[et_pb_section fb_built=”1″ _builder_version=”3.22″ min_height=”1615px” custom_margin=”||-2px|||” custom_padding=”0px|||||” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”1498px”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.6.4″ text_font=”Roboto|300|||||||” text_text_color=”#333333″ text_font_size=”21px” text_line_height=”32px” ul_font=”Roboto||||||||” header_2_font=”Roboto||||||||” header_2_font_size=”30px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”326px” custom_margin=”-14px|||||” custom_padding=”||0px|||”]<\/p>\n
I may be in the minority, but I think most advertisers who want to diversify away from Facebook Ads are distracting themselves and wasting their time.<\/p>\n
Yes, other platforms can work. There\u2019s no denying this. But when you diversify from a tried-and-true system and split or increase your ad budget into a new platform because you think it can help grow your business, it can actually hinder your growth and profitability.<\/p>\n
This mostly comes down to opportunity cost.<\/p>\n
If you want to diversify, you need to actually invest a proper amount of time, money and resources to see success. Most advertisers just want to check the box to try and diversify because of Facebook\u2019s platform instability, which does fluctuate with new algorithms and changes in the market. Some also want to avoid relying entirely on one platform.<\/p>\n
Diversifying for the sake of it or doing so out of fear typically isn\u2019t the right choice. That being said, there is a time and place when media diversification through different advertising channels is a good choice. In this post, we\u2019ll discuss when you should and shouldn\u2019t be investing into new advertising channels and why doing so \u201cjust because\u201d can be overrated.<\/p>\n
Despite rising CPM’s, people are still heavily investing in Facebook ads because they are the most effective at driving sales for most businesses.<\/p>\n
Over 70% of all paid ad dollars go to either Google or Facebook<\/a>, and roughly 83% of all social dollars go to Facebook.<\/p>\n Because of this duopoly, channels like Snapchat and TikTok are looked at as a diversification savior. Unfortunately, these channels face many hurdles by advertisers to get right if not approached with proper attention and dollars.<\/p>\n New platforms can be complicated & a lot of work. They require new ad creative, need to be bought separately, and the measurement might be different. With more channels in your media mix, it also becomes more difficult to attribute which channel primarily drove a sale and which is taking more credit than it deserves.<\/p>\n The opportunity cost just might not be worth it, in the sense that if you can\u2019t get better results on another platform, you could be ultimately losing revenue even if you\u2019re still seeing success overall on other platforms.<\/p>\n So here\u2019s the question: Would your time and money drive greater incremental value investing more there vs. in a new channel?<\/p>\n For most advertisers the answer is probably no.<\/p>\n What About All the Success Stories on Other Platforms?<\/em><\/p>\n We\u2019ve all seen the stories where brands or advertisers are boasting about the revenue they’re driving from Snapchat and how it’s beating Facebook, or that they’re seeing such promising early success on TikTok.<\/p>\n While I\u2019m definitely not saying that there isn\u2019t room for advertisers to do well on these platforms, we need to ask for context when someone talks about how great the results they’re getting are on these other channels.<\/p>\n For example: How much are you spending on Snap vs Facebook? If you’re seeing such great efficiency, why aren’t you spending more? How does attribution compare to what you’re seeing on Facebook, and how accurately are you able to track this?<\/p>\n Before you jump into a new platform, the opportunity cost needs to make sense.<\/p>\n A Case Study: TechStyle\u2019s Paid Social Marketing Mix<\/em><\/p>\n Let\u2019s look at an example.<\/p>\n The graphic below showcases TechStyle’s (fabletics, savagexfenty, justfab, shoedazzle, fabkids) paid-social marketing mix over the last three years. In 3 years, they reduced their reliance on Facebook from 94.1% of total social budgets to 90.3%<\/a>.