Facebook Monday introduced two solutions enabling advertisers to more easily target users who are more likely to take valuable actions after interacting with their campaigns.
Value optimization allows brands to optimize their campaigns for valuable users using Facebook’s machine learning capabilities and based on purchase value data mined from the Facebook pixel.
And value-based lookalike audiences—which were spotted last month by Social Pro Daily reader Chris Ruberg, digital marketing specialist at Affinitiv, and are pictured below—enable brands to assign values to their customer lists and then use those values to target users that mirror their most valuable customers.
The rollout of value optimization began Monday, with Facebook saying that it will be available “to eligible businesses over the next few months,” while value-based lookalike audiences are available to all brands starting Monday.
The social network provided more information on the two new solutions in a Facebook for Business post Monday:
When marketers advertise with Facebook, they want to build campaigns that ultimately drive efficient return on their ad spend. Yet managing and optimizing their campaigns previously required using proxy metrics such as clicks, impressions and installs to gauge whether or not a campaign had driven meaningful business impact. Today we’re introducing value optimization so that marketers can focus their campaigns on anticipated purchase value.
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.
While lookalike audiences 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 (lifetime value) 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.