Smartly.

io: Creative Testing Playbook

Creative Testing Playbook

Finding the Winning Creative Concepts
Smartly.io Creative Series

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Smartly.io: Creative Testing Playbook

Intro-
duction
At Smartly.io, we love exploring new ways to craft
storytelling optimized for mobile consumption, and
we consider technology as the enabler of our creative
practice. As fast movers, our philosophy is to learn,
test, and iterate continuously in an agile manner.

We love to #learnsmartly, and with this playbook, we

want to share our creative learnings and inspire you to
take your brand’s creative to a new level. You will learn
what a proper creative brief looks like, what to test,
how to combine formal testing using ad studies with an
directional, iterative-based approach, and much more.

With the experience from 600+ brands and more than

$2B in ad spend, we’ve built a framework for creative
testing paired with creative solutions that help brands
look their best self on social while automating manual
work and improving results.

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Smartly.io: Creative Testing Playbook

Table
Of Contents

04 What Is Creative Testing?

05 Why Test Creative?

09 What To Test?

18 How To Test Creative?

31 Summary

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Smartly.io: Creative Testing Playbook

What Is
What Is
Creative
Creative
Testing?
Testing?
Think of creative testing as going to an art gallery:
the art itself and the artist’s execution of the idea will
dictate the experience - this is what we call the creative
concept and its execution.

However, other factors influence your visit as well:

the layout or size of the exhibition, or how the lighting
enhances the artwork. You can consider these factors
the creative optimization levers.

When you consider both of these: the creative concept

(artwork) and the optimization levers (how it’s displayed)
you’ll be set for success in your creative testing
approach.

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Smartly.io: Creative Testing Playbook

Smartly.io: Creative Testing Playbook

Why Test
Why Test
Creative?
Creative?

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Smartly.io: Creative Testing Playbook

To win in today’s competitive advertising game, marketers need to

understand how to connect with their audiences.

As technology automates performance marketing, creative becomes

one of the biggest points of differentiation and the most powerful
performance optimization lever. However, identifying high-performing
creative variables can be challenging. Typically, we see brands
approaching creative testing this way:

1 Should I show a discount in my retargeting creative?

2 Do Emojis in my carousel ad’s copy improve CPA?

3 Which CTA drives higher lift in acquiring new customers?

4 Does adding video into my creative mix improve CPA: Purchase?

CON CE P T A C O N C E PT B

11:09 11:09

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Smartly.io: Creative Testing Playbook

CPA

The set-up and the logic behind these examples

are not flawed. However, interpreting the CTR
learnings from these creative tests is not
very straightforward as the following:
questions commonly arise:

• Do I just run a variation A or do I test

it against a combination of A along
with other variations?

• Should I implement the elements in

the winning creative to all or some
other creatives?

• How long will the creative

continue to be the winner? When
should I test again?

• Should I iterate the variation?

• Should I iterate both variations

and split test again, or test directionally in the auction?

• Are these the most critical creative elements to test? (aka am I testing the right
things?)

Conclusion
Conclusion
Before coming out with a testing plan, you need a testing strategy and a
solid methodology to systematically test and iterate the things that have
the highest possible impact on business outcomes.

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Smartly.io: Creative Testing Playbook

The “Create and Learn”

Approach
We have built a framework for creative The best way to understand and, over
testing with scalable creative solutions time, improve creative performance
that help brands look their best selves is through continuous testing. The
on social while automating manual testing should inform all stages of the
creative work and improving results. advertising cycle: from planning to
producing the assets and launching
We believe in a “Create and Learn” campaigns.
approach in order to move quickly,
test, and roll-out relevant creatives for When continually testing, you learn
your social channels. Of course, this the best way to communicate and
is easier said than done, as it requires engage with your audience. Follow
a constant investment of time and our recommended methodology
resources to ideate, produce, launch, for creative testing and use it as
analyze results, gather learnings, and your insight-generator to drive your
come back to the ideation table for business performance.
the next test. How can you efficiently
accomplish this without compromising
your brand and the quality of your
creatives?

