How to SCALE Facebook Ad Campaigns

0:00hi guys it's been Heath from lead guru in in this video I'm going to show you how to scale a facebook ad campaign so let's say you've got a Facebook ad campaign that's delivering good results is delivering a a profitable cost per result for you and you want to very naturally increase the budget you want to scale it how would you go about doing that there's many sort of competing theories and best ways of doing it and we've done tons of testing around there's something that we do all the time in fact we spend a lot more time with our clients scaling campaigns and we do creating campaigns in the first

0:28place and so it's something I can definitely help you out with now before I get into the steps I just want to quickly mention that at the end of this video I'm gonna talk about a free facebook advertising resource that I think you'll find very very interesting so make sure you stick around to the end for that okay so let's assume I'm going to give it a bit of an example scenario and then we'll talk through some some numbers and how I like to approach doing this so let's assume you're running a campaign I've got one up here and this is the example campaign we ran previously to

0:54try and get opt-ins for our five-part Facebook ad template but this would apply to any direct offer campaign so let's say you're advertising a product to your new commerce business just selling that or you're advertising a service you're offering like a free consultation looking to generate leads what I'm about to describe and demonstrate and would apply to those scenarios as well so it's going to cover the vast majority of Facebook advertisers so as assumed you started running a Facebook ad campaign right and you've started with I've got ten pounds a day it could be ten dollars whatever your your currency you operate in is and let's assume that that spend that daily

1:25spend the campaign is nicely profitable to you and you think okay well I have more capacity or I have more stock I would like to scale this campaign and increase the number of clients and customers and generating and by spending more on Facebook as I said a lot of Facebook advertisers this is the sort of the holy grail of Facebook advertising that's what you really want to do you want to scale and because there are such enormous audiences on Facebook and Instagram if you can find out a setup that works scaling is what could be a complete and utter game-changer for you in your business okay I've seen it

1:57happen so many times where companies all of sudden doing millions of dollars every month because of scaled high-performing Facebook ad campaigns so let's go back an example let's say spending 10 pounds and you want to increase that now there's all sorts of stuff where people say don't increase you or Facebook ad budget by more than 20% in any one go and that's nonsense because if I'm only spending ten pounds ten dollars a day a 20% increase but just increased that to twelve now going from ten to twelve is barely gonna make any difference if you want to reach let's say five hundred dollars a day or

2:33a thousand dollars a day which is perfect we've got loads of clients campaigns that operating behind 5,000 dollars day we've got some of them and getting from ten dollars up to a thousand dollars a day if you're only going in twenty percent increments is gonna take forever and if you're only increasing in such small increments you're gonna end up having to increase often like every day every other day something like that and your campaign is constantly going to end up in the learning phase and it's not gonna have time to settle and to optimize so there's no set percentage on only increase your budget by X amount it

3:06really depends on what you're spending I have absolutely no issues and going from 10 pounds or 10 dollars per day to 20 dollars per day in one go well that's a doubling that's all 100% increase or even from 10 pounds a day if the campaign's performing very very well 230 pounds a day in one go no problem with that but I would never take a campaign from a thousand dollars a day to two thousand dollars a day one go even though that's the same as going from ten dollars a days twenty dollars a day so the percentage by which you can increase your budget in one go is determined by

3:37how much you're spending at lower budgets you can increase it by a larger amount and higher budgets you should increase it by a lower amount in terms of the percentage each time so let's have got ten pounds a day and my target is to spend as much they possibly can whilst keeping my cost per conversion reading that well the first thing I'm probably going to do is I'm going to double it so I'm inside here obviously when you change the budgets what I'm going to do is I'm gonna bring up an Excel document and just prepared a few numbers on this and I want to explain

4:08how we go about scaling a budget so you can see on the left-hand side here right I've got weeks and that's because in general after a budget increase I'm going to give the campaign about a week because it's gonna spend a day or two in the learning phase and then I want enough time to get accurate date with the new budget level I want to know can the campaign perform well at this new budget level before we make further decisions okay that's why I've got weeks in here we're not increasing a budget on Tuesday and then again on Thursday that's not a long enough time period we're gonna wait so

4:40let's assume that week one we've already got a campaign is performing well and what I mean by performing well cuz I know all of you have questions around this you have to know your numbers guys so I'm gonna cut a link in the video scripture to another video all about calculating or starting Facebook ad budget and I show you how to calculate what you can afford to pay in terms of cost per lead or cost per purchase you have to know what that is okay so if you know that you can pay $50 cost per lead you have to know that number otherwise you're just running a Facebook ad

