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  • Scale Your Facebook Ad Campaign FAST with the Shotgun Approach

    Scale Your Facebook Ad Campaign FAST with the Shotgun Approach

    Marketers are constantly searching for the most effective strategies to promote their products and services. You might have come across the terms “shotgun approach” and “rifle approach” during your forays into the marketing landscape.

    While the rifle approach zeroes in on a specific target audience with precision, the shotgun approach takes a more expansive route, broadcasting a message to a large number of people, hoping to resonate with a subset that can be further refined. For many startups and small businesses, choosing the right marketing approach can make you or break you.

    Today, we’re taking a deep-dive into the shotgun approach.

    What is the Shotgun Method?

    The shotgun approach stands out for its boldness and breadth. But what exactly is it? At its core, the shotgun method is about diversifying your efforts to reach a wide range of potential customers, as opposed to the rifle approach, which narrows down on a specific subset of your target audience.

    Let’s visualize this with a simple analogy. Imagine you’re holding a shotgun. When you fire, the pellets scatter in multiple directions, covering a large area. Not every pellet hits the target, but the large number increases the likelihood of hitting something.

    In the world of marketing, this translates to creating numerous ads, targeting various demographics, and using different formats and content types.

    The immediate advantage here is the ability to quickly identify which ads resonate and which don’t. Leveraging metrics and feedback, advertisers can then swiftly cut off poorly performing ads, optimizing their budget for high-quality and impactful ones.

    This is especially crucial for startups that need to quickly identify and engage their most responsive audience segments without spending too much time or money on ineffective strategies.

    However, while the method promises potential advantages, it’s not without its prerequisites. To truly harness the shotgun marketing approach’s power, you need a substantial initial budget. The idea is to cast the net wide initially, and then refine and refocus based on performance. This allows businesses to understand their audience’s vast landscape and then drill down to the sections that offer the highest ROI.

    Why the Shotgun Method?

    Today, where artificial intelligence and algorithm-driven platforms dominate, advertisers are constantly looking for the upper hand. Every startup and small business wants to maximize its reach without unnecessarily draining its resources. But with countless marketing strategies available, why should one consider the shotgun approach? Let’s dive in.

    Discovering Untapped Demographics

    While the rifle approach works well when you know exactly who your target audience is, there are often untapped demographics that can be missed. The shotgun method allows businesses, especially startups, to discover these hidden pockets and subsequently refine their strategies.

    Swift Adaptability

    In marketing, especially on platforms like Facebook where the algorithm heavily influences visibility, time is of the essence. By launching multiple ads concurrently, the shotgun approach provides immediate feedback. This rapid data collection can reveal which ads resonate and which don’t, allowing for faster iterations and adjustments.

    Maximizing Artificial Intelligence

    Modern advertising platforms are powered by complex algorithms and artificial intelligence. These systems excel when presented with large amounts of data. By using the shotgun method, businesses provide these algorithms with a large number of variables, allowing them to optimize ad delivery more effectively based on user interactions.

    Minimizing Discrepancies

    While it might seem counterintuitive, casting a wide net can actually help in reducing discrepancies in advertising outcomes. By targeting a broad audience with diverse ads, businesses can quickly identify which messages work universally and which are audience-specific.

    Cost-Efficiency in the Long Run

    Though the shotgun method requires a substantial initial investment, its iterative nature promises better ROI in the long run. By continuously refining and focusing on high-quality ads that perform, businesses can enhance their marketing ROI, making the initial spend well worth it.

    Real-World Successes

    Major brands have seen success with this method. For instance, Coca-Cola, with its vast global reach, often employs a form of the shotgun approach, targeting varied demographics with multiple ad formats before narrowing down to the most effective strategies.

    The shotgun method isn’t just about spreading your efforts everywhere and hoping something sticks. It’s a calculated, data-driven strategy that, when executed correctly, can yield significant results for businesses of all sizes, from the ambitious startup to the established small business.

    Key Steps in Executing the Shotgun Method Effectively

    Harnessing the power of the shotgun approach in your Facebook ad campaigns requires more than just understanding its philosophy; it necessitates a well-defined strategy. Whether you’re a budding startup or an established small business, these key steps will guide you in implementing this marketing approach effectively.

    1. Start with a Clear Budget: Before diving into the creation of a myriad of ads, determine a clear budget. Remember, the shotgun method requires a substantial initial outlay, but this investment can reap dividends if used wisely. Distribute your budget across various ads, keeping some reserve for scaling high-performing ones.
    2. Diverse Content Creation: Embrace variety. Develop ads in multiple formats – videos, images, carousel posts, stories, and more. For each product or service feature, try different narratives and presentation styles. This diversity not only taps into varied audience preferences but also tests the waters across multiple demographics.
    3. Broad Targeting, with a Twist: While the aim is to target a broad audience, it’s essential to define some basic parameters. This can be based on the product’s appeal, known audience preferences, or insights from previous campaigns. Broad doesn’t mean indiscriminate.
    4. Leverage Facebook’s Ad Tools: Use Facebook’s suite of ad tools to aid your shotgun marketing efforts. Tools like Audience Insights can provide valuable information on who’s engaging with your ads, allowing for real-time refinements.
    5. Monitor and Adjust in Real-Time: The strength of the shotgun method lies in its adaptability. Monitor your ad performance at regular intervals – every 4-6 or 8-9 hours. Pause underperformers and allocate more resources to ads that are gaining traction.
    6. Daily Evaluations: Given Facebook’s 24-hour ad cycle, end each day with a comprehensive review. Assess which ads performed best and why. This not only helps in refining your strategy for the next day but also provides long-term insights for future campaigns.
    7. Continuous Learning: With every ad, there’s a lesson. Whether it’s understanding your audience better, realizing a previously unknown market subset, or uncovering the type of content that resonates most, always be in a learning mode.
    8. Iterate and Scale: As days progress and data accumulates, refine your approach. Use the gathered metrics to create more targeted versions of high-performing ads, and gradually scale up your budget allocation towards them.
    9. Stay Updated: Facebook, with its ever-evolving algorithm and features, demands advertisers stay updated. Regularly check for updates, new features, or shifts in the algorithm that could impact your ad performance.
    10. Review and Revise: At the campaign’s end, conduct a thorough review. Which ads outperformed? Which demographics responded best? What content type had the most engagement? Use these insights as a foundation for your next shotgun marketing campaign.

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    Potential Pitfalls and Challenges

    While the shotgun method promises tremendous potential in scaling Facebook ad campaigns, it’s not devoid of challenges. Like any marketing approach, understanding potential pitfalls can be the key to navigating them effectively. Here are some common challenges and ways to address them.

    1. Overwhelm and Mismanagement: Handling a vast number of ads can become overwhelming, leading to mismanagement. Solution: Use advanced ad management tools or dashboards, and consider automating some processes to stay on top of the vast array of ads you’re running.
    2. Dilution of Brand Message: In the rush to create diverse content, there’s a risk of diluting your core brand message or straying off-brand. Solution: Always anchor your content to your brand’s core values and messaging guidelines, ensuring consistency even in diversity.
    3. Budget Overextension: The shotgun approach requires significant investment. Without careful monitoring, there’s a risk of exhausting your budget on underperforming ads. Solution: Set strict budget limits for each ad set and frequently monitor performance, redistributing funds as necessary.
    4. Analysis Paralysis: With a barrage of metrics coming in from multiple ads, advertisers might suffer from “analysis paralysis,” unsure of which data to act upon. Solution: Focus on key performance indicators (KPIs) that align with your campaign objectives. Over time, you’ll recognize patterns that dictate action.
    5. Audience Fatigue: Bombarding the audience with numerous ads can lead to fatigue or even annoyance, potentially affecting brand perception. Solution: Ensure that even in the shotgun approach, ads are spaced appropriately and that frequency caps are set to avoid overexposing a particular user.
    6. Neglecting Long-Term Strategy: The immediacy of the shotgun method can sometimes divert attention from long-term brand-building and strategy. Solution: Use the shotgun method as a part of your broader marketing strategy, ensuring it complements other long-term initiatives.
    7. Misreading Data: Especially in the early phases, there’s a risk of making hasty decisions based on limited data. Solution: While quick decisions are crucial, ensure they’re based on statistically significant data. Sometimes, giving an ad a bit more time can offer clearer insights.
    8. Platform Changes: Facebook and its algorithms are ever-evolving. What works today might not work tomorrow. Solution: Stay updated with platform changes, participate in online advertising communities, and be prepared to adapt your strategies.
    9. Over-reliance: Solely depending on the shotgun method can limit the depth and potential of more targeted, relationship-building campaigns. Solution: Integrate the shotgun approach with other marketing strategies like the rifle approach for a more holistic marketing plan.

