Why You Should NEVER Turn Off a Facebook Ad
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- Опубліковано 6 жов 2024
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In this video, Taylor Holiday, CEO at Common Thread Collective, breaks down why DTC e-commerce brands should never turn off a Facebook Ad.
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Irish ecom agency media buyer here - Great vid! This is so well articulated and illustrated - instantly makes me want to implement cost caps across all accounts. However, 1) our clients have an expectation of a certain monthly spend 2) we'll still charge the agency fee at the end of the month regardless of delivery/ROAS etc.
How do you convince clients to let you do this when they might see an ad account that isn't spending (or not enough) and yet are expected to pay the $$$ for agency fees? Especially months 1-6 after onboarding?
Reduce your fee until it works? In my exp ROAS caps are working better than CPA caps. Try that if it’s not spending
Question - so based off this logic if we’re running a cost cap CBO, if it spends that means it’s good. So, two questions:
1. Would you suggest static ads vs dynamic ads to isolate variables?
2. Is there a point to do creative testing? So if an angle is getting the full spend, that implies along a long enough time horizon it’ll get purchases. So would you even test new angles?
Incredible explanation. Thank you for that clarification!
This is genius. Taylor, If I didn't have my own brand I would love to work for you. What a legend.
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Can we get a written blog on this. This is so interesting. Would like to dig deeper to understand the underlying math better.
How do you see this working with Advantage+ shopping campaigns without cost caps?
Beg Facebook to give us cost caps on ASC 😅
Ads are not running when we keep bidding strategy with cost cap. What is the ideal stage where we can use cost cap? What to do if not running?
You keep developing new creative and try again. An ideal set up in our opinion would be having a campaign that test performance of creative (ideally an ADV+ campaign) and then drip the best preforming creative into your cost cap campaigns.
Hopefully this helps!
Great explanation! I use bid caps and this is a nice insight, thank you!
How many months of creative testing before you find yourselves able to spend a client’s full anticipated budget
This varies a lot depending on the product, COGS, and target contribution margin. So, here's a thread from one of our Growth Strategist on how to roll out cost caps in your ad account: twitter.com/jayden_dummett/status/1616150194722336773
hopefully this helps!
Great video! Does this mean that you have more than 6 active ads per ad set in the account? I read somewhere that it can be more difficult for the algorithm to learn and fully optimize your delivery when you have too many ads in the same ad set while also not having that much volume.
Great brain food. Can't wait to apply this methodology to some of my accounts 💪
Lets us know how it goes! It will take lots of creative to get spend but we like to exhaust all existing assets along side workflows for new creative
Problem with cost caps is they they dont spend in real life
That’s a feature not a bug. It’s telling you everything you need to know.
Try ROAS caps not CPA caps. Works better for me
You know what, before i knew this video, i also used the same methodology :))), i kept Facebook ads running 1.5 years for 1 campaign
Holy shit you’re a genius haha.
nah just a guy who has spent a lot of time in one specific space.
How does degradation of in-platform metrics & tracking for things like conversions affect this strategy?
In my head...if the platform itself can't tell that the EV will be positive due to a lack of correlative data then using cost caps goes out the window because its more likely that it would underspend significantly and just never get the learnings it needs.
Do you compensate by artificially increasing the cost cap to give it more room to work?
Interested in your thoughts!
This is a good example of why all of our targets flow down from contribution margin, but we still use cost caps because FB can't optimize based on data that FB doesn't have.
In this case, you still want the ad to do its job with the data it does have access to so if its not getting spend that means you need to try different ads, but we wouldn't inflate the cost cap for that reason alone.
@@commonthreadco Huh? Can you explain what you mean by contribution margin?