this applies to the google/facebook/tiktok/whatever new network pixel. It does not help
The only the pixel helps in, is to help track conversion or action points, like a purchase, sign up, viewing a certain page, adding to cart etc. This is important so you can track correctly how many people took a certain action, and calculate the return on ads spent.
The big promise going around was that the pixel can “mature” if given more data. This is one if the biggest financial mistakes I have committed so far. I talked my friend and myself into spending SGD100,000 for the pixel to mature. It started from just a few hundred, and then people were saying I was not patient enough and to give more time, to collect more data, to up the budget. TOTAL CROCK. I don’t know how it went up to so much money. I embarrassed myself in front of my friend and caused him to lose money as well.
Supposedly, the pixel is supposed to help to create a lookalike audience which can perform better. NOPE thats not true, while the conversion can go up maybe 20% (or maybe it was just luck), the price goes up very much more.
Today ( and also before, but after the stupid mistake) – we rarely target audiences. we use the general targeting like the country, male/female (because some offers are gender based like make up cosmetics). Even the age range is not accurate. Most of my friends do not use the targeting as well.
as of this writing on 21 June 2022, 80% of the traffic we receive from ads in Tiktok is not what we targeted. We survived by monetising the remaining 20% that is correct. Even Facebook cant do a better job than 30-40%. You must do well with such numbers, otherwise you need work on your business instead.
the pixel DOES NOT “mature”. in fact the optimisation it provides, is close to zero. This has been the case for all previous networks and tiktok as well.
I will explain why the pixel does not help. The pixel requires data to “optimise”. This data will include the purchase decisions, names, emails, behaviour of your audience. As time passes by, privacy regulations are tightening up. This is a trend that started in Singapore since 2013 (earlier if you look at other countries). Progressively more and more tightening is happening. This is because more and more time and resources and personal data are being invested online. Online fraud, misinformation and data leakage is threatening the online world’s existence. You will have to make decisions on less and less data, and less accurate information about your audience.
There is another way – permission marketing. If your audience chooses to give their data to you for your use, that is different. The laws apply to the general crowd, which usually does not know you or your company and have not given their specific expressed permission to contact them. This permission can be retracted at any time.
Why would they give you their data? Because they want you to call them on their phone and inform them once the pre-order arrives. Maybe they want you to send them a physical catalogue to their physical address. Maybe their changing age affects their payment amount. Or maybe they just trust you to use it in a way that is advantageous to them.
If we are to be able to use this data, we will need to build trust with the audience, demonstrate value consistently in order continue using the data. This is very difficult but this is not new. This concept has been around more than 100 years ago. The idea is to keep earning the interest of your audience, and believe that by delivering value consistently and having good products, ultimately the audience will reward you with their loyalty and purchase. (more on inbound marketing in another post)
Here are some books that go into depth how they do this content marketing- furrow publications. inbound marketing – get found using google social media and blogs, Youtility, epic content marketing