Game Companies, Listen Up! How AI-Powered Facebook Ads Can Supercharge Your ROAS by 32%

The advertising landscape is undergoing a seismic shift, driven by the rapid advancement of artificial intelligence. In a recent interview at Cannes Lions 2024, Meta’s Nicola Mendelsohn and WPP’s Chief Client Officer Jane Geraghty highlighted how AI is revolutionizing creativity and performance in Facebook Ads. Geraghty emphasized that AI’s true power lies in its ability to "look at the whole picture," optimizing creative delivery and maximizing return on ad spend (ROAS).

This isn’t just theoretical—Meta’s Advantage+ Shopping Campaigns for Facebook Ads have already demonstrated a 32% increase in ROAS for advertisers. By leveraging AI-driven automation, dynamic creative optimization, and smart audience expansion, businesses can achieve unprecedented efficiency in their Facebook Advertisement. In this guide, we’ll break down exactly how AI enhances Facebook Advertisement performance, share proven strategies to maximize ROAS, and showcase real-world case studies where brands achieved remarkable results.

I. How AI Enhances Facebook Ads Performance

1. Automated Campaign Optimization

AI eliminates the guesswork from managing Facebook Ads by continuously analyzing performance metrics and making adjustments without human intervention. Unlike manual A/B testing, which requires weeks of data collection, Meta’s AI evaluates engagement patterns in real time. For example, if a video ad underperforms in the first 24 hours, the system reallocates budget to higher-performing placements like Instagram Stories or Feed ads.

A key advantage is automated budget distribution. The AI prioritizes ad sets generating the highest conversions, ensuring liquidity isn’t wasted on underperforming segments. Brands using the 100% customer budget cap (a default setting in Advantage+ campaigns) report 15% higher ad efficiency compared to manual allocation.

2. Dynamic Creative Optimization

AI doesn't just optimize budgets—it refines creatives for Facebook Ads. Dynamic Creative Optimization (DCO) tests multiple ad components (headlines, images, CTAs) and serves the best combination to each user. Testing has shown that "Limited-Time Offer" CTAs can outperform "Shop Now" by 12% among users aged 25–34, while the opposite is true for older demographics.

Meta’s system also leverages format diversification. Combining image, video, and catalog ads in a single campaign boosts ROAS by 8%, as users engage differently with each format. Case in point: Renren Games doubled install rates by using AI to match custom app store pages with tailored ad creatives.

3. Smart Audience Expansion

AI excels at finding high-intent users beyond predefined audiences. While traditional campaigns rely on static interest-based targeting, Advantage+ Shopping Campaigns use lookalike modeling and real-time behavior analysis. For example, if a user frequently engages with gaming content but hasn’t clicked ads, the AI might still target them based on latent intent signals.

Gamebeans leveraged this by targeting RPG enthusiasts in Taiwan and Hong Kong through Facebook Ads. The AI expanded their reach to include users who engaged with similar games but weren’t explicitly following gaming pages, reducing cost per pre-registration by 10%.

II. Proven Strategies to Maximize ROAS with AI-Powered Ads

1. Setting the Right Budget

AI-driven campaigns require sufficient data volume to exit the "learning phase" efficiently. Allocate budgets to achieve 50+ conversions weekly, as smaller budgets (<$50/day) delay optimization by limiting the AI’s ability to identify performance trends. For instance, iFUN TECHNOLOGY NETWORK invested $20,000/month in their South Korea campaign, allowing the AI to analyze regional preferences and reduce costs by 4% through Conversions API integration. For example, Topkee’s TAG technology can, by tracking cross-platform user behavior, further enhance budget efficiency and ensure that ad spend targets high-intent audiences.

2. Optimizing Ad Scheduling

Fixed schedules (e.g., 9 AM–5 PM) align campaigns with peak user activity, stabilizing performance. Avoid frequent adjustments like daily creative swaps, which reset the learning phase. Gamebeans maintained a 14-day schedule without mid-campaign changes, reducing CPC by 13%. Topkee’s TTO marketing tools automate ad scheduling based on real-time performance data, minimizing manual intervention while maximizing reach across Facebook, Instagram, and WhatsApp.

3. Expanding Audience with AI

Country-level segmentation prevents audience overlap. Separate campaigns for markets like Japan and South Korea (as executed by Renren Games) enable AI to adjust bids based on localized conversion rates. Conversions API integration ensures accurate offline purchase tracking. Topkee’s similar audience expansion leverages TAG-collected data to identify high-potential users, while its call tracking module attributes phone inquiries to specific ad campaigns, refining audience targeting.

4. Diversifying Ad Creatives

AI tests creatives more effectively with varied assets. iFUN TECHNOLOGY NETWORK used 20+ creatives (gameplay demos, character art) to identify top performers, balancing hi-fi (professional) and lo-fi (user-generated) content to boost registrations by 8,761. Topkee’s creative collaboration workflow streamlines A/B testing via TTO tools, automating material updates based on fatigue metrics and segmenting audiences for tailored messaging (e.g., discounts for past interactors).

III. Case Studies: Real-World Success with AI-Powered Facebook Ads

1. Gamebeans: Lower Cost per Pre-Registration

Gamebeans faced the challenge of high-cost, low-quality sign-ups from manual lead ads in Facebook Ads. The solution was implementing Advantage+ Shopping Campaigns, which automated ad placements and budget management. As a result, the cost per pre-registration decreased by 10%, and clicks became 13% cheaper.

2. iFUN TECHNOLOGY NETWORK: Higher Conversions

iFUN TECHNOLOGY NETWORK's manual Facebook Ads failed to reach South Korean gamers effectively. To address this, the company used AI to expand targeting through lookalike audiences. This strategy led to a 64% lower cost per conversion lift and generated 8,761 incremental registrations.

3. Renren Games: 2X Higher Install Rates

Renren Games struggled with low conversion rates on default app store pages via Facebook Advertisement. Their solution involved using AI to match ads with custom product pages. Compared to traditional campaigns, this approach doubled the install rates.

Conclusion

AI-powered Facebook Ads have transitioned from a choice to a necessity for brands seeking to maximize their Return on Ad Spend (ROAS). Meta's studies demonstrate that AI, through automated optimization and dynamic creatives, reduces costs while scaling results, delivering a 32% higher ROAS. The critical insight is clear: brands should embrace AI capabilities, diversify their creative approaches, and rely on data-driven strategies instead of manual assumptions.

Ready to revolutionize your ad performance? Don't hesitate to reach out to us. You can start by exploring Meta’s Advantage+ Shopping Campaigns guide or collaborate with our certified ads specialists to implement these impactful strategies.