I have two ads running on FB.
Ad #1 is the highest converting ad, however Ad #2 has such a drastically lower CPM that
it ends up having higher ROAS. We are talking about less than 1/2 the CPM of ad #1 .
I have not yet seen any model that can incorporate ad cost into cutting creative and placement.
Is there any good statistical model to make decision on this?
The kill/whitelist calculator does take into account the CPM:
https://stmforum.com/forum/showthrea...Banners-Part-2
However, it won't tell you which ad is better - it will only tell you if an ad will be profitable in the long run if current trends continue.
I would just run both ads until I get stable performance, and then if both are still performing the same as they are now, I would probably do one of the following:
1)Just run the ad with the higher ROAS for now - until it becomes fatigued and the performance declines to the point where its ROAS falls below that of the other ad, then either run them both or swap the other one in.
2)Run both ads, but with manual bidding, with the higher-ROAS ad set to a higher bid than the lower-ROAS ad. That way the two ads would likely be targeting different audience pools so you'd be able to monetize different subsets of your audience.
Hope that helps!
Amy