Use automated rules to optimize the performance of your campaign. With automatic rules in place your work will be reduced to monitoring and if needed take some actions in terms of budget control. Many campaigns run very stable for many month once the setup is fully in place.
How to setup Automatic Rules
In the Facebook Ads Manager you find a button to create rules of manage existing rules. Its right below the tab of ad-sets.
Here are some of the rules that we use often and when we use them. There is not one universal solution about the usage of rules. Markets, campaigns and the individual goals of a campaign are too different.
Switch off expensive Ads: Use this to filter your ads by the price of a click. Switch them off when the click is quite expensive AND there are no results.
Increase Bid Amount of Ad-Sets: You can (with care) increase the bid amount of ad-sets when they don’t spent any budget and therefore are too low, or if they perform very well and you want them to reach more people and spend more budget.
Decrease Bid Amount of Ad-Sets: The opposite can be done for Ad-Sets that are too expensive. You can lower the bid-amount to get cheaper results, but also the amount spent will be lower.
Increase Daily Budget: For Ad-Sets that perform really good, you might want to increase the daily budget.
Decrease Daily Budget: For Ad-Sets that do not perform well, you might want to decrease the daily budget.
Make ads focusing on different dimensions of the offer (price, quality, value for user, case study, story, features etc.) try different styles of the ads
Optimization Focus: for Ads > CTR, CPC, For Audiences > CTR, CPC, Results.
Ad-Images: use different images like showing the product, showing the user, visualize the value, show testimonials, show the producer etc.
Audience Concept: Research of Audiences through audience Insights, Keywords, Magazines, Brands, Hobbies, Stars, Jobs. Enter a few keywords and then use suggestions. Use Suggestions as new keywords to find more. Optionally add Filters: Education, Age, Gender, Place
Steps of running the campaign and estimating potential
To test different creatives you need to create different creatives in the first place. To write ads actually is not a creative process. We have tested different approaches on how to write ads and found that the best way to ad creation is a systematic, research-based one.
1) Scan your competitors on Facebook and Google 2) Analyse consumer feedback 3) Create a list of dimensions that can be tested (for example price, service, features, added value, design, quality, feeling etc.). 4) Use our ad templates and ad structure to write your ads 5) Make sure you follow a product-market-fit hypothesis
Instead of looking for the best audience that you can find for any given offer, you can also work on your offer based on the market feedback you get. This approach is actually extremely powerful and an overseen opportunity of Facebook Ads.
Facebook is the largest market research panel on the planet and at the same time the largest advertising platform. Because it‘s the same platform the market research results are real and immediately applicable!
Why should you split each audience into its own ad-set?
When using only one or a few audiences you miss out a lot of potential because your result is blurred and you don’t know which single audience would work best.
By using hundreds of audiences and selecting the best ones you will be able to increase your Facebook ad performance significantly.
You might think you have chosen your audiences wisely and based on a lot of experience with your business. That’s fine, but your experience running your business doesn’t help here because you don’t know how Facebook created those audiences.
In our Facebook Advertising projects we have often found very counterintuitive audiences to work well. Therefore we suggest to test all possible audiences. Start very broad and reduce your audiences based on performance indicators, such as cost per click and in later stages cost per lead or cost per order.
Facebook offers audience suggestions based on keywords. We suggest you to enter what comes to your mind and then select all audiences that come up.
If you don’t have any ideas for types of audiences use the Facebook Audience Insights tool and think of the following categories: Which newspapers / famous people / books / movies / brands / products do my clients like? Enter those into the audience browser and you will most likely have some more audiences you can use.
Don’t be shy and select 100+ audiences from many different categories.
Set the budget limits
Since you will many ad sets at the same time, set a low daily budget per ad set (between 1 and 5 €) and set your campaign spending limit to 100 €.
This is how your campaign will look like
Your campaign will have one ad set for each audience. Each ad set will have all ads. You have a clear name structure for the ad sets and ads.
