Open Targeting: The Big Facebook Ads Debate

Summary

The video script discusses the evolving importance of targeting in Facebook and Instagram advertising. It challenges the conventional wisdom that detailed targeting is crucial, suggesting that 'open targeting'—advertising to a broad audience without specific interests or demographics—can be effective due to Meta's advanced algorithms. The script outlines scenarios where open targeting excels, such as with mature ad accounts, broad appeal products, and local businesses, while also noting its limitations and the importance of retargeting for certain campaigns.

Takeaways

• 🎯 Open targeting is a strategy where no specific targeting options are used, allowing ads to be shown to a broad audience within a chosen location.
• 🚀 Open targeting has become more popular due to advancements in Meta's advertising platform, which can now better determine the right audience for ads.
• 🔍 Some marketers advocate for always using open targeting, believing that Meta's algorithms are better at finding the right audience than manual targeting.
• 🛑 The speaker disagrees with the extreme view of not retargeting, citing scenarios where specific retargeting is necessary, such as for abandoned cart campaigns.
• 📈 Open targeting can be effective for mature ad accounts with conversion history, as Meta can use this data to improve ad performance.
• 💍 Products or services with broad appeal are good candidates for open targeting, as they are likely to resonate with a large portion of the population.
• 📉 The speaker notes that the criteria for using open targeting are becoming less stringent as Meta's AI improves, allowing for testing even with newer ad accounts.
• 🏘️ Open targeting is often preferred for local businesses or in countries with smaller populations, where detailed targeting options could limit the audience too much.
• ⏳ Open targeting may take longer to deliver results compared to more specific targeting options, as there are more variables for the algorithm to consider.
• 📊 The best targeting options can change over time, and the speaker suggests re-testing open targeting periodically as the ad account generates more conversions.
• 🔄 Meta is introducing a hybrid targeting option that sits between open and detailed targeting, offering a new approach to consider in advertising strategies.

Q & A

What is open targeting in the context of Facebook ads?

Open targeting refers to not using any specific targeting options, such as interests, behaviors, or demographics, and instead advertising to everyone within a chosen location, often with an age range of 18 plus, allowing the platform's algorithms to determine who sees the ads.

Why has open targeting become more popular over the years?

Open targeting has become more popular because Meta's advertising platform has become more sophisticated, and it is now better at determining who to show ads to than it was six or seven years ago.

What are the potential downsides of using open targeting?

The downside of using open targeting is that by not specifying interests, you might miss out on people who don't fall within a specific interest category but could still be good prospects for the business.

According to the script, why might someone advocate for only using open targeting?

Some people advocate for only using open targeting because they believe that Meta's algorithms are more capable of figuring out the best audience for the ads than the advertisers themselves.

What is the speaker's opinion on not retargeting as part of open targeting?

The speaker feels that not retargeting is a step too far and believes there are scenarios where retargeting is necessary, such as for add to cart campaigns or when using an omnipresent content strategy.

What is an 'omnipresent content strategy' and why is retargeting important for it?

An omnipresent content strategy is a method used by service-based or expertise-based businesses to demonstrate their knowledge, results, and trustworthiness to prospects over time through various ads. Retargeting is important for this strategy to ensure that prospects see a variety of ads that address all the necessary points.

Under what conditions does the speaker recommend using open targeting?

The speaker recommends using open targeting for mature ad accounts with conversion history, for businesses with products or services that have a broad appeal, and for local businesses or those operating in countries with smaller populations.

What is the 'hybrid option' mentioned in the script, and how does it relate to open targeting?

The hybrid option is a new feature introduced by Meta that acts as a middle ground between open targeting and more detailed targeting options. It's designed to provide a balance between the broad reach of open targeting and the specificity of interest-based targeting.

Why might open targeting take longer to deliver good results compared to more specific targeting?

Open targeting might take longer to deliver good results because it involves a larger and more diverse audience, which requires more time for the platform's algorithms to learn and optimize the ad delivery.

What advice does the speaker give regarding testing open targeting with new ad accounts?

The speaker advises that even though open targeting may perform better with mature ad accounts, it's worth testing with new ad accounts as Meta's machine learning processes improve, and to retest open targeting periodically as the account generates more conversions.

How does the speaker suggest determining the duration for testing different ad targeting options?

The speaker suggests that the duration for testing ad targeting options should be based on how far off the target CPA is and the number of conversions being generated, with more conversions allowing for quicker assessment of ad performance.