    Conclusion

    The digital advertising landscape is a fascinating fusion of art and science. It requires creativity to craft compelling messages and an analytical mindset to navigate the intricate algorithms and ever-changing trends.

    The shotgun approach, with its broad spectrum strategy, is a testament to this duality. By casting a wide net and then swiftly honing in on what works best, businesses can achieve impressive scalability in their Facebook ad campaigns.

    But like any strategy, it’s not just about execution—it’s about understanding. As we’ve delved deep into the intricacies of the shotgun method, we’ve recognized its potential, but also the need for vigilance and adaptability.

    Whether you’re a startup venturing into digital marketing or a small business aiming to amplify your reach, the shotgun method offers a compelling path forward. However, it’s imperative to remember that while strategies and methods can provide direction, the real magic lies in the human touch—the intuition, insights, and innovations you bring to the table.

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  • How to Market on Threads: A Guide

    How to Market on Threads: A Guide

    Threads, Meta’s Twitter competitor, is a powerful new social media platform that has squeezed its way in at just the right time. Twitter is going wild, folks are looking for alternatives, and Threads is simple enough to just work.

    It won’t be like this forever, but for now it’s exactly what the people need. A text-based social media platform that’s so feature-less, the focus can only be on in-the-moment posts and conversing with others.

    So the real question is: “how can I market on Threads?” We have the most concise, future-proof answer for you right here.

    What is Threads?

    Meta’s Threads app is a new (essentially) text-based social media platform that’s weaseled its way into the game. For the time being, all you really need to know is:

    –       Threads is a new app made by Meta (Facebook, Instagram, etc.)

    –       It’s basically Twitter… but also not

    –       It will change VERY soon

    That last part is maybe what you want to focus on most, but we’ll get into a little further down.

    How do I open a Threads account?

    Threads is actually not as open as you might expect for a platform that wants to directly compete with Twitter.

    The only way to access it (besides downloading it from the iOS app store or Google Play store) is by logging in with your Instagram account. Meaning, you must have an Instagram account to access Threads.

    That’s not typically a problem, but it no doubt does insert some barriers to entry for folks who don’t have or want an IG profile.

    (Also, Threads makes you agree to an absolute TON of extraneous data accesses which is a bit problematic in this era of data privacy and consumer protection…but here we are.)

    Why should I open a Threads account?

    As with any new social media platform, marketing opportunity arises. It’s quite early to tell if Threads will be a huge success, but with several million users already signed up and active, it’s worth exploring those opportunities.

    We have a list below of how you can use Threads for your business, which covers why should open a Threads account in the first place.

    If we boil it down, Threads offers two paths: start marketing from scratch or use your status from IG to gain a head start.

    How does Threads differ from Twitter?

    This is actually SUPER interesting. If you want a really deep dive into the differences between not just Threads and Twitter, but all social media networks and basically how Threads is truly in a category of its own, then read this article.

    Let’s break down, first, how they’re similar. Both Twitter and Threads:

    –       Are text-based social networks

    –       Are conversational platforms

    –       Prefer short, bite-sized content

    The interesting thing is how they differ, and there’s only one difference that you need to consider: Twitter is chronological, Threads is algorithmic.

    Right now, both operate chronologically. But Meta is aaaaall about the algorithm. The Facebook homepage is algorithmic, Instagram is too. Sure, there are options that allow you to see content only from accounts you follow, but the default is based on an algorithm.

    One of the most interesting facts that maybe we should explore marketing-wise is that consumers think they want a timeline, but they actually want the algorithm. Discoverability and interaction is at its highest when a platform sorts algorithmically, not chronologically.

    However that doesn’t mean there isn’t a place for the timeline. Twitter relies entirely on a timeline, and that alone puts it in its own social category. But look at TikTok; it’s all about the algorithm and it’s one the world’s most popular and loved social network.

    Will Threads beat Twitter?

    They are different, so probably not. Twitter will always be focused on the here and now. It’s the perfect platform for news and current events. Threads is great for evergreen content, or at least content that isn’t so time-specific.

    Both have their places. Twitter isn’t going anywhere. It has a strong user base and is filled with real-time updates to anything happening in the world right now.

