The 3 Core Principles of Modern Ad Strategies

1.Ad-Level Learning is Key

    • Every ad (Post ID) has its unique trajectory.
    • Ad sets enhance performance by selecting the most effective ad for each auction.
    • An ad retains its learnings across ad sets and campaigns.


2. Broad Audiences: Cost-Effective Approach

    • Customizing audiences increases costs; broad audiences minimize them.
    • Larger audiences generally mean lower costs per reach.
    • Lower CPMs (Cost Per Thousand Impressions) maximize data volume per dollar spent.


3. Simplified Account Structure for Enhanced Spend

    • Fewer campaigns lead to concentrated spending.
    • Machine Learning improves with increased data signals.
    • More data in fewer campaigns equals more robust, faster results and greater stability.

Strategy Execution and Its Efficacy

  • Run a single campaign for each business goal.
  • Employ automated rules for dynamic performance optimization.
  • Test creatives by concept.
  • Focus on incrementally enhancing efficiency.
  • Streamline Machine Learning within one campaign.
  • Stabilize performance by removing volatile ads.
  • Maintain ad relevance by refreshing social proof daily.

Automated Rule Essentials for Campaigns

  • Implement a Campaign Stop/Loss to avoid overspending.
  • Use Ad Stop/Loss to curtail spending on underperforming ads.
  • Continuously optimize ad spend towards more efficient ads.

Campaign Structure: One Per Objective

  • Target broad audiences with basic demographics (age, gender, location).
  • Organize unique ads within each ad set by concept.
  • Test single variables across different creative concepts.
  • Example: Different ad sets for price, quality, testimonials, and influencer concepts.

Creative Concepts and Their Impact

  • Use varied concepts to appeal to different customer segments.
  • Identify commonalities or distinct features in top-performing ads.
  • Create “pseudo” Look-a-Like audiences through diverse ad appeals.

Foundational Automated Rules

  1. Pause campaign if CPA exceeds set goal by 20%.
  2. Stop ads if CPA is 10% above goal after specific spending.
  3. Reactivate campaigns and ads at midnight.
  4. Halt ads with high spend but no conversions.
  5. Revive campaigns and ads when CPA drops below the target.

Applying the Scientific Method

  1. Pose a question based on observations.
  2. Conduct thorough research to inform your strategy.
  3. Formulate a testable hypothesis.
  4. Experiment to verify your hypothesis.

Creative Testing Strategy

  • Organize ads by creative concept within each campaign.
  • Test multiple ads per concept but limit the number.
  • Maintain consistent elements across concepts for reliable testing.
  • Continuously refine and test new control elements.

Scaling Efficiency

  • Regularly revise and tighten rules for enhanced performance.
  • Focus on reducing CPA rather than increasing budgets.
  • Track performance meticulously and adapt strategies accordingly.
  • Continuously test new creatives for sustained success.

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