How to create a killer Facebook ad testing campaign (for the 2024 algorithm)

Summary

This video outlines a four-step strategy for creating an effective Facebook ads creative testing structure. It aims to streamline ad optimization, minimize emotional decision-making, and scale campaigns efficiently. The approach caters to businesses of all sizes, from new advertisers to those with substantial budgets and creative inventories. The method involves setting up specific campaigns and ad sets, introducing new creatives, and strategically scaling top-performing ads into a dedicated campaign. The video also discusses the benefits of this system over traditional ad setups and provides a calculator example to illustrate potential revenue gains.

Takeaways

• 🎯 **Structure for Success**: The video outlines a four-step structure for creating a Facebook ads creative testing framework that helps scale campaigns efficiently.
• 🚀 **Eliminate Emotional Decisions**: The proposed structure removes emotional responses, allowing for more rational decisions when optimizing ads.
• 💼 **Applicable to All Business Sizes**: The strategy is scalable and can be applied to businesses regardless of their size or budget.
• 💡 **Foolproof Strategy**: The method ensures that ads are not dependent on a broad strategy, providing control and reducing reliance on an overarching approach.
• 📈 **Campaign Setup**: The video details setting up two key campaigns: a prospecting CBO campaign for testing and an Advantage Plus shopping campaign for scaling.
• 🌐 **Broad Targeting**: The initial ad set uses broad targeting to maximize reach without specific demographic breakdowns.
• 📊 **Data-Driven Attribution**: It's crucial to set the right attribution window for ads, such as 7-Day click or 1-day view, to capture the most signals.
• 🆕 **Introducing New Creatives**: New creatives should be introduced in new ad sets to avoid disrupting the performance of existing ads.
• 📈 **Gradual Scaling**: The best-performing creatives from the prospecting campaign are gradually moved to the Advantage Plus campaign to scale effectively.
• 📊 **Performance Tracking**: The video emphasizes tracking performance and only promoting top-performing ads into the scaling campaign.
• 💰 **Budget Optimization**: By following the structure, businesses can optimize their budget, reducing waste on unproven creatives and focusing on high-performing ones.

Q & A

What are the four steps for creating a killer Facebook ads creative testing structure?

The four steps include: 1) Setting up a primary prospecting campaign with CBO (Campaign Budget Optimization), 2) Creating a broad targeting ad set within the campaign, 3) Introducing new creatives by duplicating the broad targeting ad set and launching new ads, and 4) Graduating top-performing creatives into an Advantage Plus (ASC) campaign for scaling.

Why is it important to remove emotional decisions when optimizing Facebook ads?

Removing emotional decisions ensures a data-driven approach, allowing for more effective optimization and scaling of ads based on proven performance rather than personal biases or assumptions.

How does the prospecting CBO campaign function within the Facebook ads structure?

The prospecting CBO campaign serves as a primary testing ground for new creatives and as a point to scale different interests and existing creatives that are performing well but not necessarily the best.

What is the role of the Advantage Plus (ASC) campaign in the Facebook ads structure?

The ASC campaign is the scale campaign that eventually dominates the account, handling most of the retargeting and ensuring that the bulk of the budget is spent on proven, high-performing creatives.

Why should new creatives not be launched in an existing ad set?

Launching new creatives in an existing ad set can disrupt the performance and learnings of the existing ads. It's better to start new creatives in a separate ad set to allow them to compete and prove their effectiveness independently.

What is the significance of the '10% rule' mentioned in the script?

The '10% rule' suggests that only the top 10% of performing ads from the prospecting CBO campaign should be moved into the ASC campaign. This ensures that the scale campaign is filled with only the best-performing creatives.

How often should new interests be added to the prospecting CBO campaign?

New interests should be added to the prospecting CBO campaign gradually, ideally every month or two, to test their effectiveness without overwhelming the campaign with too many variables.

What is the benefit of using a CBO environment for new creatives?

A CBO environment allows new creatives to compete for budget only if they perform better than existing creatives, preventing wasteful spending on underperforming ads and ensuring that budget is allocated to the most effective creatives.

How does the Facebook algorithm decide where to spend the budget most effectively?

