PowerHouse 2023

Realizing the potential

of your Performance campaigns
Jake South Sophie Ellis Stephanie Newman
Agency Partner Agency Partner Agency Solutions Manager
UNLOCK AI: REALIZING THE POTENTIAL OF AI

30%

$30-33bn 14% 13% 13%

7%
planned 2023 Meta capital
expenditure majority on AI and

…
Alphabet Amazon Apple Microsoft

M
A

A
apps1
R&D as % of total revenue 20222

Sources:
1. Meta Q4 2022 Earnings Call
2. Q4 2022 Earnings Call from Alphabet, Amazon, Apple, Meta, Microsoft
UNLOCK AI: REALIZING THE POTENTIAL OF AI

Rebuilding our ad stack for an

evolving privacy landscape

+20%
increase in conversions
YOY and decline in
cost per acquisition
Ranking Distribution Tooling

Source: Meta, Q4 2022 Earnings Call Transcript

UNLOCK AI: REALIZING THE POTENTIAL OF AI

AI foundations
Business goal Audience liquidity

Quality data Multiple placements

FUEL FREEDOM
Diverse creative Simple account structure

Learning journey Room to learn

AI PERFORMANCE INDEX

Data
AI performance index CAPI/Pixel/EMQ
Learning phase
Maximize all to improve business results Catalog health (match rate, item availability)

Creative
Creative differentiation
Creative fatigue

Media
Account simplification
Liquidity (placement, audience, Reels, Budgets)
Advantage suite (ACA/ACABA)
Advantage+ shopping campaigns

Measurement
Incrementality testing (Conv lift, GeoLift, MMM)
Multi-cell experiments that measure incremental
sales (Conv lift, GeoLift)
Data marktgoods
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01
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Conversions API/Meta Pixel/EMQ

Learning phase
Catalog health (match rate, item availability)
DATA

Relies on current-state browser

What is the
technology to be effective

META PIXEL

WEBSITE

Conversions API?
INTERACTION

The Conversions API is a Meta Business Tool

that creates a direct connection between your
marketing data and Meta.
SERVER CONVERSIONS API
This helps you to use your own marketing
data to optimize ad targeting, decrease cost
YOUR CUSTOMER
per action and see a more complete picture of
campaign outcomes while respecting people’s
privacy.

OTHER
INTERACTION

For example, CRM, lead ads

and system-generated events
DATA

Large global advertisers Advertisers with higher quality

with the Meta Pixel who Conversions API setup saw through
set up the Conversions Conversion Lift studies, on average
API saw, on average

VOLUME PURCHASE EVENT SUBSCRIPTION EVENT

+19% +33% +82%

Additional attributed Increase in share of Increase in share of
purchase events.* incremental purchase incremental subscriptions
events** events***

*Based on analysis of >1K global large advertisers with direct, **Based on analysis of >1K global large advertisers with ***The meta analysis is based on the Global Conversion API
Conversions API Gateway or partner integrations (partner direct, Conversions API Gateway or partner integrations based Lift studies (with 90+% confidence) ran between
integrations only included if >1000 integrations exist) between (partner integrations only included if >1000 integrations 2022-02-05 to 2022-05-03 with different levels of EMQ
2022-01-01 and 2022-03-31 with criteria of at least 50 server exist) between 2022-01-01 and 2022-03-31 with criteria scores. The difference in incrementality share was
and browser events, EMQ score > 5, server coverage of > 90% of at least 50 server and browser events, EMQ score > 5, observed between an EMQ score of 5.0 to 7.0 for
(but no higher than 300% to eliminate outliers) Source: Meta server coverage of > 90% (but no higher than 300% to advertisers who are passing subscription events with
case study eliminate outliers) Source: Meta case study Conversions APISource: Meta case study
DATA - LEARNING PHASE

• Optimising the delivery CAMPAIGN AD SET AD

system through a
consolidated and streamlined

EXPECTED CONVERSION
campaign setup. Learning phase Optimised
delivery
• During the learning phase, the
delivery system is exploring
the best way to deliver your

RATE
ad set
NUMBER OF CONVERSIONS

As of 6/18/2019
DATA - LEARNING PHASE

We can exit the

learning phase faster
by using

simplified account structure

which leads to more auction markt
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efficient CPAs.

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DATA - LEARNING PHASE

19% LEARNING

average lower CPA for ad

sets that successfully exit LEARNING
LIMITED
ACTIVE
learning phase

On average, advertisers saw a 19% lower CPA for ad sets that successfully exited the
learning phase (moved from learning to active), versus those that failed to exit the
learning phase (were learning limited).

