Mar 31, 2022
In General Discussions
I'm Noah Freeman, one of the co-founders of Social Fulcrum and I lead the performance, R&D and software teams. Our company is the largest Facebook and Instagram-only boutique agency in the world (we think!) and we have a 25-strong team based in Boston. I would classify us as an ad optimization and measurement company masquerading as an agency – we're a pretty data-obsessed bunch. Most of our business is in e-commerce and large retail projects, so as you can imagine, that means a lot of our business is pretty quiet right now. Agenda of the day: Overview of ad performance Strategies to Increase Facebook Ads Performance Questions and answers I want to go through two things. First, I have about five slides that show our clients' average ad performance over the Employee Email Database past six weeks. Second, we'll take a more strategic look at how you can increase your Facebook ad performance in the current climate. Overview of ad performance I've heard a lot of people say, "What's going on with CMPs?" recently, so I think it's worth exploring this in more detail. There are basically two blocks of time we need to think about:The first three weeks of March as the crisis unfolded The five weeks since the crisis had already kind of set inCPM During this first period, there was a massive drop in CPMs of around 40%, although obviously this largely depends on the type of campaign.CPM-chuteThis decline was caused by two things. First, we saw a huge increase in Facebook usage, which meant that the available inventory of impressions was much higher than before. Second, advertisers began to drastically reduce their investments, so there was much less demand. Both of these factors mean there was a very significant initial drop in CPMs, although we've seen a steady weekly increase of around 5% since the end of March — that's because people are starting to get bored of spending all day on Facebook and start investing more. CTR From March 1 to around March 20, click-through rates actually increased. This was really unexpected, as it wasn't a time of a ton of e-comm success for most people.CTRWhat we saw was that people on Facebook were trying to waste time, right? And so one thing you do when you're wasting time is open it and scroll in order to get more impressions, which lowers the price of the ads. But the other is that you are probably more willing to click on ads. So there was this increase in click-through rates until the end of March. Now what we see is that it is decreasing. So now we're seeing about a 0.1% drop in click-through rate per week over the last three or four weeks, which along with the audiences that grew the most are now the ones that are shrinking the most.