The Facebook algorithm is designed to spend the budget where it can generate the highest return on ad spend, making it more efficient at allocating resources than manual decisions.

What is the potential impact of implementing this Facebook ads structure on a business's revenue?

Implementing this structure can significantly increase revenue by ensuring that more budget is spent on top-performing creatives and less on underperforming ones, leading to higher returns on ad spend and potentially doubling monthly revenue.

Outlines

00:00

🚀 Introduction to Facebook Ads Creative Testing Structure

The speaker introduces a four-step process for creating an effective Facebook ads creative testing structure. This structure is designed to influence the entire account, allowing for scaling and maximizing return on ad spend (ROAS) without relying on emotional or irrational decisions. The approach is applicable to businesses of all sizes, from those just starting out to those with substantial advertising budgets and numerous creatives. The goal is to remove emotional responses that can hinder decision-making and to maintain control over ad account strategies. The speaker outlines the initial steps for setting up campaigns, including naming conventions and budget allocation, and emphasizes the importance of letting the Facebook algorithm optimize spending based on performance signals.

05:00

📈 Setting Up Campaigns and Ad Sets for Testing

The video script details the process of setting up campaigns and ad sets within Facebook Ads Manager. The speaker explains how to create a 'prospecting CBO' campaign aimed at testing new creatives and scaling successful ones. The campaign is set up with a broad targeting approach, meaning it is not limited by demographic or geographic constraints, allowing it to reach a wide audience. The speaker also discusses the importance of setting up the campaign with the right attribution settings and audience controls. The focus is on launching multiple ads within this campaign to test various creatives effectively.

10:01

🔄 Introducing New Creatives and Scaling Strategies

The speaker discusses how to introduce new creatives to the Facebook ad campaign. When new creatives are available, the speaker advises duplicating the existing 'broad pack' ad set and creating a new one, such as 'broad pack 2'. This approach ensures that new ads are not mixed with existing ones, which could negatively impact performance. The speaker emphasizes the importance of allowing new creatives to compete with those from previous rounds to ensure only the best-performing ads are scaled. The 'Advantage Plus' campaign is introduced as a graduation campaign where top-performing creatives from the prospecting campaign are moved to scale further. The speaker also mentions the '10% rule' for selecting which ads to graduate based on their spend and ROAS.

15:02

📊 Analyzing and Optimizing Ad Performance

The speaker provides a financial analysis comparing a traditional testing campaign setup with the proposed structure. They illustrate how the new approach can significantly increase monthly revenue by efficiently allocating the budget and focusing on top-performing creatives. The speaker explains that by using the prospecting CBO campaign for both testing and top-performing ads, a smaller percentage of the budget is wasted on underperforming creatives. They also introduce the concept of adding interests to the prospecting campaign to further refine targeting and scale effectively. The speaker concludes by emphasizing the importance of systems and structure in scaling ad campaigns steadily over time and offers a service for those seeking expert management of their ad campaigns.

💬 Engaging with the Audience

In the final paragraph, the speaker invites viewers to like and comment on the video if they found it valuable. They express a desire to engage with the audience and reply to comments, highlighting the importance of the content shared in the video as one of the most crucial topics covered in the year.

Keywords

💡Facebook Ads

Facebook Ads are a form of online advertising that allows businesses to promote their products or services on Facebook. In the video, the speaker discusses creating a structure for testing and scaling Facebook ads effectively, which is crucial for maximizing return on ad spend (ROAS) and reaching a broader audience.

💡Creative Testing

Creative testing refers to the process of evaluating different ad designs, images, videos, or copy to determine which performs better with the target audience. The video script emphasizes a four-step structure for testing Facebook ad creatives, which helps businesses make data-driven decisions rather than relying on emotions or intuition.

💡Campaign

In the context of Facebook Ads, a campaign is a collection of ad sets that share the same budget and date range. The video mentions setting up different campaigns like 'prospecting CBO' and 'Advantage Plus shopping campaign' to manage and optimize ad performance systematically.

