Facebook Ads - The Science of budgeting

• Ideal testing Budget/Budget Per Adset:

Ideal CPA x Number of ads in an ad set.

So if you have 2 ads in your ad set and your ideal CPA is 750 - your budget for the ad set would be = (2*750)=1500 INR.

• Testing Structure: 1 campaign testing audience, 1 for creatives/communication/hooks/angles. Whichever campaign performs well, start scaling that campaign.

Budget allocation across the funnel:

How should I divide the budget between TOFU, MOFU & BOFU - 75% TOFU, MOFU/BOFU 25% together.

Optimize Your Campaigns:

When should I kill an ad/ad set/campaign?

So ideally you should kill your ad/adset/campaign:

• When your ROAS is nowhere near your target ROAS. Let's say your target ROAS is 3x and your campaign is performing at 1.5-2x ROAS you need to kill the bad performers.
• Kill your ad if the spend on that particular ad is 2x your ideal CPA and your ROAS is not where you want it to be.

How do I analyse what steps to take when performance dips?

• Hypothesis basis: Check whether communication and/or audience is fatigued or exhausted. At the ad set level, for the audience, if the first time impression ratio is below 50%, then the audience is repeated and not new. A parallel metric to look out for is whether the CTR might be dropping.
• Audience and Auction overlap: If you want to pre- plan it, the first step would be to check the audience overlap under the “audiences*”* section at the ad level.