Transcript for:
Effective Facebook Ads Testing Strategy

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 ROAS, and do this all essentially on easy mode so that you don't need to make emotional 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 creatives 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 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. This 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 underscore 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 up. For your daily budget, you are going to set this to your total available budget. So 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 your pixel in there as it should be. Make sure your attribution settings are set up for seven day click, one 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 can scale different interests and scale existing creatives that are doing well, but are not truly the best. So this is a highly supp... 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 and 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 can possibly have all at once. And we ultimately eliminate the need for additional campaigns or overcomplicated 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 ad set 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 ad set. 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 1. 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're just letting this rip to the entire region that we are available in to... any people at 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 seven 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 can 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 six to eight ads, launch it into pack number one. So we have our primary prospecting campaign and we have a broad pack once we have. One ad set 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 two. Broad pack two 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 two or three weeks? No problem. 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 ad set 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, you're now making any new creative climb this ladder and compete against Broadpack 2, Broadpack 1. broad pack three, broad pack 55. I don't care because every new creative has to now fight for that ad spend. That is completely different. Normal, normal, normal setup. What nine out of 10 advertisers are doing right now are they have, here's a hundred bucks and here's your new creative and it's going to go spend all in full. And once it spends all in full, you're toast. It's gone. You completely burned through your a hundred dollar budget or a thousand dollar budget 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 three to five days to get this new creative to work, it might take somewhere like seven to 14 days. And if it takes seven 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 gonna create anyway that were gonna 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'd 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 ROAS but are hardly spending. So if we have $80 to spend, $20 to spend, $8 in spend, we don't take the ROAS of those and think, oh, it's a 14 ROAS. 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 ASC campaign. There is no ad set, but there's one ad set 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 gonna 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 gonna 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 gonna create a new single interest ad set within your prospecting CBO campaign. So we're gonna just name this interest underscore Nike. In this case, we are gonna scroll all the way down. We're gonna 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 because 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 ad sets in this prospecting campaign. And roughly every 14 days, we're 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 interest 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 nine out of 10 people watching this video have a campaign set up like this. You have an ABO 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 ROAS 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 2. 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 ROAS 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 creatives are usually going to represent somewhere between two and 5% of your total ad spend at 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 a thousand dollars 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 said 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 creatives. 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 $15,000 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 $67,500 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 call found money, which is literally just the difference between $57,000 and $67,000, and we can reinvest this into ads the next week. month. We will find ourselves if we have the exact same calculations, no change, nothing has improved in your entire account, we could drive $91,125. Think about the difference between $91,000 and $57,000 in monthly revenue. We are no longer talking about a few extra thousand dollars. 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 creator 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 themoonlighters.com 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 try 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.