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Ad Campaign Managing Strategies: Weighted Average Strategy

One strategy for campaign management is comparing your ad set parameters with the weighted average of all ad sets in one campaign. This can also be applied to ads within one ad set.

This parameter value is copied to the Parent CPA parameter, which is available in our Aitarget Tool (CPA of a higher-level object).

Let’s imagine you have a running campaign that has accumulated a statistically significant number of results (impressions, clicks, conversions, etc). Weighted Average strategy is basically optimising the ad set to retain the desired result value by comparing it to its weighted average in all campaign ad sets (Parent CPA).

For instance, if the ad set CPA is lower than or equal to the campaign CPA, the bid or the budget increases. And if the ad set CPA is higher, the bid and the budget can be dropped or you can set to disable poorly performing ads.

The chart below shows how the automation algorithm works: we want to keep the CPA function below the weighted average with some space in between.

 

 

If you promote a product on the site and track sales using Facebook Pixel, CPA is cost per purchase.
Managing your budget in ad set automation

Let’s use an opportunity to change the budget to manipulate with impressions. Every time you set a rule, check:

  • There are two or more Website Purchases. We consider this rule statistically reasonable for managing cost per website purchase fluctuations.
  • The budget itself must not exceed maximum value, to prevent overspending the planned amount per day.

 

Ruleset 1

If Cost Per Website Purchase <= Parent Cost Per Website Purchase, increase budget by $5 (including checks).

 

 
Ruleset 2

If Cost Per Website Purchase > Parent Cost Per Website Purchase, decrease budget by $5 (including checks).

 

 
Ruleset 3

If the amount of Website Purchases is less than two, increase budget by $2 (but it should not exceed $30 per day).

 

 

Managing your bid in ad set automation

We can also use the opportunity to change bid in order to manipulate with impressions.

Every time you set a rule, check:

  • The amount of Website Purchases is two or more.

The bid does not exceed the maximum value and doesn’t fall lower than minimal. This will regulate cost per conversion and an ad set’s audience size.

 

Ruleset 1

If Cost Per Website Purchase <= Parent Cost Per Website Purchase, increase bid by $0.1 (including checks).

 

 

Ruleset 2

If Cost Per Website Purchase > Parent Cost Per Website Purchase, decrease budget by $0.2 (including checks).

 

 

Ruleset 3

If amount of Website Purchases is less than two, increase budget by $2 (but it should not exceed $30 per day).

 

 

Ad automation

Let’s use an opportunity to shut off ads in order to avoid expensive and unproductive impressions. Every time you set a rule, check:

  • The amount of Website Purchases is two or more.
  • There is at least one ad running from a certain hour; if all ads are turned off at the beginning of the day, turn them on.

Ruleset.

If for each ad Cost Per Website Purchase > Parent Cost Per Website Purchase, stop running it (including checks).

 

 

To learn more about other automation strategies:

 

Patrick Luk
May 31, 2019

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