Facebook has introduced two new tools aimed at helping advertisers to reach people who are more likely to take valuable actions towards your business objectives.
The first, value optimization, enables advertisers to optimize their ad campaigns based on purchase value data passed through the Facebook pixel. Value optimization works by using the purchase values sent from the Facebook pixel to estimate how much a person may spend with your business over a seven-day period. The ad’s bid is then automatically adjusted based on this estimation, allowing campaigns to deliver ads to people likely to spend more with your business at a low cost. Value optimization will roll out to eligible businesses over the next few months. Businesses can access value optimization when they create website conversion ad sets that are optimizing for purchases in Ads Manager.
The second, value-based Lookalike Audiences, allows you to include a value column in your customer list, which you can then use to reach new people that look like your highest spending customers. Facebook introduced Lookalike Audiences over four years ago to help marketers reach people likely to be interested in a business based on people who have visited their site or customers added from a Custom Audience.
As Facebook explains:
While Lookalikes are a powerful tool to help grow a customer base, businesses often want to grow specific cohorts of their audience based on the value to their business. In order to provide a more effective solution to do this, we are rolling out value-based Lookalikes globally. With this enhancement, advertisers are no longer limited to creating small groups of audiences based on their spend or LTV prior to creating a Custom Audience. Now, they can include a value column to their entire customer list, which Facebook can use to create an additional weighted signal for people most likely to make a purchase after seeing your ad. Value-based lookalikes can be found across all objectives in Ads Manager or Business Manager.
And advertisers on Facebook will soon have more control over where their ads appear, as Facebook is rolling out several tools aimed at providing more transparency before campaigns go live. The latest updates will provide advertisers with a list of publishers up front to show where ads might appear via Instant Articles, in-stream ads within Facebook and across the Facebook Audience Network. This will help provide more transparency for advertisers before campaigns instead of only after. While the tools are now in beta they’ll be rolled out over the course of this year.