Make sure your conversion tracking is working and your campaign is optimized for conversions (I assume you want to generate leads or purchases!). If you are not sure you can use one of our Ad templates and create a new campaign using the right parameters.
This is how your report will look like
Use the Performance & Clicks Dashboard and add the Conversion Column, as well as Unique Outbound Clicks.
How to I run and optimize such campaign?
Start your campaign with the limit of 100 €. Let it run until you have spend 50 – 100 €. You should see clicks. Now you go to ad set level and sort by click-through-rate. You will see those ad sets in the beginning which have clicks, sorted by the highest click-through-rate. Switch off all ad sets that do not have any clicks.
Now make a first evaluation. Are the clicks that you just got cheaper then those of your previous campaign? I bet they are.
Now you can repeat the process with a smaller selection of ad sets and later on you eventually want to switch off some low-performing ads in the active ad sets.
How do I build a splitted campaign?
To build such campaign you will need many hours and high levels on concentration. That cost you valuable lifetime or a lot of money, which is missing for the importating things such as strategic management. Therefore we have build the Facebook Ad Creator. It does the heavy lifting for you.
Start by selecting a template or importing an existing campaign from your account.
To keep track of your advertising success, you need to decide which KPI‘s are important for you in the phase that your campaign is in.
We suggest to use the following variables in each stage of a campaign for budget optimization.
Exploration phase: You start to gather information and test different parts of your campaign with little budgets.
Impressions CPM CTR CPC
Optimization Focus: CTR
Scaling up Phase You have figured out working texts, images, offers and call-to-actions and are adding more and more audiences. Your budget is rising.
Impressions CPM CTR CPC CVR CPx
Optimization Focus: CTR, CPC
Activephase You have many converting value-cells (combinations of ads and audiences) and now you try to scale your budget while maintaining costs per conversion on moderate levels.
Optimization Focus: CPx
Report on Ad quality
To assess the quality and relevance of Ads consider these KPI‘s
CTR: 0-100%, the higher the better. The CTR is the most important KPI since it determines your Click- and Conversion prices, as well as the potential market share. A high CTR means a high relevance for the targeted audience. Everything under 0,5% can be considered a poor CTR. A CTR of 1,5% is good. A CTR >3% is very good. A CTR >5% is outstanding.
Relevance Score: 0-10, the higher the better. High relevance score ads will be favoured by Facebooks adserver in otherwise equal conditions. This is an indication if you are doing a good job in terms of communicating effectively with relevant offers. Values under 3 are not good, 4-5 are good, 6-7 is very good, and 8-10 is outstanding.
Positive / Negativ Feedback: Feedback on an ad signals if user interaction has a positive or negative sentiment based on clicks and likes (positive) or hide ad options (negative) etc. Negative feedback might increase if you show your ad too often.
Create your reporting template
Now let’s bring this together in a useful reporting dashboard
Facebook offers hundreds of KPI‘s. For the most cases we just need a few of them. Create one report for each campaign and one monthly report for all your campaigns.
Analyse campaigns using breakdown analysis
On Facebook & Instagram Ads you can reach millions of users in almost any country and any niche, but also burn a lot of money if you are not sure what you are doing.
With years of experience in Facebook Marketing and a focus on Performance Marketing we have developed a set of methods and tools, that will help you to follow a systematic approach to utilize Facebook as a marketing channel to generate leads and sales.
Since Facebook is a Push-Medium or Awareness channel direct selling only works in a few occasions. That is it’s advantage and disadvantage at the same time. Its two sides of the same coin. You can reach users actively, not only when they are searching for a product. That means you can reach a much larger audience, even for unknown products.
But the traffic is not very close to a sale – yet. Because people didn’t search you have to engage with them in a different way. Which is that you start the customer journey soft, and not so sales driven in the beginning.
Facebook Marketing works in 3 Phases:
Proof that your marketing & sales funnel is effective
By building marketing funnels with free offers you will be able to generate leads in the first step, which you then can push up the ladders of a sales funnel, so you generate valuable clients from Facebook Traffic.