*Analysis excludes smaller tail-end advertisers who are not eligible to see spend in learning details, and uses only purchase optimised activity from October 2022. Based on median within advertiser improvements.
DATA - CATALOG HEALTH

What is catalog How to calculate

match rate? catalog match rate
A catalog match occurs when an event signal has been
matched with a product. Catalog match rate =
It is a percentage of products received via events that can
# of content ids matched to this catalog /
be matched to a product from a connected catalog.
# of content_ids from the event source

Catalog match rate can help connect

more people to more products
Scoring a

90%
or higher indicates a high match rate if you have a
Effective use Increased Improved ad single catalog connected to the event source*.
of signals audience size performance
• *As recommended by Meta
Business Engineering
Creative Golden matte
eyeshadow

02
Blue hand-dyed knit
sweater

Creative differentiation
Creative fatigue
CREATIVE

Creative: The ultimate

performance lever
Meta’s billions of users engage with our platforms in different ways,
and in order to reach all potential customers in a way that will View product
successfully influence them to take the desired action, advertisers
must advance their creative strategies through both:

Product adoption
1 (new formats, placements, mediums)

Creative concepts
2 (visual messaging content, style)

Both strategies can drive direct response efficiency, incremental

reach, and greater performance at scale. Particularly since many
historic optimization strategies are inaccessible. In a digital
advertising ecosystem with less data, creative diversification is
critical for marketers to sustain media performance - and will be the
key differentiator going forward.
CREATIVE

Creative differentiation
has been shown to drive

32%
9%
incremental reach
increased efficiency

Right stat: We found that the more visually distinct the creatives,** the higher the performance lift of diverse creatives over identical creatives. We saw that the lift in performance (in
test vs control) was 32% when the creatives in the diverse cell were most visually distinct,** compared to 2% when the creatives in the diverse cell were most visually similar.**
These results were derived from a scaled backend test comparing the performance of two identical vs two non-identical (creatively diverse) creatives in 2703 ad sets across verticals
from 04-04-2021 to 04-26-2021. This analysis was limited to static ads only.

**Visual similarity as defined by distance in a vector-based, ML-derived mapping of image contents.

CREATIVE

Creative advancement through product adoption

Secondary
Easy wins Increased efficiency Incremental reach business goals
● Automatic ● Dynamic Ads ● Video/in-stream ● Click to Messenger
placements ● Commerce product ● Branded content with ● Lead Ads
● Placement tagging handshake
customization ● Multiple asset types ● On-platform
● Dynamic creative ● Instant Experiences engagement audiences
optimization ● Messenger and lead
● Dynamic language gen
optimization ● Cross-border business

Product adoption
Same format, new and improved message
CREATIVE

Creative advancement through concept differentiation

Avoid
Easy wins Increased efficiency Incremental reach
creative fatigue
● Frequency - How
● Vertical/square ● Mixed asset types ● Dissimilar concepts often to deploy new
(over horizontal) ● Messaging matrix ● Diverse people creative
● Feature brand ● Custom overlays ● Optimizing across ● Where - Which
upfront ● Promotion testing the funnel campaign to deploy
● Showcase the ● Community ● Influencer strategies new creative
product or service connections ● Strategy - How to
early rotate new vs. existing
● Video + static mix assets

Product adoption
Same great message, new and improved format
CREATIVE

Avoid creative fatigue

Why this works
18 CPA benefit from
Creative refresh helps to improve creative efficiency creative refresh
16
Creative fatigue tool informs clients their rate of

Refresh CPA benefit %

14
generating new creatives and when/where to
develop and deploy new creatives. 12

10
Stats overview:
8
Our analysis found that greater levels of fatigue
were predictive of stronger CPA improvement from 6

creative refresh: Improve CPA by up to 18%.

4
Creative fatigue (before refresh)
We have run 11 advertiser tests so far.
Average CPA improvement of 9% (90% confident
that adding new creative improves performance)
CREATIVE

Choosing the right measurement strategy

AUCTION SELECTION TEST A/B TEST LIFT TEST

Description Description Description

Ads to be tested are in an ad set with Test using the Experiments tool. Each cell Test using the Lift tool. Winner is
designated budget. Let the system has a designated budget and audience. identified based on incrementality.
decide the winner.

When should I use this?

