How to Determine How Long to Run Facebook Ads for Optimal Results
Recently, I wrapped up my One Ad Wonder live workshop series for e-commerce business founders looking to upskill with their Facebook ads. During the series, one of the most frequently asked questions was, "How long should I let my ad run before turning it off if it's not performing?" So in today's episode, I will discuss how to decide when to stop a Facebook ad that isn't performing and dive into Facebook advertising strategy and learn how to optimise your ad spend.
Understanding the Fundamentals of Facebook Ads
Before we delve into how long you should run your Facebook ads, it's essential to grasp some basic concepts:
KPI Goals
Know your business goals for each Facebook ad campaign, focusing on Key Performance Indicators (KPIs) that define success for your campaigns.
Cost Per Result (CPR)
Facebook Ads Manager shows you the CPR, which indicates how much you've spent to achieve a specific result, such as a sale or lead.
Return on Ad Spend (ROAS)
This metric calculates how much revenue your ads generate relative to how much you spend on them.
How Long Should You Run Your Facebook Ads?
The Right Question: Dollars Spent vs. Time Elapsed
Many ask, “How long should I let my ad run before turning it off if it's not performing?” While this is a valid question, it misses the mark. Instead of focusing on the duration, we should focus on how much money the ad has spent and whether it has met your predefined goals.
Determine Your Goal Cost Per Sale
Before deciding whether an ad is successful, you need to establish a goal cost per sale (also referred to as cost per purchase). This metric should guide your decision-making process regarding ad spend. A good rule of thumb is to allow one-third of your average order value as your goal cost per sale.
Example:
If you sell dresses for $150, you should consider spending up to $50 in Facebook ad costs to make a sale. This would yield a Return on Ad Spend (ROAS) of 3, which many businesses find acceptable.
Evaluating Ad Performance
Once you’ve set a goal for your cost per sale, use these steps to evaluate your ad’s performance:
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Spend Adequately
Don't assess an ad until it has spent at least your goal cost per sale amount.
- Example: For a $150 dress, let your ad spend reach at least $50 before evaluating its success.
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Analyse Key Metrics
Look beyond sales numbers. Evaluate important metrics such as:
- Add-to-Cart Actions: Are users adding your products to their carts? This is an encouraging sign.
- Click-Through Rate (CTR): Ensure that your ad's CTR is above 1%.
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Decision Time
If the ad hasn't achieved sales but shows promising metrics (e.g., add-to-carts and high CTR), allow it to continue running until it reaches two times the goal cost per sale.
- Example: Spend $100 if your goal was $50 before deciding.
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Revise if Needed
If your ad has spent two times the goal amount and still hasn't generated sales, consider redesigning it. This might include altering visual elements, rewriting ad copy, or changing headlines.
The Pitfall of Low Daily Budgets
Running an ad for an extended time with a low daily budget, like $1 per day, will delay obtaining meaningful insights. This can prolong decision-making and ultimately hinder your campaign’s success.
Example Scenario
If you've spent $14 over two weeks at $1 per day and haven't reached your goal cost per sale, don’t rush to conclusions. This is too low of a spend to determine whether your ad is working effectively. Instead, adjust your budget to reach your goal cost per sale more rapidly for accurate evaluation.
Deciding when to turn off an underperforming Facebook ad isn't just about the duration it's been running. It's about how well your ad meets your predefined cost per sale goals. Allow your ad the opportunity to perform by spending the necessary budget before deciding to pause or modify it.
Understanding your campaign's key metrics and having a clear cost per sale goal will help you make data-driven decisions that lead to successful ad campaigns. Remember, it’s about dollars spent and results achieved, not the time elapsed.
