Our data suggests it's time to reduce spend on Facebook

Since iOS14 rolled out, every marketer I know has been displeased with results on Facebook and Instagram but doesn’t know where to reallocate funds (read on for ideas). In Q4 2021 52.9% of the budget we managed for our clients went to Facebook Ads. While Q4 did generate stronger results on Facebook and Instagram than earlier quarters, we were determined to modify our media mix with clients in 2022.

In January, we began using paid media to support our client’s flywheel (instead of simply supporting a funnel). The flywheel is all about building marketing programs that will generate brand loyalty. The funnel is focused on attracting one-time customers, and historically, this is where Facebook really excelled.

Diversifying the media mix is a strong way to kick off the flywheel as it:

  1. Allows us to serve impressions to broad or narrow audiences in more placements, creating stronger recall among the target audiences.

  2. Diversity enables us to lower our CPM and hit stronger engagement metrics.

Reducing spending on Facebook while increasing spending on TikTok, Pinterest, and Programmatic have increased site traffic and revenue (goals) for the majority of our clients. They are also seeing more organic brand and product searches on Google (SEO) as a symptom of paid channel diversification. This means new audience exposure is helping establish recall among their target audiences! Our clients are recording higher average order values and stronger NPS. And finally, those who analyze CLTV, are finding improvements when compared to previous time frames.

We encourage you to explore new paid media channels! Get in touch if you want our recommendation on where to spend next :)

Nikki Lindgren