When should I use this? Pros
When should I use this?
Pros ● Can pick the best ads to deploy Pros
● Can pick relatively good ads to deploy ● Build clear future learnings (which ad is ● A more rigorous approach to testing
● Generally requires less budget best and by how much?) ● Can measure brand lift and conversion
● Can include more ads at once ● Has built in statistical significance in lift between test cells

Cons the UI Cons

● Won’t build clear future learnings ● Splits audience to eliminate cross ● Holdout group is mandatory
(which ad is best and by how much?) contamination ● Would need enough test power to see
● Full credit given to only one ad which Cons significant results
can lead to cross contamination ● Generally requires more budget
● Tests are limited to campaigns with
the same attribution setting
Media

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$32.00

Account simplification
Liquidity (placement, reels, automation)
Advantage suite (ACA/ACABA)
Advantage+ shopping campaigns
MEDIA- ACCOUNT SIMPLIFICATION

Account structure
Adopt the simplest campaign structure to offer the flexibility needed for the system to learn efficiently

STRUCTURE 1 STRUCTURE 2

One campaign Single campaign and ad set targeting all

per customer segment customer segments

Calculate the maximum number

of ad sets your budget can
sustain.
CAMPAIGN
When you set up ad sets, don't create
more than this number in order to
maximize liquidity and efficiency.
AD SET

Total weekly
Max number budget
AD of =
ad sets Cost per acquisition
X 50
Not recommended Preferred
MEDIA - ACCOUNT SIMPLIFICATION

Account simplification
Utilize broad targeting which
simplifies an account structure
and drives a markt

5%
Sponsored

Better median
cost per purchase

Compared to existing campaigns

with 91% confidence.1
Shop now

Source: Based on a Meta meta-analysis of 10 split tests run from December 2021 – January 2022
MEDIA – LIQUIDITY (PLACEMENTS)

Show your ads

across 6 or more
placements
From brand and conversion campaigns FACEBOOK STORIES INSTAGRAM FEED FACEBOOK FEED

running across 6 or more placements

marginally outperformed campaigns running
across 4 or fewer placements with a

73% probability.

INSTAGRAM
REELS MESSENGER
STORIES
Source: Based on historical results from Brand and Conversion lift studies
conducted between October 2020 and September 2021.
MEDIA – LIQUIDITY (REELS)

Reels supercharge results

Reels ads plug into Meta’s performance marketing

ecosystem – built on world class AI – to amplify
outcomes for businesses.

Adding Instagram Reels ads to business-as-usual (BAU) direct

response campaigns significantly increased the likelihood of page
visits, add to cart, and purchases1

▪ Adding Facebook Reels ads to business-as-usual (BAU) direct

response campaigns drove more incremental purchases per dollar
spent than BAU campaign alone2

Source: 1. Page visits results are based on 12 lift studies, add to cart results are based on 13 lift studies, and purchase results are
based on 11 lift studies. All studies were run from June 2022 to December 2022 by global advertisers from various verticals
including Ecommerce, CPG, Retail, and Professional Services. Business-as-usual campaigns means Facebook Feed, Instagram
Feed and Instagram Stories. 2. We conducted a 2-week long large-scale study measuring incremental effects with 14k global
advertisers across multiple verticals in Q3 2022. Results showed that adding ads that were opt-in to FB Reels placement
delivered 3% more incremental purchases per dollar spent compared to not opt-in to FB Reels placement. To minimize skew,
we cap conversion counts at 5 for each user for any given ad account in the test. The result is statistically significant at 90%
 MEDIA – LIQUIDITY (REELS)

Reels supercharge results

20% sales impact 1

When Reels are included in placement optimisation with 6+ placements

-16% lower CPM 2

When Reels (Facebook and Instagram) are added to BAU ads

-6% lower CPA 2

When Reels (Facebook and Instagram) are added to BAU ads

Sources: 1 Nielse custom MMM meta-analysis commissioned by Meta ‘Global CPG Execution Best Practce to Maximise Meta
Performance, Nielsen Metrics That Matter’ 119 CPG Brands, 2019-2021 2. On average across 12 Disruptors clients tests June
2022
MEDIA – LIQUIDITY (AUTOMATION)

Automation
Use automation to enhance various aspects of your campaign.

