The market for the past 2 months has been unstable with major indexes declining with high inflation, Crypto Chaos & Stock Market Crash in 2022. All these changes in the market including the past and upcoming updates in the digital world, iOS 14 updates & detailed targeting removal have definitely made 2022 more challenging than ever.

I am guessing more and more business owners and digital advertisers are having a hard time in the year 2022. So, we concluded the three biggest challenges for every business owner and advertiser needs to know before venturing into the digital ad market world.

1) Increased Cost per Result

First and the biggest challenge that most advertisers are experiencing is the constant increase in Cost per Result for the past 2 years. Ever since the implementation of iOS 14, tracking has become harder for advertisers which made advertisers that rely on system optimization difficult as the system is capturing less data than ever.

Advertisers who utilized broad targeting suffer the most in this update, mainly because the iOS update leads to less information and data disclosed to the system for learning. Now, digital advertising is back into the hands of advertisers to figure out the best targeting and optimization settings.

2) Intense Market Competition & Ad Fatigued Audiences

Due to the COVID pandemic in the past 2 years, more advertisers have given up traditional advertising and surged into the digital ad market. More digitalized business & e-commerce would eventually mean a more intense market competition.

More and more advertisers are targeting the same group of audiences in the market which resulted in higher costs in the auction system while also allowing the users to have higher ad fatigue than ever. For instance, user A could have seen 3-5 property-related ads on a daily basis just by scrolling their news feed. The high frequency of ads blasting toward the users, not only creates a more intense market competition among advertisers but also leads to higher ad fatigue for the target market audience.

3) Finding the Right Audience Becoming Challenging

You probably already knew what happened in March 2022, right? The detailed targeting removal was one of the biggest impacts on the Facebook & Instagram advertising dynamics. Thousands of ad targeting categories were removed and are no longer available to be used for targeting where we explain the impacts before in the previous article 3 Crucial Impacts From Facebook Ad’s Interest Targeting Removal. These recent updates and changes in the market change the rules of the games in the digital ad world.

It would be exaggerated to describe this as a disaster in the digital ad world, but it’s undeniably becoming more difficult for small businesses to work on their digital campaigns. Unlike big businesses and agencies that can easily allocate a big amount of money to work on branding campaigns to continue to nurture their customers and followers base, small businesses got the biggest impact from the update. Detailed targeting has been the most direct way for small businesses to reach out to the audience that matters to them the most. Nevertheless, there may seem to have more and more challenges ahead of 2022 but the challenges can all be overcome as long advertisers practice the golden rules of digital advertising and learn to do prospect targetings with different remarketing stages.

Always remember the first rule of Facebook & Instagram advertising, broad targeting is the first mistake that you should avoid at all cost. Broad targeting in 2022 is no different from looking at a needle in a haystack and pray to get lucky so that you can reach your targeted audience among the 2.9 billion users on Facebook. That’s all, hope you are aware of the challenges before running Facebook Ads and found out the reason for the recent decline of your Facebook campaign performance.

What are your thoughts, do share with us in the comment section below! Wait… how about the second & third rules of digital advertising? Surely, if you want to find out more about the easy way rather than the hardship way, Sign Up for our Facebook & Instagram 2 Days Hands-on Advertising Workshop!

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