Ad campaign managing strategies: Weighted Average strategy

One strategy for campaign management is comparing your Ad set parameters with the weighted average of all Ad sets in one campaign. It can also be applied to Ads within one Ad set.

This parameter value is copied to the Parent CPA parameter, which is available in our tool (CPA of a higher-level object).

Let's say you have a running campaign that has accumulated a statistically significant number of results (impressions, clicks, conversions, etc). Weighted Average strategy is basically optimising the Ad set to retain the desired result value by comparing it to its weighted average in all campaign Ad sets (Parent CPA). For instance, if the Ad set CPA is lower than or equal to the campaign CPA, the bid or the budget is increased. And if the Ad set CPA is higher, the bid and the budget can get dropped or you can set to disable poorly performing ads.

This chart shows how the automation algorithm works: we want to keep the CPA function below the weighted average with some space in-between.

If you promote a product on the site and track sales using Facebook pixel, CPA is Cost Per Purchase.

Examples:

1. Managing budget in ad set automation
   
   Let’s use an opportunity to change budget in order to manipulate with impressions. Every time you set a rule, check:
   - Amount of Website Purchases is wo or more - we consider this rule as statistically reasonable for cost per website purchase fluctuations managing.
   - Budget itself must not exceed maximal value in order to not overspend planned amount for a day.
   
   Ruleset 1
   If Cost Per Website Purchase <= Parent Cost Per Website Purchase => Increase budget by $5 (including checks).
   
   
   Ruleset 2
   If Cost Per Website Purchase > Parent Cost Per Website Purchase => Decrease budget by $5 (including checks).
   
   
   Ruleset 3
   If amount of Website Purchases is less than two, increase budget by $2, but not more than $30 per day.
   
   
2. Managing bid in Adset automation
   
   We can also use an opportunity to change bid in order to manipulate with impressions. Every time you set a rule, check:
   - Amount of Website Purchases is two or more.
   - Bid does not exceed maximal value and doesn’t fall lower than minimal in order to regulate cost per conversion and Ad set’s audience size.
   
   Ruleset 1
   If Cost Per Website Purchase <= Parent Cost Per Website Purchase => Increase bid by $0.1 (including checks).
   
   
   Ruleset 2
   If Cost Per Website Purchase > Parent Cost Per Website Purchase => Decrease budget  by $0.2 (including checks).
   
   
   Ruleset 3
   If amount of Website Purchases is less than two, increase budget by $2, but not more than $30 per day.
   
   
3. Ad automation
   
   Let’s use an opportunity to shut off ads in order to avoid expensive and useless impressions. Every time you set a rule, check:
   - Amount of Website Purchases is two or more.
   - There must be at least one running ad from the certain hour; if all ads are off in the beginning of the day, turn them on.
   
   Ruleset.
   If for each ad Cost Per Website Purchase > Parent Cost Per Website Purchase => stop running it (including checks).
   
   

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