Pamela SapioHaving you been using our multi-level campaign strategy for Meta Ads?
If so, you may have a question or two about things like allocating budget, choosing creatives, and which metrics to focus on to gauge performance.
In this video, Solutions 8 Meta Ads Manager Jonathan Paquin answers questions from our viewers to help them take their campaigns to the next level. Read on for a quick recap!
Question #1: How do you allocate budget between L1, L2, and L3 campaigns? Is there a recommended ratio?
I would say close to 80% [of the budget] should go to L1 because that’s where you are getting new people aware of the business, so that’s really where you want to focus. That’s why we recommend even on L1 to go for the sale objective to get a good return. Make sure you have a good return and that you optimize—that you have good creative that actually performs. We recommend video views to get that setup of L2/L3, but test what creatives work best for you.
So that would be my recommendation: about 80% to L1 and then the rest could be split between L2 and L3. And you can look into your frequency and all the different stats, but focus mainly on getting new people in the door. That’s how you’re going to grow your business.
Question #2: How long should you wait before evaluating your L2 campaign to determine whether or not it is effectively feeding your L3 efforts?
I’d say about two to three weeks. Of course, if you see that the stats are really bad, you can cut it faster (so maybe a week in that case). But if you pause it and you see that your L3 is affected, that means it was feeding it. And you just try to optimize each funnel to get the highest return on ad spend as possible. So I would say two to three weeks, depending on the volume, and make sure you don’t let ads that are not performing continue to run. What matters is the total and that you get a profitable return on ad spend. So focus on that.
Question #3: What metrics are the most important to track for each level, and should we be measuring success differently at each stage of the funnel?
Yes, I think there are different variations, of course. Each level is going after a different audience, but where you want to focus is your return on ad spend overall, and how your ads are performing. So in terms of metrics, if you have video views for your L1, you want to make sure you get decent cost per video views and your CPC [cost per click] and CTR [click-through rate], all of that—but really focus on getting the best return on ad spend at each step of the funnel.
Of course, L3 will be the one that should get the top because you get people from each of those stages and they should be warmed up. So, that’s where you should see a really high return on ad spend. I would say L1 could be a little bit lower, but make sure your return on ad spend is as high as possible. Also look at your video views, your click-through rate, etc.
And for L2, you can also monitor frequency and engagement. Just make sure you’re making a good impact with your L2 creative. Then for L3, make sure it’s converting and it’s bringing a good return on ad spend.
A quick word about ROAS
If you have been following Solutions 8 on YouTube for a while, you will often hear us caution against relying solely on ROAS—and this still holds true.
Says Jonathan, “We always want to look beyond just ROAS and CPA [cost per acquisition] by checking things such as new vs. repeat customers and secondary metrics such as ATC [add-to-cart/click ratio], CPC, CTR, and others. However, ROAS is the North Star when it comes to measuring overall performance and profitability across the entire funnel.”
It is also a smart idea to avoid relying exclusively on in-app metrics; consider using a third-party platform outside of Google Ads or Meta Ads to get a more holistic picture of key performance metrics.