SOLUTIONS ACROSS META TECHNOLOGIES

BUDGET AUDIENCE CREATIVE PLACEMENT

Advantage+ campaign Audience automation solutions Advantage+ creative and Advantage+ placements
budget helps distribute help reach more people likely to Advantage+ creative for enables you to take
your budget to your best convert. catalog help personalise advantage of the lowest-
performing ad sets. creatives at scale. cost auctions across all
Advantage detailed targeting
placements.
Advantage lookalike
Advantage custom audience
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MEDIA - LIQUIDITY

Audience automations improve campaign performance

by reaching more of the people likely to love your product.
Audience automation solutions Business outcome

Advantage detailed targeting Reach a broader set of people than

those defined in detailed targeting. 37% decrease in median cost per incremental
conversion for campaigns using Advantage
detailed targeting (vs. regular detailed targeting)1

Advantage lookalike Reach people outside your defined

lookalike audience. 17% decrease in median cost per result when using
Advantage lookalike (vs. regular lookalike
audience)2

Advantage custom audience Reach a broader set of people than those

you defined in your Custom audience. 34% lower median cost per product catalog sales when
using Advantage custom audience (vs. regular
Custom audience) for campaigns where the
objective was product catalog sales3

Source: 1. 10 lift studies in NA, LATAM and EMEA, from May-July 2021, to test whether Advantage detailed targeting was more cost-effective on conversions than not utilizing Advantage detailed targeting. 2. 14 cross-vertical AB tests in NA, EMEA, and
APAC, from April-May 2020, to test whether Advantage Lookalike drives more cost-effective purchase conversions than BAU Lookalike Targeting. 3. Meta global budget-controlled experiment of 589 campaigns randomized at the user level and conducted
in April 2022. For both Product Catalog Sales and App Installs, a statistical simulation framework gave a 99.9% statistical confidence that Advantage Custom Audience outperformed Custom Audience for driving cost-effective conversions. Given the scale
of this study, outlier data points will occur and were retained and accounted for through rule-based methods and by using the median to describe results.
MEDIA - ADVANTAGE SUITE (ACA & ACABA)

Broad audiences
Your expanded audiences

Advantage+
catalog ads help you
connect with people
likely to purchase. Retargeting audiences
Your existing audience
MEDIA - ADVANTAGE SUITE (ACA & ACABA)

Better together 40%

Combining broad audiences increase in sales for retargeting
with retargeting audiences with Advantage+ ads and broad
leads to great results audiences combined, compared to
retargeting with Advantage+
catalog ads alone
MEDIA - ADVANTAGE + SHOPPING CAMPAIGNS

Advantage+ shopping campaigns

An automated portfolio solution for performance marketers
Create a single campaign for all performance objectives, and Meta will automate the process – across targeting,
optimization, creative, and destination - to effectively deliver the right ad to the right person.

Better performance More efficiency Greater scale

Uses machine Optimizes for fresh, Connects you to more

learning to deliver the high-performing creative people while respecting
highest-performing ads. with minimal manual input. people’s privacy choices.
MEDIA - ADVANTAGE + SHOPPING CAMPAIGNS

Better performance Targeting Optimization

Meta’s new machine-learning models automate

creative, targeting, optimization, and destination
levers to pair the right ad to the right person, while
maximizing performance.
Advantage+
31 advertisers who added Advantage+ shopping shopping
campaigns to businesses-as-usual campaigns saw:
campaigns

17% 32%
improvement in cost increase in return
Creative Destination
per action on ad spend

Source: Meta analysis, August-September, 2022

Measurement

04
Knitted yellow
sweater

Crew neck pink

sweatshirt
Importance of experimentation
Incrementality testing: Conv lift,
GeoLift, private lift
MEASUREMENT

Impacts to measurement are

varied and rapidly evolving
As marketers prepare for a more private-conscious future, they will need to
anticipate impacts to the measurement methods they currently rely on.

LOW IMPACT OF COOKIE HIGH IMPACT OF COOKIE

LOSS ON MEASUREMENT LOSS ON MEASUREMENT

Less Impact More Impact

Market mix modelling/econometrics Digital and cross-media brand-lift Multi-touch attribution

Sales or conversion lift

Source : Beyond the Cookies: Mapping the Future of Marketing Measurement, IAB Australia
MEASUREMENT

Measurement in a privacy-first world

First-party
experiments On average, last click
attribution undervalues
Facebook by

56%
More effective
Geo-based
budget allocation
testing
across channels

Signal resilient measurement

Marketing solutions will be key to understand
Mix true incremental lift across channels
Modelling
(MMM)
MEASUREMENT

Advertisers need a modern measurement

approach to maximize advertising investment
ACCURACY FREQUENCY GRANULARITY

Ads Manager / Attribution: partial view,

Low/Directional *Real-time *High
estimated and linear

Incrementality testing (brand lift, Conversion

Lift, GeoLift): High Med Med
mostly complete, incremental

MMM: Business source of truth grounded in

Complete Low Med
incrementality

*Granularity and accuracy of digital attribution and Ads Manager reporting will continue to decrease over time with further aggregation and delaying of reporting due to increased privacy
MEASUREMENT
Marketing Mix Modeling
helps fill the gaps left by
attribution (Opt-outs, SANs,
non-digital cross-publishers,
non-media marketing levers,
project ROAS, LTV)

Some advanced
marketers use all MMM ATTRIBUTION

three to inform Leveraged to

make advanced KPI
Day-to-day decisions
based on quick, easily

strategy projections. understood results based

on industry standard.

