What works in Meta Ads right now

Note: This is part 1 of a 2-part recap. The second part here: 7 things that don't work in Meta ads anymore

Andrew Foxwell joined MKE DMC to share key insights on Meta Ads. Here's what works and how to use these strategies in your campaigns.

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Key takeaways

1. Advantage+ Shopping Campaigns effectively reach new audiences and achieve lower CPAs with a simplified campaign structure. 
2. Creative variety is super important in Meta campaigns. Constantly test by providing the algorithms with many options and using multiple ad formats. 
3. Avoid overly narrow targeting when running ads on Meta. When evaluating a campaign's success and future optimizations, consider testing the landing page and user experience.

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Watch: Andrew's session at MKE DMC on July 10, 2024

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Advantage+ Shopping Campaigns (ASC)

The Advantage+ Shopping Campaign is a new type of Meta campaign that uses machine learning to help you reach valuable audiences with a simplified setup. It's ideal for performance-focused advertisers aiming to boost online sales.

ASC drives direct response shopping, especially on Instagram. Here's what to do:

• Limit ASC spend to 10-20% for engaged audiences (email lists, SMS subscribers). This targets people familiar with your brand who are more likely to convert.
• Use 5 ads per campaign: mix static, video, and carousel formats. ASC performs well with carousels. This variety showcases multiple products or features, increasing the chance of capturing audience interest.
• Try for 2-3 impressions per person per day, based on your spend. This maintains visibility without overwhelming your audience. Monitor performance and adjust as needed.
• Upload your 180-day purchasers and all-time email list subscribers as your current customer audience. Set a bid cap on these users to ensure you're not overspending on existing customers.

Creative variety

‍Problem unaware 

Clearly articulate the problem your product solves. This segment represents your largest audience requiring the most education, has the highest CAC or CPA, lower initial return, and is critical for sustainable growth.

Problem / Solution Aware

Two stages go hand-in-hand: a medium-sized audience knows there is a solution to their problem but is unaware of the brand/product.

Product aware

This audience segment knows your product and needs to understand its unique features and benefits.

Brand Aware

This segment represents your smallest audience but offers the lowest cost per purchase and a higher return.

Lack of creative variety often leads to poor performance

People quickly tire of seeing the same ad repeatedly. Diversify your creative to keep your audience engaged and resonate with different segments at various stages of the buyer's journey.

Take action: Create a content calendar that rotates through different creative concepts. Test various visual styles, copy lengths, and calls-to-action. What works for one segment might not work for another, so continue testing and iterating.

Allocate resources wisely

Invest 15-20% of ad spend in creative development. This allows you to:

1. Consistently produce new, high-quality assets
2. Test different concepts and formats
3. Adapt quickly to performance data
4. Stay ahead of ad fatigue

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Testing on Meta

Make testing a regular part of your Meta Ads strategy because what works today might not work tomorrow!

Step 1 - Pick KPIs

Find and focus on metrics that give you a comprehensive view of your ad performance and enable data-driven decisions to improve your campaigns. Are you trying to improve ROAS (Return on Ad Spend), or interested in early success indicators like "hook" and "hold rates"?

Action: Pick a key KPI such as conversions for non-creative testing. Creative is often measured by "soft metrics" alongside conversion metrics.

Hard reporting metrics:

• ROAS, MER, CVR, CPA, CAC, AOV
• Purchase volume, CTR, Frequency, CPM

Soft reporting metrics:

• Hook rate, Hold rate, Average watch time
• Engagement rate, Watch time percentage
• Total social proof, Click quality, CTR

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Step 2: learn

Use diverse approaches to learn what you want to learn.

1. Test multiple results in one session. Compare different outcomes simultaneously.
2. Test creative variety and landing pages. Try auto bids. Let Meta's algorithms optimize your bids, especially for new markets or audiences.
3. Use Dynamic Product Ads (DPAs) for lead generation. DPAs can be effective for lead gen when used creatively.

Example ASC campaign test structure

Run four campaigns to measure and learn.

ASC Campaign 1

• ~40% of daily spend
• ~5 ads
• Cycle in new creatives if frequency is > 2.5 over 7 days and there's degradation in performance
• Consider a bid modifier

ASC Campaign 2

• Manual/lowest cost
• ~30% of daily spend
• Top 2-3 audiences
• ABO or CBO

ASC Campaign 3

• TOF: Lookalike stacks, broad, or interests
• ~15% of daily spend
• Mix of top creatives

ASC Campaign 4

• Remarketing DPA
• ~5% of daily spend
• Time range depends on customer sales cycle

Testing tips

1. Focus on testing ONE variable per ad set.
2. Allocate 10% of daily budget to creative testing. Explore new ideas without risking your entire ad spend.
3. Concentrate on the most compelling aspects of your product or service with 1-2 key creative elements.
4. Regularly test your own funnels. Do they make sense? Go through your ad experiences and landing pages to identify any friction points. Walk through them with your team or with your client.

Use data to make decisions

Focus on setup, creative, foundational research, testing, success metrics, and reporting signals to make data-driven decisions and optimize campaigns effectively. Here are seven tips for better data-driven decision-making for Meta Ads:

1. Make sure your Meta Pixel is correctly implemented. Incorrect placement can lead to inaccurate data and poor campaign performance.
2. Define your KPIs and review them regularly. This helps you spot issues early and capitalize on successes quickly.
3. For DPAs, choose 7-day click attribution over 1-day view. This gives a more accurate picture of your ads' impact, accounting for users who might not convert immediately but return within a week.
4. Use both soft metrics and conversion metrics to understand what's resonating.
5. Use the same attribution window across ad sets in testing and make it click-based.
6. Regularly review your performance data to identify patterns and areas for improvement.
7. Use both native and marketing platforms for reporting. Combining Meta's native tools with third-party platforms can give you a more comprehensive view of your performance.

Set clear expectations

Address difficult topics early and often. Your role is to be a trusted advisor or team member in guiding clients or your department through the complexities of Meta advertising.

Examples:

1. Explain the reality of targeting limitations. Broader targeting can lead to better results.
2. Set realistic testing timelines. Help clients understand that meaningful results take time.
3. Emphasize the requirement for creative iteration. Continually refreshing ad creative is important!!

Next steps

Audit current strategy

1. Are you allocating enough to creative development?
2. Are you testing systematically?
3. Are you focusing on metrics that matter to your business?

Swing big and try things out

Avoid thinking too narrowly and focusing on minute details.

Set clear goals to avoid analysis paralysis

Avoid getting lost in reporting without a clear understanding of the metrics that truly drive business results.

Think like a marketer

In the early days of Meta, advertisers could get away with launching subpar ads to landing pages and still see success. Consider the awareness levels of the audience and tailor the ad copy and creative variety accordingly to resonate more effectively.

Diversify channels

Our customers are on multiple platforms—so should we.

Note (again): This is part 1 of a 2-part recap. The second part here: 7 things that don't work in Meta ads anymore

This month's shout outs

A special thanks to Bill May for taking great notes.