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Welcome back everybody. Anton Curly here, and today we're going to talk about how Facebook, Instagram, Google Pinterest, Snapchat, Twitter, and just about every advertising platform out there is changing. Now, this is due to somewhat recent changes that Apple has made, and they're leading us to a future where cookies basically cease to exist. So in this video, specifically what we're going to cover, first is why we're moving away from tracking cookies. Second, we're going to talk about the real world impact this is already having on advertisers. And third, I'm going to share what to do about it so that you can advertise profitably.

If we go back almost exactly five months from the time I'm recording this video, at the end of April in 2021, Facebook released what is known as iOS 14.5. Now this was basically when, if you use an iPhone, you started seeing these popup messages on your phone whenever you used a different app and the app would say something like, do you want to allow this to track you or not? You can say, ask not to track, or allow. Now almost everybody said, don't allow because people like their privacy. I've done in in-depth video explaining on exactly why this matters and how it actually is affecting accounts. Also gave a couple tips on how to get around it. If you want to see that I'll link that up in the description, but the gist of it is Apple updated their privacy settings. They gave users more control. They allowed people, starting at the end of April, to opt out of tracking, and the majority of people do that. So what is the actual impact this has been having on advertisers? Well, we don't even have to guess, because Facebook just had their quarterly earnings call, where they talked about the impact this has been having on their business. Now, let's just for a minute, take them at their word for what they said. And then we'll dive a little bit deeper into what I actually think is happening here. So this article is from Yahoo Finance, Facebook Q3 earnings, profit beats estimate, but misses on revenue, stock rallies. What's important to us is what I've highlighted here.

So the first thing says Facebook results follow competitor's snaps, that's Snapchat, October 21st earnings report, where the company revealed that Apple's app transparency tracking, which was introduced in April as part of iOS 14.5 was impacting advertiser's ability to track the effectiveness of their ad campaigns. No surprise there, over 90% of people clicked do not track. And it goes on to say Facebook acknowledged issues with the iOS update in its Q4 estimates. So basically their projections for the busiest time of the year. And they said our outlook reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple's iOS 14 changes.

Now, one thing that stood out to me here that I could have just told you, but I think it's interesting to see them say it too, is that they don't have a solution, right? There is no fix. They've done different things and I'll give Facebook credit. They're trying more to get tracking working than other platforms, but the fact that they see this still affecting them in Q4, again to me, that's obvious, but to some people that might think, well Facebook will just figure this out overnight. Things will be back to normal. That's not what's happening. Facebook doesn't even see that happening themselves. And they do kind of have to be honest here, because this is their regulated SEC reporting right?

Now the next thing that they say is in a September blog post, so just a month ago, Facebook's VP of product marketing said the company was under reporting ad performance on iOS by as much as 15%. Adding that advertisers are already feeling the squeeze is from Apple's changes. Now that is more than true. Again, let's take them at their word, but I think 15% really is at the low end. And it's definitely true that advertisers that don't do what we're going to talk about in the third part of this video are really feeling that squeeze. And let's just use an example here from what I do and what I teach over at when it comes to paid ads. And that is at a minimum, we want a 10X return on ad spend. So let's just say you spend a thousand dollars in ads a month. That was your cost. You would want that to turn into at a minimum $10,000 in revenue. So money in would be $1,000, money out would be $10,000. Okay? That's a 10X return on ad spend.

Well, what Facebook is saying right now is that as much as 15% is being underreported. So maybe even if your $10,000 came in, you would only see $8,500 of it reported in Facebook, right? So that's new, what Facebook says. Again, in my opinion, when these changes first went into effect, I think it was a lot less than that. And again, unless you do what we'll talk about in step three, I think it'll stay that way. I think it's closer to your seeing anywhere between maybe 60 and 65% being reported. So that $1,000 in, even though it could lead to $10,000 out, because of how reporting is working, you might only see $6,000 out. Now, the problem with this, as you'll probably know if you're already an advertiser, is that when you have money going in, you're constantly checking your KPIs, your key performance indicators, and you're looking at where the profitability is. So you can scale ads that are working, so you can cut back what is not. And this just leads to confusion, because if you only have 60% or best case scenario, 85% of the data, are you making the right decisions when you cut ads spend or add other places, right? Probably not. It's kind of going blind and data is one of the most important things you could have in business.

Now, let's come down here where the article says, if advertisers can't see how well their campaigns are performing, they may end up looking for other places to spend their ad dollars outside of social media platforms like Facebook. Again, sounds obvious. I think it already is starting to happen, but what I truly believe we're going to see a lot of is as Q4 ends, right? Because Q4, basically anybody can be profitable. That's when online sales, in person sales, everything is through the roof. I think everyone is going to do quite well in Q4, that has a solid business, of course.

But after that, right, we're going to see which stores made money, which businesses made money and who didn't, because the ones that can't make Q4 profitable and this, by the way, I'm not talking about only small business owners like myself and possibly you, I'm talking about big stores too. If they can't have their ads running profitably, extremely profitably in Q4, some of them might dramatically cut what they're spending next year. Some of them honestly might go out of business, because for a lot of companies, the ones that have huge fixed costs, that have huge warehouses, that have retail stores and showrooms, for a lot of them, their money is made in the fourth quarter. And again, if tracking is not working properly, the ad buyers don't know where to invest more, where to cut back more. If they can't make their money in the fourth quarter, I think Q1 is going to look entirely different. And I think from an advertising perspective, if you know what you're doing, if you still know how to track and get accurate data, if you know how to control your budgets, then while a ton of companies either cut back or stop advertising, you can do what we're doing, which is scaling now just as much as we have been before.