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Smartly.io: Creative Testing Playbook

Smartly.io: Creative Testing Playbook

What To
What To
Test?
Test?

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Smartly.io: Creative Testing Playbook

The Creative Gap

Analysis
When deciding what to test, you need to think about your overall
creative strategy: What are your most critical challenges? How can you
solve them with a creative testing methodology?

Start by analyzing your overall creative approach by funnel stage and business
line. Such analysis aims to resurface gaps and challenges in the current approach.

The aim is to answer questions such as:

• Which creative placements and formats do you use?
• How do you distribute your spend across creative types?
• How often do you push out new creatives?
• Do you refresh your creatives using a specific creative strategy?
• Do you produce your creatives for the right funnel stage?
• What message do your creatives communicate? How often do you refresh it?

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Smartly.io: Creative Testing Playbook

Here is an example on how you can run this analysis:

Acquisition Retargeting Re-engagement

Creative factor Current Desired Current Desired Current Desired

Types of creatives
used

Spend distribution

Creative refresh
interval
Individual creatives
or concepts
Branding / DR
creatives ratio

Messaging

Audience
customization
Culture and language
customization

You should also have a good understanding of your current metrics for
each funnel step and what you want to achieve. Once you have gone
through this process, you’ll be able to understand the challenges in your
current set up.

Some common examples could be:

• Over-investing in retargeting and under-investing in prospecting.
• Creatives not refreshed often enough.
• Too few ads in an ad set.
• Creative messaging is not optimized for the audience (same approach for
different audience segments).

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Smartly.io: Creative Testing Playbook

Hierarchy of Creative
Challenges
The next step is to take the challenges you have learned from your
Creative Analysis Gap and organize them by prioritization.

Tap into multiple sources to decide what to test:

1 Identify what to test by finding the most critical business challenges

regarding creative

2 Create concepts that aim to answer the existing challenges

3 Test concepts against each other to find what speaks to the chosen
audience

4 Iterate winning concepts

5 Plan on testing the most critical large-scale questions with lift tests
and smaller iterations of variations directionally in the auction

6 Find the optimal cycle for refreshing concepts and restart the process

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Smartly.io: Creative Testing Playbook

Hierarchy of
Hierarchy of Creative
Creative
Opportunities
Opportunities

How do I improve Account level,

retention of customers
with creatives?
strategic level, large
questions that cannot How do we open up
our upper funnel with
be tested with a
creatives?
single format test.

How often
Campaign level,
should I refresh somewhat large
my creatives
in evergreen strategice questions Should I use
campaigns? that can be tested with videos or static
creatives or both?
a formal ad study.

What Small questions on specific

promotional
value drives best variations within ads that What
ROI? background
can be tested by letting colors should we
Facebook optimize. use?

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Smartly.io: Creative Testing Playbook

CR EATI VE CON CEPT

A creative concept is the approach you take to tackle your business goals:
For example, you want to increase app installs for your business and
want to run a campaign for it. The creative concept will dictate the
messaging and the visual execution behind that campaign.

CR EATI VE OPTIMIZATION L E VE RS

Creative Optimization Levers are means of optimization that are outside

of the creative concept (think placements, formats, audience targeting
- bolded storytelling, colors or messaging) that can influence the
performance of a creative on Facebook and Instagram.

CR EATI VE VARI ATION

You could have many different variations of a single creative concept - each
performing differently based on placements, formats, or audiences targeting.
You can test the variations using various creative optimization levers.

IT ERATI ON S

Continuous evolution of a single creative to identify creative factors that

influence performance.

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Smartly.io: Creative Testing Playbook

Generating
Generating
Creative Ideas
Creative Ideas
To help find ideas for creative tests that will address the gaps that you
have identified, tap into as many sources as you can. The more ideas
you come up with, the better - you can always prioritize tests based on
their potential business impact.

