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the entire meta ads algorithm explained in 21 mins — Transcript

by Mark Builds Brands · 4,718 words · 692 segments · language en · Watch on YouTube

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  1. 0:00Hey guys, Mark here. In this video, I'm
  2. 0:01going to be explaining how the entire
  3. 0:03Meta Ads algorithm actually works. A lot
  4. 0:06of people think that running ads on
  5. 0:07Facebook is just all random or that if
  6. 0:09your creative is good enough, then
  7. 0:11everything else will just magically fall
  8. 0:12into place. Well, running profitable ads
  9. 0:14on Facebook is both an art and a
  10. 0:16science. The art is the creative, but
  11. 0:18the science is exactly what I'm going to
  12. 0:19be explaining in this video, how the
  13. 0:21algorithm actually works. And more
  14. 0:23specifically than a science, it's
  15. 0:24actually an equation. And this is the
  16. 0:26one equation that is actually going to
  17. 0:28determine how profitable your ads are
  18. 0:30going to be. Now, before I break down
  19. 0:32this equation, I need to explain to you
  20. 0:34the four-step process that Facebook uses
  21. 0:36to actually show your ads, the one
  22. 0:37update that broke everybody's ad
  23. 0:39account, and at the end of this video,
  24. 0:41I'm going to put in a little something
  25. 0:42special to explain what this actually
  26. 0:44all means and how the game really works.
  27. 0:46All right, so before we get too
  28. 0:47technical, this is what you have to
  29. 0:48understand. Facebook basically goes
  30. 0:50through a four-step process to determine
  31. 0:52which ad is going to show for any
  32. 0:54particular user. Every time somebody
  33. 0:56opens up their phone on Instagram and
  34. 0:58they scroll and see an ad behind the
  35. 1:00means there's literally a 200
  36. 1:01millisecond window where Facebook is
  37. 1:03doing all these incredible calculations
  38. 1:06and machine learning decisions to
  39. 1:08ultimately decide to put your ad in
  40. 1:10front of the user or somebody else's.
  41. 1:12So, in that one 200 millisecond period,
  42. 1:15there is literally tens of millions of
  43. 1:17ads that are competing for that one
  44. 1:19impression. And these are the four steps
  45. 1:21right here. First, you have retrieval.
  46. 1:23Second is light ranking. Third is heavy
  47. 1:26ranking. And the final piece is the
  48. 1:28auction. So, let me break this down for
  49. 1:29you. So, first up is retrieval.
  50. 1:31Retrieval is the most data-intensive
  51. 1:35portion of this entire process because
  52. 1:36as I said, there's tens of millions of
  53. 1:38ads, tens of millions that are competing
  54. 1:40for one individual spot. The process of
  55. 1:42retrieval is essentially Facebook going
  56. 1:45through and ultimately deciding, is the
  57. 1:47ad right now even remotely relevant to
  58. 1:49this user? Basically, like is it even in
  59. 1:52the right ballpark? Now, this is also
  60. 1:54the portion of the process where
  61. 1:56Facebook actually analyzes all the
  62. 1:58aspects of your creative to determine
  63. 2:00how to narrow down the audience. So, you
  64. 2:02may have heard this before, but this
  65. 2:04whole concept of your creative is your
  66. 2:06targeting. This is where Facebook is
  67. 2:08analyzing everything about your creative
  68. 2:09to determine who to show it to. This
  69. 2:11includes, but is not limited to, your
  70. 2:14hook, your format, the demographic of
  71. 2:18the users that are actually on your ad.
  72. 2:20So, for example, if you're running an ad
  73. 2:22that is featuring a woman that is 55
  74. 2:24years old, Facebook takes note of that
  75. 2:26and it's going to use that to power the
  76. 2:27targeting to skew much more towards
  77. 2:29women and skew much more towards older
  78. 2:31women specifically. Of course, all taken
  79. 2:32into context with what the creative is
  80. 2:34actually saying. It's also looking at
  81. 2:35your copy, it's looking at your script.
