Dynamic Product Ads (DPA) can be an excellent tool for scaling your budget and achieving a positive return on ad spend (ROAS) during the prospecting phase.
Unlike standard ads, DPAs have a longer lifespan and continue to work effectively based on user data. Here’s how to utilize DPAs effectively for scaling your budget in the prospecting phase:
DPA for a Larger Catalog:
DPAs are most effective when you have a wide product range, typically 50 or more products. With a large catalog, Facebook can show various products to a broader audience. If your catalog is limited, DPA in prospecting might not be the best strategy.
Learn from Successful Advertisers:
Look at some of the most successful advertisers, such as Wish, ASOS, and Amazon. They heavily rely on DPAs, particularly due to their large product catalogs.
Build a Strong Foundation:
Before scaling your budget, establish a solid foundation that ensures positive returns. This includes defining and testing target audiences, ad texts, overlays for DPAs, and product sets.
Step-by-Step Approach:
Profitable Test Campaigns:
It’s essential that your test campaigns are profitable on a smaller scale. This ensures that you’re investing in the performance of future campaigns and receiving a greater return.
By following this structured approach, you can effectively scale your budget with DPAs in the prospecting phase while maintaining a positive ROI.Testing and refining your targeting, creatives, and product sets are crucial steps to achieving long-term success with DPAs.
If you already possess a well-established set of audiences that effectively support your advertising endeavors, you may bypass this phase.
In such a scenario, consider revisiting your account to isolate these audiences, such as lookalike audiences or interest-based groups, and utilize them for the subsequent phase of “Ad testing.”
However, if you currently lack clearly defined audiences that can be repurposed, it becomes essential to create new ones.
Begin by selecting 10 audiences to test, with the aim of identifying the most effective converters.
Consider initiating the process with the following strategies:
Incorporate 4 distinct lookalike target groups, focusing initially on previous buyers. You can begin with sizes such as 2%, 4%, 6%, and 8% to gauge their performance.
Experiment with 4 different interests, attempting to select broader options. For instance, if your business entails selling clothing, try integrating the interest “Fashion” to assess its impact.
Implement 2 target groups, one targeting men and the other targeting women. It is crucial to exclude lookalike audiences or interests in these groups, maintaining their broad reach.
Once you’ve identified these diverse audience segments, proceed to set them up within a test campaign.Utilize a structured approach to effectively monitor and assess the performance of each group.
Optimization: Sales from Catalog and Buy
Budget: The budget is configured at the campaign level, utilizing the Campaign Budget Optimization (CBO) feature, and is fixed at USD 140 per day.
Inside Ad Set
Here we end up with 10 ad sets, each corresponding to the 10 target groups previously formed.
Set a minimum spend of 90 per day for each ad set.
This can be adjusted at the top when editing an ad set, ensuring that the campaign distributes the budget evenly across our chosen audiences.
Inside Ads
You can place up to two ads in each ad set/audience, and you can reuse the same ones.
The key is to keep the ads as simple as possible.
Consider trying two different text variations.
After five days, pause the campaign and assess the results.
For the target groups that have achieved purchases within our desired price per conversion, we proceed to the next stage.
or the other groups, we halt the campaign.
In this stage, you should aim to test which ads are the most effective among your best-performing audiences from the previous stage.
It’s important to explore various angles, overlays, and product sets to find the winning combination.
We suggest starting with five different ads and continually testing more.
Here are the five types of ads you can begin with:
Completely normal and standard ad: This serves as the control to measure against.
Two ads with different overlays: Experiment with overlays to see how they affect ad performance.
Two ads with combinations of different texts and overlays: Mix up text and overlays to discover the most effective combinations.
Remember, creativity is crucial. Standard Dynamic Product Ads (DPA) tend to blend in with the news feed.
Use this to your advantage to create DPAs that stand out and grab the user’s attention.
Different images and designs can be powerful tools for success.
If your products span various categories, consider testing them by creating a product set within your catalog that includes different categories.
Then, assess which categories convert the best.
