Optimized Ecommerce EP 049 – Everything You Need to Know About iOS 14 Implementation
This week on The Optimized Ecommerce Podcast, Nehal Kazim joins Tanner Larsson to talk about iOS 14 implementation. Tune in this week’s episode and learn about the implications to the changes brought about by iOS 14. If you think you’re guilty of doing this to your business, listen and learn a smarter way
Welcome to Episode #049 of Optimized Ecommerce – Everything You Need to Know About iOS 14 Implementation. I’m your host, Tanner Larsson, CEO of BGS.
BGS means Build Grow Scale! It is a community that we founded where eCommerce entrepreneurs and physical product sellers come to learn how to take their businesses to the next level.
In this episode, Nehal Kazim joins us to talk about iOS14 implementations. Nehal is the founder of Ad Pros—a Facebook ads agency scaling growth-stage companies to $100,000+mo in spend. Ad Pros is designed to equip entrepreneurs, marketing teams, and media buyers with the tools, education, and resources to scale paid advertising campaigns on Facebook and Instagram.
Nehal actively speaks and trains media buyers on scaling front-end growth with paid advertising through a structured, systematic approach.
Here’s just a taste of what we talked about today:
Nehal discusses the iOS 14 changes that would take place.
The changes include:
- Implementation of Private Click Measurement (PCM)
- No more app to web conversion measurement
- No more cross-domain measurement
- Power play to limit data (protection + inability to monetize)
- Facebook’s implementation of Aggregated Event Management (AEM) will support app web attribution.
Then, Nehal dives into detail about the actual technical changes of iOS 14.
- Users must opt-in or opt-out of Apple’s data use prompt.
- If opted out, data will be restricted], aggregated, and delayed.
- If opted out, advertisers can optimize for 1 core standard event per pixel.
- If opted in, up to 8 standard events per pixel available (with a priority).
- If opted out, no demographic data on opted-out individuals.
- If outed out, website custom audiences will take a hit (7-day attribution).
- Attribution (+conversion?) window: 1-day view + 28 day click to just 7-day click.
We also discussed a few other fun topics, including:
- The iOS 14 implications for ads and campaigns.
- Upside implications of iOS 14 in ads and campaigns.
- Solutions to get ready for iOS 14.
But you’ll have to watch or listen to the episode to hear about those!
How To Stay Connected With Nehal Kazim
Want to stay connected with Nehal? Please check out their social profiles below.
Also, Nehal mentioned ITEM on the show. You can find that on:
Tanner Larsson 0:07
Hey everybody, welcome back to the Optimized Ecommerce podcast. I’m Tanner Larsson. And today I’m joined by a very good friend of mine, a longtime friend of mine, we’re friend for quite a while, actually, it was what part of our black little mastermind as well, Nehal. Nehal, owns a company called Ad Pros. Now, Ad Pros is a very, very talented media buying agency. Now we know there’s lots of media buying agencies out there. But there are very few of them that I would ever let come on this show much less talk to our audience or work with our customers. And, Nehal works with a few of our customers. And we’re constantly referring people back and forth. So super happy to have him here. He’s a wizard at ads. But today, what we’re going to talk about is specifically this whole iOS craziness that’s going on. As you guys know, there’s big changes coming out in terms of privacy. Apple is saying we’re gonna stop pixel tracking from working and doing all kinds of learning a lot of stuff, but nobody really knows what it means or what it does. I don’t even really know all the details of it. I was talking to Nehal, and he has a very, very solid understanding of this. One of the things that’s cool about him is he can pick up something complicated, and he can break it down in a way that everybody can understand it. So I asked him if he would join the show and talk to you guys about that. So Nehal, buddy, thank you for coming on.
Nehal Kazim 1:27
Yeah, thanks for having me, man. And, yeah, the Black Label mastermind was the actual first thing that I really invested in my career, as you know, and that was, like, really early stage. And when we were starting the agency and was transformational man.
Tanner Larsson 1:46
I remember sitting in Ohio in a tiny little, we were in a hotel room, but then we couldn’t talk, we went and found like a broke into a conference room or something and end up sitting there all night talking, helping you get stuff going. That was a lot of fun.
Nehal Kazim 2:00
I remember that conversation very well.
Tanner Larsson 2:02
It was a good combo.
Nehal Kazim 2:04
Tanner Larsson 2:05
Cool. Well, so let’s go ahead and dive into this. And I’m going to let you take the reins, I’ll ask a few questions here and there. But the big thing is what is this iOS 14 thing and how is it impacted. So let’s go with the general overview. And guys, by the way, we are sharing a screen right now. So if you’re on audio, and you’re just listening to this, totally cool, you’ll get it. But if you want to see the slides that Nehal has, we’re going to be skipping through, we’re not going to cover all these slides, we’re gonna skip through them. But if you want to see those, then hop over to the YouTube channel. And you can watch the presentation there as well at buildgrowscale.com forward slash podcast will give you the links to all that as well as the show notes. So Nehal take it away.
