Facebook’s Geo-Allocation System Is Broken, Here’s How You Can Fix It

May 4, 2020 | Facebook

If you’re anything like us at Social Fulcrum, you’re already breaking down and analyzing your Facebook campaigns by every possible data point (day, gender, DMA, placement, device etc.) examining trends and searching for opportunities to enhance performance. If so, maybe you’ve noticed something strange with your cost and spend data by location…or maybe you haven’t – either way, we’re here to explain what’s going on and turn a Facebook performance issue into a strategy for success.

During normal times, Facebook increases and decreases spend by geography until all geos have roughly similar costs. For example, if you’re running a Facebook campaign targeting the entire United States Facebook will allocate spend by city efficiently. Typically running hand-budgeted geo specific campaigns usually makes performance worse…not better.

BUT, during this period of rapidly changing abnormal customer behavior the geo-allocation system for Facebook is not working correctly. For unknown reasons, the geo-distribution system at Facebook is not allocating everything properly (we think its using too long of a trailing average so its using pre-covid data). If you look at your spend and cost by geography, you will find that there are certain cities that have very low costs and low spend. This is a flaw and shouldn’t be happening.!

Good news, you can fix this by launching “underserved geography” campaigns:

  1. Look at your costs & spend by DMA (go to “breakdowns” in ad manager) 
  2. Find DMAs that have well below average costs, and have low spend per capita.
  3. Make a campaign that targets all your normal audiences, but only targets those underserved DMAs
  4. Run this “Underserved DMA” campaign in parallel (overlapping) with your normal “Whole Country campaign”
  5. Adjust budgets between these two campaigns until they have the same costs

For more details on this strategy or for help implementing it, you can contact us here! We’d love to hear what you think about this strategy or other strategy successes you’ve seen recently. Feel free to comment your thoughts below!

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