Ylopo Client Announcement: August 27, 2019
As many of you have already heard, Facebook is about to roll out a major change on their ads platform for advertisers in housing, employment and credit services industries (we’ll call them HEC). They are making these changes based on a settlement earlier this year with HUD. If you’d like more details on that settlement, please read about it here: Facebook Announcement. These changes will come into effect starting August 26th and by the end of the year will be enforced with all ads/advertisers in the HEC categories.
Ylopo has been working closely with Facebook to get well ahead of these changes, and we wanted to make sure you are all aware of how this will impact your advertising:
The most important new limitations on ads:
- Removed ability to target by age, gender and ZIP code
- Reduced available Interest targeting options (for inclusion). Any detailed targeting option describing or appearing to relate to protected classes will also be unavailable.
- Updated location targeting (Facebook requires a minimum 15-mile radius for city/town targeting or a minimum 15-mile radius for pin drops)
- Instead of using lookalike audiences, we will now use Special Ad Audiences which don’t consider gender, age, ZIP codes, or other similar categories.
The following image shows you what Facebook will no longer allow advertisers to access:
How will this impact Ylopo’s marketing on my behalf?
The good news is that Ylopo has developed relationships with enterprise third party data providers that allow us to use data outside of Facebook to refine our ad targeting on your behalf. All of our advertisement and targeting follows all HUD guidelines laid out to prevent discrimination. We have integrated third-party data in our targeting on our client’s behalf for over a year now and have not relied on Facebook targeting data now for several months in anticipation of the Facebook changes. So far, based on our testing, we believe we are able to maintain almost all of our targeting standards that you have been used to with our platform.
In fact, due to a number of factors, including that we expect to see reduced competition once these changes go into effect, we believe the average cost per lead for our clients will decline substantially. We’re seeing something in the neighborhood of 10-20% lower CPL’s in our initial testing in the last month or so.
- We’ve partnered with national data vendors to enabled enhanced targeting that is HUD compliant
- Due to our extensive preparation over the last year, we have the process of HUD compliant Facebook ads dialed in
- We anticipate a significant decrease in other Facebook advertisers which will continue to help you set yourself apart!
Commonly Asked Questions (Clients):
What are the biggest negatives you see with the changes that are being rolled out?
The biggest impact our clients will feel is the restriction on location targeting. We use to be able to geo-target our ads down to the zip code level, as well as exclude cities, states, zip codes on our clients behalf (ex. Say you are in St Louis on the border between IL and MO and you aren’t licensed in IL, you used to be able to exclude your ad from being seen in that state. This won’t be possible in the future). While we will attempt to solve this with third party targeting, it will not be possible to target precisely by geography. The lack of geographic filters may also present a problem for very urban areas (ex. New Jersey / NYC).
What about marketing that I do on Facebook outside of Ylopo?
Unfortunately, you will not be able to leverage Ylopo's access to third-party data in your own advertisements.
Will we still be able to exclude other realtors from seeing our ads?
Yes! Ylopo uses our own proprietary custom audience data to exclude real estate agents, we currently have about 900K agents targeted on FB, which should be 85%+ of agents nationally.
I’m getting people who can’t afford to buy / not qualified can you exclude these people?
We are not allowed by HUD regulations to exclude people from ads based on income, age, gender. However, there is a myriad of demographics and user behaviors that we can use in our targeting to help mitigate this issue. For example, we have a market segment specifically focused on people who have recently visited a home search portal. These targeting options and strategies vary by region and we recommend you speak to a marketing team member to help calibrate your marketing.
I’m getting a lot of rental leads, how do you prevent this via targeting?
We do not recommend using demographic targeting to reduce rental leads as we have not seen to be very effective. While we typically recommend that you run your advertisement as broadly as possible and allow our Automated ISA platform to identify renters on your behalf (and you can ignore them from there), however if you definitely DON’T want any renters, we can use lead filtration and additional questions on our lead form to filter those out for you.
Please send any additional questions you have to email@example.com.