Nehal Kazim 2:45
Awesome. So there are a lot of changes going on that are from an industry standpoint, as well as nuances. And there’s actually even from the time that we’re recording this, there’s new information coming out on Google and how they’re going to be responding with their privacy sandbox, then flock and all of that kind of stuff. Just to be very clear, I am not super techie and nerdy on privacy and Adtech. So there are actually levels to that. And I know enough to be dangerous, I know enough to operate. And so I’ll explain to you, from what I’ve understood so far for everyone who’s listening, and more so not what the timeline is, or all the technicality and privacy changes that are going on. There’s, it’s not really even clear what is going to be happening. Because every week, there’s new stuff coming out. And most of it isn’t coming from Apple directly. It’s actually coming from different ad platforms and the actual tech giants. But it’s based on what we know right now, how can we understand what’s going on? And then what the implications are and what you can do about it? So the main thing that’s going to happen very shortly. So every app, you’re going to see a prompt, and that is an ATT prompt that’s going to show up. And it’s basically going to ask, do you want to give data do you want to give your personal use behavior of what you’re doing in each app, to the actual app owner. And this is really important, because inside of Facebook advertising right now if you look at any app, they can actually see what you’re doing. And this is why Facebook has been so effective. Because if you like dogs or a specific type of dog that gets connected to your profile, not only inside of Facebook, but all of your activity outside of Facebook, all of that gets aggregated. And so a big part of if you do not opt-in, meaning if you say that you do want to provide that information, that’s one thing, but Facebook is assuming and a lot of platforms are guessing that 80% of people or potentially more are going to say they’re going to opt-out and they’re not going to provide their information. So again, there’s a lot of implications to this, but what this really comes down to is potentially targeting and measurement. And we’re going to get into what that means exactly, because how you do Facebook advertising today, and how you do advertising on most channels is about to change. And so the big changes are, there’s no as clear of an app to web conversion. So right now, if you’re doing e commerce, for example, you click an ad and goes to a landing page, quite often, then it goes to a content view, right, they go to a product page, then they go to add to cart, then they go to initiate Checkout, then they purchase now with the changes that are going on, you’ll just see click and purchase as the core event. And that’s a massive difference. Because when you’re doing advertising campaigns, right now, usually you’re able to see how well how good the quality of the traffic is. Because you can see did they go to a product page? Did they add to cart? Did they go to initiate Checkout? And you can get all that information, now you won’t be able to see that. So that’s a big issue specifically for iOS users. At the moment, then you’ll see four Shopify stores, this is not as big of a deal, because most people just stay in the same domain. But cross domain measurement. For Click Funnels, this is a problem for a lot of like tools, people hack together, or different checkout carts that people are using cross-domain measurement will be not supported anymore. So if you have your whole funnel on one domain, but then your checkout or your thank you page is on a separate domain, that information will not get shared. And so that’s a pretty serious problem, especially for massive brands and conglomerates.
Nehal Kazim 6:41
Potentially this is a power play. Apple has its own advertising channel. And they are reducing personalization for all of the other apps except themselves. And so there are some, conflicts of interest there to say the least. And, unfortunately, through this whole process, there’s not that much information that’s provided from Facebook, on solutions to this. This is like multi-year process. This is not like, Hey, we’re going to change. Privacy for everyone this is actually has been happening for over three years where this has transitioned. But now that it’s here, Facebook has always said, we don’t agree with this, we’re not going to follow, we’re not going to put the ATT prompts, we’re not going to make the adjustments that you guys are suggesting. And until what the word on the street is, is there’s closed-door meetings and all this kind of stuff. And the conclusion that they came to is, if Facebook doesn’t make that adjustment, they’re just going to take Facebook off the App Store. And so that is a very intense power play. And that is take it or leave it environment. And so all of the Facebook messaging has been we do not agree with Apple’s decision. But here’s what we’re gonna do. And that’s what they’ve been repeating at the moment. So Facebook’s solution right now is something called aggregated event management. That is the actual way that they’re going to be tracking all of the information inside of Facebook. And we’ll get into that briefly. But for most of your audience, they’re not into mobile apps and stuff like that. So that’s the actual segment of the market that’s hit the hardest because they don’t do any app to app tracking anymore. They don’t really allow that. And so that marketplace is really, really going to struggle. But the average advertiser, the average media buyer, who especially for us, we’re managing 1.5, 1.7 million a month in Facebook advertising a month. And so that is going to it’s already affecting our campaigns. And as soon as the first change happened on January 18, or so and attribution, 80% of our clients went into the warning or failing mode, almost overnight, and it’s taken a month and a half to recover, where 80% of our clients are successful again. So this is very real.