💡CBO (Campaign Budget Optimization)

Campaign Budget Optimization (CBO) is a feature in Facebook Ads Manager that automatically分配s预算 across ad sets within a campaign. The video explains using CBO to allocate budget dynamically, allowing high-performing ads to receive more budget while underperforming ones receive less.

💡Prospecting

Prospecting in advertising refers to the process of finding and attracting new customers. The video describes setting up a 'prospecting CBO campaign' to test new creatives and scale based on their performance, which is essential for expanding the customer base.

💡Advantage Plus

Advantage Plus seems to refer to a type of campaign or strategy mentioned in the video that focuses on scaling successful creatives. It's part of the strategy to shift budget allocation from prospecting to a campaign that scales proven ads, which is key to efficient ad spending.

💡Return on Ad Spend (ROAS)

ROAS is a metric used to measure the revenue generated from the money spent on advertising. The video discusses optimizing for ROAS by structuring campaigns to maximize the return, which is a primary goal for any business running ads.

💡Dynamic Creative

Dynamic Creative allows advertisers to upload multiple creative elements, and Facebook automatically tests different combinations to find the best-performing ads. The video advises against using Dynamic Creative, suggesting a more controlled approach to testing and scaling creatives.

💡Attribution Settings

Attribution settings in Facebook Ads determine how conversions are tracked and attributed to specific ads. The video mentions setting attribution to '7-Day click' and '1-Day view' to capture a broad range of signals, which helps in understanding ad performance accurately.

💡Interest Targeting

Interest targeting is a method of reaching potential customers based on their interests. The video script describes creating ad sets within the prospecting campaign that target specific interests, like 'Nike,' to refine the audience and improve ad performance.

💡Retargeting

Retargeting is a strategy where ads are shown to people who have previously interacted with a brand, such as visiting a website. The video mentions using the ASC campaign to handle most of the retargeting efforts, leveraging existing customer relationships to drive sales.

Highlights

Introduction to a four-step structure for creating effective Facebook ads creative testing.

The structure helps in scaling and maximizing return on ad spend (ROAS) without relying on emotional decisions.

Applicability of the structure to businesses of all sizes, from small to large-scale advertisers.

Elimination of emotional response in ad optimization, mimicking algorithmic decision-making.

The creation of a foolproof structure that provides control over ad account strategies.

Detailed steps to set up a Facebook ad campaign for sales with Campaign Budget Optimization (CBO).

Explanation of setting daily budget and bid strategy for a new sales campaign.

The importance of the Advantage Plus shopping campaign in the testing structure.

The role of the prospecting CBO campaign in testing new creatives and scaling successful ones.

How to set up an ad set with broad targeting to maximize reach.

Recommendation to launch six to eight ads in the initial ad set.

The process of introducing new creatives through duplicating ad sets and not mixing them with existing ones.

Advantages of the proposed structure over traditional ad setups in terms of budget allocation and performance.

The concept of 'graduating' top-performing creatives into the Advantage Plus campaign.

Implementation of the 10% rule for selecting the best ads to move into the scale campaign.

The secret step of graduating top creatives into interest groups within the prospecting campaign.

The value of the structure in organizing the business for steady scaling and algorithmic optimization.

A calculator example demonstrating the potential increase in monthly revenue with the new structure.

The importance of systems and structure in scaling business over time.

An offer for certified experts to manage ads and implement the system for businesses.

