- How long does it take to break even on a Facebook ad campaign.
- How long does it take to double your Return on Ad Spend (ROAS) using a Facebook Ad campaign?
Let me start with the obvious answer: It depends!
So many variables come into play in the success of an advertising campaign that it is really impossible to say without specifics of the kind of campaign and products involved.
Creating a breakeven (100% ROAS) campaign is pretty direct and can happen quickly.
The campaign is very important in determining your breakeven point of a, but the product pricing and conversions number play a major role also.
The same campaign can be both successful or a failure if the product pricing isn’t structured correctly.
Example: If you sell a $5 widget and your cost to make a sale is $20 (of adpsend), you are losing $15 per sale. If this is all you sell, your campaign is failing fast.
But if you sell the $5 widget and then make a second offer for a $100 -$500 product, and a small percentage buy, the campaign can be successful.
If it cost $2000 to sell 100 $5 widgets. You immediately earn $500. If three of the 100 people buy or upgrade to the $500 product, you are at 100% adspend.
How long does this take?
As fast as your budget and testing allows. Along the way there can be a lot of tweaks and strategies to to test.
For my Facebook Ads and Conversion Agency, I tell clients it can be anywhere from two weeks to 3 months of work to really fine tune a sales process and get the point where you are truly profitable and scalable. I lean to the conservative side as far as time goes.
I’ve also heard of Ecomm campaigns that are profitable from day 1. Most likely the people running these have launched a bunch of other campaigns or got lucky. I don’t count on luck and I don’t advise it as a strategy.
The most important part to realize is that with the right audience, offer and sales process you cam make almost anything profitable. You have to understand that once you get it figure out you can run it for a long time and recoup upfront testing costs. So what if it takes 3 months to find a winning combination, IF you can run that offer for the next two years at scale!
With an unknown funnel, it can be on the longer side, because you can make adjustments at each step of the sales process. It’s not just the ads.
With a working funnel, it happens much faster because you know what each leads is worth and you have specific targets.
Case study 1: On a recent launch for a client with a digital training product. The whole process was one month of running ads and we were able to get a 21x return on the adspend of that project.
The sales funnel was well known and the conversion rates were generally decent.
The client had an existing email list so a lot of the sales came from people familiar with the client already. The point is that it happened fast. We had recouped all of our adspend within the first hour or opening the product for sale. We had 200% of our adspend within 24 hours of opening the product for sale.
Even in this case, the first 3 weeks of the launch process was simply lead generation and reminding the email list and site visitors to consume free content. Up until the cart opened, the ROAS was negative.
Case study 2: Similar client launching a digital product with high profit margins but a less robust email list. I used the same process to start generate leads weeks on advance of the product launch. We made sure those leads were consuming free educational content and then opened the product for sale. In this case we spent a lot more upfront building the email list. We ended up with a 5X return on adspend.
Where else can you put in $1 and get back between 5 – 21 or more!