Tanner Larsson 9:09
Yeah, and it’s kind of spooky, and as you said, there’s no real clear information and what’s out there is there’s more fear than there is help at the moment in terms of what to do and how to get around it. So that’s why I’m super glad to have you on here. I think that makes total sense. And I just want to clarify a point that, it’s still going to work, okay, we’re still going to be able to advertise. And Nehal is going to show you how this works. It’s just another change in the game. Every so often. It happens. Google did the same thing. Maybe not in privacy, but when they started changing their SEO algorithms years ago, they did all the animal updates, Panda, and all that stuff, right? people lost their minds thinking that the sky was falling and they never recover and things wouldn’t work. But there is a way through this. And what we’re going to go through and Nehal going to share next is kind of, what that’s going to look like early on and it will probably evolve as we learn more as well. But for now, just know that you can take what Nehal is going to show you and you can actually use it. You can stay in business, keep advertising keep making money. And the sky is not falling.
Nehal Kazim 10:14
Yeah, absolutely. I think the majority of people talking about this topic are very gloom and doom, and it is very serious, this is going to affect a lot of businesses. But I believe that we’re resilient media buyers like we are going to figure out one way or another on how to adapt in order to operate in the environment that we’ve committed to, which is growth for companies that want to grow very aggressively. And that’s not an option. For us. It’s a commitment, and we’re going to figure out how to get through to the other side. And so that’s going to take problem-solving skills. And that’s going to take a lot of patience to understand like, what’s actually going on. And so let’s go into what the actual technical changes are. And this is important, then we’ll get into what the implications are and what you can do about it. So the first thing is that I mentioned was, this is the main part, which is iOS users. So, people who have an iPhone, or Apple device, they’re going to be given a prompt, right? So with this prompt, they either opt-in, and nothing happens. So what they’re saying is 80% of people might opt-out. And so for the people that 20% It’s almost as if nothing happened, but it’s not really going to be that case, there’s a lot changing, you’ll just get more data for that specific person, but the expectation is people will opt-out. And so with opting out, the way that they’ve been explaining it is that data is going to be restricted, aggregated, and delayed. And we’re gonna see what the real implications of this mean because how this operates is that they’re going to change a series of ways on how that information comes into the ads manager or any advertising platform you’re running. And then the other part is how that actual targeting will be working. So for example, if you’re a 35-year-old woman who has a dog or two dogs, you go to different dog websites to buy supplements to buy collars or leashes, you read dog-specific blogs, you might also be reading completely different Vanity Fair or whatever, right, like you’re reading different psychographically related, like what their behavior is, to the person who likes this type of dog, or who has a specific type of dog. Now, if you take away everything that they’re doing outside of Facebook, that severely limits what comes in into Facebook on their profile, and how Facebook is able to optimize for that person, not only from their browsing behavior and interest but also from their purchase behavior. And for us, we’re in Ecom, we want as much of that purchasing behavior that we can get, because that allows with not only interest targeting, but look-alike targeting or look like campaigns as well as even just how the quality of our campaigns on a pixel level. Because Facebook is able to optimize that much better. So what’s going to happen from a restriction aggregation and delay standpoint is that there is a restriction on the type of data that’s actually going to come in and I’ll show this in another slide here. But basically, we will not be able to see the age, gender location, or placement that that person is converting from. And so if you look at advertising, like those are very fundamental, like serious elements of targeting and advertising.
Nehal Kazim 13:46
So that’s pretty significant. A lot of this is or if this is related to the app owner. So I’m not going to share all of this, what I have on the screen. But for people who are actively advertising, must have seen this around January 18th. That happened for most people, that these changed their attribution windows. And so Facebook is no longer supporting the 28 days click attribution window. So just to be clear, before Facebook advertising the way it was working, or the attribution window default was one day view and 28-day click. So what that means is someone who just sees your ad and does any of the actions on their on your website or someone who clicks and up to 28 days, Does any of those actions, like goes to your website looks at your products, add to cart purchases, all that, that would get attributed to that specific campaign ad set that they interacted with, or the ad that they were served the last one. And so that’s a big change because instead of having the one-day view in 28-day click, they’re moving to a seven-day click eventually and this is the tricky part. Right now they’re doing one day view and seven-day click, and then once all of these changes are implemented it’s going to be just seven-day click. That’s what they’ve shared so far, again, that might be subject to change. So we’ll see what happens. So that’s a really, really big part of it. And I’m going to show you an example here. But from a conversion standpoint, what is going on is that they’re actually and I’ll show you this here briefly, they’re changing the amount of data that you can actually optimize for. So you’re not able to see visibly, all of your data that you could, in terms of all of the steps, but you can actually get just an optimize for one core event. So that’s what I was mentioning, you might not be able to see content, you add to cart initiate Checkout, you just see click and purchase. And that’s a really big deal. And then on top of that demographic data, when it comes to age, gender, placement, and location. So what isn’t clear right now is there is, you know, we’ve heard talks of delay of the pixel data. So they’re saying up to three days for specific events. And I’m honestly not very clear on this yet, because so far we haven’t been affected, we’ve seen some delays. And I don’t know if this is just for mobile apps, but we’ve seen three days, some talk around the delay of getting the purchase fire back into the ads manager up to three days, but I’m not 100% on that at the moment. This is what the actual events will look like. So right now, when it comes to web events, where you have up to eight events that you can track now, and this is very important, because the average ecom, like Shopify store, doesn’t need all eight events, especially if you’re not doing lead generation, there’s really just four to five. And this is important, because not only are you putting the events that are important to you, from a tracking perspective, you’re putting them in order of what is most important to your business, and what do you value. And so for ecom stores, of course, that’s a purchase, going from the bottom of the funnel all the way up, and so is a purchase, initiate Checkout, add to cart, etc. so that those are the eight, you can put up to eight events in there and you prioritize one. Any questions so far as I’m going through this.
