Meta Ad Performance Drops, While Cost Double and Triple

Read time: 5 minutes

Hi AI Pro!

It’s a jungle out there in the programmatic ad-buying space, with Meta’s rates rising and performance sinking, according to a recent report. Meanwhile, many marketers struggle with the problem of cleaning data in order to reap the benefits of AI, but help is on the way in the form of… more AI to do the heavy lifting!

TODAY’S AI-POWERED MARKETING UPDATE:

• Top Story: Meta Ad Performance Drops, While Cost Double and Triple

• AI Market Trend: Marketing Attribution with AI and ML: A Game Changer

• Tech Headaches: SOCi CMO: Marketers Are Becoming “Data Janitors”

• Social Wars: LinkedIn Testing New “Premium Company Page” Subscriptions

• Straight Advice: 5 Steps for AI Solution Providers to Gain Brand Awareness

• Today’s Master Marketing Tip: Anita Nielsen, president or LDK Advisory Services

TOP STORY

Meta Ad Performance Drops, While Cost Double and Triple

Over the past two months, businesses that depend heavily on Facebook and Instagram for advertising have encountered unexpected setbacks with Meta’s ad system, according to a report in Bloomberg.

Normally reliable, Meta’s system has been experiencing major performance glitches that have resulted in a significant increase in ad costs and a decrease in returns, with no clear explanation from the company.

According to marketers cited by Bloomberg, including Cody Plofker, CMO of Jones Road Beauty, Meta's advertising system has become problematic, with costs for impressions and clicks doubling or tripling recently.

The surge in advertising expenses has sharply decreased the profitability of campaigns. Carly London, whose agency called Sometimes Curly oversees more than $100 million annually in Meta advertising, reported a 20% to 40% drop in the return on advertising spending across several accounts.

The usual strategies to optimize ad performance on Meta are not yielding results, compelling advertisers to reconsider their budgets. Many are diverting funds to other platforms, seeking more stable returns.

Meta has acknowledged minor technical difficulties but maintains that the system functions well for the majority of its advertisers. Nonetheless, the lack of a formal explanation has fueled speculation among ad buyers about potential causes, including competitive pressure from massive ad spends by companies like the clothing company Temu.

This uncertainty for Meta comes at a critical time as the company prepares to report its first-quarter earnings, with analysts anticipating significant revenue growth. The ongoing issues present a real challenge for Meta, leaving marketers to navigate these disruptions and reassess their advertising strategies, according to Bloomberg.

AI MARKET TREND

Marketing Attribution with AI and ML: A Game Changer

The traditional rule-based methods of reporting that shows how marketers actually impact conversions and revenue, which are hampered by new tracking limitations and cookie restrictions, are giving way to more dynamic and precise techniques, according to Quantzig, an analytics and business intelligence solutions provider.

In a new case study from Quantzig, by leveraging AI and ML a “globally recognized retailer” recently achieved a 25% improvement in attribution accuracy, a 30% increase in ROI, a 40% improvement in real-time responsiveness, and a 20% boost in customer engagement.

The company’s approach in this case centered on overcoming a lack of visibility into customer interactions across channels and ineffective resource allocation due to inaccurate attribution.

Their solution encompassed a “multi-touchpoint” analysis for precise attribution and real-time insights for more agile optimization, along with predictive analytics for proactive strategy adjustments and personalized experiences to enhance customer loyalty.

“AI and ML in marketing redefine marketing attribution, unleashing data-driven precision that transforms success,” according to Quantizg. “Multi-touchpoint analysis reveals the customer journey’s intricate details, optimizing strategies for maximum impact.”

TECH HEADACHES

SOCi CMO: Marketers Are Becoming “Data Janitors”

Marketers have access to extensive data to enhance their messaging and campaigns, but this abundance often results in a significant burden.

As reported by Forbes, new findings from marketing automation solutions provider SOCi, reveal that 41% of marketers dedicate at least half their working hours to data preparation for campaigns and analysis, with another third spending 25% to 50% of their time on the laborious task.

SOCi’s CMO, Monica Ho, highlights this situation as a critical inefficiency, pointing out that most marketers are becoming "data janitors."

The heavy lifting involved in data preparation complicates the process of leveraging insights, impacting both the time available for strategic actions and the mental energy of marketers.

Over half of the marketers surveyed identified data integration as their primary hurdle—specifically, merging structured and unstructured data, and synthesizing information across various platforms and tools.

Additionally, 22% struggle with cleaning and formatting data, while 15% are overwhelmed by the sheer data volume.

However, advancements in AI data-cleaning offer potential solutions by automating mundane tasks and enhancing efficiency, thus allowing marketers more time for creative and strategic endeavors.

SOCIAL WARS

LinkedIn Testing New “Premium Company Page” Subscriptions

LinkedIn is exploring new revenue streams by testing a "Premium Company Page" subscription targeting small to medium businesses, as confirmed by TechCrunch.

The initiative reflects a strategy by LinkedIn to diversify its offerings and expand the platform's utility, as other competing social networks and search engines also compete for overall mindshare and market share.

LinkedIn seeks to establish a more diverse online environment and continue its growth in premium services, which saw a 25% increase in revenue to $1.7 billion in 2023.

The new service, potentially costing up to $99 per month, aims to enhance business visibility on the platform by offering AI-generated content, tools to increase follower counts, and other features to boost company profiles.

The new premium options also include features like visitor tracking, the ability to invite any visitor to follow the page, and enhanced visibility for testimonials and contact information.

STRAIGHT ADVICE

5 Steps for AI Solution Providers to Gain Brand Awareness

In today's saturated market of new AI solutions, standing out requires more than just advanced technology. It necessitates a comprehensive PR and content strategy, writes Mark Pasetsky, a well-known advisor to many startups and B2B companies.

“There’s been an explosion of AI tools in the market, making it harder for new solutions to break from the pack and get meaningful attention. In this environment, it’s not as simple as having great technology.”

To attack the problem of gaining brand awareness, Pasetsky offers the following 5 basic steps to guide marketing efforts for AI startups:

1. Identify the Problem: Clearly define the specific pain point your AI tool addresses. Articulate this problem clearly to refine your communication and make your value proposition understandable.

2. Define Your Target Audience: Understand who your core customers are and tailor your efforts to address their specific needs and environments. Engage with them directly through relevant content and educational resources.

3. Develop Content: Build a rich library of content such as white papers, case studies, blog posts, and videos that highlight your AI's functionality and benefits. Ensure your content ranks well on search engines to gain visibility.

4. Cultivate Earned Media: Engage with journalists and thought leaders in your industry. Develop content that aligns with current news and trends to showcase your expertise. Participate in conferences and panels to elevate your visibility.

5. Leverage Social Media: Utilize platforms like LinkedIn, Facebook, and TikTok to share and promote your content. Tailor your social media strategy to suit the platform and your target audience, whether B2B or B2C.

“As your brand and product evolve, continue to create content. Learn as you go and lean into the channels and topics that drive the most engagement,” Pasetsky advises.

TODAY’S MARKETING MASTER TIP:

GET YOUR BRAND REFERRED TO ACTIVE, ENGAGED, TARGETED READERS:

Want to learn how to get your brand referred at scale to your target customer? Check out Presspool.ai to learn more.

Let’s win together!

THAT’S ALL FOR TODAY, FOLKS!