Outlines

00:00

🎯 Rethinking Facebook Ad Targeting

The script challenges the conventional wisdom that precise targeting is crucial in Facebook advertising. It introduces the concept of 'open targeting,' which involves not using specific targeting options and instead advertising to a broad audience within a chosen location, often just 18 and above. The author argues that due to advancements in Meta's advertising platform, the system can now better determine the right audience for advertisers. The script also mentions that while some experts advocate for exclusively using open targeting, the author believes there are scenarios where specific retargeting is necessary, such as for abandoned cart campaigns or when using an omnipresent content strategy to build trust with high-value customers.

05:00

📈 When to Use Open Targeting in Facebook Ads

This paragraph delves into the scenarios where open targeting is most effective. It suggests that mature ad accounts with substantial conversion history are ideal for open targeting, as Meta's algorithms can utilize this data to optimize ad delivery. The script also highlights that open targeting works well for products or services with broad appeal, as opposed to niche offerings. It acknowledges that the criteria for using open targeting are evolving, with Meta's improving AI allowing for its use even in newer ad accounts or for more niche products. Additionally, the script discusses the effectiveness of open targeting for local businesses or in countries with smaller populations, where detailed targeting options could limit the audience size too much. It also advises that open targeting may take longer to deliver results compared to more specific targeting options and encourages retesting it as the ad account generates more conversions.

Keywords

💡Targeting

Targeting in the context of online advertising refers to the process of selecting specific demographics, interests, behaviors, or other criteria to ensure that ads are shown to the most relevant audience. In the video, the speaker challenges the traditional importance of targeting, suggesting that in certain scenarios, broad or 'open' targeting can be more effective, allowing the advertising platform's algorithms to determine the best audience.

💡Open Targeting

Open targeting is a strategy where no specific targeting options are used, and ads are shown to the broadest possible audience within a chosen location, often with an age range of 18 plus. The script explains that this approach has become more popular as advertising platforms like Meta have improved their ability to match ads with the right audience members, even without detailed targeting parameters.

💡Meta

Meta, in this context, refers to Meta Platforms, Inc., formerly known as Facebook, Inc., which owns Facebook and Instagram, among other platforms. The speaker mentions that Meta's sophistication as an advertising platform has evolved, enabling better audience matching without the need for detailed targeting from advertisers.

💡Conversion Data

Conversion data is information collected when a user completes a desired action, such as making a purchase or signing up for a newsletter, after interacting with an ad. The video discusses how mature ad accounts with substantial conversion data can benefit from open targeting, as the platform can use this data to optimize ad delivery.

💡Broad Appeal

The term 'broad appeal' describes products or services that have the potential to interest a large portion of the population. The script uses this concept to explain why open targeting can be effective for certain businesses, as their offerings are likely to resonate with a wide audience without the need for specific targeting.

💡Retargeting

Retargeting is an advertising strategy where ads are shown to users who have previously interacted with a business's website or digital content. The video mentions that while some advocate for open targeting over retargeting, there are scenarios, such as abandoned cart recovery campaigns, where retargeting is essential.

💡Omnipresent Content Strategy

The omnipresent content strategy is a marketing approach that involves consistently presenting various ads to potential customers over time to build trust and demonstrate expertise. The speaker in the video suggests that this strategy requires retargeting to ensure that prospects are exposed to a diverse range of messages.

💡Mature Ad Accounts

A mature ad account is one that has been operating for a significant period and has accumulated conversion data. The script notes that open targeting tends to perform better with mature ad accounts because the platform has more information to work with in optimizing ad delivery.

💡Niche Products or Services

Niche products or services are those that cater to a specific, often specialized, segment of the market. The video discusses how the criteria for using open targeting with niche offerings have evolved, with the platform becoming more adept at identifying suitable audiences even for niche products.

💡Local Business

A local business is one that operates in a specific geographic area and serves a nearby community. The script mentions that open targeting is often the preferred option for local businesses, especially in smaller populations, due to the limited size of the potential audience and the effectiveness of broad targeting in such cases.

💡Hybrid Option

The hybrid option, as introduced in the video, is a new approach that lies between open targeting and more detailed targeting options. It represents an evolution in advertising strategies, combining the broad reach of open targeting with the specificity of more focused targeting methods.

Highlights

The importance of targeting in online advertising is challenged, suggesting it might not be as crucial as previously thought.

Four categories are identified where targeting may not be necessary, allowing for energy to be redirected towards other marketing strategies.

Open targeting is defined as advertising without specific targeting options to a broad audience.

Meta's advertising platform has evolved to better identify suitable audiences without detailed targeting parameters.

Advocates for open targeting argue that Meta's algorithms can outperform manual targeting selections.

Retargeting is suggested as an exception to open targeting, especially for campaigns aiming to convert potential customers who have shown interest.

The omnipresent content strategy is recommended for businesses with high customer value to demonstrate expertise and trustworthiness.

Open targeting is often the most successful cold audience targeting option, but not always, depending on the scenario.

