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Controlled or Open? The Smarter Way to Run Catalog Ads

Unleash Meta’s Potential: Mastering Product Set Strategies

January 14, 2025

Hey there

Hi, and welcome back to The ADvantage Newsletter – your go-to resource for mastering e-commerce ad strategies that give you an unfair advantage over the competition.

When it comes to running product ads on Meta, the right strategy can mean the difference between mediocre results and game-changing ROAS.

Imagine this: You’re running a campaign for your ecommerce store. Should you put all your faith in Meta’s AI to decide what products to showcase, or should you take control by curating specific product sets that align with your goals?

This decision isn’t just tactical—it’s strategic. It can shape how efficiently you spend your ad budget, how targeted your ads feel to customers, and ultimately, how much revenue / margins you generate.

In this edition of Advantage, we’ll explore:

  • The pros and cons of running ads for specific product sets vs. all products.

  • Real-world use cases that can transform how you approach product ad campaigns.

  • A practical tip to help you A/B test these strategies and find what works best for your business.

By the end, you’ll know exactly which approach to use to squeeze the most out of your ad spend. Let’s dive in!

Option 1: Running Catalog Ads for Specific Product Sets

This approach involves curating a subset of your products based on a specific theme, audience, or occasion. Meta only uses these products in your ads, giving you full control over what’s displayed.

When to Use This:

  1. Seasonal Campaigns: Promote a curated collection for Black Friday, Christmas, or Summer Sales.

  2. High-Margin Products: Push products that generate the most profit.

  3. Inventory Prioritization: Highlight items that need a sales boost (e.g., slow-movers or overstocked SKUs).

  4. Targeted Offers: Feature products that appeal to a niche segment (e.g., luxury items or products for a specific demographic).

  5. Performance-Based Segmentation: Group products into high ROAS, medium ROAS, and low ROAS sets. Run ads separately for each group with different budgets. As products from the low ROAS group start performing better, they automatically move to the high ROAS set, receiving more budget allocation.

  6. Inventory Levels: Avoid spending ad budgets on products with low inventory. Instead, focus on products with ample stock to maximize ad spend efficiency.

  7. Gender-Based Segmentation: Use AI to analyze product titles and descriptions, populate gender fields, and create tailored product sets for targeted campaigns.

  8. Value-Based Targeting: Segment products by price range—low-value products for acquiring new customers, and high-value products for retargeting existing customers.

  9. New Launches: Highlight new arrivals or limited-edition products to create buzz.

  10. Bundles or Kits: Promote curated bundles (e.g., skincare kits, workout gear sets) for higher average order values.

  11. Geo-Specific Products: Target items relevant to specific locations (e.g., raincoats in Seattle, beachwear in Miami).

  12. Event-Driven Products: Create sets for weddings, back-to-school, or other special occasions.

Example:
A beauty brand can create separate product sets for:

  • High-performing skincare serums (high ROAS).

  • Products with low inventory to minimize spend.

  • New fragrance launches to generate buzz.

  • Bundled gift sets for the holiday season.

How to create a product set?

You can create a product set by applying filters to control which products from your catalogue are added. For example, you could filter all women's shoes that cost less than USD 100. Product set filters are dynamic, so the products in your set may change over time when your catalogue is updated.

For example, if a new product is added to your catalogue later and it meets the filtering criteria, that product will be added to the set.

Step 1: Go to Sets section in Catalog and click Create Set as shown below:

Step 2: Select either to create with filter or manually select

Step 3: Apply the desired filter & click Create.

How to selecting a set in ad creation?

It can be done at 2 places:

  1. If advantage+ catalog campaign is selected on campaign level, then product set is selected on adset. It applies to all ads inside that adset.

  1. For all other cases, it’s selected while ad creation under ad creative:

Option 2: Running Catalog Ads Open to All Products

Here, Meta uses its algorithm to optimize your ads based on performance signals like clicks, conversions, and user behavior. It’s a hands-off approach that lets Meta decide which products to showcase.

When to Use This:

  1. Broad Campaigns: Target a general audience with diverse needs.

  2. Full Inventory Utilization: Ensure even less popular items have a chance to sell.

  3. Scaling Efforts: Let Meta’s AI find top performers across your entire catalog.

  4. Dynamic Personalization: Show the right product to the right user based on their past behavior.

  5. Large Catalogs: Ideal for stores with thousands of SKUs, allowing Meta to surface the best-performing products.

  6. Time-Sensitive Offers: Promote flash sales or limited-time discounts across your entire catalog.

  7. New Market Expansion: Target new geographic markets where performance data is unavailable, letting Meta optimize.

  8. General Awareness Campaigns: Showcase the variety of products in your store to increase brand recognition.

Example:
An electronics store runs an open catalog ad campaign, allowing Meta to display:

  • High-value laptops to tech-savvy users.

  • Affordable accessories like phone cases to price-sensitive shoppers.

  • Lesser-known products (e.g., keyboard cleaners) to maximize inventory visibility.

  • Seasonal items like heaters in winter or fans in summer.

Which Approach is Right for You?

  1. Specific Product Sets Work Best When:

    • You have clear priorities (e.g., high-margin items).

    • You want to maintain creative & budget control over what’s advertised.

    • Seasonal or event-specific targeting is key.

    • You aim to segment by performance, inventory, gender, or value.

  2. All Products Work Best When:

    • You have a large, diverse catalog with varying demand.

    • You trust Meta to optimize for performance and discover new top sellers.

    • Your goal is to scale campaigns quickly.

Final Words

Don’t choose one approach over the other—test both! Start by running A/B tests to see which strategy drives better ROAS for your business. If you’re unsure how to execute this effectively, RetainIQ’s platform can help you set up and optimize these campaigns with ease.

Let’s Chat

Need help choosing the right product strategy and adding the relevant dynamic data to your product feed? Let’s discuss how RetainIQ can optimize your catalog for higher ROAS.

We’re here to guide you every step of the way. Let’s unlock the full potential of your Facebook ads—together.