Blog.

automated rules cac cpa

Cover Image for automated rules cac cpa
SDX VISION
SDX VISION

Automated rules help manage Facebook ad campaigns by automatically adjusting budgets, pausing underperformers, and scaling winners based on CAC (Customer Acquisition Cost) and CPA (Cost Per Acquisition) thresholds. This guide will teach you how to set up effective automated rules.

What Are Automated Rules?

Automated rules are conditions you set that automatically trigger actions in your Facebook ad campaigns when specific criteria are met.

Common Use Cases:

  • Pause campaigns exceeding CPA threshold
  • Increase budget for high-performing campaigns
  • Pause ad sets with low ROAS
  • Scale winners automatically
  • Manage costs proactively

Benefits:

  • 24/7 Monitoring: Works even when you're not watching
  • Proactive Management: Prevents budget waste
  • Time Saving: Automates routine tasks
  • Consistent Optimization: Applies rules uniformly
  • Cost Control: Maintains target CAC/CPA

Understanding CAC and CPA

Customer Acquisition Cost (CAC):

Total cost to acquire a new customer, including:

  • Ad spend
  • Agency fees
  • Creative costs
  • Platform fees

Formula:

CAC = Total Marketing Costs / New Customers Acquired

Cost Per Acquisition (CPA):

Cost per conversion/action in Facebook ads.

Formula:

CPA = Ad Spend / Number of Conversions

Target Metrics:

  • Target CAC: Maximum acceptable customer acquisition cost
  • Target CPA: Maximum cost per conversion
  • ROAS Target: Minimum return on ad spend
  • Profit Margin: Required margin after CAC

Setting Up Automated Rules

Step 1: Access Rules Manager

Location:

  1. Go to Ads Manager
  2. Click "Rules" in left menu
  3. Click "Create Rule"
  4. Choose rule type

Step 2: Define Rule Conditions

Common Conditions:

Performance-Based:

  • Cost per result > threshold
  • ROAS < threshold
  • Conversion rate < threshold
  • CTR < threshold

Budget-Based:

  • Spend > threshold
  • Remaining budget < threshold
  • Daily budget utilization

Volume-Based:

  • Impressions < threshold
  • Clicks < threshold
  • Conversions < threshold

Step 3: Set Action

Available Actions:

Budget Actions:

  • Increase budget by X%
  • Decrease budget by X%
  • Set budget to specific amount
  • Turn on/off campaign

Campaign Actions:

  • Pause campaign/ad set/ad
  • Enable campaign/ad set/ad
  • Send notification
  • Send email alert

Step 4: Configure Schedule

When Rule Runs:

  • Once daily
  • Multiple times per day
  • Specific days of week
  • Custom schedule

Best Practice: Run once daily to avoid over-optimization

Essential Automated Rules

Rule 1: Pause High CPA Campaigns

Purpose: Stop campaigns exceeding target CPA

Setup:

Condition: Cost per result > $50
Action: Pause ad set
Schedule: Once daily
Apply to: All ad sets in campaign

Configuration:

  • Metric: Cost per result
  • Operator: Greater than
  • Value: Your target CPA
  • Action: Pause ad set
  • Notification: Email alert

Rule 2: Scale High ROAS Campaigns

Purpose: Increase budget for profitable campaigns

Setup:

Condition: ROAS > 3.0
AND
Spend > $100
Action: Increase budget by 20%
Schedule: Once daily

Configuration:

  • Metric: ROAS
  • Operator: Greater than
  • Value: 3.0 (or your target)
  • Additional: Minimum spend threshold
  • Action: Increase budget 20%
  • Cap: Maximum budget limit

Rule 3: Pause Low-Volume Campaigns

Purpose: Stop campaigns with insufficient activity

Setup:

Condition: Impressions < 1,000 (last 7 days)
AND
Conversions = 0
Action: Pause ad set

Configuration:

  • Metric: Impressions
  • Time period: Last 7 days
  • Operator: Less than
  • Value: 1,000
  • Additional: Zero conversions
  • Action: Pause

Rule 4: Manage Learning Phase

Purpose: Pause campaigns stuck in learning phase

Setup:

Condition: Learning phase = Limited
AND
Days running > 7
AND
Conversions < 10
Action: Pause ad set

Configuration:

  • Status: Learning phase limited
  • Duration: More than 7 days
  • Conversions: Less than 10
  • Action: Pause and notify

Rule 5: Budget Cap Management

Purpose: Prevent overspending

Setup:

Condition: Lifetime spend > $5,000
Action: Pause campaign

Configuration:

  • Metric: Lifetime spend
  • Operator: Greater than
  • Value: Budget cap
  • Action: Pause campaign
  • Notification: Alert team

Rule 6: Low CTR Alert

Purpose: Identify creative fatigue

Setup:

Condition: CTR < 1.0% (last 3 days)
AND
Impressions > 10,000
Action: Send notification

Configuration:

  • Metric: CTR
  • Time period: Last 3 days
  • Operator: Less than
  • Value: 1.0%
  • Action: Email notification
  • Note: Review creative

Rule 7: High Frequency Alert

Purpose: Prevent ad fatigue

Setup:

