A/B Testing Different Pricing Strategies with Facebook Ads: A Practical Guide

To make the most of your budget and maximize profitability from your Facebook Ad campaigns, you need to find the sweet spot where price and customer demand meet. One of the best ways to do that is to A/B test the price of your product or service. 

To help you better understand the concept of A/B testing and how you can take advantage of it fully, in this practical guide, we’re going to cover: 

• Key metrics to track in pricing tests
• How to prepare your Facebook Ads for pricing A/B tests
• Common pricing strategies to consider
• How to set up your A/B tests in the Facebook Ads Manager
• How to analyze the results of your A/B tests
• How to make data-driven decisions
• Common mistakes to avoid when running pricing A/B tests

But before we get into any of the topics above, we’d first like to explain what A/B testing is and why you should A/B test your pricing strategies when running Facebook Ads.

What is A/B Testing?

A/B testing (also known as split-testing) is a method of comparing two versions of an element to see which performs better. In Facebook advertising, A/B testing allows you to test one variable at a time - such as ad copy, images, or pricing - while keeping everything else consistent. By doing so, you can make decisions based on real performance data rather than assumptions.

Imagine running two ads where the only difference is the price displayed. One ad shows $19.99, while the other shows $24.99. After the test runs, you can see which price generated more sales or a higher return. That insight will then help you shape your wider marketing and pricing strategies.

Why A/B Test Pricing Strategies for Facebook Ads?

Pricing is one of the strongest influences on consumer behaviour. Even small changes can alter how customers perceive value and impact their decision to purchase. When you A/B test pricing strategies with Facebook Ads, you can: 

• Identify the optimal price point for your product or service
• Understand how discounts, bundles, or premium pricing influence conversions
• Improve return on ad spend (ROAS) by aligning price with customer expectations
• Reduce wasted spend on strategies that do not convert

Instead of relying on guesswork, A/B testing lets you validate pricing decisions with real-world data from your audience.

Key Metrics to Track in Pricing Tests

When testing the cost of your product or service with Facebook Ads, there are several key metrics that you should keep track of, including:

• Click-Through Rate (CTR): Shows whether the pricing strategy attracts attention.
• Cost Per Acquisition (CPA): Indicates how much you spend to secure each customer.
• Conversion Rate: Reveals the percentage of users who complete a purchase after clicking.
• Return on Ad Spend (ROAS): Measures revenue generated compared to ad spend.
• Average Order Value (AOV): Helps track whether certain prices encourage bigger baskets.

Tip: Create a simple table in Excel or Google Sheets and log the metrics daily during the test.

Preparing Your Facebook Ads for Pricing A/B Tests

Before launching your Facebook Ads and A/B testing the pricing point of your products or services, there are a couple of key steps you need to take first. They include:

Set Clear Objectives

Before creating a test, define what success looks like. Do you want to maximize profit, drive volume, or test your customer’s willingness to pay? Examples of objectives that you can strive toward include:

Increasing conversion rate at a specific price point

Reducing CPA (Cost Per Acquisition) while maintaining revenue

Testing if discounts boost volume without harming margins

Define Your Target Audience

A/B tests only work if you run them on the right audience. So, before you start setting up your Facebook Ads, take a moment to think about who your target customers are. To give you an idea, the right target audience for:

• A premium skincare brand might be women aged 25-45 with an interest in beauty, wellness, and luxury products
• A fitness coaching program could be men and women aged 20-35 who follow fitness influencers or engage with health-related content
• An online coding bootcamp may target recent graduates or professionals aged 22-35 interested in career changes, especially in tech
• A home décor store might aim at homeowners aged 30-55 who are interested in interior design and DIY projects
• A meal delivery service could focus on busy professionals aged 25-40 living in urban areas

Create Consistent Ad Creative and Copy

When running A/B tests, you have to make sure that every ad you test is identical in every respect, except the element you’re testing (in your case, that would be the price of the product or the service you’re selling). This means that for every ad you run, you should:

• Use the same images, colours, and fonts
• Keep the ad copy identical except for the price
• Direct both ads to the same landing page (with dynamic pricing adjusted)

This consistency ensures any difference in results is caused by the pricing variable, not unrelated factors.

Choose the Right Pricing Variables to Test

We recommend that you avoid testing wildly different price points. Instead, make incremental changes. For example:

• $18.99 vs. $21.99
• 10% discount vs. no discount
• Single product vs. bundle offer

Common Pricing Strategies to Consider

When A/B testing the cost of your product or service, some of the different pricing strategies that you should consider include:

Discounted Pricing

With this strategy, the goal is to offer potential customers a lower price point for a limited period of time. For example:

• Ad A: Product at $29.99.
• Ad B: Product at $29.99 with “20% Off Today” badge.

When to Use: Use this strategy to test how discounts affect conversion rates versus full price.

Bundle Pricing

With this pricing strategy, the goal is to encourage customers to purchase multiple products together. For example:

• Ad A: One pair of shoes for $40.
• Ad B: Two pairs for $70.

When to Use: Use this strategy to test if customers respond better to perceived savings when buying more.

