you,should also take steps to evolve your,measurement strategy as changes arise,and these could include considering,additional measurement techniques in,your portfolio so in,involving more techniques which are far,more resilient can be a good starting,point,secondly understanding what type of,changes could impact your businesses,most and track them closely for example,app advertisers should pay close,attention to mobile operating system,changes,thirdly continue,assessing the impact of new solutions,that are coming into the play with,innovations running so fast with,technology evolving there will be new,solutions that provide better,opportunity,for measurement as a whole,and lastly actively engaging with the,industry and this is really important as,different parties including policy,makers,legal teams will play a very critical,role in assessing how these changes are,going to impact the data exchange and,therefore measurement,so planning for privacy was the first,pillar as,you should embrace to adapt uh to the,changing ads environment the next is to,anchor your measurement strategies on,incremental business value which leads,to more precise insights in order to,make better marketing decisions,understanding incremental value is,important because your ability to make,the most efficient marketing decision,possible has measurable impact according,to our research almost,25 percent of the time,non-incremental and incremental,measurement disagree on winning,marketing tactic,what does that mean it means that when,marketers choose the wrong tactic as a,result businesses lose out on an average,64 percent uh improvement in cost per,action,so there is a huge opportunity cost,linked with wrong decision making,incrementality measurement helps you,determine how and where your marketing,campaigns are contributing to the bottom,line success we in meta define,incrementality as the degree to which,measurement method estimates the true,causal effect of an isolated marketing,activity,and the real gold world here are the,true causal effect of isolated marketing,activity,incrementality uses experimental methods,to help you identify the advertising,that drives conversion or any impact for,that matter by comparing the behavior of,people who have seen and who haven't,seen the ads and this helps you allocate,your marketing budget to the ads that,really,result in the outcome you desire,once you know people who see your,advertising are really taking action you,can continue investing in that strategy,incrementality is more accurate than,approaches like last touch attribution,because it doesn't just assign credit to,a conversion,so now let's understand how does this,work,for those who are not very familiar with,incrementality principle this is,calculated by comparing differences in,the outcomes between two separate groups,of people those who have been exposed to,the strategy and those who haven't,to further understand this let's think,about a group of cons customers for one,of the brand,these are your loyal customers,represented by the light blue circle on,the screen,and,these are the group of people who will,take an action to convert for example to,make a purchase without even being,exposed to any media strategy,let's then layer on the group of users,that were exposed to the media and,converted in the second darker blue,circle when we do this we can see that,there is a overlap where some of the,original group of loyal customers were,exposed to the media strategy however,they would have converted any which ways,but we also have,this additional group of,uh incremental customers who only,converted due to being exposed to the,media and this is the the the not so,dark blue,section of the circle i'm talking about,and ideally as uh,as measurement people you want to plan,your media or as a media professional,you would like to plan your media,buying strategies to maximize budget,spend on these incremental buyers rather,than those who would purchase any which,ways,so now that you know the concept of,incrementality how does this work in in,real life scenario,when done best it's an experimentation,focused approach using the methodology,on screen,so what you do is you develop your,hypothesis randomize your audience into,test and control group when the test,being exposed to the variable you are,testing for example it could be the,media,execution,versus control group who are not exposed,and you then compare the outcomes it can,be conversion but it can be brand,outcome as well,and this will give you a sense in terms,of what is the lift you are getting when,you compare control versus test group,and whether your strategy is working in,the right direction or not,now the question comes what happens when,you can't run an experiment,if you can't run an experiment you can,still ensure your measurement methods,are as close to measuring incrementality,as possible and you can do so by,thinking about matrix along a spectrum,from non-incremental models like,rule-based attribution or last click or,simple counts all the way to randomize,control trials the closer you get to,experiments the better off you are but,there are many valuable methods before,even,before you even get there for example,nowadays we are working on calibrating,the econometric modeling or mmm models,with experiment which brings it much,more closer to more incremental methods,rather than non-incremental methods,and in changing ad ecosystem uh,incrementality is a valuable north star,uh why is it so because incrementality,really provides a framework for,understanding the impact of measurement,changes,it also allows advertiser to improve,their decision making processes which,helps increasing the resilience overall,and hence we,really recommend all our clients to be,reassessing their measurement approaches,to make sure that they are leveraging,incrementality methodologies,but let me point out one more important,element it's not only the method that,matters it also the matrix,to inform business decision we recommend,measuring true business outcome for,example sales,as they reflect a business bottom