Huge News - Facebook will no longer allow third-party data for targeting ads

[Ryan Everson]

In my experience, most third-party data segments tend to perform worse than Facebook's internal data. All things being equal, the worst case scenario is that Facebook's CPM will go down due to their ads becoming less effective/valuable.

I disagree, if you're using it correctly the Oracle data performs much better.

Granted using custom audiences and lookalikes with your first party CRM/DMS data is what I would suggest using first but in relation to non-first party data, Facebook's internal automotive targeting options through IHS Polk are nowhere near as powerful as what was just eliminated by Facebook.

Why serve a Silverado ad to all in-market Chevrolet buyers (Facebook's internal IHS Polk data) when you can target only in-market Silverado Buyers (Oracle third party data)?

So I'm going to take the complete opposite opinion that this will actually raise Facebook's CPM and CPC because it will negatively affect an ad's relevancy score which then results in a higher cost.

 

[Dave Lemmon]

I disagree, if you're using it correctly the Oracle data performs much better.

Granted using custom audiences and lookalikes with your first party CRM/DMS data is what I would suggest using first but in relation to non-first party data, Facebook's internal automotive targeting options through IHS Polk are nowhere near as powerful as what was just eliminated by Facebook.

Why serve a Silverado ad to all in-market Chevrolet buyers (Facebook's internal IHS Polk data) when you can target only in-market Silverado Buyers (Oracle third party data)?

So I'm going to take the complete opposite opinion that this will actually raise Facebook's CPM and CPC because it will negatively affect an ad's relevancy score which then results in a higher cost.

I think its going to be interesting to see it play out for sure. If we lose "in market shoppers" (which is partner data) on FB, yes, it should decrease relevance and increase CPC...however, we've also seen that the competition for highly targeted in market shoppers has driven up CPC substantially as well. We're going to start spending some of our own money on small campaigns for A/B testing to find out. I'll share those results here so we can see what it really looks like.

 

[AdamMurray]

It's going to be a matter of how it's applied. You'll need to get it from Oracle or some source, upload it yourself as a custom audience, rather then through their partner program. Actually, as @reverson put well.

Read this on Digiday this morning...

"Related is what happens to what Facebook calls “managed Custom Audiences.” These are audience segments that are uploaded by data providers and shared with advertisers and agencies. According to a note sent to agencies by Facebook, it will now require those uploading managed audiences to confirm the audience was built using only first-party data provided by the brand, not by the data provider."

Sounds like they are taking a pretty hard stance on this right now. Again, though, I'm not entirely sure this will last...all depends on public opinion, Zucks appearance in front of Congress and what actions, if any, the FTC takes.

 

[Alexander Lau]

Read this on Digiday this morning...

"Related is what happens to what Facebook calls “managed Custom Audiences.” These are audience segments that are uploaded by data providers and shared with advertisers and agencies. According to a note sent to agencies by Facebook, it will now require those uploading managed audiences to confirm the audience was built using only first-party data provided by the brand, not by the data provider."

Sounds like they are taking a pretty hard stance on this right now. Again, though, I'm not entirely sure this will last...all depends on public opinion, Zucks appearance in front of Congress and what actions, if any, the FTC takes.

Hmmmm, that could be a game changer. Almost the way 3rd party E-mail companies want to know where you got your data. That can be fairly strict. We'll see how this all shakes out, way too early to tell IMO.

 

[AdamMurray]

Hmmmm, that could be a game changer. Almost the way 3rd party E-mail companies want to know where you got your data. That can be fairly strict. We'll see how this all shakes out, way too early to tell IMO.

Exactly what I was thinking when I first read the article. Reminds me of much time spent on the phone with Constant Contact every time I uploaded a large list. To be honest, though, their due diligence on where I got the email addresses wasn't very deep.

 

[Dave Lemmon]

Is anyone really going to be uploading 3rd party email lists though? Maybe people are charging a lot more for FB ads or doing something completely different than we are, but that seems crazy cost prohibitive right out of the gate.

 

[Ryan Everson]

Read this on Digiday this morning...

"Related is what happens to what Facebook calls “managed Custom Audiences.” These are audience segments that are uploaded by data providers and shared with advertisers and agencies. According to a note sent to agencies by Facebook, it will now require those uploading managed audiences to confirm the audience was built using only first-party data provided by the brand, not by the data provider."

Sounds like they are taking a pretty hard stance on this right now. Again, though, I'm not entirely sure this will last...all depends on public opinion, Zucks appearance in front of Congress and what actions, if any, the FTC takes.

I'm going to give @jon.berna a quick plug here. His company, Driven Data, recently released the ability to create segmented custom audience lists that are updated daily from the DMS and then automatically fed over to Facebook via API. Saves a ton of time in having to export the data and upload lists manually each day or week or old audiences being forgotten and becoming stale.

They also add a predictive layer through machine learning to create additional custom audience lists of your customers that are expected to be in the market to buy or ready for service. We all know it's cheaper to earn repeat business and this is a good way to accomplish that. And you can of course use lookalike audiences to reach similar new customers.

I've seen the results of using their lists and its impressive.

https://www.driven-data.com/facebook-custom-audiences/

 

[Alexander Lau]

I'm going to give @jon.berna a quick plug here. His company, Driven Data, recently released the ability to create segmented custom audience lists that are updated daily from the DMS and then automatically fed over to Facebook via API. Saves a ton of time in having to export the data and upload lists manually each day or week or old audiences being forgotten and becoming stale.

They also add a predictive layer through machine learning to create additional custom audience lists of your customers that are expected to be in the market to buy or ready for service. We all know it's cheaper to earn repeat business and this is a good way to accomplish that. And you can of course use lookalike audiences to reach similar new customers.

I've seen the results of using their lists and its impressive.

https://www.driven-data.com/facebook-custom-audiences/

I once had a discussion with a guy within an agency promoted post over at Automotive Digital Marketing and said someone would do just this one day (can't find thread, their search sucks). So smart!

 

[Dave Lemmon]

I'm going to give @jon.berna a quick plug here. His company, Driven Data, recently released the ability to create segmented custom audience lists that are updated daily from the DMS and then automatically fed over to Facebook via API. Saves a ton of time in having to export the data and upload lists manually each day or week or old audiences being forgotten and becoming stale.

They also add a predictive layer through machine learning to create additional custom audience lists of your customers that are expected to be in the market to buy or ready for service. We all know it's cheaper to earn repeat business and this is a good way to accomplish that. And you can of course use lookalike audiences to reach similar new customers.

I've seen the results of using their lists and its impressive.

https://www.driven-data.com/facebook-custom-audiences/

Looks like a cool platform (and very much like what we're doing). The machine learning/predictive layer sounds cool, but I'm assuming they're really just looking at time from purchase or time between repeat purchases of either sales or service...not that you don't need that.

I once had a discussion with a guy within an agency promoted post over at Automotive Digital Marketing and said someone would do just this one day (can't find thread, their search sucks). So smart!

Our ability to do this (and continue to poll sales and service data to provide matchbacks throughout the campaign) will likely make the money we spent on Reynolds and CDK certification worthwhile.

 

[Alexander Lau]

Looks like a cool platform (and very much like what we're doing). The machine learning/predictive layer sounds cool, but I'm assuming they're really just looking at time from purchase or time between repeat purchases of either sales or service...not that you don't need that.


Our ability to do this (and continue to poll sales and service data to provide matchbacks throughout the campaign) will likely make the money we spent on Reynolds and CDK certification worthwhile.

Nice work, you should float your own services here, very relevant!