Are Facebook and Adwords High Bid or High Relevance Algorithms?
Based on how much they charge, you’d think it’s high bid.
The number one priority for both Facebook and Google is platform usage. If people stop going to Facebook or searching at Google, they make less money.
Most agencies think the only way to lower CPCs is to change your ads to improve your CTR. I am going to get to a new method in a minute that does not involve you changing your ad copy.
The cause of high CPC is usually related to a few audiences being used. Since the number of searchers and users are limited, they raise the price on the audiences.
If all you do is rely on the targeting options inside their platforms, you are competing with everyone else. They all have the same audiences.
The Hidden Cause of High CPC: Are You Targeting the Wrong Audiences?
Everyone knows Facebook and Adwords allow you to upload your own custom audiences.
However, most people use customer data such as email opt-ins or customers. There are some serious limitations with that data.
Facebook is a lot like a Roomba robot. It has amazing technology and the ability to vacuum your house and get in those hard-to-reach spaces.
However, if your new puppy has an accident in the living room while you’re away, you are going to return to puppy feces spread over every inch of your house.
What does this have to do with Facebook custom audiences? It works exactly the same way. When you give it a list of customers, it does not know what they have in common.
It looks at what they did in common in the last 30 days. It does not know to give weight to the behaviors that matter to you and your clients.
The behavior they did before they purchased so you can find other people who not only look like your customers, but are behaving like someone who is about to become one.
The moment I finally got that distinction, everything made a lot more sense. When you bring your customer data to Facebook, it helps, but only to find demographic and general similarities.
Take two people who are alike in every way except one is looking to list their home in the next 60 days and the other in 2 years.
How to Build Audiences That Combine Relevance, Timing, and Demographics
So how do you get a lookalike built off demographics of your buyers, but also with the correct timing—with the cohort of people who are looking to make the purchase right away?
To do that, you’d need an audience of people in your customers’ geo market, and they’d need to be actively preparing to do that purchase right now.
If you gave that to Facebook, they could build you an audience of everyone who was actually in the market to buy.
This is combining the power, relevancy, and timing of a Google search with the much lower costs of a Facebook custom audience.
That’s how you cut your costs 25-75%, and I am being generous when I say that. With that kind of power, you can reach out to the biggest clients in your market. You can offer them something they can’t currently get.
Stop Competing in the Haystack: Target the Needles with Precision
The best part is no one knows what you’re doing. They can reverse engineer your ads and funnel, but they have to advertise to a haystack while you market to needles.
Your clients hire you for a competitive advantage. Bringing your own targeting to Facebook and Google is exactly how to do that.
Up till now, this has been the secret sauce of a few agencies we’ve worked with. We have rolled this out to 30 niches, and if you have local clients, you need to check this out.
If you want to learn more about how to use this in your agency, check out this video I put together: [Insert Link]
