Meta has recently released new statistics on the effectiveness of its Advantage+ AI-guided ad campaigns. These campaigns have become a primary focus for the app following the iOS 14 update by Apple, which has limited user insights. Meta has therefore reverted its efforts to machine learning and built more efficient targeting systems based on systematic intelligence. Many performance advertisers have lauded the results of Advantage+ campaigns, which Meta claims are driving better performance.
In the fourth quarter of 2022, advertisers saw over 20% more conversions than the previous year, and recent tests found that advertisers using Advantage+ shopping campaigns are seeing a 32% increase in return on ad spend. More and more prominent advertisers have noted the great results of Advantage+ targeting, which essentially automates the entire process.
Advertisers just need to set their business objective, target country, advertising creative, and budget, and the AI systems do the rest by optimizing to find the right person, message, and time. Although this process comes with inherent risks or perceived flaws, such as relinquishing control over reaching the right audience, the results speak for themselves.
Advantage+ shopping campaigns are making newer products such as Reels ads and Shops ads perform even better. For example, Meta shared the case study for a small business called Doughp, that makes and sells cookie dough pints, has been using Shops ads with Advantage+ shopping campaigns to reach new customers and boost sales. Doughp’s founder claims that this combination of products made her ad campaigns a “set it and forget it” strategy, so successful that Doughp ended up shifting their budget away from other channels to Advantage+ shopping campaigns.
Meta is also looking to add more AI elements, such as Advantage+ creative standard enhancements, which use AI to help advertisers automatically apply small enhancements to improve creative performance. In a recent test, ads that used standard enhancements delivered 14% more incremental purchases per dollar spent. The company is even looking to facilitate the whole process, optimizing content and targeting without much intervention from advertisers at all.
Meta recently filed a patent for a video analysis system that predicts the virality of video clips. The system uses machine learning models to predict user retention rate and provide a rating of poor to excellent based on video and audio quality, metadata, and audience and user data. The system may even predict other indicators of success, like comments, shares, or other engagement.
While creativity will always play a significant part in advertising, Meta’s systems can provide significant assistance in aspects like audience targeting. It may be worth testing Meta’s automated systems to optimize ad reach and results, allowing advertisers to focus their time and effort on other things rather than monitoring daily ad spend and refining creative.
If you need assistance managing your paid media campaigns across Meta or any other platform, please contact us today. We’re here to help.