  82. 2:38If you're running video ads, it's
  83. 2:40looking at your thumbnail. It's even
  84. 2:41going and looking at your landing page
  85. 2:43to determine generally who is this ad
  86. 2:45trying to target. This is a
  87. 2:46non-exhaustive list. I'm really
  88. 2:47simplifying this. Behind the scenes,
  89. 2:49it's a pretty substantial, literally an
  90. 2:52algorithm in order to determine which
  91. 2:54variable is going to correlate to which
  92. 2:56piece of targeting. And this is probably
  93. 2:57a good time to mention the Andromeda
  94. 3:00update. Andromeda what is was an update
  95. 3:02to the sorting process of the retrieval
  96. 3:05steps specifically. Mostly just because
  97. 3:07there was a massive influx of AI
  98. 3:08creative that was absolutely flooding
  99. 3:11Facebook to the point where their old
  100. 3:12model of sifting through all these
  101. 3:13creatives was not becoming very
  102. 3:15effective. This is not the only reason
  103. 3:16for the Andromeda update, but I believe
  104. 3:18this is one of the biggest ones simply
  105. 3:20due to the fact that AI has massively
  106. 3:22increased creative production for all
  107. 3:23advertisers. And now that's why Facebook
  108. 3:26is mostly looking at creative to
  109. 3:27determine targeting, not what you have
  110. 3:29going on within your ad sets. That's why
  111. 3:31you've probably seen a decline in
  112. 3:33audiences that are actually able to
  113. 3:35sustain high budgets profitably. Like I
  114. 3:38rarely use audiences like interest, and
  115. 3:40if I do, they're pretty capped in terms
  116. 3:42of budget or, you know, lookalikes or
  117. 3:44even custom audiences. Like I don't set
  118. 3:46any real [ __ ] targeting when it comes
  119. 3:48to my retargeting. I don't put any
  120. 3:50custom audiences in there. I literally
  121. 3:52just still run completely broad. And
  122. 3:54most high-skill advertisers that I speak
  123. 3:56to, they're doing something relatively
  124. 3:57similar. Maybe one exclusion of
  125. 3:58purchasers, but like other than that,
  126. 4:00very, very broad. So, if that was kind
  127. 4:02of the old way of doing targeting on
  128. 4:04Facebook, the new way is to do a lot of
  129. 4:06broad targeting. It's to do a lot of
  130. 4:08Advantage Plus campaigns, and it's
  131. 4:10usually within reason, within reason.
  132. 4:13Giving Facebook control. Like the reason
  133. 4:15that I say it's within reason is because
  134. 4:17if you give Facebook all the control,
  135. 4:19the algorithm is good, don't get me
  136. 4:20wrong, but holy [ __ ] the amount of
  137. 4:22suggestions that Facebook gives you that
  138. 4:24are horrible pieces of advice that are
  139. 4:27just going to drain your [ __ ] bank
  140. 4:28account is obscene. And it's always been
  141. 4:30this way, too. They're still a company
  142. 4:32at the end of the day, and you are a
  143. 4:34customer. You are paying Facebook, so
  144. 4:36they still want to get your money. I'll
  145. 4:37save that for later in the video. Now,
  146. 4:39the second step is going to be light
  147. 4:41ranking. This step barely deserves a
  148. 4:43description. It's basically taking the
  149. 4:44now millions of ads instead of tens of
  150. 4:47millions, and reducing it down to
  151. 4:49thousands. There's really not a a whole
  152. 4:51lot more to say about the light ranking
  153. 4:52process. Now, the heavy ranking is the
  154. 4:55next step, which, you guessed it, if
  155. 4:56it's going from thousands of ads, you're
  156. 4:58now trying to get to a couple hundred.
  157. 5:00Now, at this point, this is like your
  158. 5:02real, legitimate competitors. Like this
  159. 5:04is the stage where competitors are
  160. 5:06actually something that you should take
  161. 5:07into consideration, because you don't
  162. 5:09have tens of millions of competitors.
  163. 5:11You just don't. You probably only have a
  164. 5:13handful, at least in the eyes of
  165. 5:14Facebook, you only have a handful.
