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This guide breaks down the most effective Facebook advertising structure and strategy for your business in 2024. These principles apply to businesses of all sizes. Focus on campaign structure, ad sets, and overall strategy rather than minor details.
Facebook Ads Campaign Structure
This structure has been successfully implemented over the past 30 days for one account, spending $75,000 and generating $260,000 in revenue (3.46 ROAS). Another account with a lower budget spent $827 and achieved a 2.64 ROAS. While ROAS will vary depending on the industry, this is a proven optimal structure.
At the campaign level, we have:
1. Prospecting Campaign
This is where you test new ads, audiences, and ideas.
2. Advantage+ Shopping Campaign (ASC)
This campaign focuses on scaling, reaching broad audiences to acquire new customers, and implementing effective remarketing.
3. Retention Campaign
This campaign aims to reactivate past customers and generate sustainable revenue.
Prospecting CBO Campaign
In this campaign, you test all new ads, interests, and ideas with 100% broad (untargeted) ad sets.
Each broad ad set will contain new ads. For example, with 4 new videos, duplicate an existing ad set, check the settings, and replace all old ads with the new videos. Avoid adding new ads to old ad sets to prevent disrupting Facebook’s learning phase.
Using Campaign Budget Optimization (CBO) allows Facebook to automatically allocate budget to the most effective ad sets and ads. This optimizes spending and quickly identifies potential winning ads.
Scaling with the ASC Campaign
Select the top 10% of performing ads from the Prospecting campaign (based on spend and value) and duplicate them into the ASC campaign. Every 2 weeks, review ad performance in the Prospecting campaign, sort by spend, and choose ads with high ROAS or low CPA. Duplicate these ads into the ASC campaign without changing any settings.
Within the ASC campaign, every 2 weeks, pause the ads with the lowest spend and poorest ROAS.
Budget Allocation
Initially, allocate a 50/50 budget split between the Prospecting CBO and ASC campaigns. Gradually, increase the ASC campaign budget by 10-20% each time the ROAS hits the target. The Prospecting CBO campaign budget should maintain around 30% of the total budget.
Interest Targeting
While Facebook is moving towards broad targeting, interest targeting can still be beneficial. Duplicate the top 10% of ads from the Prospecting campaign into a new ad set within the CBO campaign, but this time target a specific interest (e.g., Nike). Experiment with different interests and duplicate ad sets with successful interests.
Retention Campaign
Divide the Retention campaign into 3 ad sets:
- 2+ Purchases: Targets customers who have purchased from you more than once.
- 1 Purchase (180+ Days): Customers who made one purchase and have been inactive for over 180 days.
- Purchase Within 180 Days: Customers who purchased within the last 180 days (excluding those with 2+ purchases).
Utilize all ads for the Retention campaign. Evaluate and adjust the budget based on frequency, aiming for 7x in 7 days.
Conclusion
This Facebook advertising strategy focuses on budget optimization, leveraging Facebook’s machine learning capabilities, and effective targeting. By implementing this structure and continuously testing, you will improve campaign performance and achieve your desired ROAS.