Tanner Larsson 17:34
No, this is super concise and helpful. Guys, it’s already showing you is that you were going from this basically smorgasbord of data down to a Jenny Craig diet, right, and we’re gonna have to learn how to work within that diet.
Nehal Kazim 17:52
Yeah, and this is not optional, right. And so this isn’t like, well, I wish we could do the old way or like, I still want the 28-day click or one-day view, you have to operate in this environment, no matter what your sales process in your funnel looks like. And so if a user and this is again, we’re gonna see what the validity to this is, and how much of the data actually comes in at what speed, but if the users opted out, you’re going to get just the purchase data. But if they opt-in, you’ll get up to the eight events that you’ve designated there. And it’s very important, like, people are listening to this, they have to do this now and choose these events, or Facebook will decide them and like automatically, kind of fill them in for you based off the fires that they are seeing. And so that’s a priority at the moment.
Tanner Larsson 18:44
And they can do that just inside their ad manager, right?
Nehal Kazim 18:47
Yes on the event management. Yep. And then this is what I was mentioning on demographic data. So age, gender, region, and placement. And so that’s not going to be in there. So we’ll see what the impact of that is. I think from what we’re doing, from an advertising standpoint, we’re going is more and more broad in our advertising period. If you looked at Facebook advertising, like two, three years ago, it was all about ninja stuff. It was all about precision, and with power five, and how Facebook wants you to do consolidated campaigns now and broad targeting and you look at interest expansion where interest detailed expansion for interest as well as look like expansion, they want you to like they’re at least exploring and creating that environment so that you’re able to go broader look like expansion doesn’t really work well for us at the moment. But interest expansion does and so, they’re working on stuff like that. So, next, a big part of what is going on from a data standpoint is what happens basically after the click, you get that information in a way that is going to be very tricky to actually remarket to. And this is a huge, huge problem. And we’re gonna see what the implications are of how much of the in-app events that you can actually target. So we’re talking about, video views or engagement with a page like that level or like people DMing you but that’s not high-level engagement activity. The real high level engagement is like they clicked in went to a specific product, they want to remarket that specific product, or an abandoned cart, or even someone who purchased and re-show them the next product. And so that’s going to be a problem. Because now retargeting is not dead, but it’s definitely going to be very different. Because if someone opts out, and you upload an email list, and they opt it out, you won’t be able to market to them. That’s huge. For a lot of businesses, that’s a big part of their profit lever.
Tanner Larsson 18:49
Yeah a lot of them can’t even profit on the front end, they make their money on their retargeting because they don’t break even on the front end.
Nehal Kazim 21:09
Yep, yep. And this is going to be an issue not only from the amount of data that comes in, if we have time here, we’ll talk about the conversions API, that’s one of the solutions on taking the data that’s happening on the server side, and you’ll hear a lot more about this, what is actually going on from a pixel standpoint, is not good enough anymore. And we’ve been working with clients on the server side, the implementation of that. And basically, what you’re doing is you’re taking customer data, whether it’s even lead data, but customer data on purchases, and putting it back into the ads manager directly, instead of just waiting or allowing the pixel to, and the challenge with where the direction of the pixel is going is that the actual level of privacy on the pixel is going to deteriorate over time. And not all server side data, or server side implementation and conversions API fixes some of that, but it doesn’t handle all of the gaps from the advertising, including all the people who are opting out. So that’s just a stepping stone at the moment. And this is why Facebook is implementing stuff like aggregated event measurement, and how they’re operating as one of the tools, we still haven’t seen any kind of major development on, how is Facebook gonna solve that.
Tanner Larsson 22:38
It’s still all up in the air a lot.