Premium Pricing

The goal of this pricing strategy is to position your product at a higher price to signal superior quality. For example:

• Ad A: Service package at $199.
• Ad B: Identical package priced at $249 with added “Exclusive” tag.

When to Use: Use when you want to test whether your target audience associates higher prices with greater value.

Psychological Pricing

This is one of the most commonly used pricing strategies, where the pricing of items is deliberately set to influence customer perception rather than reflect exact value. For example:

• Ad A: $20.00.
• Ad B: $19.99.

When to Use: Use this strategy to test whether subtle price adjustments influence purchasing behaviour.

Setting Up Your A/B Test in Facebook Ads Manager (Step by Step)

Setting up your A/B test in the Facebook Ads Manager is relatively straightforward. Here is a step-by-step guide on how to do it.

1. Log into Ads Manager.

2. Click Create and choose your campaign objective (Conversions is most common for pricing tests).

3. Under the campaign settings, toggle A/B Test on.

4. Define your variable as Ad Creative or Ad Set, depending on whether you are testing price in copy or audience-level pricing strategies.

5. Keep the budget split evenly (e.g., 50/50).

6. Choose a test duration - usually 5 to 10 days for the most reliable results.

7. Launch the test and monitor the metrics daily. 

Analyzing A/B Test Results

Knowing how to analyze the results of your A/B tests is essential for drawing accurate conclusions and making informed business decisions.

How to Interpret Key Metrics (CTR, CPA, ROAS, Conversion Rate)

• If CTR is higher in one ad, it means that the price has grabbed the customer’s attention
• If CPA is lower, it means acquiring customers is more cost-effective
• If ROAS is higher, that strategy produces better profit returns
• If the Conversion Rate is higher, customers find the offer more appealing

Statistical Significance: What It Means and Why It Matters

Statistical significance ensures your results are not due to chance. Facebook’s built-in A/B testing tool shows confidence levels. We recommend that you aim for 95% confidence before declaring a winner.

Using Facebook’s Reporting Tools Effectively

Facebook’s reporting tools are relatively straightforward to use. All we recommend you do is:

• Open Ads Manager > Reports
• Use breakdowns (age, gender, placement) to see if pricing works better with certain groups
• Export results into Excel if you’d like to analyze the results further

Making Data-Driven Decisions

Making data-driven decisions is easier said than done. Here are some examples of data-driven decisions that you’ll likely need to make so you can refine your pricing and testing strategies more effectively:

When to Declare a Winner

Run your A/B test for at least one full purchase cycle, which usually lasts between 5 and 10 days. Then, depending on the budget you’ve allocated for the A/B testing, wait until you get a decent number of conversions.

If the results from the A/B testing are consistent across multiple metrics and are proving to be better than any of the other tests you’ve run, then you have a winner.

How to Apply Winning Pricing Strategies Across Campaigns

Roll out the winning price across all active campaigns. Then, update your product pages and checkout to reflect the chosen pricing. And lastly, don’t forget to create remarketing ads with the proven price point to maximize the number of customers you attract through your Facebook Ad campaigns.

Testing Iteratively: Continuous Improvement

Unfortunately, A/B testing isn’t a one-off exercise. Facebook Ads can always perform better, so by continuously trying and A/B testing your pricing strategy, sooner or later, you’ll find a price point or an offer that better aligns with your target customers.

Common Mistakes to Avoid in Pricing A/B Testing

While A/B testing Facebook Ads can be massively beneficial, it’s crucial to avoid mistakes that can skew your results or lead to poor decisions. Some of the most common pitfalls when A/B testing Facebook Ads include:

Running Tests Too Short or Too Long

When running A/B tests, it’s important that you don’t run the tests for too long or too short. If you run the test for too short, the results can be unreliable due to a small sample of data that you would have collected. 

If you run the test for too long, some of your advertising budget may get wasted as you continue to spend on variations that are already underperforming. From our personal experience, we believe that an A/B test should run for no longer than 5 to 7 days (depending on your advertising budget).

Testing Too Many Variables at Once

When running A/B tests, test one variable at a time;, otherwise you won’t know which factor caused the outcome. That’s why when you A/B test your pricing strategy, it’s important to keep all other elements exactly the same (aside from the price itself, of course).

Ignoring Audience Segmentation

The best price for one demographic may not be the same for another. So, if you’re targeting a broader group of people, make sure that you test the pricing of your products or services across different audience segments.

Failing to Track the Right KPIs

CTR alone does not show profitability. You should focus on all key metrics, such as conversion, ROAS, and AOV, so you can make the best and most informed pricing decisions.

Conclusion

A/B testing pricing strategies with Facebook Ads allows you to make informed and data-driven decisions about how to position your products or services. By setting clear objectives, keeping ad creative consistent, and carefully monitoring key performance metrics, you can discover which price points drive the best results.

Although A/B testing is relatively straightforward, it requires patience, precision, and continuous iteration. When applied correctly, A/B testing can help ensure that your pricing decisions are not based on guesswork but on measurable customer behavior, which will naturally lead to higher conversions and better returns from advertising spend.