Facebook is making significant updates to its ad policies for financial and insurance services. These changes focus on tightening targeting options and increasing transparency to comply with regulations and prevent misuse. For producers, these changes could mean a wrench thrown in their social media marketing gears.
In 2021, Facebook rolled out a new ad classification: Special Ad Categories. At the time, ads involving financial services and insurance products did not fall under any of these categories. This is changing soon. Starting in October, Facebook is introducing a “financial products and services” Special Ad Category. This is an expansion of the original “credit” category that previously regulated ads for debt relief, loan services, and credit cards. By early 2025, use of this category will be required. So, what does this mean for your ads?
Targeting Options
Ads that meet the requirements for a special ad category will be limited in their ability to hyper-focus on a specific target audience. The new policy aims to prevent discrimination based on certain personal characteristics. This means you will be hitting a much broader pool of consumers, including many who might not find your ads relevant.
Targeting options for ads that meet the special categories requirement include:
- Location: Zip codes are no longer an option when targeting based on geographic location. Instead, any locations you select (be it a whole city or specific address) via pin-drop targeting will reach everyone within a 15-mile radius.
- Age & Gender: Targeting based on age and gender is not an option for Special Ad Categories. All these ads must reach both men and women ages 18 – 65+.
- Detailed and Interest Targeting: Special Ad Categories still allow for some detailed targeting based on user interest. However, many of the options you can choose from when running normal ads are not available here. You also cannot exclude any demographics from seeing your ads.
- Exclusion Targeting: You cannot exclude specific locations, such as cities or states, in Special Ad Category campaigns.
The use of detailed targeting or lookalike audiences – a tool that helps identify users who are similar to your existing audience – will no longer be available under the new Special Ad Category.
How to Adapt
The ability to adapt has always been crucial to a successful social media presence. When the new ad rules take full effect, that adaptability is going to be more important than ever. Here are some tips for navigating Facebook’s new ad landscape.
Use Broad, Benefit-Focused Language: Since demographic-specific targeting is limited for Special Ad Categories, focus on broad, inclusive language in your ad copy. Rather than targeting specific age groups (like retirees or pre-retirees), planners can highlight benefits like “secure financial future” or “planning for life’s next phase” without directly mentioning age or retirement.
Create Value-Driven Content: Use Facebook ads to provide educational content about retirement planning, focusing on value rather than selling a specific product. Offering resources like guides, webinars, or newsletters on how to save for retirement or manage income in retirement can attract a broader audience. This value-driven approach also helps to build trust and engagement with potential clients.
Run Lead Generation Ads: Since demographic restrictions limit audience segmentation, lead generation ads can be effective for capturing interest and building a prospect list. Planners can offer free consultations, reports, or calculators to help prospects take the next step. This not only drives leads but also allows planners to qualify and nurture them outside of Facebook.
Use Compliance-Friendly Content: Avoid emphasizing specific products like annuities or pensions, which could trigger Special Ad Category restrictions. Instead, ads can highlight general financial strategies for long-term security, creating a more compliant and appealing campaign.
Alternative Platforms
Facebook isn’t the only social media game in town. While it does boast the largest and most actively online audience, other popular platforms exist with less stringent ad policies.
LinkedIn has long been a valuable platform for producers trying to reach professionals and high-net-worth clientele. Make use of sponsored content, InMail, and lead gen forms to capture leads and initiate conversations with professionals who are thinking about retirement. LinkedIn allows job title targeting, which is useful for reaching people in decision-making positions who may have higher retirement savings needs. The platform is great for planners who want to target business owners or offer corporate retirement planning services.
Nextdoor is another platform worth considering allocating some ad budget toward. This hyper-localized hub is designed to connect neighbors and communities. It’s an excellent platform for those in the financial services space to engage with local audiences, especially because many users tend to be homeowners or community-oriented individuals who might be planning for retirement.
We will cover the ad environment on these and other social media platforms in the weeks to come. For now, a proactive approach about your Facebook ad strategy is highly recommended. Starting now – before the restrictions take effect – will help keep your ad campaigns running smoothly.
CD Replacement Month
On a different note, CD Replacement Month is coming up. Use this biannual awareness event to connect with clients who prefer a low-interest rate product like CDs over anything tied to the market. But given the growth and innovation in annuities, those clients might be more open to the replacement conversation. IAMS has the tools to help. Our October 2024 CD Replacement Kit is now available and features top annuity rates and a wealth of marketing materials.
What’s inside:
- IAMS’ 2024 Taxable Equivalent Yield chart
- A split-annuity alternative guide and checklist
- CD vs. FIA sales strategies
- SPL sales tips and comparisons
- Client concept guides on Going Broke Safely and Market Loss Recovery
- The 2024 IAMS vs. Barron’s Best Annuities guide
- A prospecting letter, email, and fillable fact-finder
- Refreshed social cards and post copy