• Past Campaigns Data

• Past Creative Tests

• Motivations
• Behavioral
Trends
• Blockers

TAP INTO
MULTIPLE
SOURCES TO
FIND INSIGHTS

• Competition
• Industry
Trends

• Intuition
• Imagination

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Smartly.io: Creative Testing Playbook

Come up with creative

ideas to test by…
… Debriefing your campaign goals and KPIs.
Keep your business goal in mind when kick-starting the ideation process:
Is it a prospecting campaign? How long is it going to run for?

… Understanding your audience’s behavioral cues.

Outline different reasons why your customers buy from you: Are your
materials sustainably sourced? Is your customer service the best on the
market? Is there any blocker to buy from you?
Explore Facebook Audience Insights

Study the common characteristics of customers in your Custom

Audiences. Invest in understanding their needs, wants, and motivations.
How can your product/service enrich their lives?

“I love them and if I do not get

“I want to shop from them now, they might run out!” - “I want them but I have no
brands that care about the create urgency with a ‘FOMO effect’ time to go and try these in
environment” - highlight that by highlitighting limited availability. store” - highlight ‘try before you
you use sustainable materials buy’ and ‘easy return’ to reduce
to drive conversions. the barriers to purchase.

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Smartly.io: Creative Testing Playbook

...Mapping out data insights from past campaigns, creative tests and
industry trends.
Use previous results to inform the design of new creatives. Is your
audience responding better to direct messaging? Are your lifestyle images
performing better than product shots? Use Smartly.io Pivot Tables to see
what messages have resonated well in the past. Are there any learnings
you could use to fuel future creative planning?
For example: if using influencers on IG Stories helped connect with
Generation Z, you might want to expand on this approach - e.g. appointing
best performing influencers as brand ambassadors.

“Performance data “Competitive research

indicated that the top suggests that
left corner is the best showcasing customer
placement to include reviews is an effective
offers on the ad way to connect with
creative.” broad audience”

Identify industry trends that could inspire you to come up with some
interesting hypotheses to validate. Facebook Ad Library is a great tool
offering a comprehensive, searchable collection of all ads currently running
from across all Facebook Products.
For example: if your competitors use customer reviews as ‘social proof’ in
their ads, you could test if this same approach works for your audience

… Using your intuition and imagination to put everything together.

Consider intuition as a form of data. It’s the highest form of intelligence that
enables us to connect the dots we wouldn’t be able to connect with our
conscious mind.

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Smartly.io: Creative Testing Playbook

Smartly.io: Creative Testing Playbook

How To
How To Test
Test
Creative?
Creative?

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Smartly.io: Creative Testing Playbook

The Winning Creative

Combination
With creative testing, the aim is to find a winning combination, design,
or messaging and scale that according to a testing plan. The problem,
however, is: How many creatives do you need to produce? How much
value do rounds of iterations bring? How many times do you need to
repeat this process until you find the right approach?

When following a consistent testing methodology, you’ll gain insights into

what resonates for a specific audience or a certain funnel stage. Those
insights will help you improve campaign performance over time.

New Lipstick Collection.

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Smartly.io: Creative Testing Playbook

Testing Methodology
Testing Methodology
Overview
Overview
ST E P 1

Test multiple creative concepts

winner winner

Concept Concept Concept

A VS
B VS
C

ST E P 2

Iterate on the winning concepts

winner Concept Concept winner

Iteration 1
A C Iteration 1

Iteration 2 Iteration 2
winner

Iteration 3 Iteration 3

ST E P 3

Learn

Creative Report & Insights

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Smartly.io: Creative Testing Playbook

Smartly.io Creative
Testing Workflow

STEP TEST MULTIPLE CREATIVE CONCEPTS

1 We recommend you to start by testing three to five

creative concepts and iterating the winning ones to learn
what kind of creative is engaging for your audience.

With creative testing, it pays off to be hypothesis-driven.

Produce your creatives based on hypotheses that are
relevant to your brand. Remember that your hypothesis
should solve business challenges identified when you
execute a Gap Analysis, as explained in the previous
session. Map the kind of insights you are looking to
gain and how those could change your strategy and
translate them into multiple creative concepts.

