How to create a killer Facebook ad testing campaign (for the 2024 algorithm)
Summary
TLDRThis 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
- ๐ฏ **Structure for Success**: The video outlines a four-step structure for creating a Facebook ads creative testing framework that helps scale campaigns efficiently.
- ๐ **Eliminate Emotional Decisions**: The proposed structure removes emotional responses, allowing for more rational decisions when optimizing ads.
- ๐ผ **Applicable to All Business Sizes**: The strategy is scalable and can be applied to businesses regardless of their size or budget.
- ๐ก **Foolproof Strategy**: The method ensures that ads are not dependent on a broad strategy, providing control and reducing reliance on an overarching approach.
- ๐ **Campaign Setup**: The video details setting up two key campaigns: a prospecting CBO campaign for testing and an Advantage Plus shopping campaign for scaling.
- ๐ **Broad Targeting**: The initial ad set uses broad targeting to maximize reach without specific demographic breakdowns.
- ๐ **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.
- ๐ **Introducing New Creatives**: New creatives should be introduced in new ad sets to avoid disrupting the performance of existing ads.
- ๐ **Gradual Scaling**: The best-performing creatives from the prospecting campaign are gradually moved to the Advantage Plus campaign to scale effectively.
- ๐ **Performance Tracking**: The video emphasizes tracking performance and only promoting top-performing ads into the scaling campaign.
- ๐ฐ **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
๐ 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.
๐ 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.
๐ 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.
๐ 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.
๐ฌ 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.
Mindmap
Keywords
๐กFacebook Ads
๐กCreative Testing
๐กCampaign
๐กCBO (Campaign Budget Optimization)
๐กProspecting
๐กAdvantage Plus
๐กReturn on Ad Spend (ROAS)
๐กDynamic Creative
๐กAttribution Settings
๐กInterest Targeting
๐กRetargeting
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
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