Facebook Limits Ad Spend for Big Companies

Facebook’s announcement on September 9th shook the digital advertising world. Facebook is going to limit the number of ads a company can run at once starting in February 2021.

The bad news - this is going to majorly change the way big corporations spend their ad dollars. The good news - it probably won’t affect your ad spending on Facebook at all, and according to Facebook, it might even make your ads more effective.

Facebook is implementing these new rules because of their digital marketing tool they call the “learning phase”. When an ad is first created, it goes into the learning phase of Facebook’s algorithm. During this phase, three important sets of data are collected:

1. who interacts with your ad

2. how they interact with your ad

3. if that interaction was your desired result from the ad

If you’re buying an ad that you hope will sell your product and your audience in only liking the ad but not buying anything … the learning phase will identify this issue and get your ad to a more purchase ready audience.

When a company runs a large number of ads at once, the learning phase doesn’t work properly. The ads aren’t shown as many times because Facebook’s algorithm has to juggle switching through all the ads the company has purchased. The learning phase algorithm doesn't have enough time to gather the essential information about whether or not the ad is working according to the criteria set in place by the purchaser.

So what does this mean for you and your business? Facebook promises that you will be getting more bang for your buck. Higher visibility for smaller businesses in a market that isn't as saturated with ads from big spenders. Ok Facebook, we're here for this.

Do you want to step into the world of Facebook advertising? Reach out and we can help you navigate how to optimize your ads to make it through Facebook’s learning phase and into quality, consumer engagement.

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