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/disruptivedigital.agency\/wp-content\/uploads\/2020\/12\/unnamed.png” alt=”iOS 14 for advertisers” title_text=”unnamed” align=”center” _builder_version=”4.6.4″ _module_preset=”default” min_height=”133px” custom_margin=”6px|||||”][\/et_pb_image][et_pb_text _builder_version=”4.6.4″ text_font=”Roboto|300|||||||” text_text_color=”#333333″ text_font_size=”21px” text_line_height=”32px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”146px” custom_margin=”2px|||||” custom_padding=”||||false|false”]<\/p>\n Slightly ironically, the title of this webinar about how TechStyle moved less than 4 percentage points away from Facebook was called “Diversify Your Social Advertising: You Can’t Afford Not to Take a Multiplatform Approach.” Even while diversifying, they were still funneling over 90% of their ad spend exclusively into Facebook.<\/p>\n Based on TechStyle’s public marketing budget<\/a> and some back-of-the-envelope math, they spent about $87.25M on digital in 2017:<\/p>\n – $66.25M on Facebook<\/p>\n – $1.83M on Snap<\/p>\n – $2.25M on Pinterest<\/p>\n – $17.5M on non-Social<\/p>\n On average, that would mean TechStyle was spending about $1.1M per month per brand on Facebook. At those levels of investment, you might be hitting a point of audience saturation and inefficient CPM’s.<\/p>\n It naturally makes sense to look elsewhere to drive incremental sales. Your next dollar would drive greater incremental value investing in a new channel vs investing in Facebook.<\/p>\n When Doesn\u2019t Media Diversification Through Ad Platforms Make Sense?<\/em><\/p>\n In the case of TechStyle, diversification makes a lot of sense but for other advertisers, that might not be the case. Why is that?<\/p>\n There are three core reasons.<\/p>\n The first is that you need to have advertising budgets allocated to other platforms that are significant enough that it\u2019s worth the time to test and find real results.<\/p>\n Spending a $1000 ad coupon isn’t going to prove anything. You need to put a real meaningful budget against your efforts to try and make a new platform work for you.<\/p>\n In TechStyle’s case, while they only spent 3.2% on Pinterest ads, that translated to about $38K per month per brand initially on the platform. While small in comparison to Facebook, these budgets were still meaningful enough to try and develop a new sales channel.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/disruptivedigital.agency\/wp-content\/uploads\/2020\/12\/Snap.png” title_text=”Snap” _builder_version=”4.6.4″ _module_preset=”default”][\/et_pb_image][et_pb_text _builder_version=”4.6.4″ text_font=”Roboto|300|||||||” text_text_color=”#333333″ text_font_size=”21px” text_line_height=”32px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”146px” custom_margin=”-2px|||||” custom_padding=”||||false|false”]<\/p>\n For example, if it will take 50 conversions in 7 days to get Snapchat to start optimizing (which you can see in their guidelines above<\/a>) and your typical CPA is $100, you shouldn\u2019t be investing anything less than $5,000 a week initially, if not more, because the system will take additional time to learn!<\/p>\n The second is that you\u2019ll need to go back to the drawing board for everything. This will include reassessing your entire multi-touch attribution to understand the channel\u2019s impact on the consumer path to purchase, along with setting up lift tests to measure for incrementality and building new creatives.<\/p>\n Finally, you need to have the time and effort that goes into making a new platform work. This includes learning it\u2019s best practices, targeting and optimization capabilities<\/a>, and testing.<\/p>\n If you wanted to start using Snapchat, do you have the additional time and resources to:<\/p>\n – Make creative conducive to the platform?<\/p>\n – Manage additional campaigns in a new platform and analyze results?<\/p>\n – Have a way to reconcile the double counting that might occur between Facebook and Snap taking credit for the same purchase?<\/p>\n If you’re going to invest in a new channel, the goal shouldn’t be to just check the box, but to actually invest the time, money and resources into making it work.<\/p>\n So you can look at the three criteria. If you\u2019re unable or unwilling to satisfy all three requirements above, it\u2019s best to keep all your eggs in one metaphorical paid social basket for the time being.<\/p>\n We aren\u2019t against media diversification at all. Instead, we firmly believe that you should only take this approach when you have the tools, resources, budget, and time to tackle it head-on.<\/p>\n So what about the times when you should consider media diversification?<\/p>\n If you meet all of the three criteria above, that\u2019s a great start.<\/p>\n And if you feel that you’re hitting your natural performance cap on Facebook, it might make sense to look for a new channel.<\/p>\nWhen You Should Consider Testing Media Diversification<\/h2>\n