Facebook Ad manager updates

New Facebook Ad Limit: How It Will Affect PPC Campaigns

Facebook is making a change to its ad platform. By limiting the ad volume, the social media company said its Facebook PPC ads will perform better and reduce costs for businesses. This prevents high volume advertisers from overloading the algorithm that reviews your Facebook ads before pushing them to your audience. Whether you’re a big corporation or local business, you should care about the Facebook ad limit and update your social media advertising strategy.

High Ad Volume ≠ High Performance

To optimize the Facebook ad platform, many advertisers went deep into customization. They created a large assortment of personalized ads to try to account for all types of buyers. However, there can be a disadvantage to doing so with the latest algorithm changes.

When Facebook PPC ads are delivered, the ads go into what the company calls “a learning phase.” The algorithm learns more about user behavior and optimizes the ads to increase performance. When there are too many ad sets running, fewer adds exit this learning phase. This means your budget may be spent before there’s enough time to optimize. Facebook says that 40% of the ads never make it through to the end of this phase and many of the ads were from advertisers running too many ads simultaneously.

To combat this, Facebook is limiting the number of active ads that an advertiser or social media advertising agency can run on a Page at the same time. Facebook contends more ads will complete the learning phase and each ad’s performance will improve with this new limitation.

New Limits on Facebook PPC Ads

Starting in February 2021, Facebook will introduce four limits to encourage advertisers to use an optimal ad volume per

Advertiser Size Ad Limits Per Page
Small to Medium sized Page (<$100k in highest spending month in previous 12) 250 ads
Medium to Large sized Pages ($100k-$1m in highest spending month in previous 12) 1,000 ads
Large Pages ($1m to $10m spending in highest spending month in previous 12) 5,000 ads
Largest Pages (<$10m in highest spending month in previous 12) 20,000 ads

However, you don’t have to spend hundreds of thousands of dollars, or millions of dollars, to make this work for you. Don’t wait until 2021 to put these strategies into action. When apparel brand Bombas reduced the number of Facebook PPC ads it was running, they saw product purchases increase two-fold and a stunning 23X increase in sales per ad set.

Best Practices to Improve Facebook PPC Ads Performance

Combining ad sets and similar campaigns helps to make it through the learning phase sooner. By consolidating, you reduce the number of ads going through the learning phase. Think of it like rush hour. When there’s too many cars going down the same road at the same time, it’s too congested and slows the flow. Facebook also recommends applying the same strategy of combining ad sets into larger geographical groups.

Inside each ad set, decrease the number of ads. Facebook recommends 6 or fewer creatives per ad and testing multiple text variants. Finally, use Dynamic Formatting to automatically customize a single ad to display the best format, copy, and creative for each impression. It’s possible to create one ad using Dynamic Formatting and showcase an entire product catalog by serving the product most likely to convert each time it’s shown.

The number of ads in your account plays a crucial role in allowing you to achieve predictable, stable, and optimized results. However, figuring out the right number, mix, and format can be tricky. Mistakes can be expensive. Consider using a Social media advertising agency with deep expertise in Facebook advertising services.

L7 Advertising can leverage your current social media strategy to optimize your Facebook PPC ads. Contact us today and let us get to work for you.