The Scaling Method I Wish I Knew Sooner (Meta Ads Tutorial)

Summary

In this video, AA shares a crucial Facebook advertising strategy for maintaining profitability while scaling campaigns. They explain the pitfalls of the 'Highest Volume' bid strategy and advocate for setting a 'Cost per Result' goal to balance budget and conversion efficiency. AA also provides a practical calculator for determining the optimal CPA target and discusses the 'Evergreen effect' for long-term campaign success. The video is a must-watch for advertisers seeking to scale their campaigns profitably.

Takeaways

• 📈 The video discusses a strategy to maintain profitability while scaling Facebook ad campaigns, which is crucial as increasing budgets often lead to diminishing returns.
• 💡 The presenter, AA, shares personal experience from 5 years of working with Facebook ads, emphasizing the value of learning from past campaigns.
• 🔧 It's important to set up campaigns with a clear objective in mind, such as maximizing conversions, and to use the appropriate bid strategy to meet those objectives.
• 🚫 Avoid using the 'Highest Volume' bid strategy if you have a specific cost per conversion goal, as it may lead to increased spending without a corresponding return.
• 🛑 Instead of 'Highest Volume', consider using 'Cost per Result' goal (also known as 'Cost Cap') to average costs over time and prevent overspending on days with poor performance.
• 📊 The 'Cost per Result' goal allows the algorithm to maximize conversions on good days and reduce spending on bad days, helping to maintain profitability.
• 📉 Be prepared to adjust your 'Cost per Result' goal upwards if the campaign isn't spending the daily budget, and downwards if profitability is not achieved.
• 🔄 The 'Evergreen effect' refers to the long-term benefits of running consistent campaigns, where data and social engagement improve targeting and performance over time.
• ⚠️ Be aware that if not all sales or conversions are tracked back to the campaign, you may need to adjust your 'Cost per Result' goal to ensure continued spending.
• 📝 A calculator is provided to help determine the appropriate 'Cost per Acquisition' target based on various business costs and desired profit margins.
• 🔄 Understand the difference between 'Cost per Result' goal and 'Bid Cap', where the latter focuses on hitting a daily spending cap and is more suitable for campaigns with high daily budgets.

Q & A

What is the main topic of the video?

The video discusses a simple strategy to ensure Facebook ad campaigns remain profitable while scaling.

What is the issue advertisers face when increasing their budget?

Advertisers often lose profitability at some point when they increase their budget, as the increase in results is not linear with the budget increase.

What is the initial bid strategy discussed in the video?

The initial bid strategy discussed is the 'highest volume' bid strategy, where Facebook spends the entire daily budget to get as many conversions as possible.

Why does the speaker not recommend using the 'highest volume' bid strategy?

The 'highest volume' bid strategy is risky because if the profitability goal is not met, it can result in significant losses, as it spends the entire budget regardless of the cost per conversion.

What is the alternative bid strategy recommended in the video?

The alternative bid strategy recommended is the 'cost per result goal' (formerly known as cost cap), which aims to average the cost per result to a specified amount over time.

How does the 'cost per result goal' bid strategy work?

The 'cost per result goal' bid strategy tries to average the cost per result to the specified goal over time. On good days, it maximizes conversions at lower costs, and on bad days, it reduces spending.

Why is the 'cost per result goal' bid strategy better for scaling?

This strategy is better for scaling because it reduces the risk of overspending on days with poor performance, ensuring that the budget is used more effectively.

What should advertisers do if their campaign is not spending enough with the 'cost per result goal' strategy?

Advertisers should incrementally increase the cost per result goal until the campaign starts spending the desired amount of budget.

What is the 'Evergreen effect' mentioned in the video?

The 'Evergreen effect' refers to the long-term benefits of running a campaign continuously, where accumulated data, social engagement, and algorithmic learning lead to improved performance over time.

What is the 'bid cap' strategy and how does it differ from the 'cost per result goal' strategy?

The 'bid cap' strategy aims to achieve a specified cost per result on a daily basis, spreading the budget more effectively across days with good performance potential. It works better with higher daily budgets compared to the 'cost per result goal' strategy, which averages results over a longer period.

What should advertisers do if their campaign's sales are not being fully tracked?

Advertisers should estimate the percentage of untracked sales and increase the cost per result goal accordingly to ensure the campaign continues to spend effectively.

What tool does the speaker offer to help calculate CPA and ROAS targets?

The speaker offers a calculator that helps determine CPA and ROAS targets based on various business metrics, which can be accessed by clicking a link in the video description.