Testing and refining your ad creative can lead to improved performance and better results.
Inside The Campaign Level
Optimization: Sales from Catalog and Buy
Budget: The budget is set at the campaign level utilizing the Campaign Budget Optimization (CBO) and is fixed at USD 140 per day.
Inside The Ad Set Level
Insert a minimum of three ad sets, each assigned to a specific audience tested in our previous campaign.
If you have fewer than three, then test multiple audiences.
Ensure that a minimum budget is set for each ad set as well.
Inside The Ads Level
Insert five identical ads into each ad set.
It’s crucial that the same ads are used across different ad sets.
Each audience may respond differently based on the ad they receive, and our goal is to identify the optimal combination between the audience and the ad.
Turn off an ad once it reaches 2500 impressions, and then evaluate key performance indicators (KPIs).
Promote those ads that perform well to the final stage.
Allow this campaign to run continuously and continue creating new ads for testing purposes.
This approach ensures a constant supply of effective ads ready for deployment.
After completing your audience and ad tests, you should have identified several effective audiences and ads that have met your desired key performance indicators (KPIs).
Since we typically don’t return to our test campaigns, you can simply turn them off at this point.
Now, it’s time to employ your tested audiences and ads with a higher budget.
In this campaign, we aim to scale the budget and keep our ads active for an extended period.
Follow the campaign setup outlined below:
On The Campaign Level
Optimization: Sales from Catalog and Buy
Budget: Set the campaign budget at USD 170 per day.
Starting with a daily budget of USD 170 for your Dynamic Product Ads (DPA) indicates a strong commitment to scaling your campaign.
This approach offers several advantages.
Firstly, a higher budget allows Facebook to gather more data, which significantly aids in the optimization of your campaign.
Moreover, starting with a substantial budget makes it much easier to scale further.
Compared to beginning with a lower budget of USD 15 per day, which yields limited data and poses challenges for scaling to USD 140 per day, starting at USD 170 per day enables a smoother transition to double that amount, reflecting a substantial investment in your campaign.
On The Ad Set Level
Here you will utilize the ad sets or target groups that have demonstrated performance in line with your desired KPIs.
Aim to incorporate a minimum of three and a maximum of five ad sets per campaign.
Set a minimum daily spend of 50 on each ad set.
This approach ensures that Facebook allocates only a fraction of the budget to each ad set, allowing all ad sets to compete effectively.
On The Ads Level
Insert a minimum of one and a maximum of three ads.
If you have additional winning ads from your tests, keep them in reserve for times when the performance falls below your desired KPIs.
Simply pause the underperforming ad and introduce your new ad.
Once you’ve set up your campaign, consider scheduling the start date of your ad sets for the day after, preferably early in the morning.
Beginning early in the day ensures that you gather as much data as possible, enabling Facebook to optimize and yield better results.
Monitor your campaign closely for the following 48 hours.
f the performance isn’t meeting your expectations, return to testing new ads or incorporate other well-performing ads you’ve previously tested.
If you observe positive results, you’re now prepared to further scale your budget.
When it comes to scaling your budget on Facebook, it’s crucial to be cautious and avoid abrupt budget increases.
Simply turning up your budget and hoping for the best rarely works.
Facebook’s algorithm requires a gradual adjustment in the budget.
Sudden, significant changes can trigger a reset in the learning phase, leading to the loss of valuable data.
To ensure a smooth transition, it’s advisable to increase your budget by a maximum of 20% per day.
This gradual approach helps maintain the learning phase and prevents any data loss, allowing for steady and reliable growth in your campaign.
This blog discusses efficient methods for utilizing Dynamic Product Ads (DPA) during the prospecting phase, aiming to achieve a positive return on ad spend (ROAS).
The process involves steps such as building a strong foundation, testing target groups and ad creatives, and gradually increasing the budget for prospecting campaigns.
Here is a breakdown of the main points:
Overall, the content provides a comprehensive guide to effectively utilizing DPAs during the prospecting phase, emphasizing the significance of testing, refining, and gradual budget scaling for optimal results.
