According to recent reports, Google and Facebook are predicted to control an estimated 59.3% of all digital ad spend in the U.S. Both platforms have launched capabilities to incorporate more automation into campaign management. This means that traditional media planners must adjust to having less hands-on control of their campaigns.
Facebook and Google have strayed away from the traditional model of advertising by releasing new ad formats that push advertising dollars towards underutilized ad inventory. Facebook’s automatic placements, as well as Google Local Ads, automate where ads are shown while limiting transparency into where ads are shown. Google’s Smart Bidding and Facebook’s Campaign Budget Optimization also implement automated budget management strategies.
Google Local Ads
Google Local Ads drive traffic to your store by using display, text, and video across Google Maps, Google search, Google My Business, Google Display Network, and Youtube. However, advertisers cannot select target audiences or keywords. Google Local Ads utilizes a so-called “black box” strategy that intakes millions of data points to identify target audiences and optimize toward those most likely to visit an advertiser’s location. Google collects data to identify users’ demographics, behavior, location, and intent, and then uses machine learning technology to optimize budgets towards the most ideal users.
Facebook Automatic Placement
From 2007 to 2019, Facebook’s ad inventory has greatly increased. Despite this, the feed remains Facebook’s primary source of advertiser revenue. Advertisers are encouraged to bid on automatic placements to achieve more efficient campaigns, selecting all available inventory. The bidding system, designed to get the best results at the lowest cost, helps automate where ads are seen to maximize results. The downside is that there is limited visibility in where Facebook is prioritizing spend.
Google Smart Bidding
Google continues to move more of its advertising business into automation, such as Google’s Smart Bidding, which is automated to optimize toward specific goals. Google’s responsive search ads use headline and description variants to create optimized ad copy. Advertisers can see how each piece is performing at a high level, but do not have control over which pieces are served and can not get impression totals for each line of copy.
Facebook Campaign Budget Optimization
Campaign Budget Optimization takes a holistic approach by looking across all audiences and placements within a campaign to determine where the lowest cost per action or highest return on ad spend will be. It became a fixed default across all accounts in September 2019. Although it simplifies the bidding process, there is less flexibility and limited optimization in how spend is prioritized.
The New Bern office of Viamark Advertising delivers award-winning advertising campaigns with a strong marketing backbone. This means spike-the-needle performance for your ad dollars, along with a wealth of local expertise and knowledge to help you get results more quickly. Our campaigns are based on sound thought process that has proven results. Contact us today!