    It does feel like there’s a battle between Mark Zuckerberg and Elon Musk, but Threads is positioned as a Twitter alternative with a similar-but-unique user experience, not a Twitter clone.

    You have to start thinking of Instagram’s Threads differently. Not as a competitor for Twitter, but as a standalone app designed for algorithmic consumption. Your social media marketing strategies will differ on both platforms.

    How can I market on Threads?

    Right now, Threads is in its infancy, which means marketing is not really their focus. Threads wants users right now and influencer marketing later. But given that it’s made by Meta and set to integrate with ActivityHub, digital marketing will be a major part of the platform. Expect it to be part of Pixel in the coming months.

    Having said that, here’s how you can start marketing on Threads and future-proof the branded content you publish today.

    The 80/20 Rule

    Engage and educate 80% of the time, promote your business 20% of the time. This rule applies more on text-based social networks than any other type, because it’s far too easy to spit out promos 30x a day here. Don’t do that. Focus on engaging with your audience.

    –       Educate – Teach your followers something new without the marketing plugs. Aim to provide value and position your account (and brand) as an authority in whatever it is you do.

    –       Engage – Your audience is just as powerful as you are. They can ask you public questions, write reviews, etc. for all to see. Engage with them directly and build up the rapport.

    –       Entertain – We’re all in it for the memes, no? People don’t always want to feel like they’re in school, so make your content entertaining.

    The platform has quite a high character limit, so it is easy to just copy and past long-form material. Instead of doing that, get creative. Break up your content and embrace the Threads format.

    Converse with Your Audience

    Threads is one of the easiest platforms to have a real, honest conversation with your audience. And that’s exactly what your followers want on here: a conversation.

    This is a perfect opportunity for you to learn about your audience and use that information to not only create a stronger connection with them, but also adjust your product to meet their needs.

    There is no DM feature on Threads, but in our eyes it doesn’t need one. This is the perfect place to keep everything you do and say public. Messaging always takes place on public threads of conversations, and being active on the platform means you have nothing to hide. Influencers might not like it at first, but with time it’ll be a valued feature.

    Use “Live” Features

    There is no Threads Live like what exists on Facebook or Instagram at the moment, but there will be.

    For now, though, you can converse live with your audience. Maybe host an AMA, set Threads-based Q&A sessions, or set “office hours” on the platform. This sort of live scheduling will let customers know you’re online and ready to chat, which can help you appear reliable and engaging.

    Schedule Your Content

    Even if the platform is mostly about short-form text, you should still have a schedule for your main content. This ties in directly to the 80/20 rule. This way, you won’t overly promote your business OR fail to promote it.

    Post Visual Content

    Just because the platform craves text-based content, you should still promote some type of visuals (even if it’s just in GIFs). Break up the monotony of black-on-white text and add some color to your account.

    While there are no hashtags yet nor ways to optimize your content, you can get a head start by adding hashtags into your posts and writing “SEO” captions for your visual posts to help them remain discoverable down the line.

    Utilize the Threads Feature

    If you press enter three times, you can start a new thread on Threads. Easy!

    Use that to your advantage. You can publish an entire thread all at once, so it’s easy to break up long-form content into bite-sized posts that remain connected.

    Repurpose IG Content

    Carousels for businesses on IG are generally used for how-tos and top 10s. You can repost that content on Threads by utilizing the previous suggestion of starting a thread.

    Each post (though connected) would act as one page of your carousel. In fact, it would be easier to provide even more details or notes on a particular section since they all act as they’re own mini post.

    Your Threads profile is directly linked to your Instagram profile. There’s even a little IG button, so users will always have access to that for a more visual illustration of your small business.

    Write for an Algorithm

    This is where most people will have trouble adjusting. You shouldn’t write things based on a timeline. If you want something to remain chronological, you should publish it all under a thread.

    Think of everything as a stand-alone nugget of information. Every thought, question, answer, photo, etc. is its own thing and the only thing that glues it all together is your brand. Eventually, Threads will offer some level of discoverability and organize the homepage based on an algorithm, so whatever you post must be optimized for that.

    Marketing on Threads Is Just One Piece of the Puzzle

    Every social platform is its own piece, really. They should stay connected but be self-sufficient. And all of them have the overall purpose of increasing awareness for your brand. Whether that’s through customer engagement or promos, you need to be prepared for an influx of sales and traffic to your store.

