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In this segment, Eric Deeran explains how marketers often collect leads without any friction on their forms, resulting in a flood of unqualified or low‑quality data being sent back to Facebook's ad platform. Because Facebook optimizes for the campaign objective—delivering the most leads or calls at the lowest cost—it interprets every returned lead as a signal of the type of user the advertiser wants. When the returned leads are unqualified, Facebook learns to target more of those low‑quality, often "broke" users. This creates a feedback loop that degrades campaign performance, a phenomenon Deeran calls the "death spiral," where the platform continuously optimizes for the wrong audience and results tank. He highlights the need for proper lead qualification and data hygiene to break this loop and keep the ad platform focused on high‑value prospects.

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