Monetize Your Customer Data with Facebook Ads – By Dmitriy Kruglyak

by Sara Szado on April 25, 2016

Did the title of this article get your attention? Chances are, you are already giving a lot of thought to the best ways of monetizing your customer lists. Traditionally, for most people, this meant doing email marketing. You build a targeted list. You send your own offers. You send third party offers. Maybe you rent or sell the list.

This works fine as long as you can deliver email and make your recipients notice and respond. But modern inboxes are overrun by clutter and filtering. It is getting hard to engage even your existing customers. Prospecting is even harder, as many email users don’t react well to anything they have not asked for. But luckily, now you can use your customer lists to engage the same people on Facebook.

Facebook today has grown into one of the top sources of Internet traffic. Besides having a near-ubiquitous reach, it enforces a trusted environment. This makes users a lot more willing to respond to ads, driving click through rates (CTRs) as high as 2-7%.

Over the years, Facebook invested in lots of sophisticated advertising functionality. Availability of this power via API is a true game-changer for performance marketing automation.

Where does your customer list come in? You can upload it into Facebook to create something called a “Custom Audience”. You can generate more audiences by firing a Facebook pixel on your website or mobile apps.

With the audiences ready, you can create ads targeting just those people. If they are your existing customers, you would be upselling. If they visited the site or liked your Facebook page, you would be retargeting. You can define audiences by wherever they fit in your conversion funnel. Then you can further segment them by demographics or buying behavior.

So far, we covered retargeting and upsell, but what about prospecting? Your customer list can help here through the “lookalike” functionality. Facebook can take your custom audiences and generate a “similarity measure”. This measure uses the entire breadth of demographic, interest and behavior data Facebook has. Then they rank the entire population of your target country by this similarity. As a result, you can get the top 1%, 2% or 10% people resembling your customers. Now you can launch prospecting campaigns to each lookalike tier. But since lookalikes are inexact, you may want to further narrow them down by extra attributes.

Does all this sound too complicated? It could be, if you don’t dedicate enough attention and resources to proper implementation. You need to pay attention to detail to make it work. But the flipside of not doing this is living with a “leaky” conversion funnel.

As you are reading this article, your competition may already be using these strategies. Make a plan to take advantage of what Facebook has to offer today.

The best strategies rely on automation, and Facebook makes it possible through marketing APIs. Consider if you would plan to keep up on your own or rely on an expert solution provider.

Dmitriy Kruglyak founded TargetChoice, the developer of end-to-end marketing funnel solutions for Facebook Ads. dk@targetchoice.com.

This article appeared in issue 34 of FeedFront Magazine, which was published in April 2016. https://issuu.com/affiliatesummit/docs/feedfront-34

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