There’s a lot of debate around the topic of ad scaling, as everyone has their own way of doing it. One of our top sellers has shared their scaling technique with us! Here is what they do:
They run Facebook conversion ads sets optimized for purchase at $5.35. They only run the advert in Facebook’s News Feed, all other placements are turned off at this stage. After the ad has spent four dollars they check the performance in Facebook ads manager.
The first metric to look at is whether or not the ad set has made a sale, if it has leave it running! The second metric is the cost of the link clicks. If the ad has link clicks over two dollars without any purchases, our top seller recommends turning them off.
Each niche and country will perform differently! Some broad niche can generate very cheap link clicks yet few purchases. Another niche can have fairly expensive link clicks but a much higher ratio of purchases to link clicks. It is important to learn how each of your niches perform and to know your numbers. The same is true for each country, so when looking at the data you need to look per niche and per country, to work out your target cost per click.
If you look back at your advertising history on Facebook and find your best performing ads sets (the ones with the cheapest cost of purchase that are not retargeting ad sets), have a look to see how much each link click was costing you on average – write it down and remember this number. Now, look for your break even ad sets, work out the average cost per link click across it, and write this down to remember it.
You will now have two numbers! This range is your target cost per click. When testing new ad sets, keep an eye on any ad that is over your target cost per link click. Some of these adverts will be profitable, especially in Q4! Don’t just turn them off, as these numbers act as a guide not a solid rule. The most important metric is the cost per purchase and the return on ad spend (ROAS).
So now I have told you what to look for, this is how one of our top sellers scales their advertising:
- They look at their $5.35 ad sets, finding the ones that have at least more than two sales, preferably more than four and that are in profit. They then duplicate these winners and change the budget on the new ad set to $10.35 or $18.35. They never turn off the winning ad set so leave the $5.35 ad set running!
- After the new ad set has been running for 12 hours they review its performance. If the ad set is making profit, they keep it running. If the ad set is break even, they keep it running. If the outset has not made any purchases yet, but is within the target cost per link click for the particular niche, they let it run until it has spent $15-$20 without a sale.
It is important to check that buyers are moving through the funnel if you are going to allow an ad set without purchase to spend $20 before turning it off. To make sure they are, our seller looks to see if buyers are adding the product to the cart. If they are adding it, then they let the ad set run longer. If an ad set has spent $10 and there has not been an add to cart, our seller turns off these ad sets.
The duplicated adverts that are in profit can be duplicated again increasing the budget on the new ad sets. Our seller tends to double the budget so their ads will look like this: $5.35, $10.35, $18.35, $36.35, $72.35, $142.35…
One thing to note is that the higher the budget, the more expensive link clicks and purchases will become on average. So you need to know the target costs for each ad set budget!
As I have said, link clicks over two dollars are almost always too expensive, and their ad sets should be turned off.
Calculating your return on ad spend is very important, and it is far too easy to turn off ads that are actually in profit if you do not look at the return on ad spend! You can customize the data that Facebook shows you!
So what are you waiting for? Launch your new campaign at http://www.moteefe.com and start advertising it!
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