American small businesses could struggle as Meta’s latest update changes the advertising landscape. Here’s how to pivot your efforts to thrive instead.
On January 31, 2025, Meta will deliver another blow to advertisers. 😩
Talk about a happy new year. 🥂
Meta has already started eliminating the ability to set new detailed targeting exclusions as of July 15, 2024. However, beginning Jan. 31, existing campaigns using these exclusions will stop delivering altogether.
Imagine running ads with no way to exclude audiences that will not buy.
This change feels like yet another chapter in Meta’s ongoing playbook of: “Give me your credit card info, and trust me, bro.” 🤑
In this article, I’ll explain why this is happening and, more importantly, what you can do to stay ahead. But before we get into it, here’s a bit about me and why this will be worth the read.
Quick Intro
If you’re new here, my name’s Lester, but call me Les. 👋
I’m a founder with a successful exit and currently the executive chairman of a group of e-commerce brands. I’m an award-winning performance marketer at my core, and spotting trends is what I do best.
Over the years, my team and I have spent tens of millions of dollars on the Meta marketing platform. It’s safe to say I know a thing or two about how it works.
How we got here
Before we jump into what you should do, we need to understand how we got here.
If we’re being philosophical about Meta’s latest targeting announcement, this traces back to Sept. 16, 2020, the day Apple announced the infamous App Tracking Transparency. But as marketers call it, the “iOS 14 update.” 😖
The iOS 14 update, with its App Tracking Transparency feature, significantly impacted Meta advertising by limiting the ability to track user behaviour across apps and websites, which reduced ad targeting effectiveness and increased customer acquisition costs due to a lack of granular data for personalization and optimization.
Since that day, targeting the right audiences for your product or service has been challenging and inconsistent.
iOS 14 was a major shake-up. It brought in new features that changed everything. And Meta’s response?
The classic “trust us” agenda. 👉👈
Since then, Meta has seen impressive revenue growth that has pleased shareholders. But marketers? Not so much when it comes to ad performance. I would tell you what they’re saying, but Aly (my editor) said I’m not allowed to swear. 🤐
Over the years, advertising platforms like Google and Meta have increasingly leaned into AI, turning marketing into more of a black box. I’m not a fan. 😒
I think I speak for most marketers when I say: “I trust you, but only when I’m in control.”
What this means for advertisers like you
As this update takes full effect, advertisers will lose the ability to exclude audiences who don’t fit their criteria. This change adds another layer of difficulty to an already challenging advertising landscape.
Here’s why. Imagine I sell red wine. My campaigns target people interested in red wine, but I also target related interests like steakhouses, steaks, events, magazines, and influencers that red wine lovers follow. 🍷
But here’s the thing: I only sell red wine. Based on customer behaviour, if someone likes white wine, they won’t like my red wine. So, I don’t want that segment to even see the ads because they won’t purchase.
Ideally, I’d exclude white wine drinkers altogether, ensuring my marketing dollars target those more likely to convert. 😩
See why this matters? This change can make marketing less effective, resulting in higher customer acquisition costs for small businesses.
What you can do
This situation is less than ideal as small businesses continue to feel the pinch from the economy, high interest rates, etc.
Feature Image Credit: CFOTO/Future Publishing via Getty Images