Nehal Kazim 22:41
It is, and a lot of people definitely are very confident about what might happen or what the changes will be. But we constantly see new changes going on. And so until it happens, it’s kind of tricky. There are a handful of things that Facebook has said do this, we’re following that, those are the musts, and then everything else is kind of up in the air. And we’re gonna see what the actual implications are of that. Cool. So this is something I wanted to share with one of our clients. With the seven day click, this is really important. Inside of e commerce, like campaigns, there are a few different buckets of what happens inside of Facebook and what happens outside. So in the past, the old attribution model was one day view, and up to 28 day click, and so we would see what’s going on with Facebook on that. And then there was the gap of what happens in real life. So for example, you can have 100% ROAS attributed to just the view through, you get another 100% on the click, and but in reality, you might be at 300% ROAS, and you might be a lot more profitable because there’s like just stuff that are sales that don’t attribute to Facebook. Now, that gap of what happens in Facebook to in real life is going to get even bigger. And this is the real challenge. Because people who aren’t looking at their numbers very deeply, or you’re not a numbers person, or he’s don’t want to do some of this math, there’s a financial cost to that, because the people who are looking at these metrics and looking at the gaps of what’s going on in Facebook in real life, and how to make those decisions, even though their ROAS might be lower than you, or their profitability might be different, they will be able to media buy better, like that’s going to be the real game changer. And attribution is the name of the game. So and no one knows how to do it, and the people who figure that out, and people who figure out how to like operate in that environment. Those are the people who are going to have that advantage. So this specific client, you know, just based on the gap, so there’s a few gaps. There’s the view through that’s going to be gone. Right. So there’s the click from day one to seven day click, we’ll still have that data. But what we won’t have is seven day click to 28th day click, that’s one of the gaps the view through is the other gap. And then the last one is what happens in Facebook to real life. And so for this specific client, our Facebook ROAS was 323%. In this specific example, in real life, it’s closer to 450. But because of the changes, and since the changes that are going on on Facebook, just our seven day click would be 254. So for this business, they need a 300% ROAS just to break even. So if their target is 300. And they see 254 they’re like, it’s too expensive, like turn off all ads, like we got to stop. But this will be the gap between people who are able to advertise very aggressively and get more market share, because they know what their view through normally is. They know what their seven to 28 day click is. And they know what the gap is to real life. And we track those numbers on a daily basis. And so this is a real challenge because Facebook attribution is changing. And we’ve had some really rough days as you can see is 20% ROAS for that same client yet the back end is doing fine. And so this will be the name of the game of like, how do you see what’s happening in Facebook to real life. And so that’s where we’re at with it.
Tanner Larsson 26:33
Yeah, that’s a big change. Because I mean, if you look at like your example, right there from 323 to 254, literally just by changing the attribution window. But if we already know that this campaign is profitable, but they’re not going to see that anymore. So the campaign is technically still profitable. But because they’re going off the seven day click attribution. Now, these people are gonna say, Oh, crap, it’s not profitable. And people are going to be killing winning campaigns that truthfully are profitable
Nehal Kazim 27:02
All the time, all the time. And one of the things that I’ve noticed with, ecom store owners Shopify store owners is that they don’t reconcile on a daily basis, what’s going on on Facebook? How much do they spend, what’s the conversion value of their ROAS there versus storewide? Especially if Facebook’s your only channel, it’s easier with that, when you have multiple traffic sources is more complex. But if you’re spending $1,000 a day, and Facebook says you made 2000, but in real life, you made 4000. Where’s that gap? Where’s that coming from? How much of that could be attributed to Facebook? Or is it an email list? Or is it you know, a promotion you did? Like? Are you able to isolate that that’s such an important part of advertising? And, you know, for us.
Tanner Larsson 27:45
It’s become way more important right,?
Nehal Kazim 27:47
Way more important, and one of the metrics we really look at is what is the first time revenue to adspend ratio? So meaning how many new customers came in? Like a number of customers as well as dollars based on those customers? And how much money did we spend that day on cold advertising? And so we can see how profitable new customers are? Because sometimes we’ll have a refund, sometimes we’ll have bad returning customer days, or whatever the case is, we want to see objectively, we spent 1000 bucks, how much money did we make? And so getting into analytics is going to be very important.
Tanner Larsson 28:23
Gotcha, that makes sense. Good example.
Nehal Kazim 28:27
Cool. So and this is happening, just to be very clear, this is happening right now we have a client who was spending like 20,000 per day, we had to go down to 13,000 per day, almost immediately since January 18. happened and their target CPA is $25. Higher, or more at the end of the day right now. And so we’re reconciling all of that. Because if you look at our target CPA, 60 bucks, our actual target right now is $100. On the click, looks really bad their AOV is $100. And so we have to determine what happens on Facebook, and how far are we from reality? So these are the implications. And I’ll run through these a little bit. The implication is that the way older school advertising was working, that’s the direction that we’re going into because we’re just gonna have less visibility. And people are, like freaking out about how little data that we have, and how are we going to make decisions? Like, this is not the first time that advertisers have been in this position at all. Not at all. No. Yeah. And if you look at TV, radio, any kind of like traditional media, they don’t have any of these metrics and are still able to operate. We’re talking from the Facebook standpoint, $100 billion a year business, they’re not just going to let this happen in that way and just like not get fazed by it. And there may be some solutions that come out, but this is not the first time that we’ve been in this position. From an advertising standpoint, I think that’s just important to just like to calm their nerves. This is not new at all.