    Our goal here at DirectPayNet is to help get your customers not just to checkout, but through it. That’s why we specialize in providing high-risk merchant accounts for entrepreneurs and business owners looking to streamline the checkout process.

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  • How to Save Your Ad Revenue on Facebook After 2 Years of Apple’s “Ask App Not to Track”

    How to Save Your Ad Revenue on Facebook After 2 Years of Apple’s “Ask App Not to Track”

    Navigating the digital landscape has always been a thrilling adventure for direct response marketers. But what happens when the winds change direction, and the previously calm waters start to stir? A previous Apple update iPhone, iOS 14.5, unleashed such a storm with its App Tracking Transparency (ATT) feature – an iceberg that the S.S. Facebook is now having to steer around.

    But that was 2021; we’re a full 2 years later on iOS 16, and soon iOS 17. So how can this seemingly small update still have such an impact on mobile marketing? And what can marketers do to save their ad revenue?

    The digital world is undergoing a seismic shift towards a future where user privacy is not just respected, but championed. Privacy is no longer a side feature – it’s becoming the heart of the digital user experience. And while this transition to a privacy-focused digital space is crucial, it is also challenging.

    But let’s not get ahead of ourselves. Today, we’re going to dive deep into these murky waters and explore how the ATT feature impacts Facebook app ads. We’ll analyze the challenges direct response marketers are facing and discuss potential solutions to adapt to these changing tides.

    The Dawn of App Tracking Transparency

    As digital citizens, we spend countless hours navigating the digital seas, leaving behind trails of data like breadcrumbs on our journeys. For years, these breadcrumbs were the key to creating highly personalized advertising experiences.

    Enter the Identifier for Advertisers (IDFA), a unique random identifier assigned by Apple to a user’s device. The IDFA was like a map that advertisers could use to understand a user’s path across different apps downloaded from the App Store and websites.

    But in April 2021, Apple introduced a game-changing privacy feature with the launch of iOS 14.5 operating system: Apple’s App Tracking Transparency feature (ATT).

    Why, you ask? Well, it’s all about privacy.

    Apple has made a concerted effort to give users greater control over their personal data and who can track it. With privacy becoming a growing concern amongst users worldwide, Apple’s decision aligns with a broader shift towards safeguarding digital privacy.

    The ATT policy is as simple as it is significant. When users download or update iPhone apps on their Apple devices, they’re presented with a prompt asking if they want the app to track their activity across other companies’ apps and websites. Users can either grant permission by selecting “Allow Apps to Request to Track,” or deny access by choosing “Ask App Not to Track” when they receive the pop-up. It’s a choice, and in an increasingly privacy-conscious world, it’s a choice that many users are taking seriously.

    This control over privacy even extended as far as implying that if app developers didn’t incorporate app tracking and ad tracking details in their listing, then

    And what does this mean for the IDFA, that once-reliable map for advertisers?

    When users select “Ask App Not to Track,” apps are prevented from accessing the user’s IDFA. It’s akin to taking away the compass from a sailor, making the sea of digital advertising a bit more challenging to navigate.

    This has been a significant change, indeed, but how has it truly impacted the advertising world, particularly on platforms like Facebook that have historically relied on such data? And how have both Meta and Apple allowed such a blow to continue to hit marketers—the fuel that keeps their platforms running?

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    The Tsunami Hits – How ATT Shook Facebook Ads

    The introduction of App Tracking Transparency (ATT) sent shockwaves through the digital advertising world, with Facebook at the epicenter. After all, Facebook and its suite of apps have been sailing on the sea of personalized advertising, using data to deliver hyper-targeted ads. But when a significant chunk of this data was suddenly taken off the table, the waves started crashing.

    Decreased Ad Personalization

    The first and perhaps the most substantial blow was to ad personalization. Prior to ATT, Facebook collected a wealth of user data across various apps and websites, painting a picture of the iPhone user’s digital journey. These details were the fuel that powered Facebook’s ad personalization engine.

    However, ATT’s restrictions have reduced access to this fuel. When users opt for “Ask App Not to Track,” Facebook’s ability to deliver personalized ads takes a hit. Consequently, ad performance and user engagement may not pack the same punch they once did. The ripples of this change are being felt by advertisers who used to rely on such hyper-targeting to drive their campaigns.

