Seeking Help Search Arbitrage on Facebook - is my approach correct?

[michaltm]

Hey!

I'm running search arbitrage campaigns with Facebook ads in the US and wanted to get opinions on my current approach:

I'm creating campaigns optimized for maximum number of leads, with 20 ads per campaign (each in a separate ad set). Each ad has 1 image/video, 5 headlines, 5 primary text options, and 1 description. Selected audience was about 250 mln. because I was targeting only by country, assuming that FB will determine best audience on its own.

However, I'm seeing the ads mainly being shown to people 65+ despite lower CPLs for younger audiences. Some age groups only getting 3-30 impressions after a few days. It also looks like Facebook is mostly displaying only one headline variant. It looks like Facebook is also displaying my ads only for very small group of audience, because sometimes daily frequency is 1.20, despite budget $10/day per ad.

Conversion ratio on search arb page is 40%-45%, however my CPLs are very high and ROI is sometimes as low as -75%. I had expected that Facebook will determine best combinations of assets..

Does this approach seem correct? What can I do to improve ROI and better optimize my ads?
Any tips for setting up search arbitrage campaigns on Facebook are appreciated.

 

[Graybeard]

WELCOME ABOARD ...

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In simple terms: the offers you seek to monetize on the landing page from the Facebook Ads do not convert.

However, I'm seeing the ads mainly being shown to people 65+ despite lower CPLs for younger audiences. Some age groups only getting 3-30 impressions after a few days. It also looks like Facebook is mostly displaying only one headline variant. It looks like Facebook is also displaying my ads only for very small group of audience, because sometimes daily frequency is 1.20, despite budget $10/day per ad.

Well what are you selling?
Facebook is "saying" your product has affinity primarily to that age group.
What is the product --old fart pills

Is the infallible Facebook algo wrong?

I fail to see any logical answer using the information you have supplied.
Change your M.O.
Offer a more youthful oriented product on your Facebook ads.

 

[michaltm]

I was trying to advertise some different search arbitrage campaigns, like house renovation services, data analyst degrees etc. Result was always same - campaigns had most impressions in 65+ groups, but cost per lead was lower in younger groups. However younger groups had way less impressions of ad.

 

[Graybeard]

"like house renovation services, data analyst degrees et..." <<bad mix
people that need new degrees do not own houses --they are younger people and rent apartments
people that have a need of home repairs and improvements are in the 45 yrs-old to 65+ range.

Younger people might buy : games, clothing, electronics, furniture or maybe uni degrees ... but in that order of quantifier. Like maybe 3% are interested in continued education.

Also, Facebook users are older than they were 10 years ago. Maybe Instagram, TikTok, (reddit?) might be better for younger audiences.