  166. 5:15There's only 10 million advertisers
  167. 5:18total on Facebook, which may seem like a
  168. 5:19massive number, but also think about we
  169. 5:21are in e-commerce specifically, at least
  170. 5:23I'm in e-commerce specifically, which
  171. 5:25immediately narrows it pretty
  172. 5:26substantially. Now, the really important
  173. 5:28piece about the heavy ranking step is
  174. 5:30that this is where that equation
  175. 5:32actually comes into play. So, I want to
  176. 5:33take a second to talk about that,
  177. 5:35because I remember Facebook released
  178. 5:37this. They have since withdrawn it, but
  179. 5:38they released this documentation to
  180. 5:41explain how they actually assign a
  181. 5:43specific value for every single ad when
  182. 5:46they are fighting for an impression. And
  183. 5:48the one that has a higher value,
  184. 5:49obviously, is going to win the
  185. 5:50impression and the one with the lower
  186. 5:51value is going to lose the impression
  187. 5:53and get served a lower quality
  188. 5:54impression. All right, so this is the
  189. 5:55equation I was talking about. This is
  190. 5:57actually directly from Facebook.
  191. 5:58Somebody swiped it and it is still on
  192. 6:01their website, but it's not on Facebook.
  193. 6:03But this is how it's actually working
  194. 6:04underneath the hood, all right? So the
  195. 6:05total value, this is what you want to
  196. 6:07aim on maximizing, is equal to this
  197. 6:10piece first of maximizing advertiser
  198. 6:12value plus maximizing consumer value and
  199. 6:15consumer experience. So the piece to
  200. 6:17maximize your advertise value, number
  201. 6:19one is going to be your bid, which we'll
  202. 6:21get to in a second, times your estimated
  203. 6:23action rate. Since 99% of us and 99% of
  204. 6:26people watching this video are running
  205. 6:28conversion campaigns, that essentially
  206. 6:29means what is the estimated action rate
  207. 6:32to get a conversion. And if you look
  208. 6:33down here, you can see they actually
  209. 6:35break it down specifically for a
  210. 6:37conversion optimized ad, which is the
  211. 6:40estimated click-through rate times the
  212. 6:42estimated click-to-conversion rate. So
  213. 6:44the way to get gamify this, of course,
  214. 6:46is you want to have really high CTR.
  215. 6:48Historically, Facebook just loves ads
  216. 6:50that have really high CTR, and the
  217. 6:51reason why is because that is the the
  218. 6:53most pure indication of how relevant
  219. 6:57that one particular ad is to the user.
  220. 6:59So Facebook is going to reward you
  221. 7:01typically over time and as you spend
  222. 7:03more with lower cost to advertise, lower
  223. 7:05CPMs, and ideally higher quality
  224. 7:08traffic, too. So this is kind of like
  225. 7:09the first piece of that. The second
  226. 7:10piece is going to be you want to have a
  227. 7:12high, they call it like
  228. 7:14click-to-conversion. It's basically just
  229. 7:16your conversion rate, which is out of
  230. 7:17all the clicks that you had, how many
  231. 7:18actually purchased. And again, if you're
  232. 7:20running a e-commerce business, this is
  233. 7:23going to be like a legitimate purchase
  234. 7:24because that's typically what you're
  235. 7:25optimizing for. But if you're in, you
  236. 7:27know, the info industry, for example,
  237. 7:29you're optimizing for calls, what is the
  238. 7:31ratio between clicks to calls that
  239. 7:33you're getting or clicks to applications
  240. 7:35or insert your conversion here, it
  241. 7:36doesn't really matter. Facebook views a
  242. 7:38lot of this largely the same, at least
  243. 7:40in the context of this equation. So the
  244. 7:42way I like to think about this is the
  245. 7:43estimated click-through rate, I think
  246. 7:45it's actually more than the
  247. 7:46click-through rate. I think it's a
  248. 7:47culmination of all your soft metrics.
  249. 7:50So, that is your CTR, but that's also
  250. 7:51your CPC, your CPMs, your hook rate,
  251. 7:53your hold rate, cost per 3-second video
  252. 7:55view, like all these metrics that are
  253. 7:57associated with getting somebody engaged
  254. 7:59and getting them to click. And then the
  255. 8:01second half of this is how good are you
  256. 8:04at monetizing that click, taking that
  257. 8:06click through your funnel, and turning
  258. 8:08somebody who's a prospect into a buyer.
  259. 8:10Pretty straightforward. And this last
  260. 8:11piece is basically Facebook trying to
  261. 8:13save their own ass from advertisers that
  262. 8:15are incredibly aggressive and cause a
  263. 8:17terrible user experience for the users.