Tanner Larsson 30:07
Nehal Kazim 30:09
And then yeah, bigger gaps that we talked about between attribution and real life, there is the uncertainty of what happens for products who have different life cycles of like the actual sales cycles. So if you have an impulse buy, when people come in, they see the product, they buy it, or they don’t, that’s easier, I think, especially for businesses who have high-end products that take a longer time, from a consideration standpoint, they might have to go towards lower end ticket products, just so that they can get leads and customers in order to sell back end. Again, that’s not a new concept, like people have been doing this since the beginning of time kind of thing. But because they’ve been used to a specific model, that might be up for change. So if your sales cycle is one day versus seven days versus 28 days, you might have to look at how you actually do that. And how is Facebook able to optimize that, because if your product takes 15 days to buy, Facebook isn’t able to help convert that person as well, if it was seven days, for example. So longer sales cycle, campaigns might struggle, the actual conversion data of multiple-step up sell down sell crazy back end funnels, that’s not going to come in as easy. And visibility of that data is not going to be good. So especially as far as I’ve understood, the eight events are standard events, not custom conversions. And so that’s going to have negative effects for people who do primarily custom conversions. Or ecom people, for one of our clients, we’re spending about $8,000, a day and about 6000 of that is just dynamic ads, dynamic products, and it’s a furniture company. And because we’re gonna have less actual data on tracking or targeting based off of their behavior, and then we’re gonna have worse performance on measurement, dynamic ads will probably take a hit because they can’t optimize as well, for our client, the dynamic product ad is literally, here’s an inventory of a bunch of different products, and show them to cold traffic who’ve never heard of this brand. Now, if the quality of that person isn’t very good, and how the platform optimizes, that’s going to take a hit. Automated rules have to get redefined. Because again, if your attribution windows are different, your targets are going to be different. And so if you’re using rules right now, and you haven’t really addressed those at the moment, I think that’s very important. The inability to effectively target reengage and resell people is going to change dramatically. And that might mean going very aggressive on lead generation. And every ecommerce product isn’t really optimized for that. But like that’s the direction that we might have to go into most likely, because there are not that many options to do it otherwise.
Tanner Larsson 33:11
So that regard where he’s talking about the lead generation, if you’re an e commerce store, he’s literally saying that if you can’t get your stuff to convert off the ads, you may have to go into a prospect list Build Mode, where you’re basically building up massive prospect lists, and then using email to convert your sales, which again, is something that we used to do, and people still do. So it’s not like it’s unheard of, or whatever. I mean, that’s how all of us started out long ago, was a big email list self sell physical products, but that’s the direction it may head if you can’t convert with these ads.
Nehal Kazim 33:44
Yeah. And so, again, I think the general perspective of lead generation to generate leads, I think is dangerous. It’s like, how do you get those leads, like you’re saying, to actually get on the list and get them to buy. And so if you can design those funnels to actually do that, from a purchasing standpoint, and purchasing intent from Day Zero, like that, that’s where the opportunity is, and then kind of the gaps on the demographic side. So those are more of like the kind of the doom and gloom reality of the situation. But I think there’s massive upsides, honestly. And that’s not naive optimism, I think it is going to be very significant when it comes to how much of an upside there is for people who are 100% committed, I think you can’t kind of dip your toe in the water and see, well, we’ll see what happens with Facebook, maybe we’ll just go to TikTok Snapchat or YouTube. No like they’re all going to get affected directly and indirectly through this process. And so the upsides are, we’re going to see lower cpms and lower cost of advertising because of the way that Facebook won’t be able to optimize for very high quality people, right now Facebook is an auction based system. And so the way that media buyers are able to target individuals are based off of how many people want to go after that same person. Now, the option dynamics might change, because there’s just not as much clear targeting and not easily defined how valuable a prospect is. And so I think that’s a big deal. Because the trend of RCTs and CPCs is like not a hockey stick. And that’s not the hockey stick I like.
Tanner Larsson 35:33
It’s the wrong kind of hockey stick we want to see.