    Conversion Tracking in Murky Waters

    Then there’s the issue of conversion tracking. For direct response marketers, understanding how users interact with their ads and their subsequent actions (like making a purchase or signing up for a newsletter) is paramount. It’s this information that allows marketers to tweak and refine their strategies, ensuring their ship is on course.

    However, ATT has cast a fog over this crucial insight. The new policy curtails Facebook’s capacity to track conversions, especially over longer attribution windows, making it harder for marketers to map the customer journey and assess the effectiveness of their campaigns.

    The Shrinking World of Audience Network

    Facebook’s Audience Network extended the reach of campaigns beyond Facebook and Instagram to other third-party apps and websites. It was like having an entire fleet of ships at your disposal. But the ATT policy struck right at its heart.

    The Audience Network relied heavily on IDFA for ad targeting and delivery. With ATT in play and users opting out of tracking, the fleet’s reach is shrinking. Advertisers who used to depend on the extended reach of the Audience Network are now having to navigate narrower channels.

    Eroding Shores: Advertiser Confidence Takes a Hit

    With these changes making waves, advertiser confidence in Facebook as a platform for effective targeted advertising is under threat. Some marketers are questioning whether they’re still getting a good return on their investment and if advertising on Facebook is even worth the effort if they can’t target on mobile.

    The storm isn’t over, but it’s not all doom and gloom. Yes, ATT has rocked the boat, but it’s also an opportunity to recalibrate our compasses. In the next section, we’ll explore strategies that direct response marketers can use to weather this storm and continue charting a successful course.

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    Charting a New Course – Workarounds for Marketers

    Though the storm brought about by ATT is turbulent, it’s essential for direct response marketers to remember that every challenge presents an opportunity. Sure, our old maps may not work as well, but that only means it’s time to chart a new course. Let’s look at some of the strategies marketers can employ to navigate these choppy waters.

    Embrace the Change

    Firstly, we must recognize that these changes reflect the evolving expectations of users regarding privacy. It’s an opportunity to rebuild trust with your audience by showing them that you respect their choices and are committed to protecting their privacy. Transparency and open communication about data usage can go a long way in nurturing this trust.

    Keep in mind: you can still fully target on the desktop and for consumers using Android devices. There is no direct Android equivalent to “Ask App Not to Track” (yet), so this is an opportunity to segment your audience further.

    Diversify Advertising Channels

    While it’s true that Facebook’s ad targeting capabilities have taken a hit, it’s crucial not to overlook other advertising channels. Consider diversifying your advertising strategy by exploring other platforms that might be effective for your target audience.

    Options might include:

    –       Targeting mobile web browser users (Safari, Chrome, Edge), not mobile app users (on iOS), where users are more lenient when it comes to tracking.

    –       Navigate your efforts on other social media apps like Snapchat, TikTok, Instagram, and LinkedIn where the app, alone, gives you context clues as to who the users are.

    –       Google Ads and Bing Ads, especially in this new seascape of AI, might be your next big hit.

    Leveraging Facebook’s Aggregated Event Measurement

    Facebook has responded to ATT with the introduction of Aggregated Event Measurement, designed to help advertisers measure campaign performance in a privacy-conscious manner. While it doesn’t entirely replace the data lost due to ATT, it’s a valuable tool for gauging the impact of your ads.

    Refining Targeting Within Facebook

    Facebook’s internal data still offers valuable targeting options. Interactions within Facebook or Instagram, such as page likes, post engagement, and more, can help you craft targeted ads. Use these data points creatively to find your target audience.

    Content is King

    In a world where hyper-targeting is less feasible, compelling content is more important than ever. High-quality, engaging content that resonates with your audience can still cut through the noise. Ensure your creative team is up to the task of crafting content that can succeed even without a narrow target audience.

    Data Collection & Analytics

    Consider other methods of data collection, such as direct user surveys or website analytics. While it may not replace IDFA data, it can still provide insights into customer behavior and preferences. With this data, you can segment your audience and tailor your messaging to suit their needs and wants.

    Keep an Eye on the Horizon

    The digital advertising world is in constant flux. Staying informed and agile in your strategies is crucial. Subscribe to industry updates, participate in relevant forums, and constantly experiment and adapt your strategies based on your observations.

    How to Set Sail and Keep Conversions at an All-Time High

    The shifting winds in the world of digital advertising may feel unsettling, but as we’ve seen, they also herald new opportunities. The introduction of App Tracking Transparency (ATT) has fundamentally altered the course of targeted advertising, especially on platforms like Facebook. However, it’s not an insurmountable hurdle but a wake-up call for marketers to innovate and adapt.

