Many marketers have been caught off guard with the recent updates on Apple ATT & Google Privacy Sandbox, these updates include privacy reforms and tracking limits by different, and they are now unsure about the future of Facebook ads. These new updates challenge Facebook Ads.
Having said that Facebook is still one of the most effective marketing channels for almost every Industry. But, Facebook (Facebook, Instagram, WhatsApp) appears to have accepted that the recent update is the new normal.
However, there are few parameters in Facebook Ad system which would be affected, read to know them in detail.
- Decrease in Reach:
The tracking update on the Facebook Ads end has led to decrease in Ads Reach. - Decrease in Lead Count:
As Ads won’t reach to the Audience Size the number of lead count would also decrease. - Increase in CPL:
And as there is a decrease in lead count, the CPL (Cost Per Lead) is likely to Increase. - Fluctuation in Ads Performance:
Due to the decrease in Ads Reach & increase in Lead Count, the Facebook Ads Performance will continuously fluctuate. - Prolonged Ad Review process:
Due to the privacy update, the Facebook Ad Review process has prolonged and increased the chances of Ads being in Learning Phase for more than usual time-period. A waiting time of min. of 7 days is noticed by the digital advertisers.
The above-mentioned acts like a domino effect. A simple Privacy & Tracking update on various operating browsers has led to a new wave in Facebook, WhatsApp & Instagram Ads. Digital marketing experts have been studying the current algorithm and updating their Ads strategy, but in spite of this, brands continue to have Facebook & Instagram Promotions & Paid Content as an integral part of their Digital Marketing strategy.
Facebook is fighting back this update with their ‘Detailed Audience Expansion’ feature. One of the things that makes Facebook so strong is the ability to target for affinity rather than need or urgency. Hence, in spite of an approximate rise of 30% in the marketing budget, brands continue to increase their spends to combat the new updates and continue to leverage the Top Performing Social Media Channel i.e Facebook & Instagram.