Transcripts

in this video I'm going to show you the

four steps for creating a killer

Facebook ads creative testing structure

and ultimately how this structure

influences your entire account so you

can scale maximize your rowad and do

this all essentially on easy mode so

that you don't need to make em motional

decisions and irrational decisions when

you're optimizing your ads and this

applies to all businesses of all sizes

it doesn't matter if you have five

creators available to you or just

spending your first dollar all the way

up to businesses that we are actively

managing that are spending hundreds of

thous thousands of dollars per month and

have thousands of creatives at their

fingertips ready to test and launch this

is a foolproof structure because it

completely removes the emotional

response that we as human beings have

and that an algorithm doesn't

furthermore it allows us to still create

levers within our ad accounts so that

we're not completely victim to an

overarching broad strategy the system is

still going to provide a ton of control

for you we're ultimately going to be

able to scale the best creatives over

time steadily and we're not going to

waste our cash on creatives that are

completely unproven we're going to hop

into our Facebook ads account we're

going to click create campaign go to

sales campaign and then here we are

creating a manual sales campaign we're

going to name this campaign

prospecting CBO this is going to be our

primary prospecting campaign moving down

to the settings you should not need to

select anything here everything could

stay exactly the same except for

Advantage campaign budget you need to

select this on for your daily budget you

are going to set this to your total

available budget so if if you're

spending $100 a day set this to 100

1,000 set this to 1,000 for your

campaign bid strategy because we do not

have a ton of signal here on this

campaign we are setting it to highest

volume or value we can leave everything

else completely as is the next campaign

that we're going to set up and this is

going to be a fundamental piece we are

going to actually get to in step four is

going to be an Advantage Plus shopping

campaign so we're going to click

continue here we're going to just name

this ASC and we're going to scroll down

to make sure everything is set up

properly get your pixel in there as it

should be make sure your attribution

settings are set up for 7-Day click 1

day view definitely make sure you are

including your engaged audiences and

your existing customers which could be

done in the advertiser settings and then

as you scroll down there's nothing else

that you need to set so the main purpose

of the prospecting CBO campaign is to

test any new creatives plus serve as the

point where we could scale different

interests and scale existing creatives

that are doing well but are not truly

the best so this is a highly supportive

campaign and a testing campaign the ASC

campaign is the scale campaign this is

the campaign that is going to be really

the bulk of your account eventually the

ASC campaign will dominate your account

and instead of the initial setup where

you have most of your budget in

prospecting CBO you're actually over

time going to favor the ASC campaign and

we're also using the ASC campaign to

handle most of your retargeting if not

all of your retargeting we are set up in

a way so that we have maximized the

amount of learnings the Facebook

algorithm comp possibly have all at once

and we ultimately eliminate the need for

additional campaigns or over complicated

setup we just do things in a really

organized fashion that feeds that

algorithm so it can find your customers

as quick as possible so the second step

is going to be going in to the adset

level when we look at our prospecting

CBO Campaign which is where we're

selected right now and we enter this

campaign what we'll see is just one

blank adset we're actually going to edit

this from the top down so you can see

the exact settings that I'd like to use

first things first we're calling this

broad pack one Broad literally stands

for 100% broad targeting we don't have

any demo breakdowns no age breakdowns

we're not specifying even specific

locations we are just letting this rip

to the entire region that we are

available in to any people and any time

the pack stands for a pack of creative

as we scroll down here select your pixel

click show more options and set your

attribution setting to 7-Day click one

day view that's going to give you the

most amount of signals do not set

Dynamic creative not only do I not

recommend it but it's actually going

away very very soon make sure your start

date is set properly and then when it

comes to audience controls click show

more options and you should see your

region which in this case is the United

States a minimum age of 18 no exclusions

and all languages for Advantage Plus

audience you could leave this just as is

you're not touching anything here and

you are leaving Advantage Plus

placements on we are allowing this to

run free within the meta or Facebook

Universe the next thing we are going to

do here is create our very first ad I'm

not going to walk through the exact ad

creative process but more the structure

of what to do once you've created ads I

typically recommend you have somewhere

around six total ads once you have

created your ad set and campaign you

have a broad pack one with six ads each

of these ads could be a variety of

images videos even catalog if you want

to mix it in there take what you have

available anywhere from 6 to8 ads launch

it into pack number one so we have our

primary prospecting campaign and we have

a broad pack one so we have one adet

