Meta launches new AI-powered ad tools
Damian Kim
Meta is rolling out three new ad optimisation tools that it says will let advertisers target valuable customers better and re-allocate spend that isn’t delivering results.
Meta’s APAC director of monetisation Damian Kim said the three new tools were called “value rules”, “value optimisation” and “incremental attribution”.
Damian Kim delivering the news
“Value rules is a product that gives an advertiser the ability to upfront indicate their own value system. So in most cases, this is really about differentiating between different customer types based on what that advertiser already knows,” he said.
“This also means, for example, a new business might be really focused on first time buyers, right? And so that is actually the highest priority — value rules now really allows the advertiser to direct the system.”
Value optimisation was changing the system so that the analysis of ad effectiveness was not based on the binary state of whether it delivered a conversion or not.
“So maybe a bottle of perfume is more profitable than selling a set of home decorations. Value optimization allows a business to tell the system to maximize actual margins so that we are not simply only able to drive the top-line revenue, but we can actually drive the bottom line profitability.”
An explanation of the three new tools
The final tool, incremental attribution, helped identify unecessary spend.
“One of the longstanding challenges and questions as it relates to advertising is really knowing what sales can be really accurately and credibly linked to advertising spend,” he said.
“So we know that advertising can work, but what is the specificity and which transactions did the advertising drive? So how do we know, again, that those specific sales happen because of an advertisement instead of in spite of an advertisement?”
Kim said as much as 35% of ad spend was lost to non-incremental sales — in other words, sales that would have happened without the advertising.
He cited a case study of cosmetic brand Laura Geller, which was mis-attributing 27% of conversions to Meta ads.
“Basically in reducing the money spent, we could shift that spend into campaigns and into efforts that were actually working.”
The new tools will be rolled out over the next few weeks in APAC.
