Mandeville, Louisiana Aug 5, 2019 (Issuewire.com) - If you run an automotive dealership, or are even just involved marketing for one, you should be paying close attention to the fact that the Federal Trade Commission just levied an unprecedented five billion dollar ($5,000,000,000.00) fine against Facebook due to their negligence in protecting their user’s private data. As a result, Facebook will soon institute massive changes in how it allows advertisers to generate ads. This means that you will have to make critical changes to your Facebook targeted advertising strategies.
It is no secret that, for many businesses, Facebook ads comprise the largest percentage of their advertising budget. For that reason, these changes are going to impact businesses in a very real and direct way. What changes is Facebook going to make with regards to their advertising system and how will this affect your business?
You Will No Longer Have Access to Targeted Advertising
When targeting potential car buyers, one of the most important aspects of digital marketing is having the ability to target current in-market consumers. Often, this is achieved by marketing to a specific demographic based on such things as age, gender, and geographic location. Unfortunately, Facebook will no longer allow targeted ads based on any of those criteria. This change will have very serious implications for your dealership. For instance, to enter into a legally binding contract with your business, a potential customer must be eighteen years of age or older. You would never foolishly spend your advertising budget targeting elementary or middle school kids who cannot legally buy a new 2019 Jeep Cherokee. Under Facebook’s new rules, it would be impossible to narrow the target age demographic of your ad campaign by eliminating those under the age of 18. Therefore, your ad campaign audience becomes too broad, making your ad budget less cost-effective.
Demographic and Behavioral Data Will be Eliminated
Another important change to be aware of is that you will no longer be able to target potential customers based on demographics such as education, job titles, relationship status, etc., or by their behavioral data, including prior purchases. The ability to reach out to potential clients based on their interests and hobbies will also be limited. Additionally, with the new change, advertisements which appear to describe or relate to protected classes and minority groups will be prohibited.
You Can No Longer Exclude Interests From Targeting
Previously, when purchasing Facebook Ads, one of the options you were given was to exclude certain interests of prospective customers. This was helpful when building a targeted audience with the ability to exclude certain people that didn’t fit the target. As a result of this settlement with the Federal Trade Commission, this option will no longer be available.
Location Targeting is Undergoing a Massive Update
One of the largest and most significant changes that will come about is in relation to running ads based on geographical location targeting. Facebook will now require you to advertise to a minimum fifteen-mile radius. This forced expansion of the geographical area is not practical in the automotive business, and even worse for some, simply unaffordable.
Lookalike Audiences Will be a Thing of the Past
Finally, it is important to know that you will no longer have access to lookalike audiences. Lookalike audiences were built by Facebook by taking all the data points of your source audience to build a lookalike audience using similar data. This was a frequently used option that allowed you to advertise to prospective clients based on their similarity to people who had previously successfully engaged with your business.
In short, this will drastically change advertising on Facebook for the foreseeable future. The only question is, at the end of the day, are you prepared for these changes, or not?
If you would like to learn more, please contact Ray Reggie or visit his website today!
- Raymond Reggie
RayReggie@gmail.com
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Raymond Reggie RayReggie@gmail.com http://www.RReggie.com