    However, there’s another important factor for direct response marketers to consider: the processing of online transactions. Given the potential high-risk nature of digital advertising, having a reliable and secure payment solution is vital.

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  • How will iOS 14 affect dropshippers

    How will iOS 14 affect dropshippers

    Allow “Facebook” to track your activity across other companies’ apps and websites? Apple is trying to reposition itself with the controversial issue of handling data, confronting Facebook (and many other apps along with it) by creating a barrier around personal data. IOS 14 offers users the ability to opt-out of tracking outside of the app, making very popular digital marketing tactics much less effective. In our comprehensive guide, you can read about how it affects your dropshipping business, and what you can do to counter it.

    Apple vs Facebook Ads vs Dropshipping

    Facebook is still the undisputed champion of social media. Already a third of the world’s 7.6 billion people are active users (2.85 billion so far in 2021, with an average growth rate of 14% per year).

    The immediate trigger of the biggest privacy scandal was not Facebook, but the British analytics and marketing firm Cambridge Analytica (CA for short), which was shown to become one of the biggest influencers of the 2017 US election through dubious dealings and may have played a major role in the election of Donald Trump. The social network came under fire after a former employee of CA alleged that the company obtained unauthorized data from more than 50 million Facebook users in 2013 through an external application that logged into Facebook.

    Facebook-related apps from third-party developers could receive some personal data, and while you can prevent apps from posting to the social network on your behalf, their creators could still misuse the rest of the data they collect.

    The scandal has also had a powerful impact on Facebook: It has reignited the debate over data security and privacy that has existed since the beginning, but the situation has also caused a great deal of concern at the government level, alongside users. Mark Zuckerberg and other senior executives of Facebook have been summoned for face-to-face meetings both in the US and the EU, while political, business and public figures have begun to denounce the social network as the root of all evil.

    Although Facebook mobilized its resources to get a handle on the situation, this scandal opened the eyes of the public, creating an opportunity for Facebook’s direct and indirect competitors. Apple, while no stranger to privacy breaches and abuses, easily repositioned itself as a savior in the wake of the CA scandal, became one of the influencers, offering a solution with iOS’ most influential new feature ever.

    IOS 14 introduced a new functionality directly affecting running ad sets and conversion events: it asks permission on behalf of all apps used to track activity outside of the app. While in-app data collection is still possible and generally allowed, users are practically invited to opt-out of out-of-app data collection. This influential feature has the biggest impact on Facebook and its retargeting capabilities.

    Dropshipper challenges

    The fact that Apple restricts user tracking is just the beginning. In short, the problem is that many online stores, small businesses, and dropshippers have built their business models around the ability to effectively target website visitors. Ultimately, this could even impact supply chains and purchase prices. In the time to come, those who have used remarketing may face poorer results as online marketing becomes less effective.

    In December 2020, the new iOS has been adapted on 72% of all Apple iOS mobile devices, and eventually became the most successful upgrade by the Palo Alto company. Although this only affects the i-device users at the moment, many other companies are known to have such initiatives in the making. This is a very fascinating topic because a restricted Facebook algorithm will put posts and Facebook ads in front of the user that are not in their interest, and will eventually lead to frustration too. Of course, it is also true that we are almost too closely followed by the algorithms, so limiting the process seems justified from the user’s point of view.

    And what results can you expect for your dropshipping business?

    • The conversion event’s measurement will not be as accurate as before, so you should expect a decrease in conversion rates and ROAS.
    • In cold audience targeting, where you have excluded certain retargeting lists (e.g. shoppers), you may still show ads to those who have made a purchase but not accepted the follow-up.
    • The attribution models will also change, for example, the 28-day attribution model will disappear. Click-less conversions will be limited to 1 day.
    • You can now only measure 8 conversions per domain.

    Ecommerce targeting at its best (or not), and how to repair it?

    3 elements of Facebook Ads will be directly affected by the IOS 14 update:

    Conversion tracking

    iOS 14 updates have caused tracking data to become inaccurate. Facebook is no longer able to track all conversions, and not in real-time either, but with a 72-hour delay. So instead of being able to react immediately to a poorly performing ad, you have to wait up to 3 days to make the necessary changes.