Condition: Frequency > 5
AND
CTR declining
Action: Send notification

Configuration:

  • Metric: Frequency
  • Operator: Greater than
  • Value: 5
  • Additional: CTR trend
  • Action: Alert for creative refresh

Rule 8: Scale Winners Gradually

Purpose: Increase budget on performers safely

Setup:

Condition: ROAS > 4.0
AND
CPA < $30
AND
Conversions > 5 (last 7 days)
Action: Increase budget 15%
Cap: Maximum $500/day

Configuration:

  • Multiple conditions (AND)
  • ROAS threshold
  • CPA threshold
  • Volume requirement
  • Action: Gradual increase
  • Safety cap

Advanced Rule Strategies

Strategy 1: Tiered Rules

Approach: Multiple rules with different thresholds

Example:

Rule 1: CPA > $60 → Pause immediately
Rule 2: CPA > $50 → Reduce budget 50%
Rule 3: CPA > $45 → Send alert

Benefits:

  • Gradual response
  • Prevents over-reaction
  • Maintains performance
  • Flexible management

Strategy 2: Time-Based Rules

Approach: Different rules for different times

Example:

Weekdays: Stricter CPA thresholds
Weekends: Relaxed thresholds
Holidays: Special rules

Benefits:

  • Accounts for seasonality
  • Adapts to patterns
  • Optimizes for timing
  • Better performance

Strategy 3: Campaign-Specific Rules

Approach: Custom rules per campaign type

Example:

Acquisition Campaigns: CPA < $50
Retargeting Campaigns: CPA < $25
Brand Awareness: Different metrics

Benefits:

  • Appropriate thresholds
  • Campaign-specific optimization
  • Better control
  • Improved results

Best Practices for Automated Rules

1. Start Conservative

Initial Setup:

  • Set thresholds higher than target
  • Use notifications before actions
  • Test rules before full automation
  • Monitor closely initially

Why:

  • Prevents over-optimization
  • Allows learning
  • Reduces risk
  • Builds confidence

2. Use Multiple Conditions

Best Practice:

  • Combine multiple metrics
  • Use AND/OR logic
  • Set minimum thresholds
  • Include time periods

Example:

CPA > $50
AND
Conversions > 5
AND
Days running > 3

3. Set Appropriate Thresholds

Considerations:

  • Business margins
  • Historical performance
  • Industry benchmarks
  • Campaign objectives

Calculation:

Target CPA = Average Order Value × (1 - Target Margin)
Example: $100 AOV × (1 - 0.5) = $50 Target CPA

4. Include Safety Caps

Protection:

  • Maximum budget limits
  • Minimum performance requirements
  • Time-based restrictions
  • Volume thresholds

Example:

Increase budget by 20%
BUT
Maximum $500/day
AND
Minimum 3 conversions required

5. Regular Review and Adjustment

Maintenance:

  • Review rule performance weekly
  • Adjust thresholds monthly
  • Test new rules
  • Remove ineffective rules

Why:

  • Performance changes
  • Business goals evolve
  • Market conditions shift
  • Optimization needed

Common Mistakes

1. Too Aggressive Thresholds

Problem: Rules trigger too often, disrupting campaigns.

Solution: Set conservative thresholds, test and adjust.

2. Single Metric Rules

Problem: Doesn't account for full picture.

Solution: Use multiple conditions and metrics.

3. No Safety Caps

Problem: Rules can scale too aggressively.

Solution: Set maximum limits and requirements.

4. Set and Forget

Problem: Rules become outdated.

Solution: Review and update regularly.

5. Ignoring Learning Phase

Problem: Pausing campaigns too early.

Solution: Exclude learning phase from rules initially.

Rule Testing and Validation

Before Full Implementation:

1. Test Mode:

  • Use notifications only
  • Monitor what would happen
  • Validate logic
  • Adjust thresholds

2. Small Scale:

  • Apply to one campaign
  • Monitor closely
  • Compare results
  • Refine approach

3. Gradual Rollout:

  • Expand to more campaigns
  • Monitor performance
  • Adjust as needed
  • Document results

Monitoring Rule Performance

Key Metrics:

Rule Activity:

  • Number of triggers
  • Actions taken
  • Frequency of execution
  • Campaigns affected

Performance Impact:

  • CPA improvement
  • Budget efficiency
  • Time saved
  • Error reduction

Tools:

  • Rules Manager dashboard
  • Custom reports
  • Email notifications
  • Third-party tools

Automated Rules Checklist

  • [ ] Target CAC/CPA defined
  • [ ] Rule conditions set
  • [ ] Actions configured
  • [ ] Schedule established
  • [ ] Safety caps included
  • [ ] Notifications enabled
  • [ ] Tested in notification mode
  • [ ] Applied to campaigns
  • [ ] Monitoring set up
  • [ ] Regular review scheduled

Next Steps

  1. Define Targets: Set your CAC/CPA goals
  2. Create Rules: Set up essential rules
  3. Test First: Use notifications initially
  4. Monitor Closely: Watch rule activity
  5. Optimize: Adjust based on results

Thanks for reading the blog. If you want more help, do contact us at https://sdx.vision