In Facebook advertising, an advertisement (ad) or a group of ads (Adset) may perform not as well the following day as they did on the previous one. One of the main goals in automation is to spot poor performance as early as possible to switch it off while leaving better performing ads running.
This strategy is called “Funnel Strategy” because of very strong connection with a conversion funnel, for example, like this one:
Before you go in and change any settings for ad optimization, spend some time analyzing your historical data to understand conditions (Spent Amount / Cost per Click / CPM / CPA / CPI), if the information is available.
Let’s assume we accept the next values:
- CPC = $2
- CPA = $70.
- If a running creative doesn’t bring conversions, shut it down:
- If you noticed that a creative ad spend had spent already a lot, greater than n% of your goal CPA, and did not result in any sale, then there’s a high probability it won’t perform well today. So, according to our assumption above we shut off this ad if CPC >$2 & SPEND > $30:
- Stop running creative bringing too expensive conversions:
- Turn on ads with cheap conversions:
- Increase the budget up to 20% - 30% if an ad set has a good CPA at the beginning of the day: