Oct 20, 2020
As I record this episode in mid October 2020, a lot of people are talking about their ad campaigns on Facebook and Instagram are suddenly not converting the way they normally do.
Some brands have had long-standing campaigns that have always converted really well and really profitably, have suddenly tanked. They’re not converting as well as they used to.
People are noticing and complaining about big drops in Return On Ad Spend (ROAS).
So what is going on???
In any year - Q4 can be a bumpy ride if you’re not prepared…
Q4 is generally the most expensive quarter for ad costs. We’re in the lead up to Black Friday and Christmas, lots more advertisers are on the platform bidding on a finite amount of ad space, so that level of competition will always drive costs up a bit.
This year, we don’t just have Black Friday and Christmas enticing businesses to spend money on ads on the platform. There are also major elections happening in the USA and elsewhere around the world. Political parties are spending a TONNE of cash on ads right now. Apparently the Trump campaign is spending a million dollars a day on Facebook ads, and Biden’s campaign is spending many times more than that. So that extra competition for ad space also pushes costs up for the rest of us.
But there’s a LOT more to it than that…