  264. 8:19Because if this piece just did not exist
  265. 8:21and we didn't care about the user
  266. 8:22experience whatsoever, advertisers would
  267. 8:24just flood the platform and completely
  268. 8:26just destroy Facebook as a platform
  269. 8:28because you just have [ __ ] loads of
  270. 8:30scammers, not like there isn't scammers
  271. 8:31on Facebook anyways, but there would be
  272. 8:33way more. Like it would be like 50/50
  273. 8:35instead of 80/20, which is roughly what
  274. 8:37it is right now. So, this is Facebook
  275. 8:38saying, "Hey, I want you to have the
  276. 8:41most relevant ads to the user, which is
  277. 8:43CTR, all the soft metrics, and I want
  278. 8:46you to actually get conversions for all
  279. 8:48the clicks that you're getting, which is
  280. 8:50the conversion rate, and I don't want
  281. 8:51you to piss off all of our [ __ ] users
  282. 8:53in the process." And that's the last
  283. 8:54piece. All right, so we took it from
  284. 8:56thousands of ads and now we're down to a
  285. 8:58few hundred. In fact, sometimes it could
  286. 9:00be even less than a few hundred. But now
  287. 9:02we have the final step in the process,
  288. 9:03which is going to be the auction. And
  289. 9:06the auction is exactly what it sounds
  290. 9:08like. It's all the advertisers that are
  291. 9:11left competing for that one impression
  292. 9:12and basically who can have the highest
  293. 9:15bid, of course with all the context of
  294. 9:17that equation that I said previously,
  295. 9:18that's going to be the one that wins the
  296. 9:19impression. So, majority of people
  297. 9:20watching this video right now are
  298. 9:21probably running what's called, you
  299. 9:23know, lowest cost bidding or also known
  300. 9:25as like auto bidding, which Facebook is
  301. 9:27just doing all the bidding for you,
  302. 9:29trying to get you conversions for the
  303. 9:30lowest cost possible. This is, like I
  304. 9:32said, auto bidding. You can also do
  305. 9:35manual bidding, which can come in a few
  306. 9:37different ways. Manual bidding, you can
  307. 9:39do something called cost caps, which is
  308. 9:40where you set a cap on the maximum
  309. 9:42amount that you're willing to pay to
  310. 9:44acquire a customer. You can also do bid
  311. 9:46caps, which is similar, except it's the
  312. 9:48maximum amount that you want to bid to
  313. 9:50acquire a customer. And there's some
  314. 9:51other stuff that Facebook is always
  315. 9:53releasing as well to help you optimize,
  316. 9:55you know, maximum value, target ROAS,
  317. 9:57stuff like that. But I'll tell you this,
  318. 9:58there's a lot of people that are really
  319. 10:00obsessing about cost caps or bid caps or
  320. 10:03whatever the hot, you know, manual
  321. 10:05bidding method is at the time. I can
  322. 10:07tell you for a fact, I have seen ad
  323. 10:09accounts, I have ran ad accounts that
  324. 10:10are spending multiple five figures per
  325. 10:12day. I have seen one spending six
  326. 10:14figures per day, all on lowest cost, and
  327. 10:16they're good ad accounts. They are
  328. 10:17profitable. Other people literally only
  329. 10:20run bid caps. You can see both sides of
  330. 10:21the spectrum, but the point is you
  331. 10:24should choose what is actually going to
  332. 10:26solve the constraint in your business
  333. 10:27for you. Because I talk to people all
  334. 10:29the time, they're like, "All right, in
  335. 10:30order to get from like 1K a day to 10K
  336. 10:32per day, I just got like media buy my
  337. 10:33way there." And like there's a little
  338. 10:35bit you can do, don't get me wrong. I'm
  339. 10:36not the guy that's saying like media
  340. 10:37buying is dead. I'm defending media
  341. 10:39buying. At the same time, you have to
  342. 10:41think like an entrepreneur, not like a
  343. 10:43media buyer. And just to show this
  344. 10:45entire process visually, all right, this
  345. 10:46is how Facebook actually picks ads in
  346. 10:49under 200 milliseconds. So this is the
  347. 10:51first step, tens of millions of ads
  348. 10:53competing for one impression. After
  349. 10:54that, we go through the light ranking,
  350. 10:57right? Now you can see there's