5:08campaign you don't know what you can scale to likewise with your cost per purchase you know let's say you're selling a $40 product and it costs you $20 in cost of goods so to buy that product from the manufacturer that gives you $20 to play with and let's say you're willing to pay half of that in advertising cost so that you make a $10 profit on every sale so that means you're acceptable cost per purchase will be $10 $40 sale $20 to the manufacturer $10 to Facebook $10 leftover profit for you numbers like that a very common so that means you need to generate a purchase in that scenario for $10 or

5:40less okay and you can scale your campaign up to the point at which that cost per purchase goes above $10 so let's assume that in this scenario that we've got in front of us right now that we've already established the campaign is performing very very well and let's assume that in this campaign example we need if I put over here so let's say target cost per result is let's pick a nice round number let's say it's $50 and let me make that currency okay so it's our target cost per results which dollars now when I say target I'm not talking about I mean we all love a cost per lead

6:22or cost per purchase that's like 4 cents but that's completely unrealistic target cost per result is what can I actually afford to pay I really run through the numbers what is still profitable for me to pay unless in the upper limit of that is $50 now let's assume you're running a Facebook ad campaign and you know you're spending $100 per day in fact let's make these currency make it easy and so you're spending $100 a day and your cost per result at that cost is coming out at $25 a day so we are well under with you spending $100 a day on a Facebook ad campaign we are

6:57well under our target cost per result of $50 in fact we're half of that fantastic we've established that's the data weak one right we're gonna do week two I would be quite comfortable going from a hundred dollars a day to two hundred dollars a day in one go provided your advertising in a larger market that's one of the caviar news quickly mentioned if you're advertising in a local market so the target audience is quite small then you need to do this slower than what I'm going to demonstrate I'm assuming you're advertising nationally or to at least a major city a large area I'd quite happily go from 100 to 200 dollars a day

7:29now that might mean that your cost per result goes up from let's say $25 to $30 and that should have been currency let's pop that down to $30 now that's fine because our target cost per result is 50 dollars and this is where a lot of people go wrong with scaling is they go I increase my budget my cost per result went up okay well yes your cost per result did go up but that's not necessarily an issue or a reason not to scale because you're still well under your target cost per result in fact what I'm going to do is I'm going to put in

8:04another column here that's called results so I hope this will make sense so what we're going to do is we're going to do that divided by that times 7 I'm gonna do this results over a week and then we don't want to be a currency I just want that to be a number I'll do the same thing there okay so we come from we started $100 a day our cost per result was 25 dollars therefore in the first week we generated 28 leads or 28 purchases 28 results we - we doubled it and our cost per result went up from $25 to $30 but because we've done with the budget we still

8:42significantly increase the number of results were generating so roughly 46 47 there and we're still well under with this $30 our target cost per result of the so hopefully with me this is not usually complicated math this is just what we've generated and remember we're taking this average over a week so that cost per result is coming out over a week not over a day or two that's where you need the longer time frames okay great so we've gone from a hundred to two hundred wants to go further let's go to three hundred I think jumping all the way to four hundred would be a little bit too

9:09much and let's say our cost per result doesn't really change at all and that means for our three hundred dollars a day we're now generating seventy results a week fantastic we're still nicely under cost per result great so we think this is pretty good let's jump up to five hundred dollars we didn't see any change again from 200 to 300 that's an indication that we can scale further and let's say that takes our cost per result up to 40 dollars okay so in that week we generated eighty seven and a half leads roughly you can't generate half a lead obviously but Randy now yes our cost per

9:51result is significantly higher at a hundred dollars a day than it is at $500 a day but we're generating a lot lot more result so instead of 28 results were looking at let's say 88 results during that week we're still nicely under our tie cost per result so you think this is fantastic let's scale up further $750 a day and let's say it goes to $45 same thing applies that shouldn't be dollars I'm gonna copy that down there about those they would disappear as we filled out this data okay still pretty good here so we think right let's go to a thousand dollars a day and remember this cost per

10:27result is increasing each time we're increasing the budget here but provided is under my target cost per result that's absolutely fine don't worry about that that's not a problem your two thousand dollars a day and boom takes us up to fifty five dollars that's above our acceptable cost per result something needs to change and it's absolutely fine at this point to decrease budget scaling does not need to be just straight up like that all the time we will scare the clients budget to scale it again scale it again great results just like we've got here you know you've had five weeks of scaling whilst our cost per is always