Mature ad accounts with conversion history tend to perform better with open targeting due to Meta's understanding of the business' conversion patterns.

Products or services with broad appeal are more suitable for open targeting, as they can reach a larger percentage of the population.

As Meta's AI improves, the criteria for successful open targeting is becoming less stringent, allowing for testing with newer ad accounts.

Open targeting is more effective for local businesses or in countries with smaller populations due to the limitations of audience size when using detailed targeting.

Testing open targeting over longer periods may yield better results as the algorithm refines its audience selection.

The best targeting options can change over time, and it's important to stay updated with the latest advertising strategies.

Meta is introducing a hybrid targeting option that blends open targeting with more specific targeting methods.

Transcripts

if you've ever set up a Facebook ads

campaign watched a YouTube video on

Facebook marketing or spoken to anyone

about online advertising you'll know

that setting up your targeting is a

pretty big deal

or is it what if I told you that

targeting isn't as important as you

might think it is if and that's a really

big if you fall into any of these four

categories which in theory means that if

you don't need to worry about targeting

anymore you can put that energy into

crafting better offers coming up with

better and creative or doing whatever it

is that you want to do with that time

that you've saved but before I get into

that I need to catch up to speed with

open targeting so let's quickly start by

explaining what open targeting is now

open targeting is quite simply not using

any specific targeting options not

adding in any interest any behaviors any

demographics just advertising to

everyone within your chosen location

often you would have the age range as

just 18 plus you wouldn't add in any

detailed targeting options and you would

have the broadest possible audience the

most open audience and that's what open

targeting is now we would never have

used open targeting six or seven years

ago and since then it's become a lot lot

more popular the logic behind it is that

meta has become a lot more sophisticated

as an advertising platform and the

platform itself is so much better now at

working out exactly who to put your

audience in front of than it used to be

six or seven years ago and often it's

going to do a better job of finding out

who to put your ads in front of than you

as the advertiser are so if you limit

your audience significantly by selecting

a specific interest you're potentially

missing out on all those people that

don't form within that interest

categorization that matters not able to

advertise to because you've set that

parameter that they would otherwise be

able to work out okay this person isn't

technically interested in this but based

on their recent activity we think they'd

be a good Prospect for this business

let's put an ad in front of them and see

if they become a lead or see if they

purchase that the logic behind it now

there are extremists that say you should

only ever go with open targeting why

would you go with any other option just

let the algorithm let meetta figure it

out that's always going to be the best

approach and some of these really strong

advocates for open targeting wouldn't

even retarget they wouldn't make an

exception for retargeting they would say

meta's going to figure out who visited

your website recently or who's on your

email list or whatever so just do open

targeting and the people that need to be

retargeted will be retargeted now

personally I feel that that is a step

too far I think there are definitely

scenarios in which you absolutely want

to be specifically retargeting people

let's say for example you were running

an add to cart campaign where people who

had added something to cart but had not

gone ahead and purchased by your website

you wanted to put an ad in front of them

to help get them over that final hurdle

with say an exclusive 10 discount you've

probably seen these sorts of things lots

of us has used these well you can't

really do that if you're not going to be

targeting you might not want to offer

the 10 to absolutely everyone in an open

targeting setup likewise if you're using

the omnipresent content strategy which

I'm a big fan of for service based

businesses expertise-based businesses

where you have a high average customer

value and you need to demonstrate to

your prospects that you know what you're

talking about that you can deliver good

results that you are trustworthy that

you've done work for people just like

them in the past you need to tick all

these boxes before they're ready to work

with you and you can do that in an

omnipresent content strategy because you

are guaranteeing that you're putting

many different ads in front of people

over time that do tick all those boxes

how can you do that if you don't

retarget you can't really do that by the

way if you want to know more about on

present content strategy I'll include a

link in the video description below to a

video that shows you exactly how to do

that how to set it up and all that sort

of stuff so for me the not retargeting

side of open targeting that element

that's just too far I think that's too

extreme but we also have to discuss the

other side of it of is open targeting

always going to be the best option as a

cold audience targeting option that is a

much more interesting question and I do

want to State at this point that I am by

no means against open targeting we use

open targeting a lot in fact I would say

that it is commonly our most successful

cold audience targeting option but it is

not always our most successful cold

audience Target production I think

that's a really important distinction so

in a minute I'm going to go through

exactly when we would and wouldn't use

open targeting when I'd recommend you do

so before I get in touch I want to

quickly mention our done for you

Facebook book and Instagram advertising

service if you want my company to create

manage and optimize your campaigns for

you help you get significantly better

results take that workload off your hand

and you want to find out more

information about that you can click on

a link in the description below that'll

take you to a page on our website where

you can go ahead and book a call in with

one of my team members find out more

information and obligation call

um hopefully we'll get a chance to work