  351. 10:58substantially less, say like roughly
  352. 10:595,000. Next step, there's just a few
  353. 11:01hundred. Now we're going to go into
  354. 11:03heavy ranking, which is boom, now we're
  355. 11:05on the final step, which is actually
  356. 11:08competing who's going to have the
  357. 11:09highest bid. There's very few
  358. 11:10advertisers left at this step, until
  359. 11:12finally your ad is actually served. You
  360. 11:14have the highest bid, you win the
  361. 11:15impression. So again, retrieval, light
  362. 11:17ranking, heavy ranking, and the auction
  363. 11:20as the final step there. Okay, so now
  364. 11:22you know how this filtering process
  365. 11:23works, how does that actually affect
  366. 11:25your ability to create winning ads
  367. 11:28consistently and more importantly
  368. 11:30predictably churn out winners into your
  369. 11:31ad account. So there's a few other
  370. 11:33things that aren't part of that
  371. 11:34four-step ranking process that are still
  372. 11:36really important to understand so that
  373. 11:37you can have the most profitable ads as
  374. 11:39possible. All right, first I want to
  375. 11:40talk for a second about the learning
  376. 11:42phase, okay? So, the learning phase,
  377. 11:44according to Facebook themselves, is
  378. 11:46basically a phase that your ads go
  379. 11:48through, your ad sets go through, your
  380. 11:50campaigns go through, but especially at
  381. 11:51the ad level to acquire conversions so
  382. 11:54that it can learn about your customer
  383. 11:56and then you kind of exit the learning
  384. 11:58phase and go into like mature phase
  385. 12:01where you're getting more predictable
  386. 12:02consistent results. Here's my beef with
  387. 12:04this whole [ __ ] term. Like that's the
  388. 12:05theory. Let me tell you the [ __ ]
  389. 12:06reality. Your ads are always learning.
  390. 12:08They never stop learning. There's not a
  391. 12:10learning phase and then they get out of
  392. 12:11learning phase and they're just going to
  393. 12:12be good forever. Everything dies at some
  394. 12:14point. It's just the circle of ads. So,
  395. 12:17if you are obsessing over the learning
  396. 12:18phase, just stop. Of course, the ads
  397. 12:21initially are going to be a little bit
  398. 12:23more volatile, a little bit more bumpy,
  399. 12:25and sometimes you see improvements over
  400. 12:26time with more consistency, but
  401. 12:28sometimes you don't. Sometimes the
  402. 12:29solution is literally just to make
  403. 12:31better ads. So, spending too much time
  404. 12:34on the learning phase is not super
  405. 12:36smart. The main thing I want to say here
  406. 12:37is like if you're not spending a lot of
  407. 12:39money on ads, maybe you're spending, you
  408. 12:40know, 50 bucks a day, a few hundred
  409. 12:42bucks per day, even up to like a
  410. 12:43thousand dollars per day, I think that's
  411. 12:44kind of like the barrier. If you see
  412. 12:46your results being like up and down,
  413. 12:48like it literally looks like a freaking
  414. 12:49sine wave, that is normal, okay? That's
  415. 12:53100% normal. That's how the game works.
  416. 12:55[ __ ] I experience inconsistencies. I
  417. 12:57spend way beyond 1K per day. And most
  418. 13:00advertisers do. Facebook is an emotional
  419. 13:02ass platform, man. It's a bunch of
  420. 13:04emotional human beings like you and me.
  421. 13:06Do you really expect it to be the most
  422. 13:08consistent thing on the world? If you
  423. 13:09want super duper consistent results,
  424. 13:11like go advertise on Google
  425. 13:13>> [laughter]
  426. 13:13>> and uh you know, enjoy your time, all
  427. 13:15right? Google's cool. It's got its own
  428. 13:16issues, but with Facebook
  429. 13:18inconsistencies is part of the game, but
  430. 13:19especially at lower levels of spend,
  431. 13:21you'll see people just bitching about,
  432. 13:23"Oh, I was at 3X ROAS and now I'm not
  433. 13:25profitable." I'm was "Well, how much do
  434. 13:26you spend?" He's like, "A hundred
  435. 13:27bucks." I'm like, "Come on. What what
  436. 13:28are we doing here? Like, what do you
  437. 13:29What do you expect?" So, the solution
  438. 13:31there is to, when in doubt, zoom out.
