Is it just me or do Budget, CPC & Audience size go 100% hand in hand. Did an experiment last week on a spend of $250/day to an audience of about 150,000. It killed it. Duplicated the campaign/ad set/ad, segmented by age and gender and upped the budget to $1,000/day. The ad and everything else was completely the same.
The costs of each click and conversion quadrupled.
So I turned that one off, duplicated the original, set the budget back to $250 and it’s performing very well again.
Anybody else notice this type of activity?
Scaling Facebook ads is almost always a big issue. There are also many ways to go about doing it. The only right one is the one that works.
1. Find a winning Facebook ad and increase the budget.
This is probably the most simple way to do it, but often people get excited about a winning ad and go from a $5 campaigns to a $500 campaign and it just doesn’t work this way. Facebook ads are not linear.
Best practice is to increase your budget slowly at no more than 50% every 3-5 days. This gives the Facebook algorithm a chance to catch up and find new people to deliver ads to. You can be even more conservative and increase slower.
2. Duplicate and increase budget
The Facebook algorithm is an enigmatic machine, but works well when treated correctly. When you find a winning ad, rather than increase budget you can try to just duplicate the ad and set a new much higher budget.
This is usually when you need to increase faster and more aggressively. Because you start a brand new adset with a new budget, the Facebook computers begin calculating and optimizing from this place vs the smaller budget.
3. Rules based increase
A new feature is rules, there is much more to rules than scaling, but this is a big one. You can set a rule that increase budget each day by 10% as long as your lead (or other conversion) cost is below a threshold.
This will be automate and simplify increasing your budget and scaling. For this to work you will need to know (or guess) what is an acceptable cost per action so you can set the rule. For instance if you know you make $5 per lead on average, then it would make sense to continue to scale until your lead conversion cost is $2.5 so you are still making a 2 to 1 return on your ad spend (ROAS). or whatever your number is.
You can do the same with purchase or any other conversion you can assign a value too.
What I’m discussing here is simply based on increasing budget to the audiences you already have. This is key because at some point your audience might become too small for your budget and /or just be exhausted and that is where you begin scaling audiences…[Read about scaling audiences here]
SOCIAL MEDIA ADVERTISING | LEAD GENERATION
Is your business running more than $2500 a month in Facebook ads and wondering if you are getting the most for your money? Maybe there is more you could be doing?
I offer a Facebook Ad account audit for businesses currently running ads. Check it out here ->