running to the entire United States

across six to eight creatives step three

is where you introduce new creatives so

when you get a new round of creatives

let's say you had a photo shoot and you

got 10 new creatives that you want to

test out on Facebook ads in this setup

we are going to use the existing

campaign we are going to duplicate our

broad pack one and create broad pack 2

broad pack 2 is going to be your setup

and the only difference here is that you

are going to be launching your second

round of creative as new ads in a new ad

set so you're never launching new ads in

an existing ad set so if I have a bunch

of new creatives here if I were to plug

these in to Broad pack one I would be

crushing my performance because then

what I would do is I would take this

broad pack one and I completely reset

all of the learnings it's important that

each of these are completely separate

always the next question is what happens

when I have multiple rounds of creative

what happens if I get new creative every

2 or 3 weeks no problem every every

single time you have new creative you

launch another pack so now why is this

actually better than running kind of a

traditional setup where in that

traditional setup you're forcing budget

to a specific adset or a specific

audience or a specific creative this is

better because a Facebook's only going

to spend your money where it's most

likely to make money back so it's aiming

for the highest volume now every time

you launch new creative in one by one by

one instead of that creative really

being just able to run freely with this

big budget and hopefully it works really

well well you're now making any new

creative climb this ladder and compete

against broad Pack 2 broad Pack 1 broad

Pack 3 broad Pack 55 I don't care

because every new creative has to now

fight for that ad span that is

completely different normal normal

normal setup what nine out of 10

advertisers are doing right now are they

have here's a 100 bucks and here's your

new creative and it's going to go spend

all in full and once it spends all in

full your toast it's gone you completely

burn through your $100 budget or ,000 or

whatever you're spending on new creative

if you instead set things up in a CBO

environment only the new creatives are

going to spend if they are better than

the existing creatives it might instead

of taking 3 to 5 days to get this new

creative to work it might take somewhere

like 7 to 14 days and if it takes 7 to

14 days for new creative to launch isn't

that much better if you're not wasting

cash on all those hundreds of variations

that you were going to create anyway

that we going to completely burn through

your budget what do we do to scale this

Advantage Plus campaign is our

graduation campaign are all of the

creatives that are working the best from

this prospecting CBO campaign over time

get graduated into this ASC campaign one

by one by one we see the ASC campaign

gets more creatives and more creatives

and more creatives what we like to do is

apply the 10% rule that means that the

top 10% of the ads from the prospecting

CBO campaign get pushed into the ASC

campaign so here's how this looks in

actual practice we go into our

prospecting CBO campaign we would select

all of our broad ad sets we would then

select all of the ads that are available

I would then sort this by amount spent

and then I would only take the ads that

are both spending the most and driving

the highest return on ad spend you do

not cherry pick ads that have really

high row as but are hardly spending so

if we have $80 in spend $20 in spend $8

in spend we don't take the row as of

those and think oh it's a 14 row as

that's going to work no spend is

performance in Facebook let's just say

these four ads were the top of our top

10 to 20% of ads we would then take

these we would duplicate these into an

existing campaign we would change this

to our NC campaign there is no adet but

there's one adset here and we would

click duplicate these would duplicate

with the existing engagement that

they've already farmed in this new ASC

campaign this ASC campaign is full with

the best creative only this ASC campaign

cannot fail because you have proven

creative that has worked time and time

again that you have spent thousands of

your precious dollars on and it's going

to work because it's in a scale

environment around winners only take the

highest spending highest returning put

it into the scale campaign let

everything else continue to function in

the prospecting CBO campaign there's one

more step that's kind of a secret step

we're not just graduating into the ASC

campaign furthermore we are graduating

these into interest groups that live

within our existing prospecting campaign

this prospecting campaign is driving

volume for us the reason we want it all

to happen in one campaign is Facebook's

going to decide where to spend the cash

most effectively better than you can and

better than I can we need to set this up

in a way that the algorithm is literally

fed it is so full it knows how to spend

your money way better than you can so

we're going to give it the right

opportunity to so once you've launched a

few broad packs at the same time that

you're launching Your Advantage Plus

campaign you're going to create a new

single interest adset within your

prospecting CBO campaign so we're going

to just name this _ Nike in this case we

are going to scroll all the way down

we're going to keep all the settings

exactly the same and we're just going to

scroll down to the audience Advantage

Plus section instead of just using the

audience suggestions which will

completely make this entire strategy

worthless you need to switch to original

audience options and click use original