  439. 13:33Look at larger time frames with larger
  440. 13:35amounts of data, and you'll see what's
  441. 13:37really happening. Instead of being like,
  442. 13:38"Oh, today was good really good. Next
  443. 13:40day was really bad." I don't care. Look
  444. 13:41at 7 days. Look at the most amount of ad
  445. 13:43spend that you can, and that's when
  446. 13:44you'll make the best decisions, and not
  447. 13:46these emotional decisions where you're
  448. 13:47just going with the [ __ ] flow of
  449. 13:48Facebook taking you for a ride. Nobody
  450. 13:50wants that. All right, next I want to
  451. 13:51talk about signal quality and your EMQ
  452. 13:54and Conversions API. So, Facebook
  453. 13:57performance is often times dependent on
  454. 13:59the data that you're sending back to the
  455. 14:01ad account and back to the Facebook
  456. 14:02servers so that it can learn about your
  457. 14:04customers and reduce your cost to
  458. 14:06advertise long-term, hopefully. And with
  459. 14:08that, that means that you have to be
  460. 14:10sure that you're sending the best
  461. 14:12quality data you possibly can to
  462. 14:14Facebook because the better quality data
  463. 14:16that you send them, often times, they're
  464. 14:18going to be able to learn more about
  465. 14:19your customers and send you better
  466. 14:21customers in the future, make your ads
  467. 14:23more efficient long-term. So, you can go
  468. 14:25into your Events Manager and go to the
  469. 14:27purchase event specifically, and you'll
  470. 14:28see something called the EMQ, which is
  471. 14:30your event match quality, and it'll be
  472. 14:32on a scale of 1 to 10. I'm not saying
  473. 14:34it's a direct correlation like 10 out of
  474. 14:3610 is super profitable ads, like five
  475. 14:38out of 10 you're going to be dog [ __ ] I
  476. 14:39actually think this whole concept is
  477. 14:41overrated, but I think generally
  478. 14:43speaking, it's a good thing to try to
  479. 14:45send good data to Facebook. And you can
  480. 14:47do that through Conversions API, which
  481. 14:49is simply sending your data back
  482. 14:51server-side and not only on the browser.
  483. 14:53For those that have been advertising for
  484. 14:55long enough, you know this became a big
  485. 14:56deal around iOS 14, which was launched
  486. 14:59in 2020, but it actually went into
  487. 15:01effect, I think, early 2021, and
  488. 15:03everybody's ads just kind of went to
  489. 15:04[ __ ] because I don't look at any
  490. 15:06conversions after the click. Like, I
  491. 15:09don't look at my CPA on Facebook at all.
  492. 15:11I always use third-party attribution
  493. 15:13tools, you know, whether that's Triple
  494. 15:14Whale, whether that's Hyros. There's so
  495. 15:16many of these out there. Like, you can
  496. 15:17build one custom now. [ __ ] you could
  497. 15:18vibe code one probably in a few hours
  498. 15:20and have your own solution that you
  499. 15:21don't have to pay for at all. The issue
  500. 15:23is, because of what the update that iOS
  501. 15:25launched, all the users can now opt out
  502. 15:27of tracking from Facebook. So,
  503. 15:28everything becomes really inaccurate.
  504. 15:30Now, if you're able to use like
  505. 15:31conversions API, any server-side
  506. 15:33tracking, you can improve your EMQ and
  507. 15:36get better data into the Facebook
  508. 15:37servers to help you optimize with your
  509. 15:39ad account your ads a lot better than
  510. 15:40you are right now. So, to summarize this
  511. 15:42point, try to send Facebook good data.
  512. 15:45And also, take all the conversion data
  513. 15:46with a grain of salt. Okay, let's go.
  514. 15:48Now, the third thing here is going to be
  515. 15:49the whole concept of creative diversity.
