What are Facebook’s Power 5?
Facebook is always coming out with new and inventive strategies. Learn all about Facebook’s new Power Five on how to utilize them to your advantage.
Facebook recently announced a new strategy for advertisers to leverage called Power 5. This method outlines 5 different tactics that require less manual work and puts more trust in Facebook’s machine learning algorithm and automation. You can run these tactics individually, but Facebook recommends to run them in conjunction with one another to see the best results.
Big brands like HelloFresh and Smile Direct Club have taken advantage of this new strategy. These companies were able to reach more people faster by trusting the machine to simplify their paid ad campaigns and broaden their reach. This allowed them to be more strategic with their creative and ultimately lower their CPA.
In this post, we’ll break down each pillar of the Power 5 and how this can benefit your brand. Let’s get started.
The 5 Pillars of Power 5
1. Dynamic Ads
Dynamic ads are when relevant products are shown to users who have displayed interest from your site, app or somewhere else on the internet. To have a dynamic ad, you must first upload your product catalog onto Facebook and from there it will show up-to-date pricing and availability for your products.
You can utilize these dynamic ads to retarget users, remind them of products they looked at but didn’t buy, or even prospect brand new users.
These dynamic ads are also known as dynamic product ads (or DPA), but Facebook also has dynamic creatives. Dynamic creatives are where you can choose a specific creative for each ad placement. as well as choose up to five text captions, five headlines, five link descriptions, and five CTA buttons. With Facebook’s automation, they will figure out and optimize which creatives are performing the best.
Dynamic product ads are beneficial because remarketing the exact products that users just looked at will push them to take that final step and complete the purchase. In terms of prospecting, Facebook will use its data to push these products to users who are most likely to be interested in your product, despite never having visited your site. 2. Auto Advanced Matching
Auto advanced matching is simple to turn on and utilize right away. It’s as simple as clicking a toggle to turn on in Events Manager. Afterward, Automatic Advanced Matching will begin using your Facebook pixel to capture additional data from your customer that was collected in registration forms (IE: first and last name, email). These hashed customer identifiers, along with pixel events that were fired, are sent to Facebook so that we can attribute more conversions and reach more people.
Auto advanced matching provides more data so that we can more accurately attribute conversions to users3. Account Simplification
Instead of multiple campaigns and ad sets, the idea here is to simplify the account structure with only a few campaigns and consolidated ad sets to avoid redundancy.
We would recommend separating your campaigns by where your customers are in the buying journey. One for the upper funnel, one to two for the middle funnel, and one for the bottom of the funnel. The purpose of Facebook’s power 5 method is automation, and using only a few ad sets in each campaign is the way to simplify and automate your account. This will require broader audiences in each ad set.
With fewer campaigns and ad sets for the advertiser to manage, this gives Facebook more room to use its algorithm to find those users who are more likely to convert.4. Campaign Budget Optimization (CBO)
Campaign budget optimization is setting a budget at the campaign level instead of the ad set level and allowing Facebook to automatically optimize and allocate the budget towards the ad sets that are performing the best. Campaign budget optimization will save advertisers time as they won’t be checking their ad sets everyday and manually adjusting budgets. Instead, Facebook will take the best-performing ad set and distribute the campaign budget accordingly. Adjusting the ad set budgets every day could also reset the learning phase, while advertisers don’t have to worry about that with CBO.
We’ve found with CBO that oftentimes, the budget is allocated towards the larger audiences, even when the smaller audiences may be the best performing. When we see this happening, we set an ad set minimum spends. Planning and setting a budget will ensure that our best-performing audience, although smaller than the others, will spend a certain amount each day. Keep this in mind when you first start testing CBO and be sure to keep a close eye on your audiences and ad sets. 5. Automatic Placements
Choose automatic placements at the ad set level so that Facebook can automatically choose which placement is delivering the lowest cost per result. Automatic placements give Facebook more flexibility to drive better results, giving you a lower cost per optimization event.
Keep in mind, even with choosing automatic placements you can still change copy and creative for each placement at the ad level with asset customization.
Facebook’s new Power 5 is meant to decrease manual work for advertisers who use social media and puts more trust in their machine’s algorithm. Becoming less granular with audiences, campaign structure, and placements, and becoming more broad with targeting and placements will give Facebook more data to automatically optimize search and use their machine learning to provide the best results.
Have you tried the Power 5 method yet and have you seen success?