Uncommon Goods, a competitor to Etsy that primarily sells domestically produced items such as personalized glasses and jewelry, recently saw many of its online channels peak in advertising effectiveness, Hashemi said, noting that the brand had planned to try new channels. . Facebook’s “performance degradation” and the change in reporting metrics accelerated this plan, he said, and led to an around 80% drop in spending for the brand with the platform. social media.

The company isn’t the only direct-to-consumer brand to shift to television at the expense of its social media marketing budget. In recent years, many startups, including Casper and Peloton, have developed television advertising. In the first half of this year, direct-to-consumer brands spent $ 2.7 billion on television advertising, or 63% of their total spend, according to a report by advertising intelligence platform MediaRadar.

A year ago, Uncommon Goods was spending around 30% of its marketing budget on Facebook, including Instagram. This figure is currently closer to 5%. New experiments such as pulse testing or advertising on Facebook in certain regions for a few weeks at a time and then measuring sales in that geographic area are also not proving to be very effective, Hashemi said.

“We’re trying to find other ways to estimate the impact of Facebook other than just relying on their conversion reports, which we know have flaws,” he said. According to Facebook’s ad library, the brand was still running several ads on the platform at the end of last week.

Last month, Facebook told advertisers that Apple’s recent changes to its operating system skew conversions by 15%. When asked for further comment, a Facebook spokesperson directed Ad Age to a recent blog post on the actions taken by the company to resolve the problem.

“We are optimistic about our multi-year efforts to develop new privacy-enhancing technologies that minimize the amount of personal information we process, while allowing us to serve personalized ads and measure their effectiveness,” the report reads. message, adding that such “efforts will take time” and that there are steps advertisers can take in the interim to “maximize performance in this new environment while respecting people’s privacy.” Facebook shared a list of these actions with advertisers ahead of the holiday shopping season.


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