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Using action eligibility to reduce wasted ad spend on people-based destinations

Updated on August 4, 2022

Advertising on paid channels without a centralized Next-Best-Action strategy has the risk of wasting ad spend on ads which are not relevant to the individuals whom you want to target. For example, an individual may see an ad for a product which he or she already has, because the information is not communicated from your Pega Customer Decision Hub application to the paid destination where you are advertising. The cost of that impression is likely wasted and would be better spent on showing the ad to an individual for whom the product offer is more relevant.

Pega Customer Decision Hub

Paid Media Manager addresses this issue by communicating relevant Next-Best-Action decisions to the destination platform, according to the engagement policies specified in the Eligibility section of the Next-Best-Action Designer. This means that after individuals with accounts on the destination platform are matched based on a one-way hash of their personally identifiable information (PII), such as an email address, phone number, or device ID, they are placed in audiences only for products for which they are eligible. This ensures that ad spend is not wasted by showing the individual offers which are not relevant to them.

For example, while browsing his Facebook feed, Troy may see ads from UPlusBank, but before UPlusBank enabled Paid Media Manager to communicate Next-Best-Action decision to paid channels, Troy sometimes saw ads which were not relevant to him, for example, ads for the same type of checking account which he already had.

After UPlusBank extends their Next-Best-Best-Action to paid channels, information about each individual's Next-Best-Action is communicated to Facebook Ads. Individuals are placed into custom audiences, with each audience consisting only of individuals who are eligible for a particular offer. Each audience is associated with an ad set, which contains one or more ads for the offer. One of Troy's Next-Best-Actions is determined to be a cashback credit card offer, so he is added to the Sales-Usage-CashBack1 audience set, which is targeted with an ad set configured with associated advertisements.

As a result, Troy now sees an ad for the cashback credit card in his Facebook feed.

The below tasks describe how to configure Paid Media Manager so that it can create audiences based on the offer eligibility data you have collected in your Pega Customer Decision Hub application.

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