11:02still really good and we're generating lots of volume for sky but week six looks like we over scaled okay the crossbow result went out too high we hardly generated any more leaves for the increase in budget based on the previous week so let's bring it back down so in this case we might bring it back down to something like 850 and let's say that brings our cost per lead down to 48 and that's an acceptable um cost per result of $40.00 under our 50 target and we're still generating more needs great so there's a few things I would say here we've gone back down from our top level

11:40of a thousand dollars a day which is absolutely fine don't worry about doing that and we've settled let's say at 850 being what we can spend per day right now but don't think that's the most you can ever spend you can absolutely get back up over the thousand dollars a day but you might need to spend some time at this level to allow a Facebook to adjust and optimize and then be for you to be able to make the adjustments and all the things I talked about my videos like creating new and creative that might produce better results and testing new targeting options that might produce

12:11better results so when something like this happens what we might then say is we have to stay at 850 for a few weeks and what we're going to do is we're gonna bring this cost per lead down or cost per result I should say let's say it was 48 comes down 45 comes down to 42 week 9 that's what if thing happens all the time this is incremental improvements that we're making to this campaign through our adjustment and optimization process which is absolutely fantastic now because we reduce that cost per result down nicely we might now have another go at scaling as perhaps we go back up to a

12:40thousand and perhaps this time instead of it going all the way up to 55 perhaps we see it go up to 48 dollars fantastic because of the improvements we made week 7 through week 9 and because of the optimization process that Facebook goes through we were able to reduce the cost per result from 48 dollars down to 42 dollars at that same budget which then allowed us to scale up to a thousand okay so perhaps then if I was to continue this let me drag this out a little bit I just continue this perhaps we probably need to stay at a thousand you may remember 48 is really close to

13:13our upper cost per result acceptable limit so maybe we need to keep this at a thousand for weeks and we need to go through the same process perhaps we go down to you know $43 and let's say not a huge amount better than that 42 41 okay at the same budget level right now we could try increasing the budget again and perhaps it shoots up to $52 and it's too much so hopefully you understand the sort of at which point just quickly we might go down to 1100 and see it come down to $46 this this data here is something that I'm making up but it's something I just

13:51see all the time with our clients and they know that this is how it works so often so few points 100 engineers scaling is not linear yeah but all the time way you over scale a bit okay no problem we're a little bit too expensive let's reduce the budget back down you can see that I'm not increasing the budget by huge increments at any one time you can't take a campaign in my experience from $100 to let's say $10,000 a day in a couple of months it's just almost impossible to do and but you know we got this campaign all the way up to what over a thousand dollars in so we

14:2710x the budget in what two and a half months time from week one to week ten so yeah just over two months time with 10x the budget you can absolutely do that and it's not linear so if you do have a scale it's absolutely fine to bring it back down don't worry about this this is flexible the the key takeaways I want you to get from here is look at how we are changing budget and increasing it look at how you mainly just pause a certain budget levels make adjustments that decrease your crossbow result to then be able to scale again look at how we're only increasing budgets once per

14:56week that's why we've got weeks on this left-hand side not days and also the other thing I want to make very very clear is that as you scale a facebook ad campaign an increase in cost per result is almost inevitable you might be thinking why why if I spend more on my campaign does my cost per I don't have to go up and it's very simply you just have to think of the way a Facebook or Instagram ad campaign works right so if I'm only spending let's say $10 a day and I might reach I don't know as they reach a thousand people for that price

15:32so I'm reaching a family people every day well within your audience that's let's say a million people there are going to be a very small percentage of that audience that absolutely love whatever you have to offer these can be called audiences they're an athlete warm audiences but they absolutely love what you have to offer so perhaps they visited your website yesterday perhaps they just bought the accessory to the product that you sell Facebook knows all that data by the way because they track what people do online all over the place and perhaps they really respond to ads just like yours and buy stuff all the time you know there are certain people

16:09where if you stick an ad for a really nice pair of shoes in front of them there's like a such a high percentage chance that they're going to buy when you first start advertising spending on a small budget Facebook's going to know who those people are and they're going to put your hand in front of those what I call hyper responsive prospects so people are going to see your ad and act on it the more and more there's only a limited number of those hype responses the more you spend the more you have to get away from the absolute core group of people so if you are only advertising to