Nehal Kazim 35:35
It’s the wrong one it’s the wrong one. So I think that’s going to be important, and that’s going to be massively helpful, then weaker media buyers will exit, and people who aren’t committed or serious or are going all in, won’t be able to make it and it’s just going to be way trickier. So you’ll see a kind of like just traditional or very basic dropship stores, either have massive success or like really struggle, I don’t think there’s going to be like that middle ground. And we’ve seen that middle ground disappear for a lot of advertisers over like the last three, four years, you could still make it and you could still kind of operate, it’s just getting complex. And so this is about to make it more complex, which is good as a media buyer, which is good for brands who are committed because other people would be willing to do the work that you’re doing. And part of that is a higher entry for media vine is on specific platforms. And generally, because, again, if people don’t want to do that work, they won’t do it not even remotely close to the level that we’re talking about. And if you look at e commerce space, there isn’t a high investment in the actual time, money, and talent on backend marketing, like you and I both, preach this all day. But it’s hard to do. It takes work and it takes effort, and especially for everything that you guys do. It’s the unsexy stuff that gets results. Everyone wants to do Facebook ads, but the lever isn’t Facebook ads, eventually its conversion rates, eventually, its engagement. Eventually, it’s actual back-end promotions product launches, the actual calendar that you have on your end to get profit. Facebook ads are primarily a traffic and acquisition stand lever, but then after that where profit comes from is conversion rates and emails.
Tanner Larsson 37:28
Yep, 100%, that’s what that back end is really going to become more apparent, as this stuff takes effect.
Nehal Kazim 37:34
Yeah, so people won’t be able to hide from that. And that’s good. If you’re doing that now. Like it’s gonna magnify what we’re about to do. And people will exit like non-evolving agencies and people who aren’t evolving as marketers, our media buyers will see a lot of that, and people will just leave. And that’s cool. I’ll take it. So there’s going to be way more effort on quality off like the quality of offers creatives copy and funnel. Again, this is going back to that instead of ninja technical Facebook ads, and nuanced hacks, and all of that. That’s not what the future is going to be. As far as I’ve seen. We’re doing campaigns and Facebook reps have been kind of like, basically, forcing us to do consolidate ad campaigns to have massive audiences and bigger budgets, and let the algorithm do its thing. And if you look at advertising, like three to five years ago, like you don’t want the algorithm to do its thing, like you want to be in control. And now it’s different because the algorithm has been outperforming all of our ninja stuff. And so either you can fight that from an ego standpoint, or you can let go and just let’s do whatever is working. So that’s what’s working. And this is the offer creative and copy and funnel. Those are high-leverage activities that go beyond the algorithm that goes beyond targeting that go beyond measurement because they can actually outperform all of the downsides of all of that. And I think the real opportunity is people who are doing niche products are going to really struggle because targeting will be an option. So mass-market products will be easier to adopt and market, especially if there’s an emotional pain are easy to convert those people.
Tanner Larsson 39:16
Yep, absolutely. And the other piece of the upside is that if you guys are taking the time to pay attention, what we’re showing you and optimizing your store, so your conversions higher, AOV is higher, your LTV is higher. All of that is going to play a major role and your ability to survive in this kind of advertising environment and the stores that aren’t optimized, they’re going to disappear.
Nehal Kazim 39:38
For one of our clients, he changed a checkout page with specific messaging. And that allowed us to go from about 13,000 a day in spend we’re back at 18,000 a day and spend within a week and a half while increasing margin and doubling margin. And it’s like that conversion rate optimization part is magic and It will be almost impossible to ignore.
Tanner Larsson 40:05
So let’s talk about a few solutions real quick like what does someone need to do right now in order to prepare for this, take advantage of this, and not be caught blind? Like, I know you’ve covered a ton, but let’s just get some tactical practical, what do I do kind of stuff?
Nehal Kazim 40:19
Yeah, so the fundamentals are on your business manager, please remove anyone that’s not in your organization, like people kind of just come on or agencies you might have spoken to, or the old employee, that’s not there anymore. Like all that kind of stuff, like clean that out, because what Facebook is looking at is if you don’t have two-factor authentication on every user, they are penalizing business managers. And some people have had serious issues with getting it shut down when there’s not two factor authentication on it. And so that simply means that on your phone, there is some sort of authentication like the app. So when you log in, they give you a code, you put in that code, and you can log in to your account is just another security measure. They’re forcing that upon advertisers. And I think that’s a good decision, I think it does help. Because there’s a lot of fraud and stuff that does happen with Facebook ad accounts. So that’s important. And if your business manager is in bad condition, right now you have deactivated accounts or a bunch of issues, something to consider is warming up a second business manager at the moment in case something happens, I think that’s important to kind of the sustainability. There are people who completely disagree with that and kind of go like you can do one business manager. And that’s it. But I think it’s just for the health of the business, I think that that’s a risk mitigation activity. So remove people’s two-factor authentication, and you do have to verify your domain. This is the other main thing at the moment, which verify your website so that you’re able to continue advertising, they’ve already been asking that those are like the two main fundamentals and then just giving access to the agency or media buyer on your team, just so that they have the ability to set those events and look at the events manager closer. So that’s the first thing. Next is, we don’t know what’s going to happen to the old data. So they say, it’s still going to be accessible, I just don’t believe it. And so what I want to do is make sure I download all of the last year’s data or any number of years that you do have, and you can separate out attribution. And look at one day view one day, click seven day click, 28 day click just so you have it. If you want to manipulate that data in the future, give it to someone on your team, make sure you download that data ASAP. Next, this is the thing that has been a game-changer for us, especially on decision-making right now, because people aren’t looking at the gaps in attribution. And this is what we were talking about of what is going on in your account right now. And the three things to look at is what is your view through attribution? What is your attribution between seven days click to one day click so you can just minus out that number. And then what is your gap between 28 days click to the seven days. So in the example that you can see here, you know, 189 minus 254, I’m not going to do the math on that live. So that’s 65% delayed attribution from one day, click to seven days. And then you can see, that’s about 40% 39% from seven day click to 28 day. So now that you know 28% and this example 28% of your ROAS will not show because it’s on the view through and then another 65% is what you can expect on the delayed attribution side. And then everything the other 40% won’t be won’t be there. So between the seven day click to the 28 day click that’s 40% plus the view through attribution, that’s another 30% 70% of your ROAS will be gone.