together so as an agency when do we like

to use open targeting firstly if an ad

account is fairly mature you've got a

reasonable amount of conversion data in

there we find that open targeting tends

to perform better and that makes sense

because if you've had more conversions

take place then meta understands what a

conversion is for your business the

types of people that are likely to

convert and all sorts of other data

points like what time of day are people

most likely to convert what day of the

week people most like to convert how

many Impressions on average does someone

need to convert for this business they

have all this data they can use to get

you the better results so we're often

looking for accounts that aren't just

brand new ones that have some conversion

history we're also more likely to use

open targeting for businesses where

their product or service has a broad

appeal so for example if you're

advertising jewelry that has massive

appeal you can advertise that to the

general population and know that most

people are either going to be wearing

jewelry or have someone in their life

that they would buy jewelry for so it's

going to hit a really large percentage

of the population if for example you're

selling Springer Spaniel dog training

programs specific to that breed is open

targeting going to come as well probably

not you want to reach the really

specific people that have Springer

Spaniels and that training program is is

right for okay so how broad is the

appeal of your product or service and

that's a determining Factor now with

that said as the years have gone on and

as we've been using open targeting more

and more the criteria that I just

mentioned the requirement for those to

be substantial is coming down explain

what I mean before we might have said

right we're not going to do open

targeting if we have an account with

less than a thousand conversions that

number is coming down all the time as

meta's machine learning processes as

their AI gets better at working out who

to Target and we will now test open

targeting with brand new ad accounts

it's still like to form better with

mature ad accounts but we will test it

with brand new ad accounts the exact

same for the niche product or service

versus the broad product or service

before we would only do it with those

broad product services that appeal to

tons of people now we are more willing

to test it with more and more Niche

product Services there are things that

are really very specific on one end that

we still struggle with we tend to find

we don't get the best results open

Target with those but there are ones

that will work really well now that are

fairly Niche and we'll see open

targeting perform really well that maybe

a year ago two years ago wouldn't have

done so well with open targeting so the

the barrier to entry as it were for open

targeting is coming down all the time

and if you do decide to test open

targeting and perhaps it doesn't work as

well as some other options for you now

as your ad account generates more

conversions I'd encourage you to test it

again in say six months time and then

maybe again six months later at some

point it's quite likely that open

targeting is going to be your best

performing cold audience targeting we

are also much more likely to use open

targeting if we're advertising a local

business or one that operates in a

country with a smaller population so if

advertising in the US for example

Nationwide we're going to test open

targeting against a bunch of different

other detailed target options interest

things like that look-alikes maybe if

we're advertising in a country like

Ireland with a population of say 5

million ish we are much more likely to

rely on open targeting because once you

start adding in those detailed targeting

criteria you really narrow that audience

size down and and we know that meta

campaigns generally perform better with

large audiences one of the reasons why

open targeting is working so and that

Dynamic is even more exacerbated if

you're advertising on a local basis if

you're just advertising to a town of 100

000 people there's basically no

targeting option you can go with other

than open targeting if you're

advertising to a city of half a million

people a million people we're almost

certainly going to be using open

targeting and that's going to be our

best performing cold honest targeting

option maybe you get into the point

where you could start using like a 10

look-alike or something but for the most

part with those smaller populations

you're going to have to go with open

targeting so that's something to really

think about particularly if you're

advertising for local business when you

test open targeting it's also important

to be aware that it can take a little

bit longer for that to start to deliver

good results than more specific interest

targeting options let's say because

you've got more people there's more

things that matter when you narrow it

down to say a specific interest you're

only giving them one maybe a few

different groups of people within that

to Target and they're going to sort of

work it out faster now obviously the

downside to that more specific option is

perhaps it doesn't run for as long or

it's not as successful and profitable

once it's up and running but that's just

something to be aware of if you run a

test between say open targeting and more

detailed uh specific interest targeting

Behavior targeting things like that and

you only run the test for two or three

days you might see that open targeting

is not doing well if you ran that for a

couple of weeks perhaps the open

targeting would work better those time

frames are always need to be adjusted

depending on conversion volume I get

this question all the time how long

should I run a an ad for to see if it

works and my answer is always how far

off your target CPA are you and how many

conversions generating if you're

generating one conversion every three

days you've got to run that ad for ages

to know if you're generating 500

conversions a day you might know whether

the ads working within a few hours the

best targeting options change all the

time as well so make sure you subscribe

and I'll keep you up to date for example

right now meta is introducing a hybrid

option I explain exactly what it is and

how it works in this video here this

hybrid option is going to act as

something between open targeting and a

detailed targeting more specific option

it's really interesting go ahead check

out