16:35one percent of your audience every day and face is going to choose the best one percent if you increase that you know you double your budget from ten dollars a day to twenty dollars a day well now you might be advertising to 2% of your audience and that next 1% is going to convert probably slightly worse than the absolute best 1% and as you scale budgets more and more and more and that is something that it takes that you have to take into account okay so don't worry or think it's a bad thing that your cost per result is increasing just because you're scaling the key is to get

17:08it to not increase too much and to optimize other areas of your campaign at certain budget levels to reduce the cost per result which would then allow you to scale further so as I said if we go back to here week seven through week nine we were stuck about the 850 and but we were reducing the cost per result every week and that's with all the things that I that I teach you know that's with improving your targeting options that's with adding a new and creative that's with tweaking your strategy testing different discounts and offers and all that sort of thing okay to help improve your results the regular Facebook

17:43advertising stuff couple other things I want to mention about scaling in general if you come up against a a ceiling of scaling one of the best solutions to counteract that is to increase your audience size so in general the larger the budget the large you want your audience to be doesn't mean you have to change your audience every week it's not something I'd recommend but there may come a point at which okay we now need to switch from a 1% look-alike to a 2% or 3% something on those lines so keep that in mind there is a relationship between the amount you spend and the amount of people you want

18:16in your target audience which is probably unsurprising the other thing I say is that the more you spend on Facebook Ads the more frequently you need to refresh ad creative because the more you spend the more people in your target audience the more often they're gonna see your ads so let's say at $100 a day someone in your target audience sees your ad on average once a week well they're a thousand dollars a day that might be once a day the difference between someone in your audience seeing your ad once a week and once a day means that they're gonna get bored with your ad if

18:44they're seeing it every single day much much faster so you need to refresh and crater faster you know at lower budget levels after the safety people look if you can refresh ad creative once every couple of months you're probably absolutely fine and buy refresh I creative I don't necessarily mean through out your old out I just mean create some new ones to test it alongside your existing ones to keep things fresh and you could do that bit once a month once every two months at higher budget levels particularly when you get into the thousands of dollars a day and above that needs to be more like

19:15once every two weeks and sometimes once every week you need to be adding in new ads to keep your results high otherwise an fatigues gonna start setting and you'll start to see results drop off in fact what I do is I include a link in the video description to a video all about how to combat ad fatigue because if you do start to see that happen let's say you get up to Pregracke to this example let's say we got up to the thousand dollars a day and instead of this cost per result going down with optimization it was actually going up because of ad fatigue you need to start

19:43combatting a fatigue so watch that video check that out if you see something like that because there are a number of steps you can take to combat a fatigue but in terms of what we do as a Facebook ad agency for the majority of our clients obviously we get them set up in the first place because we know what we're doing with the set up we spend a lot more time on this on scaling campaign and then on combating and fatigue in making adjustments to improve them as scaled budgets and don't always think that you want your costs perizaad to be as low as possible I will accept as a business owner myself

20:13but also for my clients campaigns a higher cost pair result if we can deliver way more volume because the game the objective of Facebook advertising campaign isn't to spend as little as possible or to generate as lower cost per as old as possible it's to make the campaign as profitable as possible and obviously most businesses will make a lot more profit and much higher volume levels okay maybe not in percentage terms but in absolute figures they will write hopefully that's useful hopefully that's not too messy you can go ahead and implement some of the stuff and scale your campaigns I'd love to know how it goes if you do now at the

20:46beginning of this video I talked about a free facebook advertising resource so just create want to talk about right now and that's a webinar called three killer Facebook and strategies to double all more your revenue and in this webinar which is completely free and I basically have three different sales funnel so I talked about this being a scaling method for direct offer there are other sales funnels that I recommend for specific types of businesses so it's truly recommend you check that out because you see the sales funnels the strategies that we use how they work they're all very much try and tested we've generated more than a million dollars for our

21:15clients with each there'll be a link in the video description below so just click on that and go through the webinar take a look you can watch it's about 60 70 minutes long and strongly recommend you do I think it's well worth watch if you're looking for better results with Facebook and Instagram advertising and if you enjoyed this video please comment below to let me know if they saw stuffs useful I'd love to hear it helps me direct my video making efforts so let me know comment below few money questions of course happy to answer questions please share the video tell a friend I always appreciated people get the word

21:44out and help me spread my my free content around subscribe to my youtube channel releasing Facebook advertising and SEO related content all the time at the moment so subscribe click the little bell notification when you do so you receive a notification when I publish new videos and I'll talk to you guys soon thanks a lot