Sunsetting is a lifetime tactic which decreases your budget and eventually puts a permanent end to underperforming ad sets. Sunsetting establishes conditions at four different performance stages and decreases the budget accordingly.
First Check: Reducing the Budget
Sunsetting gives each ad set a spending limit. Once that limit is reached, the Sunsetting tactic will review the ad set's performance and determine if the ad set should be turned off due to a poor ROAS. The first step in the Sunsetting tactic's evaluation process is to check the amount of purchases made through an ad. If the Sunsetting tactic found that no purchases were made through an ad set which reached its spending limit, it will reduce the ad set's budget by a % value previously set by the user. When choosing this % value, Madgicx offers the user the option to choose between setting either a custom or dynamic value. When setting the % value, input a number into the top left corner of the screen (as pictured below).
- Custom value: Drag the "$" icon left and right to set a static spending limit for your ad set.
- Dynamic Value: When you select Dynamic you select a Cost per Conversion KPI and set a multiplier that will be multiplied by the Cost per Selected KPI. This value will shift dynamically according to your account. For example, 2 x Cost per Purchase; and if the Cost per Purchase changes, then this value will change to be more accurate and up-to-date.
The Performance Levels
By segmenting ad sets, the user can mark different spending limits for each performance level. This will allow the user to set stricter limits on ad sets which perform poorly. This means a user can easily cut off the worst performing ad set sooner than a top performing ad set.
- Top performing - Above average in the last 7 days and last 3 days
- Good performing - Above average in the last 3 days and below average in the last 7 days
- Medium performing - Above average in the last 7 days and below average in the last 3 days
- Worst performing - Below average in the last 7 days and below average in the last 3 days
Second Check: Pausing the Ad Set
Allows users to select a spending limit for an ad set's performance level (Custom or Dynamic), that will pause the ad set if no purchases were made
- Custom value - Drag the “scissor" icon left and right to set a static spending limit
- Dynamic Value - Instead of setting a static value, choose a Cost per Conversion KPI from a drop-down box and set a multiplier that will be multiplied by the Cost Per selected KPI
Turn this option on/off if you wish to have a ROAS or any other KPI check before pausing an ad set. To do this, follow these steps:
- Edit - a panel will open to edit the sanity check and set the condition’s values
- Choose a Metric - Choose between ROAS and any other Cost per Conversion from the drop down
- Choose a Time Frame - set the time frame for the selected KPI anywhere during the last 3, 7, or 14 days
- The Condition - If ROAS / Cost per Conversion is higher or lower then a chosen static or dynamic value, then pause the ad set
- Static: Input a number value for the selected KPI
- Dynamic: Sets up a value by a Selected KPI from a drop-down in a selected time frame. It will show only KPIs which have data
- Time Frame - Can be set to be 1, 7, 14, 21, 28 last days
- Hide - Close the sanity check and save the new changes
The last step of creating the sunsetting tactic will show you a list of all running acquisition campaigns and ad sets. Select the ad sets that you'd like to apply this tactic to.
Auto Add Function: Clicking twice on a check box will add an “A” letter on top of the checkbox, indicating that the campaign will automatically add new ad sets/ads inside the campaign/ad set.
Sunsetting on CBO
Although the tactic's title is ad set level, this tactic also works on CBO by shutting off ad sets within the campaign.