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Whether it’s a result of marketers going digital- and mobile-first, the push for programmatic, the need to justify ad spend with concrete ROI, or all of the above, “data-driven marketing” has become an online advertising catchphrase. The demand for tracking, understanding and optimizing ad performance has grown exponentially over the past couple years, and so has the demand for timely insight into the marketing approaches that resonate with a target audience and those that don’t.
Enter Relevance Score. This software enhancement provides in-house advertisers with greater visibility into the quality of their ads on an individual level, including positive and negative feedback. In Nanigans software’s data analysis interface, three new metrics are exposed: overall score (1-10), which is based on positive feedback (1-3) and negative feedback (1-3). For the Relevance Score to become visible, an ad needs to accrue around 500 impressions each day.
While correctly aligned audience targeting is crucial to positive ad performance, the importance of compelling creative cannot be overemphasized. Relevance Score puts the focus on quality ads and high engagement, which are the other prime drivers of strong return on investment. Higher engagement generally indicates a higher propensity to purchase a product, install an app, or sign up for membership, so marketers should use this additional insight to steer their ongoing creative testing and quickly refine new campaigns.
Relevance Score is very useful for ecommerce, mobile gaming and pure play Internet companies that typically push out a lot of creative combinations and constantly assess ROI. Here are some use cases:
Relevance Score takes Click-Through Rate, Conversion Rate and organic engagement into account. The feedback comes through as numbers; 3 (high), 2 (medium), and 1 (low). Ideally, advertisers want a high score for positive feedback and a low score for the negative. Although the score is a snapshot of an ad’s current performance, Nanigans will store the historical score over time, so that users may see what score an ad had on any particular day.
A high Relevance Score indicates that your ad is more relevant to who sees it in comparison to other ads (either yours or a competitor’s) served to the same audience. Moreover, it indicates that your ad has the potential for additional reach at a lower cost, since Facebook places a lot of importance on delivering the right ads to the right customers.
It’s our preliminary experience that 6.5 and up is a healthy score, but since relevance is graded on a curve, there is no absolute “healthy range.” As a best practice, you should always aim for 10!
It can be easy to for digital marketers to get caught up in launching hundreds of ad iterations. Facebook’s Relevance Score drills down to the ad level, providing granular insights into the creative or copy you are most keen to test out.
For more tips on how to optimize ads, check out Maximize Your Ad ROI With Creative Tester.