Recent years have been marked by a shift towards greater consumer privacy. The EU’s famous GDPR legislation – a trailblazer in its own right – has paved the way for an insurgence of data protection policies across the world. With California’s new CCPA laws for 2020, and Google’s upcoming 3rd party cookie ban getting under marketers’ skins, we are having to adapt to a whole new landscape.
Whilst heightened data transparency and security is a big win in the eyes of consumers, you would be forgiven for assuming that these laws would restrict digital marketers’ access to granular data. To some extent this is true – perhaps the biggest impact of GDPR was its prohibition of the use of third party data, or Facebook’s ‘Partner Categories’. But this overlooks the potential for innovation, and crucially, fails to consider a tool far more valuable than Partner Categories: first-party data.
The Facebook Pixel
The age-old belief that companies are inundated with data (inundata’d, if you will) but are still searching for the best avenues to utilise it, rings true. In Facebook terms, the vast majority of this first-party data is captured on-site, by the Pixel. This is a piece of code placed on a website that, once given consent, registers events (content viewed, checkout initiated etc.) that users take on a site throughout their path to purchase. It then syncs this data to a registered Facebook user profile, ready to serve them ads at a later date. This is how your favourite retailer is able to retarget you with that pair of trainers you added to your basket 27 days ago.
What are Custom Audiences?
Facebook stores this event data in order to supply ready-to-build custom audiences within Facebook Business Manager (below). Most who are familiar with paid social are probably aware of these events and have seen great success from targeting these high-intent users, but not all are aware of their full capabilities.
Below are three helpful examples of how custom audiences can be used to sift through your first-party data, unlocking nuances of user behaviour otherwise overlooked by the standard events.
You can overlay standard events (add to cart, purchase etc.) with information in the URL of the specific page the user is browsing when the Pixel logs an event. This gives you access to various URL parameters like the product name or category to give you a much broader idea of specific user interest and intent.
Overlaying a standard event with a category variable is perhaps one of the more common tactics deployed in custom audience targeting. All this means is serving trainer ads to users who have recently been on a landing page on your website with ‘footwear’ in the URL. However, many ignore the potential to further refine these audiences by additional variables: namely, price.
When advertising products of a higher value, it is crucial to understand who is best to market them to. Suppose your customer’s average order value is £50, but you want to advertise your most valuable product range with an average product value of £250. Ads for these higher-value products may well mean wasted impressions on a typical past purchaser. Custom audiences allow you to refine these purchases by value, so that ads can be served exclusively to customers who have previously checked out a basket with a specified minimum value. Ultimately, this makes your ads more relevant.
Building an audience in this way still only utilises a small segment of the abundance of first-party data businesses are sitting on, but in this scenario, this small segment represents a far greater potential for return on investment. These users also represent a valuable source audience from which to build a look-a-like audience from, enabling marketers to find new users that display similar behaviours to their big-spending customers.
Time Spent on Site
The trusty Facebook Pixel not only logs the value and the events made on a user’s purchase journey, but also tracks the length of these journeys by measuring overall active time spent on a website. Helpfully, Facebook groups all website visitors into percentile thresholds of their time spent on site, which can be used to build custom audiences.
Many marketers seek to reach their most engaged customers by targeting users who have actively signed up to reward schemes or within the CRM. Whilst this audience tends to be the most engaged, it’s surprising to see the level of overlap with users who are spending the most amount of time on site.
We’ve seen as little as an 8% overlap between the 5% of users spending the most time on site and those within the CRM, with a level of performance that rivals the CRM audience. Using these two audiences in tandem can allow marketers to reach a much larger group of high-intent users that, without the custom audience tool, would otherwise have been difficult to reach.
Our last example concerns frequency; the Facebook Pixel stores repeat purchase data from users that are readily available to be retargeted, if you know where to look.
This tool can be very handy for businesses that sell consumables. Should a business ever wish to promote these in a 3 for 2 deal, then understanding which customers already frequently purchase, and therefore may be likely to capitalise on a sale of this nature, can make all of the difference.
Alternatively, there is also value in understanding which of your past purchasers have failed to make a repeat purchase in a given time frame. Users within this audience may well warrant bespoke promotional targeting to prompt them to make a repeat purchase. Where there is data, there is opportunity.
Make the most of your own resources
Nothing in digital ever stays still. In an era of unprecedented concern for data privacy, laws such as GDPR and CCPA will continue to be introduced across the globe. As marketers, it is more important than ever that we are reactive to these changes that threaten to challenge routine.
We have only scratched the surface of the targeting opportunities that are available with the apparatus provided by Facebook’s Pixel and custom audiences. These examples should be used as motivation to explore new innovative avenues to maximise the utility of transparent, first-party data. Granular targeting is still very much possible, but instead of seeking external help, why not consult your own resources? Innovating with your own first-party data is a hugely rewarding exercise in terms of the performance it can drive.
You can find out more about Facebook and it’s role in commerce at our upcoming webinar. We’ll be joined by Sophie Ellis from Facebook to discuss the Future of Commerce on Tuesday 14th April at 12pm. Register here for the link.