FB Simplified Product Testing Tutorial
A step-by-step guide on how to scientifically test Facebook ads to find winning products.
Step 1: Build a Standard Testing Campaign
We use ABO (Adset Budget Optimization) for testing to give each variable a fair chance.
Structure
Create 1 Campaign with 5 Ad Sets inside.
Budget
Set the daily budget for each Ad Set to $10 or $20.
Interest Targeting
- First 3 Ad Sets: Each gets 1 broad interest related to your product. For a dog leash, you might use "Dog food," "Pet supplies," and "Dogs." One interest per ad set.
- Last 2 Ad Sets: Leave the interest targeting completely open. Let Facebook's algorithm explore audiences for you.
Ad Creatives
Assign your 2 to 3 different ad creatives to all 5 Ad Sets. This ensures the creative is the only variable.
Step 2: Read the Key Data Signals
Once you start spending, don't just look for sales. First, learn to evaluate these two metrics; they are your eyes.
CPM (Cost Per 1,000 Impressions)
| Cost Range | Performance Level |
|---|---|
| Above $50 | Poor |
| $30-$40 | Average |
| $20-$30 | Fair |
| $10-$20 | Good |
| $1-$10 | Excellent |
CPC (Cost Per Link Click)
| Cost Range | Performance Level |
|---|---|
| Above $2.00 | Poor |
| $1.50-$2.00 | Average |
| $1.00-$1.50 | Fair |
| $0.75-$1.00 | Good |
| $0.10-$0.50 | Excellent |
Step 3: The Three-Day Decision-Making Process
Day 1
Action: Let each Ad Set spend half of its daily budget before analyzing.
Decisions:
- Shut Down Immediately: CPC is higher than $2.00, or CPM is ridiculously high (over $50-$70).
- Keep Observing: CPC is below $1.00-$1.50, and CPM is under $35-$40.
- The Only Exception: If the data looks bad but you have a sale, keep it running. Don't turn it off.
Day 2
Action: Continue to let each Ad Set spend half of its daily budget.
Decisions:
- Same criteria as Day 1; keep the Ad Sets with good CPC and CPM running.
- At the same time, we hope to see at least 1 to 2 Add to Carts today.
- The exception rule still applies: as long as there's a sale, let it run even if the metrics are slightly off.
Day 3
Action: Observe the full day's data.
Decisions:
- This is the final, decisive day. Our goal is to get at least 1 to 2 orders from the entire campaign by the end of the day.
- If there are no orders after three days, shut down the entire campaign. This indicates that at least two of the three core elements (product, creative, landing page) are likely failing. Re-evaluate and improve your landing page (don't just assume it's good), then optimize your creatives for another test. If performance doesn't improve after significant optimization, it may be time to consider a different product.
Step 4: Analysis for Scaling from Testing
Action
- After the three-day test, review all the Ad Sets that got sales to see which interest and ad creative brought in the orders.
- Create a new Ad Set, stacking all the best-performing interests together, and use the single best ad creative.
- Set the budget for this new Ad Set to $50 and let it run for two days.
Decision
- Not Profitable: The product is not ready for scaling. Optimize your landing page, create better creatives, or even consider a new product.
- Break-even: Give it a few more days to see if the data improves.
- Profitable ROAS: Congratulations, you are ready for formal scaling.
Step 5: CBO Scaling Strategy After Achieving Profitability
Action
- Find the Ad Set with the $50 budget that is consistently profitable.
- Duplicate it 5 times and place them in a new CBO (Campaign Budget Optimization) campaign.
- Set the initial CBO budget to $150 and let it run for two days.
Decision
- After two days, your ROAS should be profitable.
- From then on, increase the budget by 20% every two days.
- Continue this process until you feel you can't increase the budget anymore or the return starts to decline, which means you've hit the current ceiling.