The Nudge Method™: A Five-Step Framework For Unlocking Meta’s Ads Algorithm

The Meta Ads game has changed. The Meta we are advertising on today is vastly different from just two years ago.  Four significant trends have reshaped the landscape, pushing Meta towards a broader-targeting, machine-learning audience model:

1. Apple’s iOS App Tracking Transparency: This update has made it challenging to collect user data and conversions.
2. The Rise of TikTok-like Short Form Videos: These have transformed user interaction on Meta.
3. Advancements in Machine Learning: Meta’s ability to target ads has significantly improved.
4. Increase in Ad Supply: Meta has expanded its ad inventory considerably.

These shifts have thrown marketers in eCommerce and retail brands for a loop, and left them wondering if Meta is even a reasonable place to put their next dollar. 

But there is a secret: Meta’s entire algorithm now runs on engagement. All you have to do is structure your campaign so your ads reach a highly engaged audience quickly. 

Curious how The Nudge Method increased sales by 75% while reducing cost per acquisition by 50%? Check out this case study with our partner Vi.

How To Work With (Not Against) Meta’s Algorithm

In this guide, I will break down the five steps that will align your ad campaigns with Meta’s engagement-focused algorithm. If you implement this method, the algorithm will reward you with lower CPMs, higher conversions, and reduced audience fatigue.

But first, let’s explore the three principles underpinning this method that will allow you to work with (and not against) Meta’s algorithm.

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1. Prioritize Engagement: Open Instagram and scroll to the first advertisement you see. Notice how it has a lot of likes? Meta showcases the most engaging ads first to keep users on the platform and monetize eyeballs. If an ad isn’t engaging, it gets buried further down in the feed, resulting in high CPMs for advertisers. The Nudge Method aligns your campaign with Meta’s business model, ensuring your ads appear at the top of feeds.
2. Find Your Audience Fast: Remember, Meta operates on an auction system. As soon as you publish your ad, Meta determines who will engage with it. If the wrong people see your ad first, even a good ad will be deemed low engagement and miss its potential audience. Once the algorithm labels it a dud, it stops spending on it and moves on. There is a prime audience out there for your ad. You just need to get it in front of them faster to gain momentum.
3. Nudge Your Ad In The Right Direction: Starting cold is tough. Imagine balancing on a bicycle without pedaling—it’s easier with a push. Similarly, you need to nudge Meta’s algorithm in the right direction with an Advantage+ Audience Suggestion. This helps your ad connect with a prime audience and gain traction, allowing the algorithm to explore outside of this original audience.

With this framework in mind, let’s walk through how to set up your Meta ad campaign.

The Nudge Method: How To Structure Your Meta Ad Campaign

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Here’s how to structure your campaign so that it quickly connects your ads with the right audiences, boosting engagement:

1. Choose The Right Objective

Meta is an algorithm that learns from what you teach it. Selecting the appropriate campaign objective is crucial, as Meta’s algorithm aims to achieve more of what you ask for. Below is a graphic simplifying which campaign objectives to choose depending on goals. 

Here are some tips for retail marketers specifically:

• Avoid choosing traffic when you really want conversions (sales).
• Use awareness for promoting a new location or event.
• Sales objectives work well as long as you have the Meta pixel for tracking conversions.
• Use leads if conversions don’t happen on your website.

2. Use Advantage Campaign Budget

Advantage Campaign Budget lets you set one centralized budget at the campaign level, allowing Meta to dynamically allocate your dollars across ad sets and ads. This option simplifies the process and reduces your workload.

3. Use Advantage+ Audience Suggestions

Audience suggestions are the critical hinge of this method. I recommend targeting just two to three distinct audiences (check for overlap) and adding these as audience suggestions. This “nudge” reduces the learning phase and ensures your ad gains engagement from the start. Meta will then identify signals within that prime audience to begin targeting more broadly.

Strategically create your suggested audiences. For instance, split ad sets by demographics like age, income, and family status. Here’s an example:

Whether you use gender, age, or interest as your suggested audience, include at least one ad that clearly maps to that audience.

4. Set Up Ads And Ad Creative

Now, add your ads. Meta recommends six or fewer ads per ad set. Depending on your budget, two to three ads per ad set is ideal for optimizing algorithm performance.

Map your creative copy and imagery to the targeted audience. Use “greatest hits” ads from previous campaigns if the offer is generic enough. For testing headlines or dynamic creative, use Meta’s internal tools to keep it simple and avoid the work of adding another ad.

AAA used PersonaLive to personalize creative, which increased CTR by 14% and conversion by 50%. Read the case study here.

5. Slowly Scale Winning Ads 3-5% 

Monitor your campaign weekly to assess performance. After the learning phase, winners will emerge. Resist the temptation to dump all of your money into the winners. Instead, gradually increase the budget for these winners by 3-5% every two weeks. This approach allows the algorithm to adjust without disrupting performance.

Start Building Successful Meta Campaigns

A high-performing Meta campaign can significantly boost leads and conversions. By following The Nudge Method outlined above, retail marketers can consistently reach the right audience, maximize their budget, and impact their bottom line.

Want help optimizing your next Meta campaign? The PersonaLive segmentation platform takes the guesswork out of this process by segmenting your CRM or store visitors, identifying the best audiences, and guiding your creative team toward copy and imagery that resonates. Schedule a demo to get started.

What You Should Do Now

1. Demo PersonaLive to learn how it can help optimize campaign performance.
2. Watch the Nudge Method webinar for an in-depth video walkthrough of this process.
3. Download The Nudge Method guide for a free PDF version of this article.