Advertisers on Meta have recently reported that advertising has become increasingly expensive, resulting in lower sales. But what can you, as an advertiser on Meta, actually do about it?
Advertisers on Facebook and Instagram have recently experienced higher ad costs. According to the Bloomberg news site, this is due to alleged "errors in the algorithms" on the platforms.
Marketers claim that advertising campaign costs have increased significantly while sales have decreased drastically (one advertiser reports a 20-40% decrease in sales). Meta, for its part, says its ad system works for most advertisers but acknowledges occasional technical issues. The extent of the problem is thus unclear, but it is clear that more and more people are affected by significantly higher costs.
So, what can you, as an advertiser, do with increased CPCs and CPMs and decreased ROAS? Not very much as it turns out. There isn't a lot of data to tell the extent of the problems. Cody Plofker, CMO at Jones Road Beauty, recently said on the Operators podcast, "It's brutal out there. There's something terribly broken with Meta right now."
"It's brutal out there. There's something terribly broken with Meta right now."
We asked Aimfor's Meta expert, Martin Johansson, for his thoughts on this issue. This is what he said:
– It is always wise to carefully monitor and manage your expenses during such periods. This may be an excellent opportunity to evaluate the effectiveness of different marketing channels. To further strengthen your position, we recommend targeting technical groups based on data from your pixel, referred to as 'Lookalike' target groups. It is possible to create target groups based on specific events; for instance, you can target everything from visits to purchases via your pixel.”
