In Facebook advertising, an advertisement (ad) or a group of ads (adset) may not perform as well the following day as they did the previous one. One of the main goals in automation is to spot poor performance as early as possible and switch off poor performing ads while leaving better performing ads running.
This strategy is called “Funnel Strategy” because of the very strong connection with a conversion funnel, for example:
Before you go in and change any settings for ad optimisation, you should spend time analysing your historical data to understand conditions (Spend/Cost per Click/CPM/CPA/CPI), if the information is available.
Let’s assume we accept these 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 already spent a lot, greater than n% of your goal CPA, and did not result in any sales, 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 that's bringing expensive conversions:
- Turn on ads with cheap conversions:
- Increase the budget up to 20% to 30% if an adset has a good CPA at the beginning of the day: