Perpetual Traffic Podcast Summary: "How Meta Ads Manager Is Lying to You & What You Can Do About It"

Release Date: February 28, 2025

Hosts: Ralph Burns and Lauren E. Petrulo
Produced by: Tier 11

Introduction

In this episode of Perpetual Traffic, hosts Ralph Burns and Lauren E. Petrulo delve into the inaccuracies within Meta Ads Manager's reporting mechanisms, particularly focusing on the discrepancies in tracking New Customer Acquisition Cost (NCAC). They explore the limitations of Meta's in-app metrics and introduce alternative solutions for more accurate data-driven decision-making in digital marketing campaigns.

Meta Ads Manager's Data Reporting Issues

Timestamp: 50:32 – 55:45

Ralph initiates the discussion by highlighting a critical issue: Meta Ads Manager often misreports key metrics, leading marketers astray. Using a real-world example, Ralph illustrates how Meta's platform reported an 88% allocation of ad spend towards "new audiences," whereas their internal data revealed it was actually 42%.

Ralph Burns [38:24]: "If my media buyer was looking at this specifically and broke this down with new audiences, I'm acquiring new customers at $149. That would be very bad. That is 50, 60% higher than it needs to be."

This discrepancy arises from Meta's limited attribution windows and the blending of audience segments, which do not accurately reflect the true cost of acquiring new customers.

Audience Segmentation and Attribution

Timestamp: 22:01 – 35:38

Lauren provides a comprehensive breakdown of Meta's audience segmentation within Ads Manager, categorizing audiences into:

1. New Audience: Individuals who have never interacted with your products or services.
2. Engaged Audience: Users who have interacted with your business but haven't made a purchase.
3. Existing Customers: Those who have previously purchased or subscribed to your offerings.
4. Unknown/Uncategorized: Users who fall outside the defined segments, often due to data limitations like disabled pixels or cross-device usage.

Lauren E. Petrulo [12:00]: "Your customer service team should be a revenue-generating line of business and they should not be a liability on your books."

Properly defining these segments is crucial for accurate attribution and understanding where your marketing dollars are truly being spent.

Comparing Meta Data with Tier 11 Data Suite

Timestamp: 26:13 – 46:06

The hosts introduce the Tier 11 Data Suite as a superior alternative to Meta's in-app metrics. This tool provides a nearly 100% accurate data alignment by integrating with external CRM systems and leveraging advanced data matching techniques.

Lauren E. Petrulo [44:19]: "For ACAC, being all CAC or when I'm like this is your CAC, it's all of it together. So 99.9% of the time it'll be cheaper."

By cross-referencing Meta's data with their own suite, Tier 11 uncovers hidden revenue streams and provides a more precise measurement of NCAC. This allows marketers to make informed decisions, ensuring that ad spend remains within profitable thresholds.

Impact on Campaign Management

Timestamp: 37:35 – 54:26

Understanding the true NCAC is vital for effective campaign management. Misreporting can lead to overspending on underperforming campaigns or misallocating resources based on faulty data.

Ralph Burns [54:09]: "The old way of doing things is comparing it with the CRM and it's incredibly manual. But that's the source of truth."

With accurate data from the Tier 11 Data Suite, marketers can:

• Optimize Ad Spend: Allocate budgets based on reliable NCAC metrics.
• Refine Targeting Strategies: Focus on segments that provide the highest ROI.
• Enhance Campaign Hygiene: Ensure all audience segments are correctly set up to prevent data leakage and misattribution.

Lauren emphasizes the importance of not solely relying on Meta's data, advocating for a layered approach that combines platform data with external analytics for a holistic view.

Conclusion and Key Takeaways

Timestamp: 55:35 – End

Ralph and Lauren conclude by reiterating the necessity of accurate data in navigating the complexities of digital marketing. They caution listeners against treating Meta Ads Manager as an infallible source and advocate for integrating third-party tools like the Tier 11 Data Suite to attain a more truthful representation of campaign performance.

Lauren E. Petrulo [55:45]: "If you are cross-checking it with your source of truth, then you can benchmark a profitable CPA."

Key Takeaways:

• Inaccurate In-App Metrics: Meta Ads Manager's reporting can significantly overstate metrics like NCAC.
• Need for External Analytics: Tools like Tier 11 Data Suite provide more accurate data by integrating with CRM systems.
• Proper Audience Segmentation: Correctly defining and managing audience segments is crucial for accurate attribution.
• Data-Driven Decision Making: Reliable metrics enable better budget allocation, targeting, and overall campaign effectiveness.

For marketers seeking to enhance their digital advertising strategies, this episode underscores the importance of not solely depending on platform-provided metrics and highlights the benefits of leveraging advanced data analytics tools for more informed and profitable marketing decisions.

Notable Quotes:

• Ralph Burns [38:24]: "If my media buyer was looking at this specifically and broke this down with new audiences, I'm acquiring new customers at $149. That would be very bad. That is 50, 60% higher than it needs to be."

• Lauren E. Petrulo [44:19]: "For ACAC being all CAC or when I'm like this is your CAC, it's all of it together. So 99.9% of the time it'll be cheaper."

• Lauren E. Petrulo [55:45]: "If you are cross-checking it with your source of truth, then you can benchmark a profitable CPA."

Listeners are encouraged to tune into future episodes for deeper dives into setting up audience segments correctly and enhancing campaign hygiene to ensure the utmost accuracy in their marketing efforts.