What's Happening With Facebook Ads Right NOW?

TL;DR

Facebook ads are impacted by 2020's events and external factors.

Transcript

hi guys it's ben heath from lead guru and in this video i'm going to talk about what's happening with facebook advertising right now specifically the state of things so obviously 2020 has been a crazy year so much has happened with you know virus and lockdowns and civil unrest and all that sort of stuff and that has absolutely affected the facebook... Read More

Key Insights

• The COVID-19 pandemic led to unprecedented Facebook ad performance due to increased user engagement and reduced advertiser competition.
• April to June 2020 saw exceptional Facebook ad results as people spent more time online during lockdowns.
• Post-lockdown, Facebook ad performance has normalized, reflecting pre-pandemic levels as people resume regular activities.
• The U.S. election significantly increases Facebook ad costs due to high demand from political campaigns.
• Upcoming events like Black Friday and Christmas are expected to drive high buyer activity, benefiting e-commerce advertisers.
• Service-based businesses should continue advertising despite increased costs, focusing on long-term returns.
• Older demographics have shifted to online shopping, enhancing opportunities for e-commerce during holiday seasons.
• Aggressive discounts during Black Friday can lead to lower cost per purchase and higher sales volumes.

Questions & Answers

Q: How did the COVID-19 pandemic affect Facebook advertising?

The COVID-19 pandemic significantly impacted Facebook advertising by increasing user engagement as people spent more time online during lockdowns. This, combined with reduced advertiser competition, led to exceptional ad performance and lower costs from April to June 2020. However, as restrictions eased, ad performance began to normalize.

Q: What impact does the U.S. election have on Facebook ad costs?

The U.S. election increases Facebook ad costs due to the high demand from political campaigns with large budgets. This additional competition for ad space drives up costs, particularly in the U.S. market, affecting advertisers' cost per thousand impressions (CPM) and overall advertising expenses.

Q: What should businesses consider when advertising on Facebook during Q4 2020?

During Q4 2020, businesses should consider the impact of events like Black Friday and Christmas, which can drive high buyer activity. While advertising costs may increase due to competition, the potential for high sales volumes can offset these costs. Businesses should leverage aggressive discounts and strategic planning to maximize returns.

Q: How can service-based businesses manage increased Facebook ad costs?

Service-based businesses can manage increased Facebook ad costs by focusing on long-term returns and maintaining advertising efforts. Despite higher costs, the potential for generating a healthy return on ad spend remains strong, especially if the business has high average customer values. Continuation of advertising can help sustain growth and reach.

Q: Why is Black Friday expected to be significant for Facebook advertisers?

Black Friday is expected to be significant for Facebook advertisers due to the increased number of online shoppers, including those new to e-commerce. The shift in consumer behavior, driven by the pandemic, suggests a record-breaking sales period. Advertisers can capitalize on this by offering aggressive discounts and targeting the expanded online audience.

Q: What changes in consumer behavior have been observed in 2020?

In 2020, there has been a noticeable shift in consumer behavior, with more people, especially older demographics, turning to online shopping due to the pandemic. This change presents new opportunities for e-commerce businesses, as these consumers are likely to participate in events like Black Friday and Christmas shopping online.

Q: How should advertisers adjust their strategies for the holiday season?

Advertisers should adjust their strategies for the holiday season by planning aggressive discount campaigns and targeting the increased online shopper base. They should focus on maximizing visibility and engagement during high-demand periods like Black Friday and Christmas, ensuring their offerings are attractive and competitive to capture consumer interest.

Q: What role do external factors play in Facebook advertising performance?

External factors play a significant role in Facebook advertising performance, influencing user behavior and advertising costs. Events like the COVID-19 pandemic and the U.S. election can alter user engagement levels and competition for ad space, requiring advertisers to adapt their strategies to maintain effectiveness and capitalize on changing market conditions.

Summary & Key Takeaways

• The video discusses the impact of the COVID-19 pandemic on Facebook advertising, highlighting the changes in user behavior and advertiser competition. It explains how lockdowns led to exceptional ad performance and the subsequent return to normalcy as restrictions eased.

• Ben Heath emphasizes the influence of external factors like the U.S. election on Facebook ad costs, especially in the U.S. market. He advises advertisers to adjust strategies accordingly and highlights the potential benefits of upcoming events like Black Friday and Christmas.

• The video provides insights into the long-term viability of Facebook advertising, encouraging businesses to focus on sustainable strategies. It suggests leveraging aggressive discounts during high-demand periods to maximize returns, especially for e-commerce and online businesses.