By figuring out which lead magnet is the best vehicle to turn users into leads and connecting them to a sales funnel you make sure that your advertising workflows is effective.
Once the effectiveness is proven, meaning you have some product-market-fit and you are able to make some sales, you can focus on efficiency.
2.Optimize efficiency of your traffic acquisition
Now that you know that your funnel works and you can estimate a value for each lead, you will want to increase your Click-Through-Rate to increase the maximum possible number of clicks and to increase Conversion-Rate to increase the maximum number of possible leads, while at the same time lowering the price of clicks and leads.
3. Scale your campaigns
Now that you have proven the effectiveness of your funnel, and have optimized the efficiency of the traffic acquisition, so that your business funnel is profitable you can buy as much traffic as possible, or until you have reached your production capacity.
Finding the best lead magnet
If your sales funnel is effective or not, you will know when you try to sell your offer to prospects or if you see online-purchases. That is not our focus when talking about Facebook. Our focus here is to find effective lead magnets, that will give us a decent price per lead in relation to the quality of the lead.
Try to advertise at different stages of your sales funnel. Only 3% of your audience will be ready to buy from you right now, 7% might be thinking, the rest you can not reach with sales campaigns, but using awareness or informational campaigns to build a mailing list.
Sweepstake (Contest) leads will be much likely cheaper than a Lead for a Free Trial or an Offer, but it might also be that they don’t convert as good to sales. You need to find the best topics that bring you leads that you can actually convert into clients. There is basically no other way than testing all kinds of lead magnets and then you will see what works.
For a fitness company we have tested 28 different headlines for a 4-week fitness program. The core offers is always the same.
Those bars at 100 € mean there was no lead at all. The others have a cost per lead after spending around 50 € on each topic (so 1.400 € in total).
The cheapest cost per lead was just 2,29 €. That topic we are still using 1,5 years later and it continues to bring great results. We have been able to generate more than 40.000 Contacts with that topic alone. From all of those topics above we have been able to capture more than 180.000 leads in less than 2 years for a Fitness Firm in the German Market (DACH).
The testing of lead magnets is extremely important.
2. Optimize efficiency
Since the setup for each topic was just consisting of 2 ad-versions and 2-3 images, there is room for optimization by using different ad-copies and different images, as well as offers, countdowns, limitations and all kind of marketing- and sales triggers.
In that way by creating different versions of ads you can come up with the best text, image and call to action to increase your Click-Through-Rate even more.
By doing that some of our campaigns generate clicks from up to 9% of the whole target population after 3-4 impressions. With a high click-through-rate we can make sure our costs per click are reasonable but at the same time we increase the volume.
You can pre-test ads by creating many different variations of an ad and advertising it to a audience cluster, which is a group of targetings.
Another way of optimizing efficiency is to test different audiences. By using all kinds of interest-targetings separately you will be able to find the best audiences with the highest concentration of your target clients and therefore the highest click-rate. Also some ads might work better for some audiences than others. By creating campaigns, with separate audiences and all ad-versions for each audience or the use of pre-tested ads, you can select the best audiences based on their performance.
How to optimize Facebook campaigns using the splitted-targeting setup
3. Scale campaignswhile keeping costs low
Once you have reached the levels of performance that you need for your business funnel to work you can scale your budget.
With the target cost setting or bid amounts and campaign spending limits you maintain cost control, while at the same time allowing Facebook to reach a lot of audience very quickly.
Scaling doesn’t mean spending without return. Scaling means spending with tight cost control and return. By using automated rules you can do most of the keeping-costs-under-control job without manual work.
Use automated Rules to maintain costs & performance
Use automated rules to control the settings of your ads and ad-sets based on performance. Use rules that run every hour to every month and update your campaign based on the conditions that you set.
Since there are good and bad days you might want to have to rules, one for the day and one for the last 14-days. The daily rule might limit ad-sets when they are not performing TODAY but the 14-day rule will increase them again, because they still seem healthy overall.