Convenience-driven

Environmentally Friendly Price-conscious

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Smartly.io: Creative Testing Playbook

STEP ITERATE ON THE WINNING CONCEPTS

2 Once you nail down which creative approach brings

the best results, you should work on iterating specific
creative elements to improve your performance
continuously. Sometimes small changes, such as the
layout or the background color, can have an impact on
performance.

Elements to consider in your testing plan include

alternative calls-to-action, different cuts and lengths,
and copy versions. Only test one change at a time to
determine what moves the needle.

11:09
Winning
CPA

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Smartly.io: Creative Testing Playbook

STEP INTERPRET RESULTS AND DOCUMENT

3
THE LEARNINGS

If you’re running a formal ad study (see next section

for more details), you can see which ad study cell
performed best, assuming you have collected enough
data to draw conclusions.

There are three possible outcomes:

• There is a statistically significant difference. In this
case, you should implement the best variant.

• There is no statistically significant difference. You can

implement either variant. It is not certain which is better,
and the difference is most likely too small to be of
practical importance.

• There is not enough data to draw conclusions.

There might be a difference that is big enough to be
interesting, but the ad study ended before enough data
was collected to estimate this with enough confidence.
If you still want to know which alternative is better, you
should create a new ad study and run it longer (and with
a larger budget) to collect more data.

If there’s no ad study, look at data in Smartly.io’s Pivot

Tables to draw conclusions. Evaluate creatives based on
the lowest funnel metric you have available (e.g., high CTR
doesn’t always equate most conversations). Ensure that
you separate funnel steps - retargeting creatives would
almost always have a better CPA. Look at things like copy,
call to action, and ad format to understand what resonates.

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Smartly.io: Creative Testing Playbook

The Testing Methodology

And Process
Creating a testing plan and running tests correctly provides reliable
and actionable results. You can choose from two primary methods –
deciding the right testing methodology is fundamental to achieve the
desired outcomes.

H OW TO DECI DE W HIC H ME THOD TO USE

Overall business
impact - Big Lift Test for differences in incrementality
decisions

Split Test for differences in CPA

or other metric

Minor Observational, auction-based test for

differences - small variations
Small decisions

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Smartly.io: Creative Testing Playbook

F O RMAL AD STUDI E S

There are two types of Ad Studies you can apply. Use this methodology
when you want to take important decisions that require a ‘scientific’
method.

Lift Test: Execute this type of tests when you have a complex set up or
want to achieve major changes in your creative approach.
For example:
• Testing image vs. image + video
• Creatives that tap into different audience segments that may engage
you at different rates regardless of the ads

Split Test: Use this methodology when you want to inform future creative
production processes, or a default (evergreen) approach for creatives.
For example:
• Localized vs. non-localized creatives
• User generated content vs studio produced videos

Why do important decisions need to What is statistical significance and

be tested with formal ad studies? why should brands care?

1 Avoid facebook optimization from

creating differences. 1 Just because one campaign gets
more conversions does not mean
that it is better. There is a chance that

2 Easy and sure way to ensure each

user sees only A or B but never
it can be caused by randomness.

both.
2 calculate
There is no need to manually
statistical significance. This

3 Easy to see results and evaluate

statistical significance.
happens automatically in Smartly.io - we
have a statistical significance calculator
in the Smartly.io Ad Studies tool.

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Smartly.io: Creative Testing Playbook

Important Considerations
Set up your Ad Study with the Expect a hit in performance.
right budget. Whenever you’re running a
As a general rule, we recommend split test, the audience will be
using 1,000 conversions as the split, likely resulting in a dip in
minimum number needed for performance KPIs. Therefore, any
a 2-cell split test. Multiply this comparisons should be made
time your average CPA for the between the study cells and not
conversion. Example: If CPA Sign against e.g. historical performance.
Up is $10, then 1,000 x $10 =
$10,000. That is how you could Make sure that your events are
calculate the recommended firing properly.
budget needed for a test. All too often, advertisers start
running ad studies and notice
during the study that their pixel
events are not firing, which naturally
harms the study, as we are unable
to measure the results reliably.

