Value Optimization for Advantage+ Shopping Campaigns

Ever since Meta launched Advantage+ Shopping, we’ve seen additional releases of enhancements every month or so. Another example: Value optimization.

In this post, we’ll walk through where to find this, what it is, and how you might use it.

Let’s go…

Advantage+ Shopping Optimization Default

When you create an Advantage+ Shopping Campaign, the default performance goal is “Maximize number of conversions.”

This means that success is measured by the number of conversions your ads generate. Meta’s focus will be to show your ads to the people most likely to complete a purchase on your website.

In other words, the number of conversions (purchases in this case) is what matters most.

Value Optimization

If you have this update, there is a dropdown menu for the performance goal, and you will be able to select “Maximize value of conversions.”

This means that Meta will attempt to show your ads to people more likely to make higher-value purchases on your website.

To recap, you have two options…

1. Maximize number of conversions (purchases): Focus on the number of conversions.
2. Maximize value of purchases: Focus on the value of conversions.

While this option is new to Advantage+ Shopping, it’s not new to Sales campaigns. Advertisers have been able to optimize for value using the manual campaign creation method for a few years now.

ROAS Goal

Just as is the case when you optimize for value using manual campaign creation, you’ll have the option of setting an ROAS (Return on Ad Spend) Goal when optimizing for value using Advantage+ Shopping.

This setting is optional. If you don’t set it, Meta will attempt to spend your entire budget while getting the highest purchase value. If you have a minimum ROAS to remain profitable, you can set it as your ROAS Goal and the algorithm will use that as a focus.

When you set a ROAS Goal, you may not spend your entire budget. That becomes less likely if you set an overly aggressive ROAS Goal. If it isn’t achievable, you may spend very little budget at all.

When Should You Use Value Optimization?

I’d encourage all ecommerce businesses to experiment with value optimization. Compare your results (particularly ROAS) to when the performance goal maximizing the number of purchases.

That said, there are a couple of variables that will determine whether this is likely to be effective.

1. Product Price Variance. If you have products that fall across a wide range of price points, this may be a good option for you. Meta may then value potential customers who might spend hundreds of dollars over those who spend $10.

2. Budget and Volume. In all likelihood, the use of value optimization will mean you will get fewer purchases. That may make it more difficult for the algorithm to properly optimize if you don’t generate enough volume. That’s why this is best suited for those already generating a high volume of purchases.

If your product price variance is narrow or you are already struggling to generate purchase volume, this probably isn’t going to give you better results. That doesn’t mean that you shouldn’t test it, but set your expectations accordingly.