  516. 15:51So, because of Andromeda, there was this
  517. 15:53really weird narrative where people are
  518. 15:55basically saying, "Oh, there's kind of
  519. 15:56like two types of ads that you can
  520. 15:57test." You know, you can test something
  521. 15:58completely new, we'll just call that
  522. 15:59like a new concept and that new concept,
  523. 16:01or you can test, you know, a variation.
  524. 16:03You can only do one of the two, which
  525. 16:04it's really not that simple, but let's
  526. 16:06just say for these purposes, this is
  527. 16:07what it is. And people like, "All right,
  528. 16:09all you need to do to survive Andromeda
  529. 16:11is just like pump out more new concepts
  530. 16:13and do less variations." No, variations
  531. 16:15are still highly highly effective. What
  532. 16:18Andromeda did is let's say like this is
  533. 16:20within an ad set and we're looking at
  534. 16:22the ad level, and each one of these is a
  535. 16:23new ad, right? You have ad one, two,
  536. 16:25three, and four. So, every time I launch
  537. 16:28creatives, I'm actually launching
  538. 16:29variations. So, this entire ad set, per
  539. 16:32se, will be one net new concept, but ad
  540. 16:35number two, ad number three, and ad
  541. 16:37number four will all be variations of
  542. 16:40that original net new concept. So, it's
  543. 16:42not necessarily variations of the
  544. 16:43winner. Like it's difficult to get a
  545. 16:44variation of like your top ad in an ad
  546. 16:47account to outperform the top ad. It'll
  547. 16:50do decent. It's typically not going to
  548. 16:51outperform, at least in my experience.
  549. 16:53But, variations are still highly
  550. 16:54effective because you're basically
  551. 16:56getting more at-bats at the concept
  552. 16:58level. Technically, you're testing a new
  553. 16:59concept, but you can test one concept
  554. 17:02with three different hooks, and it turns
  555. 17:04out that this variation actually ends up
  556. 17:06being the winner, and this original like
  557. 17:08net new concept is actually the loser.
  558. 17:10But, if you said variations are stupid
  559. 17:12and they don't make any sense, then you
  560. 17:13never would have figured that out, and
  561. 17:14you would have just concluded that this
  562. 17:16net new concept was a loser. When in
  563. 17:18reality, you're a loser
  564. 17:20>> [laughter]
  565. 17:20>> for believing that.
  566. 17:22I swear I could rant on all this stuff
  567. 17:23for so much longer. I'm trying to stay
  568. 17:25focused here. Let me distill all this
  569. 17:26technical crap into something that you
  570. 17:29can actually take away. Because
  571. 17:31basically what we just did is we went
  572. 17:33through all the super autistic
  573. 17:36scientific mathematical explanations of
  574. 17:39how the Facebook ads algorithm actually
  575. 17:41works, but let's take our [ __ ] hat off
  576. 17:43for a second and think like a Chad,
  577. 17:45okay? Three things you should take away.
  578. 17:48All right, number one, your creative is
  579. 17:50the targeting. Stop trying to [ __ ]
  580. 17:51around so much with the ad sets
  581. 17:53targeting, custom audiences, lookalikes.
  582. 17:55That can be a little experimentation
  583. 17:57sandbox, but for the most part, run
  584. 17:59broad. The creative is the targeting.
  585. 18:00Number two, make good creatives that
  586. 18:02thought people from their doom scroll.
  587. 18:03Of course, easier said than done, and
  588. 18:04that's not even what this video is
  589. 18:06about, but if you just have damn good
  590. 18:08creatives, like that's literally half of
  591. 18:09the [ __ ] formula. It's just having
  592. 18:11that high CTR, high soft metrics, of
  593. 18:14course, excluding the conversions. Like
  594. 18:15that's half the [ __ ] battle right
  595. 18:16there. And then third is going to be
  596. 18:18don't [ __ ] up the user experience. Now,
  597. 18:20I have a portion of this video that I
  598. 18:22intentionally left for the end of this
  599. 18:23video for people that are genuinely
  600. 18:25serious about figuring out how Facebook
  601. 18:27works. And all this stuff that I've said
  602. 18:28so far is what we'll call, you know, by
  603. 18:30the books. A lot of it is in, you know,
  604. 18:32Facebook's own documentation or
  605. 18:34documentation that they had years ago
  606. 18:35and they have since removed, but let me
  607. 18:37tell you how the game really works.
