Are you going to join the machines in 2020 or optimize your ads forever? Phillip Schoeffman & Yahav Hartman deep dive into Facebook Ads in 2020.
Man or Machine?
Who is gonna be your best Facebook Media Buyer in 2020?
A machine or a human with 10 years of Facebook experience.
Philipp Schoeffmann is a well-known Facebook Ad expert across Facebook Marketers. Yahav Hartman, CEO and CO-Founder at madgicx.com developed with his team a software for Facebook Advertising and has a big vision for Facebook Ads in the next years. So, where are we heading in 2020 and beyond? Read more here.
Philipp Schoeffmann: If we look at the advertising space right now. It’ s incredible! The last ten years have seen such a significant shift in advertising budgets moving from Print, TV, and so forth into digital. Facebook and Google today account for 85% of online advertising budgets and are the most prominent players. What do you think are the most important things that you have to take care of when it comes to Facebook Ads in 2020? Do you have some tips on how to keep up in a space that is moving so quickly?
Yahav Hartman: I believe that this is the biggest opportunity for Facebook Ads in 2020. I see the fact that Facebook is moving so fast as a chance to stay ahead of your competition. If you adapt quickly to content, run with the best audiences, structure your account to scale, and understand the AI behind Facebook Ads in 2020. Those who understand to adapt the fastest will be the ones who scale their companies and make money in the next year.
We’re definitely moving into a direction where there are fewer humans involved in the actual managing of Facebook Ads and machines are taking over this field. That’s pretty scary for a lot of people because they have to redefine their jobs when we look at Facebook Ads in 2020, which humans will still manage tasks and which should be outsourced to stay profitable.
Our vision at Magdicx is basically to go from human into a complete machine, so the so-called Autonomous Media Buying. Basically, the machine can do everything that Facebook Media Buyer does.
What does it mean for humans and advertisers like us for 2020?
Facebook Advertisers will need to focus their time on content production. Navigating the business, instead of optimizing their Facebook accounts 3, 4, 5, 6 hours a day. Sitting in front of the Facebook Ad manager and increasing and decreasing budgets etc. is already today a thing from the past. Already by now, you should not spend more than 1 hour on your Facebook Ads, and instead invest your time in improving your content, website, and product. You will focus on the things that move the needle, and that machine cannot yet do.
Where is the biggest opportunity for Madgicx to grow and improve in 2020?
The biggest opportunity for Facebook Marketing Partners in 2020 would be to figure out. How can you tailor content to audiences at scale? A software that could connect into an Ad account and understand how can you turn things around. Tailor content with the context with the right stories to the specific audiences and produce the content at scale. This company will manage to do this. Will be a unicorn for sure. They’re going to be a company that’s going to figure this out in 2020 or 2021 and has a really good feeling that we’ll be the first one who does it.
That’s sounds great, but let’s break it down. How is it going to work?
Already at the end of 2020 or middle of 2020, Madgicx is going to reach a point where you, as an Advertiser, will need to give the system some inputs. For example, How much are you willing to spend on Acquisition, Retargeting, and Retention? What’s your minimum ROAS for each one of those. What’s the minimum amount you want to spend on the account no matter what. And what’s the amount you are willing to spend unlimited as long as you have higher ROAS’s? The system will be smart enough to control the budget 100% within your framework and work exactly as a Media Buyer does it today.
How does the human gives the inputs?
The human gives the framework in target goals. And the machine will do the rest. As an example, if Madgicx sees that the Acquisition ROAS performance drop. The system will automatically move the budgets from Re-Marketing to Acquisition. Still, maybe Sunsetting tactic of Madgicx already sunsetted a bunch of your Ad Sets, and you need more Ad Sets running. Then the next best audience prediction will automatically launch the best ones for you to fill up your Acquisition once. Look at it as an extensive system with a lot of hierarchies and a modular approach. Everything is connected, and Madgicx controls it within your framework.
The ultimate goal is to maximize your ROI at the end of the day. Even not ROAS your ROI, because ROAS doesn’t mean anything. Especially when you compare Retargeting performance to an Acquisition and attribution, I see it as an ROI Machine. I believe that I said our vision is at the end to be an Autonomous Media Buyer. Madgicx will also become an eCommerce Machine.
What do you mean by an eCommerce Machine?
It will work like a Shopify App that you connect, and it automatically makes you more money. You’ll connect this Autonomous Media Buyer to a Shopify store, and it will just make you more money by itself. Then that’s an entirely autonomous eCommerce machine, and it’s not a human.
This is so fascinating!
And I’m 100% sure that we’re going to reach this state by the end of 2020. Because in the end, I can even break it down for you, there are not many components that we are missing.
What are you missing when it comes to Facebook Ads in 2020?
We’re missing a Strategy Budget Optimization. For example, Facebook now releases like CBO, and it optimizes the campaigns right, but at the end of the day you want to optimize budgets on an ACCOUNT LEVEL. Strategy Budgets Optimization will sit on top of your Facebook Ad Account. It will be able to make smart budgeting decisions, moving budgets between campaigns.
The rest Madgicx offers already today:
We have Automation Tactics ready that are using the daily arbitrage to maximize performance for the day. We have the AI audience classification that lets you understand Acquisition, Retargeting Retention it’s part of the strategy budget organization.
Audiences: If we’re talking about prospecting campaigns, you have six different areas in prospecting that you must test you know you must test broad targeting you must test Lookalikes, of course, we have AI Lookalikes as well.
AI audiences that with the eRFM module. You must test interest targeting, and you can also test interest with interest with an intersection as well as Lookalike with interest together which also brings outstanding performance, and you can even do an intersection we did it now with the API.
For example, the Facebook intersection of Lookalike and Lookalike together. So 1% LLA of purchases with a 3% LLA of viewed content, and you’re getting people that are likely to view content and end up purchasing. It’s not available for the frontend. Still, I just showed you now six different areas that are only within prospecting. Today advertisers, they don’t even know about those possibilities, of course, they don’t know how much they spend on all of those maybe Lookalikes works ten times better than interest.
However, you’re still spending your money on interest targeting, and you didn’t notice that there’s a little Lookalike that’s crushing it. That’s we’re going to make the autonomous testing or autonomous way of finding opportunities within your Ad Account.
The final piece when it comes to Facebook Ads in 2020 is content and how do you tailor the content to the right audiences at scale. With Creative Insights, you can 100% understand your creatives.
Okay, let’s say it’s tough for advertisers today to tell how much they are spending on a creative. How much they’re getting what’s the % of spend on this creative, maybe you’re spending only 20%, but it makes 40% of your revenue. So you want to push that Ad more. It’s scalable! And you don’t see it. On Facebook Ads manager, it’s very, very hard to see.
Yes, almost impossible.
So our system can, first of all, get this data input, unify the data, aggregate the performance – we have an additional layer of knowledge on top. Then we’re able to cross this with data insights from Facebook Ads.
We can know the performance of the creatives by Creative Type, Dimensions, Age, Gender, Placement, Device, and Campaign type. That’s how you can easily understand, which creatives work the best for every audience.
Applied Filter for a beauty brand
Female, 35-44, Acquisition, Video Short & Video Medium
If you are running Facebook Ads or consider starting to test Facebook and Instagram as a channel for your business. Keep in mind to succeed with Facebook Ads in 2020, and everything is about automizing the daily work and optimize your performance with machines – like madgicx.com.