line,rather than say clicks,as with experiment this might not always,be possible you know we totally,understand that sometimes you know we,don't have um,those matrix uh the we don't have data,against those matrix,so if you cannot measure the business,outcome you are trying to drive the,alternative is to use the validated,proxy,for example click,but,click as a whole can be a totally,unvalidated matrix but it can become,validated matrix as well if you have run,enough tests to understand how clicks,relates to some of your business matrix,you are looking at,validated process proxy matrix can,provide a good estimate of true business,outcomes when they are not available,unvalidated proxy matrix are the least,recommended on this spectrum and you,should try to avoid as much as possible,so now let's put all this together,you can select,sorry,you can select the best available,incremental,measurement by evaluating both the,incrementality of method you are using,and the incrementality of matrix you are,using,take mmm for example which we mentioned,previously as a technique that is,resilient to change calibrating mmm,models with experiment,does provide a,relatively high level of incrementality,and it helps move the methodology closer,to uh towards more of uh randomized,experiment uh spectrum,so that's how you can you can decide on,which methodology can be best for your,uh business uh in terms of,measuring the true business outcome,so now that you have a better,understanding in terms of you know how,different methodology can be placed on,this spectrum let's now,get,choosing the right approach so,we have covered the first two pillars of,modern measurement strategy,choosing the right approach begins,with in terms of begins with deciding on,which tools you put in in your toolbox,and,which,tools you use and when you use and what,are the constraints you have in in front,of you to consider,so while the measurement ecosystem may,be changing the framework for deciding,which tools to use probably will be,familiar to you and it has not been so,impacted,it really starts with identifying your,true business goal start with the,decisions you are looking to make then,consider the constraints for each type,of decision identify the business,business and the data constraint for,example what data is available what are,the data gaps we should be mindful of,once you have done that select the test,approach determine the measurement tool,or tools that best meet those needs and,how incremental those approaches are and,are there any pitfalls you should be,aware of,finally,you as,as you are accessing the insights you,need to make a decision you need to,question you need to think about,the new questions or goals that are,coming up so this is almost like a cycle,you have to go through which can be done,through test and learn approach,so firstly look at how to identify,business goals,in today's environment it's easy to get,caught in the trap of simply looking for,one-to-one replacement for a tool that,no longer does the job,instead of doing that we suggest take a,step back and really think about the job,or jobs you need your measurement tools,to do,start with the strategic marketing,decision,uh you are looking to inform broadly,speaking these are where and how of your,marketing strategy,the foundational business decision,marketeer must make as you start to,build out campaigns for example where,should we allocate budget how should we,optimize on a specific channel,are are we focused on brand or are we,focused on sales or are we focused on,marketing as a whole,you will also want to take kpis into,account what areas of your paid strategy,brand or sales outcome are you focusing,on or are you trying to evaluate,marketing investment as a whole and that,will sort of dictate you know what uh,specific channels you need to optimize,for,the next level of decision making is,within the channel,which are more,slightly tactical in nature for example,what creatives you should use how you,will optimize your goal what kind of,audience you should be targeting to for,the best performance etc,once you have identified the business,goal identify any constraint and there,can be handful of the constraint the,type of channel you need to consider for,evaluation you do you have uh right you,do you have equivalent kpis to compare,against those channels how fast you need,the result sometimes if the question is,tactical you might not you might not,want to wait for a month for the result,and hence your choices will,automatically be shorter in in in in,terms of measurement tools that are,available for you and how,precise and accurate you need those,answers to so all these constraints will,dictate what measurement tools you will,ultimately choose,now it's time to select the,and and test your measurement approach,and this slide shows a short list of,potential measurement solutions aligned,by method how incremental the method is,along the x-axis and me and matrix and,how close they are to true business,outcomes on y-axis,once you have selected your approach and,run the test then you will be able to,assess and adjust the approach,are you accessing the insights you need,to make a decision,and do they guide you towards a new,question or a goal,so this is a very important step in the,overall scheme,so summing up uh together,in terms of what we covered today uh we,covered the three pillars of plan,three pillars in terms of how you think,about ads measurement in the evolving,ecosystem,the first one is around planning for,privacy preparing for the impact of the,evolving ecosystem the second one was,around anchoring on true value which was,really choosing methodologies carefully,around the gold standard of,incrementality and last one,looking at the decision making,holistically and and then choosing the,right approach and then testing and then,readjusting that approach,so that brings me to the,i hoped in today's session you got an,understanding of how the ads measurement,is evolving in the changing ads,ecosystem thank you so much

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