Validate non-incremental
Each solution can Calibrate models to ensure
model like rule-based
attribution. Calibrate
they align with ground-truth.
supplement another incremental attribution such
EXPERIMENTS as Statistical MTA.

Validation of
observations using "gold
standard" methodology.
MEASUREMENT-IMPORTANCE OF EXPERIMENTATION

Why is experimentation
important?

30%
higher ad performance that year.

Our research shows that companies that experiment with

online advertising approaches see improved performance
over time.
Watercolor kit…
In our sample, an advertiser that ran 15 experiments $22.00
(versus none) in a given year sees approximately a 30%
higher ad performance than those who did no testing.

Source: Runge, Julian and Geinitz, Steven and Ejdemyr, Simon, Experimentation and Performance in
Advertising: An Observational Survey of Firm Practices on Facebook (May 23, 2020). Expert Systems
with Applications, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3608998
MEASUREMENT - INCREMENTALITY

Incrementality is the additional business value generated as a

direct result of a marketing campaign or media exposure.

Before media exposure After media exposure

Not planning to purchase Not planning to purchase

Total target audience

Saw ad and decided to purchase

Already decided Saw ad, but had already decided to purchase

to purchase
Didn’t see ad, but had already decided to purchase
MEASUREMENT - INCREMENTALITY

Last-click attribution:
Only the last click-through touchpoint will
get credit for the conversion

(Last-click)

Ad exchange Search Facebook

Instagram Display ad Conversion

MEASUREMENT - INCREMENTALITY

Understand Meta’s true value through ‘lift’

to inform better decision making
Conversion lift methodology
Ad impression

No ad impression

1. 2. 3. 4. 5.
Identify the audience Meta randomizes your Ads are delivered to You pass your conversion Meta compares the
you want to target and audience, then separates the test group data to Meta via the Meta conversions in the test
the business objective people into test and pixel(s), a secure data and control groups to
you want to measure control groups upload or app events calculate lift, then posts
results in Ads Manager
MEASUREMENT - INCREMENTALITY

Conversion Lift test designs

What is the true value Test impact of different
OPTION 01 OPTION 02
of Meta campaigns? strategies on incrementality?

Single Cell account CELL 1 CELL 2

level BAU TBC

lift study

~10-20% holdout ~10-20% holdout ~10-20% holdout

For both options: How does this compare to my current attribution reporting of Meta’s impact?
MEASUREMENT - INCREMENTALITY

Why GeoLift?
It’s grounded in incrementality, arguably the best
indicator of return on investment.

It’s an end-to-end solution, spanning data ingestion,

power calculations, test design and more.

It’s flexible. It’s useful across many use cases,

including omnichannel measurement.

It’s resilient. It relies on data at a designated market area

level, not personal information impacted by cookie loss.

Gardening Glo…
It’s open source. You can use it freely, build on top of it
$10.00
and replicate results.
MEASUREMENT - INCREMENTALITY

Businesses are using GeoLift to make

a variety of critical marketing decisions

Bridge the gap between Measure and compare Accurately calibrate

campaigns and the business multiple channels attribution for paid and
results they drive simultaneously organic channels

GeoLift enables omnichannel GeoLift allows you to GeoLift allows you to calibrate
strategies and measurement identify which channel and optimize campaigns based
with apples-to-apples provides the best on the true return on
comparisons throughout incremental value and act on investment of every effort.
your entire business. that information.
MEASUREMENT - INCREMENTALITY

How GeoLift works

TEST AD IMPRESSION TEST

CONTROL NO AD IMPRESSION CONTROL

1. 2. 3. 4. 5.
Identify your business Choose test-and-control Run your campaign—ads Collect conversion data from Calculate lift by comparing
objective and campaign geographic areas per the will be delivered to the the geographic areas conversions in the test areas
to measure pre-campaign matching test areas and will not be to conversions in the control
process based on your delivered to the areas
objective control areas
Q&A
Next Week
Signals & AI – 31/05

Leveraging AI to drive performance.