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How to experiment with Product Stop Loss?

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Written by Praveen Kumar
Updated yesterday

Overview

Product Stop Loss is a smart optimization feature in BigAtom that automatically excludes non-performing products from your live catalog.

By doing this, Meta and Google can reallocate the saved budget to:

  • Products already performing well, or

  • Products that have not yet received enough exposure

This process helps your ad delivery systems focus on high-potential products, improving catalog efficiency and reducing wasted ad spend over time.


Why Product Stop Loss Matters

Running ads for large product catalogs often leads to uneven distribution — a small subset of products gets most of the exposure while others get little to none.


Product Stop Loss helps balance this by:

  • Eliminating irrelevant spend on consistently poor performers

  • Freeing up budgets for products with better potential

  • Improving efficiency of catalog campaigns gradually over time

For brands with extensive catalogs, this becomes a recurring optimization exercise — as product performance keeps shifting based on exposure, seasonality, and Meta or Google’s dynamic spend allocation logic.


Before You Implement Stop Loss

If you’re not fully confident about how Stop Loss works or want to see its impact before applying it across your entire account, we recommend starting with a controlled experiment first.

Running an experiment helps you:

  • Understand how Stop Loss affects product visibility and ad efficiency

  • Build confidence in the feature’s logic before making it part of your regular catalog optimization workflow

  • Identify the right exclusion percentage and performance benchmarks for your brand

The following are two structured experiment frameworks you can use to assess the feature’s impact safely and accurately.


1. Account-Level Stop Loss Experiment

Objective

Measure the impact of excluding bottom-performing products across the entire account on overall efficiency metrics like ROAS, CPA, and cost per sale.

Setup Steps

  1. Define the condition:

    • Exclude the bottom 20% of poor-performing products that:

      • Have spent 1x–2x of your account-level cost per sale, and

      • Delivered significantly lower ROAS compared to your account average

      • Use a 14-day or 30-day data window (avoid shorter periods like 7 days due to volatility).

  2. Base your 20% exclusion on spend, not product count.
    Example:

    • If your total 30-day spend is ₹100,000, then the bottom 20% (₹20,000) of spend should represent the poor-performing products to exclude.

    • If only 10 products account for that ₹20,000 spend (out of 500 total products), then only those 10 products should be excluded.

    • Do not exclude 100 products just because they make up 20% of total count.

  3. Ensure account stability:

    • Do not make major changes during the experiment:

      • No campaign creation or pausing

      • No budget changes

      • No major edits to catalog ads

    • Regular (custom) ad campaigns can continue as usual.

  4. Timing:

    • Run the experiment when business-as-usual (BAU) conditions apply — ideally 14 days before and after the experiment start date.

    • This ensures clean data without other influencing factors.


Evaluating the Impact

Perform a pre–post analysis using:

  • 7 days before the experiment start

  • 7 days after the Stop Loss is activated

Compare key metrics like ROAS, Cost per Sale, CTR, and total GMV.
The analysis will highlight efficiency gains achieved by reallocating spend from low performers.


2. Campaign-Level Stop Loss Experiment

Objective

Assess the effect of Stop Loss on a controlled campaign to measure results without impacting the full account.

When to Use

  • You cannot maintain account-level stability for 7+ days

  • Multiple catalog campaigns are running with frequent changes


Setup Steps

  1. Choose the right campaign:

    • Must be an existing catalog campaign that’s been running for a while.

    • Ideally your 2nd or 3rd highest spender.

    • Should have:

      • Only one active ad set

      • Only one catalog ad

      • A unique product set that is not shared with other campaigns.

  2. Apply the Stop Loss condition:

    • Exclude bottom 20% poor performers within that campaign using the same methodology as the account-level framework.

    • Use spend-based exclusion, not product count.

  3. Maintain campaign stability:

    • Do not make any changes during the test period:

      • No budget changes

      • No pausing or duplication

      • No ad set or ad-level edits

    • The campaign budget and setup should remain identical to the previous 7 days before the experiment start.

  4. BAU Environment:

    • Ensure at least 14 days of BAU before and after the experiment for accurate results.


Evaluating the Impact

Just like the account-level test, perform a pre–post analysis:

  • Compare 7-day data before vs. after the Stop Loss implementation.

  • Evaluate key outcomes such as:

    • Cost per Result

    • ROAS

    • Spend distribution across products

    • GMV uplift


Key Recommendations

✅ Keep Stop Loss experiments data-driven and consistent
✅ Ensure no overlapping changes in catalog campaigns
✅ Always analyze results in similar spend and condition windows
✅ Document results and iterate periodically — as product performance can change dynamically


Conclusion

Product Stop Loss is not a one-time optimization, but a continuous feed improvement mechanism.
By systematically excluding low performers, brands can:

  • Reduce ad waste

  • Improve overall catalog efficiency

  • Enable Meta and Google to focus delivery on higher-impact products

Following the above frameworks will help you assess the true incremental value of Stop Loss — and make it a recurring part of your performance optimization workflow.

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