Tanner Larsson 44:08
And gone from a tracking perspective. Not that it’s not performing. You don’t have any data telling you it’s performing.
Nehal Kazim 44:15
Exactly. Thank you for the clarification. So that information just isn’t appearing doesn’t mean that those sales aren’t coming in. And the only way to verify that actually looks and see that gap. And so what we’re seeing is in this example is 65% was the gap from one day click to seven day click. Since these attribution changes have been happening, we’re actually seeing a bigger gap and that’s 100% for this specific client from one day to seven. So you have to see kind of what’s going to happen since the attribution changed. And then eventually what happens with Facebook once the ATT prompt does appear. Next is looking at iOS traffic versus non iOS. So most of our clients have 50 to 60% iOS traffic and you can see conversion rates This is what I would recommend looking at conversion rates and looking at CPAs. And ROAS for iOS versus non iOS, this is a little bit tricky now, because when you look at attribution windows, a lot of Facebook data is gone in ads manager, so you actually have to do it, the hack is to look at it inside of ads reporting and ad two accounts if you have a separate account, or if you can just create an account just for the purpose of creating it, when you connect it, you can look at attribution windows separately when you don’t, there’s no data. And so we did go. So that’s how that works. Next is looking at the store wide multipliers. And this is more complex on looking at different attribution windows and how much revenue was generated on that day and looking at multipliers from different windows. I don’t think this is necessary. We just do it just so that we have a baseline. But even if you do it based off of old attribution windows versus what you’re seeing right now, it does help of seeing what the gaps are. This is super important. If you look at your campaign, there are actually three or four levels to your campaign, if you have it structured in this way. The way we have is structured for the most part is cold campaigns, retargeting campaigns, and sometimes like a retention campaign. But usually, it’s cold and retargeting, and then you have an overall number. So if you look at your campaign, there’s going to be a ROAS target that you want to put for cold campaigns, there’s going to be a ROAS target for retargeting campaigns, and then a ROAS target account-wide. And if you don’t have those separated, is going to be really tricky. And you just have to look at that with the one day click and seven day click numbers. Okay.
Tanner Larsson 46:48
Awesome Bro. Well, I think that was phenomenal. I think what we’ll do is, guys, I know he just kind of poured the firehose on you right now throwing stuff at you, but what we’ll do is have Nehal come back on for another episode in the future, near future and we’ll go over kind of what’s changed what’s working, we’ll go into much more of some more tactical implication stuff that we can do. But the big thing here, guys just understand that yes, it’s happening. It’s not the end of the world. There are ways around it. We’re working on it. He gave you some great tips here. Nehal. Thank you very much. Appreciate it. And guys, what you need to do right now is click the subscribe button. Make sure you’re subscribed. Leave a comment, leave a review. Let us know you like it. If you need the links to the YouTube version, or the podcast or the show notes, go to buildgrowscale.com forward slash podcast. And if you need Nehal, go to Ad Pros, right? You can Google Ad pros. You can type in Ad Pros. You can type in Nehal Kazim. You can find him anywhere you want. But dude, he has an awesome agency for ads. But he also has some else we’ll talk about in a future episode. He also has a new side to his agency that focuses on just the creative. So what he’ll tell you is that most people struggle with creative they can run their ads, but their creative sucks. So you can actually hire his team to just produce the creative and you can still run your ads. So if you if you struggle with creative, I highly recommend you hop over to Ad Pros and check out their creative services.
Nehal Kazim 48:09
Yeah, appreciate that.
Tanner Larsson 48:10
Absolutely. And what’s the website?
Nehal Kazim 48:12
Tanner Larsson 48:14
Super easy, right guys? Easy peasy. Alright, guys, we’ll see you in the next episode. Thanks for joining us and we’ll see you all later. Ciao.
Ecommerce Store Audit
Want us to do an Audit on your e-commerce store and show you how you can make some quick changes that will dramatically increase sales and profits without increasing your traffic?
Ecommerce Store Audit
Want us to do an Audit on your e-commerce store and show you how you can make some quick changes that will dramatically increase sales and profits without increasing your traffic?