So I don't want this to be all doom and gloom. There are some solutions. So let's jump into the third part of this video, where I'm going to share what you can do to continue to be profitable, or to be profitable from earlier on if you're just getting into ad buying for your business.

Before I talk about the changes to make, let's talk about how things used to work prior to April 26th and how they do still work for anybody that hasn't opted out of tracking. This way you'll at least understand how things can work and what to do and why the changes actually have an impact.

So somebody clicks your ad, they land on your product page. When that happens, an event is triggered. And if you have the Facebook pixel on your store, that Facebook pixel fires, we'll call it F-B-P. Then that data from the person, right, using the tracking cookie on the pixel, is sent back to Facebook and Facebook now registers this ad got you a page view. Let's say somebody takes the next step. The person that clicked that ad and they go to their cart on your store. Well, when that happens, the Facebook pixel will fire again. It'll remember who that person was because it's tracking them with the pixel, with their cookies, and when that happens, then that event, right, the initiate checkout, will be sent back to your ad accounts. Then let's say they complete their purchase. Well again, the purchase event will be fired, that Facebook pixel will once again, track that data, track that order, send that information back to Facebook associated with that ad, in the ad set, in the campaign. So you can see where money is being made.

Now this is where things don't work anymore for people that opted out. So the first thing you should do, I'll give you three things to do. The first thing you should do is inside of Shopify, where you have your store integrated with Facebook, make sure you enable what is known as Facebook Data Sharing. Now what data sharing does, this is what Shopify calls it, but what it basically does is enable CAPI, you might hear that term being thrown around C-A-P-I. That stands for conversions API. This is something that Facebook released probably almost a year ago, as they anticipated these iOS changes happening. And what CAPI does is allow Shopify, or any other platform you're using, to send information back to Facebook. So this can be things like email addresses, names, phone numbers, purchase conversion values, things like that. So if you're not doing this already, just pause the video, go into your Shopify accounts, go into your Facebook settings, and be sure you enable Facebook Data Sharing, which again, it just lets you use the conversions API, CAPI, and that'll send purchase values back to Facebook. And that's the first thing that I want you to do. Now, the second thing that I want you to do, is inside of Klaviyo, if you're not familiar with Klaviyo, it is hands down the best email autoresponder for Shopify. So this is how we send email broadcasts promotions, abandoned cart emails, really all email marketing to our Shopify visitors and customers. And inside of Klaviyo, you have the option to link different segments of your email list to different audiences within Facebook.

Now the beauty of this is it takes that email address, again, it takes first party data, not pixel data, but first party data from your email account in Klaviyo, and it will send that back to Facebook. So for things like remarketing to anybody that's on your email list. If you want to segment it further, match it up with abandoned carts, match it up with people that are in different promotional sequences. You can do that through Klaviyo. Again, inside of your Klaviyo accounts, you can sync different email segments with different Facebook audiences. If you're not doing this, if you haven't done this yet, do it starting today. It makes a big difference.

Now, these first two things that we talked about are Facebook specific and that's where I want to spend most of our time talking, because that's where the majority of people spend money, and the majority of the impact is being seen already. The third thing I'm going to give you is something that really applies to any advertising platform and something you should also be doing. And this is at the ad level, and it might sound basic, maybe it doesn't. Again, depends on where you are on your journey, but this is making sure you're using UTM tracking on all of your ads. You want them to contain where the traffic is coming from. So in this case, Facebook, you want them to include the campaign name, the ad set name, and ideally the ad name as well, because what's going to happen here if somebody clicks your ad, right? And by the way, in Facebook, you add the UTM at the ad level and what's going to happen here, if somebody clicks it, they go to your product page. They end up buying, well, that data from UTM is not going to be sent back to Facebook. So you're still not going to see how much money you're actually making there. But inside of your Google Analytics accounts, if you have enhanced e-commerce tracking on, which you obviously should. If you don't have it yet, I have a full training on that inside of the Drop Ship Blueprint, go watch it again. If you're not a member of the Drop Ship Blueprint, by the way, go to, register for a free training I have, but what's going to happen when they buy is that revenue will be shown in that Google Analytics accounts. That way you can go in there at the end of the month, and even if something terrible happened and your Facebook ad account was under reporting, by their claims 15%, again, I think it's more, but even if it was, and you really had, let's say $10,000 in revenue and it was only showing $8,500. Well, your UTM data is going to show the full $10,000 inside of analytics. That way you'll know, like we talked about in the beginning of this video, where to scale, where to cut ad spend, and how to be one of the stores that gets through this that is able to find solutions.

Obviously, I'm not going into like all the technical setups here, but I think this is a great starting point for anybody that has a store or really any online business at all. If you want to get through Q4 and really just be profitable, but also kind of survive to what I think is coming in Q1, which again is a lot of stores that don't do this, really cutting down their ad spend, maybe going out of business. I don't wish people to go out of business, but I do wish cheaper ad costs, and I do think that is coming as, like the article earlier said, people start moving away from advertising platforms because they don't get their data in and they don't know how to track.

So do what I just said. I teach this all in Drop Ship Lifestyle. If you're a member, just go through module six, you'll be just fine. And for anybody that's not a member, that's just watching this and getting value, if you did let me know by giving it a like. Also would love it if you can leave a comment below letting me know if you like this type of episode. With that being said, I will be back on Monday for the next episode, where I'm going to share the top 10 niches for high ticket drop shipping in 2022. So excited for that one. If you are too, click subscribe, if you're not subscribed yet, and I'll see you on Monday.