Questions answered in this module

• What do Meta Ads work best for?
• Should my company use Meta Ads?
• What are the best practices for setting up ads on Meta?
• How do I optimize Meta Ads?

Overview

Meta Ads (covering both Facebook and Instagram) enable startups to reach users across two of the world’s largest social platforms, with over 3 billion monthly active users combined.

The average user (which is nearly everyone at this point) spends significant time daily on these platforms, making them ideal for driving conversions efficiently.

Meta’s AI-driven Advantage+ system uses advanced machine learning to deliver highly relevant ads to users at every stage of the marketing funnel—from awareness to conversion. This makes Meta Ads a powerful channel for startups testing growth strategies on limited budgets.

In this unit, we’ll focus on using Meta Ads to drive conversions, grouping Facebook and Instagram together since they’re managed through the same platform (Meta Ads Manager).

Specifically, we’ll teach you how to:

• Determine if Meta Ads are a sustainable growth channel for your startup.
• Set up a Meta Business Manager and Ads Manager account, along with an ad campaign.
• Create high-converting ads optimized for Facebook and Instagram.
• Measure and optimize ad performance to ensure user engagement and conversions.

What are Meta ads best for?

Meta Ads on Facebook and Instagram are often misunderstood as being only for B2C or e-commerce businesses, but they’re effective for all types of companies—B2C, B2B, SaaS, and more.

Take a look at these ads from three successful companies in very different industries: the meal delivery service Daily Harvest, consumer meditation app Headspace, and real estate listings website Realtor.com.

Meta ads excel at creating demand rather than capturing it (Google Search Ads excel at capturing it), making them ideal for:

• Highly innovative products with broad appeal: Products users don’t typically search for due to their uniqueness benefit from Meta’s visual storytelling. For example, a startup like Ritual (a multivitamin with suspension oil and transparent capsules) can highlight its innovation visually, even if users don’t search for such specific features.
• Alternative solutions to existing problems: Meta Ads introduce users to new ways of solving problems they might not search for. For instance, Design Pickle (a subscription-based graphic design service) can target businesses unaware of this alternative to traditional in-house or freelance designers.
• Awareness and consideration stages: While Meta Ads can drive conversions, they’re particularly strong for low-intent users browsing social feeds, building brand awareness and encouraging consideration before conversion.
• Remarketing: Meta Ads are highly effective for retargeting website visitors, app users, or past customers, driving them back to convert with tailored visuals and offers.

For startups, Meta Ads often deliver lower customer acquisition costs (CACs) than other channels, sometimes as low as $5–$10 per conversion, due to their visual format, precise targeting, and AI optimization.

They complement Google Ads (e.g., Search, Shopping) by creating demand, while Google Search Ads are more for capturing existing demand.

Ad creative (the image/video) has the most leverage on Meta.

How Meta ads work

Meta Ads leverage Facebook and Instagram’s shared ecosystem, managed through Meta Ads Manager, with AI-driven Advantage+ campaigns optimizing performance across platforms.

Here’s how they work these days:

• Advantage+ AI optimization: Meta’s Advantage+ system uses AI to analyze user behavior, interests, and intent, delivering ads to the most relevant audiences at the right time. It tests variables like platform (Facebook vs. Instagram), placement (Feed, Stories, Reels), and creative formats, optimizing for your goal (e.g., conversions, traffic).
• Cross-platform delivery: Meta Ads automatically distribute across Facebook and Instagram, including placements like News Feed, Stories, Reels, Explore, and Marketplace, based on where users are most likely to engage. You don’t need to choose platforms manually—Advantage+ AI decides for you.
• Visual-first format: Meta Ads prioritize visuals (images, videos, carousels) over text, taking up significant screen real estate, allowing you to visually tell your story. This makes them ideal for showcasing products or services emotionally and visually.
• Campaign objectives: Meta Ads support various goals (e.g., Awareness, Traffic, Engagement, Leads, Sales), but we’ll focus on Sales (conversions) for startups aiming to drive purchases or sign-ups.
• Automation focus: Unlike manual optimization, Advantage+ campaigns (recommended for startups) handle targeting, bidding , and placement, requiring only a budget, creative assets, and a goal.

Manual targeting is still available and can be great to use in specific circumstances to test new ad creatives, but it's less efficient overall.

Facebook vs. Instagram

You might think that you should choose between advertising on one or the other, but at this point you should let Meta's AI decide when and where to show your ads.

Advantage+ campaigns test both platforms in the first 7–14 days, optimizing for your goal (e.g., Sales). After this learning phase, Meta prioritizes the platform driving better results (e.g., Instagram for a visually driven landscaping ad, Facebook for a B2B SaaS lead form).

Tip: Don’t preselect a platform—let Advantage+ AI determine the best placement for your ads. Focus on creating versatile ad creatives (e.g., 1:1 for both platforms, 4:5 for Stories/Reels) to ensure compatibility across Facebook and Instagram.

Quick tips for startups

• Start with Advantage+ campaigns: Launch an Advantage+ Sales campaign (e.g., $500–$1,500/month) to test conversions across Facebook and Instagram, letting Meta’s AI optimize targeting, placement, and bidding.
• Focus on ad creatives: Prioritize high-quality visuals (images, videos, carousels) over targeting—Meta’s AI handles audience selection, but compelling creatives drive engagement and conversions.
• Leverage automation: Use Advantage+ audience selection and Lowest Cost bidding to maximize conversions within your budget, avoiding manual targeting unless refining remarketing.
• Test with small budgets: Allocate $1,500–$3,000/month initially, monitor CPA and ROAS for 14–30 days, then scale to $3,000–$5,000/month if profitable.
• Combine with Google Search Ads: Use Meta Ads to create demand (awareness, consideration), complementing Google Search/Shopping Ads for capturing high-intent users, lowering overall CAC.

Okay let's dive deeper into Meta Ads!