Scaling Facebook Ads is one of the most important skills any brand or buyer needs to master, and sadly most get this wrong…
Let’s cover everything that you need to know to never have to worry about scaling ever again
Before we get started I just wanna say thank you, helping people be successful has become an obsession of mine and is the only reason that I’m doing all of this
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OK let’s get to it
First, the biggest mistake most people make is in a misunderstanding of what scaling means at all.
The objective of an ad agency might be to scale spend so that they can increase commissions
The objective of a brand might be to scale growth and revenue in a consistent fashion to secure the next round of funding or an exit
The biggest objective in scaling a Facebook ad should be to generate a higher volume of higher quality users through a customer journey
Very commonly buyers and businesses will take a look at the ROAS or the MER of their ads and use that as a proxy to justify more spent
While on paper this can make sense, investing additional attributed revenue and growing a channel, this breaks down tragically when not given the context of incremental left
Also ROAS is a wildly variant metric, that we cannot control or take actionable insight from
Every sale is an opportunity to either began or continue a customer journey to an LTV
The easiest and most stable way to grow a Brand is to improve the volume of these opportunities
Therefore CPA is the unequivocal most valuable Metric with Scaling a Brand or Account
This CPA needs to be measured as total ad spend divided by every sale that occurs today, this gives us a blended CPA
From here we should be able to identify platform specific CPA targets by channel’s
This target does not require the channel to have absolutely perfect attribution, because that’s impossible
Instead we understand that at scale average channels error is fairly consistent for that channel 
This target CPA number is the most important number for any buyer to know when trying to scale 
We can scale profit margin per transaction by reducing our CPA below this target
This also allows us to generate more transactions for our investments which also has a compounding affect on growth
We can also Scale the volume of opportunities to LTV by spending more money
This is the point where most people who struggle with scaling make the biggest mistakes
Scaling spend is not about maintaining efficiency while investing more
Compounding and stable growth is a byproduct of establishing a margin between actual CPA and a greater allowable target
Driving a CPA at 10% below the maximum target allowable, means that you can increase your investment by at least 10% with extreme confidence
A 10% higher spend with no additional transaction volume at all would only bring us back to the maximum allowable CPA 
This is called a total loss investment
Now here’s the trick, while you are absolutely likely to see at least a temporary increase in Facebook CPA
You are almost assuredly going to see additional revenue from additional transactions that occur on every other channel
This is the incremental lift of additional Facebook spend
you will see more direct traffic
You will see more search value
You will acquire more email addresses
And you will sell more via your CRM database
Do you know overtime this will change your allowable target CPA, as you get better at monetizing this Incremental Lift
Improving the LTV of a customer will also create a greater allowable CPA, which directly also allows a greater investment
So what really matters here more than anything, is picking a single best opportunity for margin of CPA to LTV
Then our biggest priority is to stabilize the platform level CPA for this product, service, or offer
From this points our entire objective as performance marketers is to create a better margin and Venue amplify the volume of monetizable Opportunity
On Facebook this is done most effectively by focusing our investments on the lowest costs and highest opportunity and most stable audience available, which is Broad
Focusing on creative testing to produce high confidence and high value assets around winning concepts
Iterative testing within specific concepts allows for a controlled investment in improving our platform CPA
Concept, or angle, testing allows for a controlled investment in creating contents that appeals more effectively to users who are unlike our current best customer profile
Long-term and sustainable growth will not ever come from relying on short term hacks lake look-alikes and cost cap bidding as more than a minority of our overall investment
This is because they are predictive and drain the value of our data set on platform
So go scale your brand
Scale into your margin
And improve LTV
~ Charley Y
Facebook Disrupter
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