  608. 18:39Facebook is a for-profit [snorts]
  609. 18:41company based in America. Facebook is a
  610. 18:44massive, massive company. We can assume
  611. 18:46they probably don't do everything by the
  612. 18:47books. So, what I'm really leading to
  613. 18:49here is Facebook doesn't play by the
  614. 18:51rules. I could go down the list of what
  615. 18:54this actually means, but at the end of
  616. 18:56the day, as I said, Facebook is a
  617. 18:57for-profit company. And like most
  618. 18:59companies, they are trying to get the
  619. 19:01most amount of money from the largest
  620. 19:03advertisers, and then all the smaller
  621. 19:05ones that cause like 99% of their
  622. 19:07headaches, they're not going to treat
  623. 19:08them super duper well. So, a lot of you
  624. 19:10have probably launched ad accounts and
  625. 19:12got them disabled, have ads rejected,
  626. 19:14have ad accounts banned, have business
  627. 19:16managers banned. Maybe you've had
  628. 19:17profiles banned, but you have to
  629. 19:18understand that Facebook is a company,
  630. 19:20and they're a company that is public.
  631. 19:23And what happens when you run a public
  632. 19:24company is you have to answer to your
  633. 19:27shareholders, which means depending on
  634. 19:30how the earnings reports come out
  635. 19:32regarding Facebook, Facebook is either
  636. 19:34going to constrict their guidelines,
  637. 19:37their restrictions, and this is where
  638. 19:38you see ban waves come through, which is
  639. 19:40where everybody's just getting their ad
  640. 19:42account banned, everybody's dealing with
  641. 19:43business manager bans, page bans, and
  642. 19:45then a month later it's like totally
  643. 19:47fine. That's all due mostly to earnings
  644. 19:51reports that are coming out directly
  645. 19:52from Facebook. So, depending on how
  646. 19:54those look, they will either be way more
  647. 19:57laid back, way more chill, or super
  648. 19:59duper strict. That's why saying, "Oh,
  649. 20:01you can't run like this type of format
  650. 20:03of ad on Facebook." One person runs it,
  651. 20:05gets approved. Another person runs an
  652. 20:06identical creative and gets it rejected.
  653. 20:08Why is that? Well, Facebook don't play
  654. 20:09about their rules, all right? So, what
  655. 20:11do you do about this? I mean, I'm not
  656. 20:12going to get too much into specifics
  657. 20:13because I don't know if I can. I think
  658. 20:15the main thing anyone can take away from
  659. 20:16this is just question everything. Like,
  660. 20:19when I was talking about the CAPI and
  661. 20:21the signal quality and the EMQ score,
  662. 20:23technically speaking, like it makes
  663. 20:24sense logically, theoretically, if
  664. 20:26you're able to get higher quality data
  665. 20:28back to Facebook, they should be able to
  666. 20:29optimize better. However, I haven't seen
  667. 20:32a direct correlation between that. I
  668. 20:34have had really, really good server-side
  669. 20:36setups to where my EMQ was like 9.8,
  670. 20:399.9. The little thing on my freaking ad
  671. 20:41account was like, matter of fact, I'll
  672. 20:43show you. I'm literally at a zero
  673. 20:45>> [laughter]
  674. 20:46>> at a zero opportunity score, and this ad
  675. 20:48account is incredibly profitable. So,
  676. 20:50all the [ __ ] from Facebook, they're
  677. 20:52still wanting to get money from you. So,
  678. 20:54just because they say something or it's
  679. 20:55in their documentation or like their
  680. 20:57CEO, CMO, head of advertising is like,
  681. 20:59"This is what advertisers should do."
  682. 21:00[ __ ] it. Think for yourself, question
  683. 21:02everything. And I want to take a moment
  684. 21:04of silence for everyone that listened to
  685. 21:06all the Facebook suggestions at the ad
  686. 21:08level that said they would lower your
  687. 21:10cost per result by 11% and then their
  688. 21:12ads went to [ __ ] RIP. Don't listen to
  689. 21:14Facebook. Other than that, guys, I hope
  690. 21:16you enjoyed. Thank you so much for
  691. 21:17watching this video. See you on the next
  692. 21:18one. Peace.

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