    Algorithm optimization

    With the iOS 14 update, Facebook’s algorithm became less optimized. Previously, FB ads were optimized based on data collected via Facebook Pixel. As more users adopt the changes in the new Apple iOS system and opt-out of tracking outside of Facebook, the effectiveness of the algorithm has decreased significantly. Ads are being distributed to the wrong audiences due to incorrect pixel counts and old campaigns are more likely to be turned off.

    Website targeting

    Inaccurate tracking leads to inaccurate customer targeting. Limitations placed on both the tracker and Facebook reporting features lead to inaccurate statistics and misrepresentation of performance. Instead of becoming more and more laser-focused, Facebook’s targeting becomes similar to real-life surveys, where people sometimes don’t tell the whole truth. And we don’t expect this to improve as other software manufacturers follow the changes applied to the iPhone.

    How to keep Ad Account costs low?

    To avoid your ad costs skyrocketing, you need to rethink your FB ads. What has kept your ad costs down to this point? Accurate targeting by tracking user behavior, on which Apple has pulled the plug. The easier way is to improve tracking through Google Analytics by introducing UTM link parameters into your ad URLs. This will result in rich data on your Google Analytics dashboard that you can use to manually optimize your ad sets.

    Use retargeting based on user engagement. Ad sets that use this method are generally aimed at audience members who have already interacted with the ad. The majority you can’t track due to iOS 14. However, you can replace ad clicks with video views (calculate with at least 15 seconds of video view as an equivalent of a single click). Facebook still prefers videos over any other type of content, so you can base your retargeting campaigns on people, who liked and watched your videos.

    How to protect your partnership with your ecommerce payment processor?

    When it comes to ecommerce, especially dropshipping, one of your most important partners is your payment processor. However, this is a fragile collaboration, as processing providers are very careful about who they work with, and losing such an important partner for your dropshipping business is something you definitely want to avoid.

    But how does all of this relate to iOS 14? With previous ways of reaching audiences derailed, you’re going to have to do a tremendous amount of testing to get your Shopify store back to where it was. This next period will be about wildly fluctuating sales for all dropshippers.

    Finding the winning products is critical (use Oberlo to increase your chances), but not enough to avoid potential chargebacks. According to a Midigator study, the number of chargebacks overall has dropped significantly in the last 4 years, by almost 50%. This makes it even more important to keep your chargebacks as low as possible.

    Because of the weakened targeting potential, your dropshipping business will attract the attention of people who are likely to buy, but also more likely to initiate chargebacks. Your goal here is to protect your online business against fraudulent chargebacks, and, in case it is a “friendly” initiation, provide the best customer service possible.

    How to withstand the new chargeback rates in dropshipping?

    Chargebacks aren’t just costs and lost revenue – they add hidden costs to your online business through manual review efforts, low authorization rates, additional labor hours, administration, and associated risks. A continuously high ratio of chargebacks can cause payment providers to discontinue doing business with you and put you on an industry blacklist, usually called the MATCH list or TMF (Terminated Merchant File).

    In connection with the new iOS update, what can you do for your dropshipping store to continue being an ecom king? Since the number one reason for chargebacks is still fraudulent behaviour, you need to take protective measures against it.

    • Even if Apple doesn’t allow business owners to have enough information for targeting before the user has purchased one of their products, you’ll have a good amount of data as soon as the checkout happens. Keep records of everything, but also don’t forget to store and use that data following GDPR.
    • You can use step by step address verification services along with card verification codes. To prevent fraud from occurring, obtain as much information as possible from the consumer.
    • As a dropshipping business, invest in fraud protection technologies that can help detect chargeback fraud before it occurs by identifying high-risk transactions. You can create specific rules to prohibit transactions in certain circumstances.
    • Instead of focusing on SEO only, do optimization towards being accurate and transparent on the checkout page (and before). If you provide all the necessary details about your dropshipping products, fraudsters will have less chance to win disputes.

    Final thoughts

    Although the new Apple iOS 14 brings many changes, most of them not in favor of dropshippers, you should definitely consider this situation as a potential opportunity. Many less small dropshipping competitors operating only on Shopify, Amazon, or AliExpress, will drop out of the market, and the merchants finding alternatives to FB ads targeting will be the most successful. Watch out for new updates, such as iOS 14.5 (and v15 coming in hot this September), test wisely, check out the newest tutorials, avoid fraudulent chargebacks, and use this situation to your advantage.