Super Early Warning Rules

Super early warning rules have a name that, let's face it, tells us all we need to know. It's about cutting down the ad sets or ads that are performing badly as quickly as possible to prevent damage to your overall campaign profits.

Detect and kill your bad ads quickly to protect the profit from your good ads.

The Problem

No matter how well performing your best ads or ad sets are, if you don't spot and kill the ads that aren't bringing in results, these poor performing ads can undermine your better ads, leading to a loss of overall profit in your campaign.

Let's take a look at a basic example below:

The Problem

Ad 1

Spend: £100

Earned: £200

Profit = £100

Ad 2

Spend: £100

Earned: £50

Loss = £50

Ad 3

Spend: £100

Earned: £0

Loss = £100

Total loss = £50

In this scenario, without keeping tabs on ads 2 and 3 and cutting them down before they have spent the advertiser's budget, they've been able to completely undo the performance of Ad 1, leaving the advertiser out of pocket overall.

The Solution

If you can quickly identify poor performing ad sets or ads (like 2 and 3 in our example above) whilst they are still in the early stages of spend, you can not only prevent loss in profit, but free up your budget to focus on the ads and adsets that are performing well, to maximise the your overall return.

Early warning rules are designed to do just that, to use tell tale signs, based on your chosen metrics, that an ad set isn't performing in the way you'd expect - pausing it before it does any damage to your campaign.

In order to create early warning rules, we need to know what makes an ad good or bad...

The Solution

The Experiment

We looked at our historical campaigns and this is what we found:

Non-profitable campaigns:

  • CPM = 9
  • Cost per any = 0.28
  • CTR (all) = 2.14
  • CPC (all) = 0.5
  • Cost per website view = 1.48
  • Cost per purchase = 29.5
  • Cost per ATC = 8.9

Profitable campaigns:

  • CPM = 8.84
  • Cost per any = 0.17
  • CTR (all) = 2.5
  • CPC (all) = 0.48
  • Cost per website view = 0.73
  • Cost per purchase = 15.8
  • Cost per ATC = 4.9

By comparing our profitable campaigns with our non-profitable ones, we were able to produce benchmark figures, such as those examples above, to use in our rules both to serve as warnings for poor ad performance or as opportunities to scale.

In our early warning rules therefore, we have a number of options to use for differing objectives, even in this small example.

Early warning rule examples for Traffic Objectives

If your goal is to drive traffic to your website, you might set up your early warning rules based on CTR or website views, e.g:

Pause ad if spent > £5 and CTR < 2.5
Pause ad if spent > £5 and Cost per website view > £0.73

Early warning rule examples for Conversion Objectives

If your goal is to drive conversions, you might set up your early warning rules based on cost per purchase or add to cart:

Pause ad if spent > £5 and Cost per purchase > £15.80
Pause ad if spent > £5 and Cost per add to cart > £4.90

The Result

By looking at our historical data to define the average results for our profitable and non-profitable campaigns, we're able to set up early warning rules that capture and kill ad sets that aren't meeting our average expectations within the first £5 of spend.

That not only protects the performance of our profitable ad sets, but leaves our budget safe to spend on the ads that are bringing in the results we want.

The Result

Protect your Campaign Profits

Kill the bad, save the good.

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