When brand owners advertise on Facebook, they often face a dilemma of limited audience selection options available within the FB backend. They fear that choosing unrelated audiences may result in targeting the wrong target audience. However, at times, selecting audiences with very similar interests can lead to significant overlap, depleting the advertising budget. The introduction of the Tagtoo LTA aims to address this issue by enabling brand advertisers to discover a wider range of potential new customers for their product advertisements. LTA allows you to break free from the constraints of relying solely on the audience options provided by the FB backend.
The main feature of the LTA is to help brands identify potential new customers.
- The purpose of LTA is not to increase conversions but to assist brands in their top-of-funnel marketing efforts targeting new customers.
Our primary objective with the LTA is to aid brands in developing potential new customers. It allows audiences who have an interest in your product category but are not yet familiar with your brand to learn about your brand. However, since these individuals are still in the early stages of getting to know your brand, our main focus is not on pursuing conversion numbers.
- While the effectiveness of acquiring new customers may not be as high as that of remarketing to existing customers, it is still an excellent tool for expanding your customer base.
Based on past experience, although remarketing to existing customers may result in higher conversion rates compared to targeting new customers, in the long run, if you want to have more customers for remarketing, you need to start by developing new customers. Specifically, you should focus on identifying potential new customers who are most likely to purchase your product. These individuals are more likely to become repeat customers in the future, thus increasing the chances of successful remarketing. As such, the LTA serves as an effective tool for acquiring new customers.
New customers acquired through LTA are likely to eventually progress down the marketing funnel and become the brand's own remarketing audience.
Brands often tend to focus excessively on conversions while overlooking the importance of expanding their customer base. However, it is crucial to recognize that developing new customers is a vital and integral part of business growth. By actively expanding the pool of potential customers, there is a greater likelihood that they will become viable candidates for remarketing in the future. Furthermore, acquiring new customers also contributes to increasing brand awareness, thus benefiting the overall brand reputation.
The benefits of using the LTA: Acquire New Customers and Retain Existing Customers.
Acquiring New Customers: (External Audience Analysis)
By utilizing the TAP in your advertising campaigns, you can target new potential audiences. This allows your advertisements to reach a broader range of unique traffic, helping you tap into untapped markets and quickly increase brand and product awareness while simultaneously attracting new customers.
-The difference between the LTA and the audience classification in the Facebook backend is as follows:
Basis of Audience Classification: There is no clear understanding of how Facebook precisely categorizes the interests of its advertising audience. In contrast, TAP has a well-defined set of rules and judgment logic for audience classification. We analyze users' off-platform behavior by assigning specific tags and audience segments.
Audience selection based on purchasing power: Unlike the Facebook backend, which primarily allows selection based on audience interests and behaviors, LTA goes a step further by analyzing the average unit price of products that customers typically purchase when shopping online. This analysis provides brands with additional insights for making informed choices. By considering the purchasing power of potential customers, brands can better tailor their marketing strategies and offerings to align with the preferences and budgets of their target audience, ultimately enhancing their decision-making process.
- Retaining Existing Customers: (On-site Analysis)
Through years of data analysis, LTA employs advanced techniques to categorize on-site consumers into five major groups: new customers, active customers, potential customers, lost customers, and returning customers (NAPL+R). This allows brands to customize marketing strategies based on the behavioral patterns of different audience segments. By effectively segmenting existing customers, brands can set more precise remarketing goals and tailor their campaigns accordingly.