audience when you get here skip the

custom audiences section and go down to

Advantage detailed targeting and then in

this case we're just going to type in

Nike CU that's the example we're going

to use and we're going to skip employers

skip school skip job titles and go down

to interests we're going to select one

single interest and the reason we don't

stack interest is because we actually

want to know what works and we don't

just want to take a guess we don't want

overly broad audiences we want to

actually know that Nike definitively

works for us because then we can scale

it what we're putting into this Nike

campaign are strictly the best creative

from all our broad packs so we are

launching new creatives has new adsets

in this prospecting campaign and roughly

every 14 days we are going into this

campaign and we're graduating the best

into Nike over time what you're going to

want to do only as you start to spend

more is add new interests to this

prospecting CBO campaign do it slowly

every month every two months even don't

worry about having too many interests

this is just to test if the interest can

work better and if they do they're going

to get more spend without you having to

do anything by now you could probably

see the value of the structure and I'm

just going to show you how this is going

to function in a calculator because

there's no doubt that this will work

better for you right now first off

highlighting here the normal testing

Campaign which is most common I would

imagine N9 out of 10 people watching

this video have a campaign set up like

this you have an testing campaign

that you're forcing budget to new

creatives so you get new creatives you

put them in this campaign and 20% of

your budget roughly is being allocated

to this campaign so if you're spending a

daily budget of $1,000 per day that

means that $200 of those dollars are

going to your testing campaign and $800

of those dollars are going to all your

other campaigns in your account

generally speaking the testing campaign

is going to return at a lower row house

than all your other campaigns so we're

seeing the testing campaign return at a

roughly 1.5 return on ad spend and the

rest of your account is returning at a

two what this means is that your Revenue

driven from the $200 on testing is going

to turn to$ 300 driving you $9,000 per

month if we apply the same formula to

all your other campaigns and just

straight line it down here all your

other campaigns are going to drive you

$48,000 per month giving you a grand

total of

$57,000 per month in the new way I'm

going to use the exact same percentages

in terms of row as for what's working

the worst what's working the best and

then the ASC scale campaign except we

just have a different distributional

budget that's going to significantly

reduce your costs because we have

prospecting CBO functioning in two

different ways for us because it's

functioning for both top and testing we

now have a smaller percentage of bottom

creatives getting spent because we're

not forcing anything and all those new

creatives literally need to climb the

ladder for days to figure out if they're

going to work and the ones that work are

going to be hits so your bottom creators

are usually going to represent somewhere

between 2 and 5% of your total ad spend

in your account I put 5% which I think

is a worst case scenario that means

you're going to spend 50 bucks a day if

you're spending $1,000 total budget on

your bottom creatives and those will

drive a 1.5 return on ad spend so we

match the testing that we're previously

doing that means you're only going to

drive 75 bucks in revenue from the

bottom creatives per day instead of a

1.5 if we set our bottom creatives

literally drove zero return on ad spend

meaning you wasted a total 5% of your

budget zero Revenue back you're

prospecting CBO top creative so the

other half of this campaign are driving

a 2X return on ad spend because that's

equivalent to all your other campaigns

in the normal account meaning that drove

$115,000 in Revenue but where the beauty

comes in is that our scaling campaigns

are only exposed to top creatives only

what this means is that the scale

campaign is spending 70% of our budget

spending $700 per day driving

$1,750 in Revenue per day for 52,500

total combined we have 67,000 $500 that

we're driving from this setup versus

your current setup which is driving you

$57,000 per month so we can continue to

invest this

$10,500 that we now called found money

which is literally just the difference

between 57,000 and 67,000 and we could

reinvest this into ads the next month we

will find ourselves if we have the exact

same calculations no change nothing has

improved in your entire account we could

drive

$91,200 and 50 $7,000 in monthly Revenue

we are no longer talking about few extra

thousand we are talking about profit

margins like you potentially never had

it's so important to understand that

these algorithms are really really smart

we can't just force our way to hope that

a creative that we have a good hunch

about is going to completely transform

our business ultimately you need systems

and structure to organize your business

to scale steadily over time if you want

a certified expert to manage your ads if

you want someone who's going to

implement this exact system for you

regardless of how much you're spending

go to the moonlighters decom to apply to

see if you qualify to work with us and

last thing if you got value out of this

video shoot it a like comment I've tried

to reply to every single comment that we

get and I hope everyone did truly get a

ton of value out of this video because

honestly it's one of the most important

videos I've made in this entire year