Send the right signals to Facebook Ads algo and watch your ads scale 10x 🔥
#23 · December 25, 2018 · 3 minutes · By Rahul Lakhaney
What's the most underrated/underused FB Ads optimization?
For me it is reducing ad set budget.
Its not fancy. It's not going to help you directly scale into the gazillions.
But it plays a big part in scaling.
Why? Because Facebook's algo is looking at you for signals.
These could be launching new ads, new ad sets, tweaking audiences, bid optimization etc - they speak to the algorithm.
The algo is not (yet) Artificial Intelligence but human coded programming (machine learning) with defined inputs and outputs. It takes in auction attributes and decides which ads get served where.
You're totally at the algorithm's mercy, but you can guide it.
Increasing budgets is a reward signal that something is working well.
Decreasing budgets is a punishment signal.
Increase budget = 😍
Algo = 😎
The Zuck = 🤑
Reduce budget = 😤😒
Algo = 😭
The Zuck = 😡
I spoke to a FB Product Engineer (Auction) a few years ago to confirm what I was seeing through testing, which still holds true today.
Here's the trick: scale when performance is good, reduce budget performance when not good and keep creative cycling to keep CTR/CPC/Conversion rates in check.
Scaling accounts this way is only as good as your rules - i.e. your knowledge of scaling.
'add X% budget if CPA is < than X'
won't work as well as saying
'add X% budget if CPA is < X% and time of day is between 10am and 4pm and only once every 12 hours and if sales are greater than X'
is, in my opinion safer. There are lots of nuances but this is at least for me tried and tested
You might even extend to
'add X% budget if CPA is < X% over a period of 3 days and time of day is between 10am and 4pm and only once every 12 hours and if sales are greater than X'
The 3 days helps iron out daily fluctuations, which are common.
You can replace CPA with CPL, CPMAI, CPR or ROAS, or combine them up.
However I'd also always have a counter to that, like
'reduce 10% budget if CPA is > X% over 2 days and time of day is between 12pm and 4pm and only once every 12 hours and if sales are greater than X and CPA is less than X'
Reducing budget tells the algo that something isn't right and forces it to rethink and retune. This is very powerful.
I see people switching ad sets off because they're not performing instead of gradually reducing the budgets down.
Pausing is fine if it's way off target but reducing budgets can help find better performance.
And once you have rules that work manually? Use automation = 💥Boomtown.
You can automate bids, budgets, ads etc.
Test your rules, note down what works and then automate. ⚡