5.12 HOW TO SCALE FACEBOOK ADS New

How to Scale Facebook Ads

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By now, you’ve found your niche, built your website, started running your ads – and for some – may have your eye on a winner.

But whether you have found your winner or not, you need to know to analyze your ads’ performance before even thinking of scaling.

This doesn’t mean counting the number of likes, ads, and shares of your ad. NO!

Analyzing means your hitting the nail with important metrics, such as revenue, profit, and click-through-rates.

To make sure your ad is profitable, ask yourself:

Did you break even with revenue? Look at how you’ve spent compared to how much you’ve made. After 4 days, you should have spent $20 ($5 x 4). If you made sales on an item that costs $10, you would have made $20 in revenue. This is breaking even: the revenue and costs meet. (a $2 or $3 loss isn’t so bad, and you can still move onto the next step)

Is your click-through-rate above 1%? If so, great. You can scale your ad to the next step. If not, this means your ad lacked engagement or the product you promoted isn’t highly perceived by your customer. If your CTR is above 1%, but you don’t make a profit, then you know it wasn’t your ad copy that was bad: it is your product.

Is your CPC link below $1.50? If so, great. You can scale your ad to the next step. If not, kill the ad.

Is your CPM below $20? Usually, a good CPM is between $20 – 30 (even better if it’s below $10!). If so, great. You can scale your ad to the next step. If not, kill the ad.

Understand most of your ads will not meet these criteria – and that is okay! Remember, there isn’t such thing as failure (remember when I said we’re in the “testing phase”?). If one ad doesn’t make you money – so what? Start and test another ad and product. Unless you’re lucky, you’re bound to make a loss before making a gain. It’s about sticking through this phase and focusing on testing different products.

BUT if your ad is profitable, it’s the time scale.

How? By following this simple scaling guideline:

    1. Run the ad for another 4 days. At the end of the 4 days, look to see if you’ve made a profit or at the very least broke even over the total 8 days from when you created your ad. This time around we don’t want to break even with revenue, we want to break even with profit (or ideally be making one). After 8 days, we should have spent $40 on our ad. So, say for example, you sold six $10 mugs over these 8 days. That’s $60 revenue. But let’s say they cost you $20 to fulfill. That would leave you with $40, meaning you would’ve now broken even.
    2. Increase the ad budget by 20% and run the ad for another 4 days. You may think the best thing to do is x10000 your ad budget overnight – but it doesn’t work this way. The Facebook algorithm gets too overwhelmed if you give it too much money at once. That’s why scaling slowly is much more effective. At the end of the four days, if your ad still stands profitable, you’ll need to…
    3. Increase the ad budget by 20% and the ad for another 4 days. If it was still profitable, you repeat the same step and increase your budget by 20%.

Eventually, you’ll hit what we like to call a scaling cap. This is when your ad becomes no longer profitable, which in that case you would have to scale back the ad spend to the previous cycle (-20%).

Example: Say you scaled your budget to $10.40/day, then decided to increase this by 20% – which is $12.50. However, you discover your ad is no longer profitable. What you should do is scale it back to $10.40 a day and analyze how your ad performs.

If after 4 days it was no longer profitable, scale it back another 20% to see how your ad performs for another 4 days.

If still no longer profitable, kill the ad. If it is, then keep scaling it up again.

Eventually, you’ll find that with testing you’ll find the “sweet spot” in your ad spend where you’re maximizing your overall profit.

So what are you waiting for?

Analyze your ads and see how they’ve performed, then adjust accordingly.

  1. Come to your Business Manager

2. Click on Ads Manager.

3. Come and click on the ‘Columns: Performance’ Button. Select Performance and Clicks.

4. Then come and click on the ‘Columns’ button again and select Customize columns.

5. Remove ‘Ends’ and remove ‘Schedule’ by clicking on the ‘x’ icon.

6. Click on ‘Standard Events’ under ‘Conversions’.

7. Tick each of the boxes highlighted below.

8. Scroll down to ‘Purchases’ and tick the box under ‘Total and ‘Cost’.

9. Next, scroll down on the menu at the right and uncheck the ‘On-Facebook Add to Cart’ and On-Facebook Purchases’ boxes.

10. Save as preset. Let’s name this preset as ‘Conversions’.

11. Then click ‘Apply’.

And that’s it. You’ve finished setting up your ad data page.