$
$

$
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BU Y NOW
Smartly.io: Creative Testing Playbook

There should be only one Spend a similar amount in each

difference between study cells. study cell.
When the study cells differ Spend-level affects CPA (cost-
in multiple ways (e.g. both per-acquisition) heavily and if
creative types and bidding), you your cells don’t spend equally, it
cannot know how each of these may be impossible to say if it was
differences affects the results. the spend level difference that
Therefore, it is more effective and caused the result. The easiest way
efficient to design simple tests to make sure your cells spend
with only one variable. equally is to give each cell the
same budget and bid high enough
Use newly created or cloned to make sure the budget is spent.
campaigns in split tests between
campaigns. Manage your expectations
Learning accumulates on the effectively.
campaign level, and a longer- Tests take time, especially complex
running campaign thus has an ones. Have a good understanding
unfair advantage over a newly of the required spend and timeline
created one. of the test. The test only needs
to be checked at the end of the
Make sure you do not test when the results are finalized.
accidentally target the same Anything before that would be just
audience in campaigns that are a guess.
not included in the ad study.
Otherwise, people that are part
of the study will see ads from
your other campaigns, which may
impact the results.

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Smartly.io: Creative Testing Playbook

INF ORMAL (DI RECTION AL ) TE STS

For quick and easy tests without sacrificing performance:

Multi-Armed Bandit: Instead of letting Facebook choose from your

creatives, we recommend using Smartly.io’s features like Predictive
Creative Optimization or Predictive Budget Allocation to allocate your
media spend between creatives. You should launch all ads tested against
each other at the same time to avoid learnings or ad fatigue from creating
the difference. Use this approach when...

… You want to take small decisions or decisions that impact only the
choice of creatives in question.
… You are not ready to sacrifice a lot of the campaign performance during
the test.

Directional Testing: You can always let the Facebook algorithm choose
by running different creatives in parallel and compare their performance
using Smartly.io’s Pivot Tables.

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Smartly.io: Creative Testing Playbook

M O D ULAR APPROAC H TO E MP OW E R ITE RATIVE C R E AT I V E T E ST I N G

The Smartly.io Platform allows advertisers to use a modular approach to

optimize creatives by iterating hundreds of variations using our creative
automation tools. Instead of relying on a limited amount of creative assets
with high ad fatigue risk - a modular approach enables multiple variations with
tailored content for different audience groups and across various mediums.
And by properly tagging creative assets, our platform Pivot Tables can
give you very granular insights on how the different elements of your
creatives perform and the performance interdependency between these
elements. With Smartly.io’s modular approach, our customers can use
iterative creative testing designed to test the most influential variables.

Iterative Creative Testing: allows you to test multiple creative factors at

once to determine which combinations work best - this allows for more
creative variety during the test and accounts for factor interdependence.
We recommend using Smartly.io’s Modular Approach to creative
production when using this type of an iterative creative testing approach.
We also recommend starting with the most influential creative elements
first, as it’s impossible to test everything without compromising test results.

IMP ORTAN T CON S ID E RATION S

• Launch all ads tested against each other at the same time to avoid
learnings or ad fatigue from creating the difference.
• You may use Smartly.io’s feature Predictive Creative Optimization to get
a more even distribution of spend between ads and ensure each ad gets
a fair chance to perform.
• How long to test:
→ Match test duration and budget with test importance
→ A good rule of thumb is to let each and collect at least 5–20
conversions depending on overall volume and CPA

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Smartly.io: Creative Testing Playbook

Smartly.io: Creative Testing Playbook

Summary
Summary

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Smartly.io: Creative Testing Playbook

If you need to get important insights: a split test.

For example, when test results can inform creative (or
even business) strategy and can guide creative asset
creation over a longer period of time.

If you need to keep good performance while testing

and/or need to test a large number of different
variations: directional testing.
Here you most likely won’t be able to pinpoint the
specific creative elements that made the performance
difference (was it the color or the ad copy?), but you’re
able to test and iterate quickly without sacrificing
performance.

When the performance of creatives varies by the

attribution model applied: a multi-cell lift test.
Since lift tests are ‘attribution free,’ they are useful to
analyze the performance of the Creative Mix using
different attribution models. You may find that static
performs better when applying a Click-Only attribution
model, but adding video into the mix drives better
performance with a View-Through attribution model.
There is a conflict between these two models, which
makes it difficult to assess which model is more reliable.

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Smartly.io: Creative Testing Playbook

Bonus Section
H OW TO STRUCTURE TE ST CAMPAIG N S?

Set up a separate test campaign.

You can simplify things for yourselves and drive more impact by using the
following approach: constant and consistent testing is essential, so having a
separate test campaign can help you with your testing initiatives.
Our recommended campaign structure is in the chart, on the following page.

Alternatively, you can…

… Use a separate geo for testing as described:

1 Evergreen campaigns run for most of the markets, test campaigns

run on a separate non-overlapping region

2 Best performers from test campaigns are moved to evergreen –

others are paused

3 Pause ads in evergreen campaigns automatically with Smartly.io’s

Stop-Loss algorithm if they are no longer performing

… Leave winning ads running in the original campaign:

1 Launch new ads in a new campaign

2 Pause non-performing Ads with Smartly.io’s Stop-loss feature

3 Leave winners running in original campaigns until they stop

performing (paused by Stop-loss)

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Smartly.io: Creative Testing Playbook

How To
How To Structure
Structure
Test Campaigns?
Test Campaigns?
T E ST CA M PA I G N S

Establish separarte Test and Evergreen Campaigns

winner

Concept Concept Concept

C VS
C VS
C
Iteration 1 Iteration 2 Iteration 3

E V E R G R E E N CA M PA I G N S

Pause Ads Evergreen automatically with Smartly.io Stop-loss

algorithm if they are no longer performing

Concept Concept Concept Concept

A B C C
Iteration 3

Best performers from Test Campaigns are moved to Evergreen – others are paused

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Smartly.io: Creative Testing Playbook

WHEN TO TEST?

• Testing frequency is important. We have seen that some of the most

advanced advertisers like Techstyle and ThirdLove create as many as 2-3
new Creative Concepts per week.

• Do not test during busy periods as formal ad studies can scrutinize

performance.
It’s best to look for business-critical insights during slower periods so that
you can apply the findings when results matter most: e.g. validate your
creatives before big sales periods and then run with the most successful
iterations.

• Most successful brands test continuously - have a test & learn agenda
with your customers and seek to question the status quo and validate new
hypothesis.

Continuous
Creative Create and test
Testing creative concepts
formally with A/B
tests.

Learning
& Iteration
Cycle
Gather learnings from
the informal tests, and
Define other test
apply to similar creatives.
factors on the
Run the top performing
winning concept and
creatives until refreshing
start systematic
is timely.
observational testing
to gather more
insights.

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Smartly.io: Creative Testing Playbook

WHAT TO PRIORI TI Z E IN THE TE STIN G P L AN ?

• Funnel Steps or Audience Segments with the highest spend and

importance or lowest performance

• Finding new creative concepts to tap into new audience segments

• High-impact executional details, such as opening frames of a video and

localization

• Testing creative formats – especially the mix between static and video

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Smartly.io: Creative Testing Playbook

Why Partner
With Smartly.io?
Smartly.io automates every step of your social advertising to unlock
greater performance and creativity. We combine creative automation, ad
operations, and outstanding customer service to help 600+ brands scale
their results – not headcount.

INNOVATE FASTER
Access what‘s new before the competition.

MEASURABLE RESULTS AT SCALE

Watch your ROI soar.

EFFICIENCY THROUGH AUTOMATION

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EXTENSION OF YOUR TEAM

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Smartly.io: Creative Testing Playbook

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