How do I scale a profitable adset in Facebook Ads?
The honest truth is that you probably can’t expect your cost per action to stay the same as you raise your adspend. You can raise your adspend and keep your Cost Per Action under a certain amount, but this might limit how much you can spend.
This is based on the way the auction works.
Facebook uses “discounted bidding” in the ad auction, which basically means: If they can find someone to convert for cheap, they will lower your bid. If they can only find people at your max bid or budget, then they will use your max bid/budget in the auction.
In each auction there are only a certain number of “low cost” conversions available so you may see success with a five dollar a day campaign for a few days or longer, because Facebook finds the best and cheapest to show your ads too.
Eventually, you decide that you want to increase the ad spend because you are envisioning the cash rolling in your pocket at these conversion costs.
What happens is that as you spend more Facebook has to use your budget to compete in higher cost auctions, so your average cost per action increases.
Two common way to try to get around this, that don’t work are to:
A. Build multiple small budget adsets – in this case you will be targeting the same audience, so competing against yourself. Facebook only lets the best performing ads run, when this happens so you might see one ad set run and others get no delivery.
B. Dividing the adset into smaller targeting components – At best splitting an adset is only equally as efficient as the origional and Facebook works better with larger adsets, so splitting it decreases the potential conversions available at the low price.