Tutorials

Ad Campaign Managing Strategies: Funnel Strategy ~2 min

In Facebook advertising, an ad or a group of ads (ad set) may not perform as well the following day as they did the previous one. One of the main goals of automation is to spot poor performance as early as possible, switching off poor performing ads while leaving better performing ads running.

This strategy is called Funnel Strategy due to the strong connection with a conversion funnel, for example:

Learn how the American startup Scentbird increased their ad spend from $30k to $400k thanks to our funnel automation strategy.

Before you go ahead and change any settings for ad optimisation, you should spend time analysing your historical data to understand conditions (Spend/Cost per Click/CPM/CPA/CPI), if the information is available.

Let’s assume we accept these values:
  • CPC = $2

  • CPA = $70.

1. If a running creative doesn’t bring conversions, shut it down:
2. If you notice that a creative ad spend has already spent a lot, greater than n% of your goal CPA, and didn’t result in any sales, then there’s a high probability it won’t perform well today. So, according to our assumption above we shut off this ad if CPC >$2 & SPEND > $30:

3. Stop running creatives that are bringing expensive conversions:

4. Turn on ads with cheap conversions:

5. Increase the budget up to 20% to 30% if an ad set has a good CPA at the start of the day:

To learn more about other automation strategies here: