3 Steps To Scale Facebook Ads To Profitability
3 Simple yet Powerful Ways To Develop Strong Foundations In Scaling Your Facebook Ads Campaigns.
At Overlt. our conversion obsessed website design nature, copupled with our humble beginnings as a team of super affiliates, we know what it takes to scale a Facebook Ad campaign.
In order to maximise company growth through sales. You MUST Scale. The good news is, just because you will eventually be making more revenue through Facebook, you do not neccessarily need to work twice as hard. You just need to be doing the right things. It does take time but all brands can scale. There is no shortage of customers, just a shortage of real customers.
Before we go into scaling Facebook Ads, I want to make sure that you have a campaign of somekind already delivering clicks, leads or sales? Ads that are actually driving real revenue?
The thing to remember with (both Google Ads and) Facebook Ads is that everythign happens in stages.
- First you launch
- Then you optimiseyour campaign to typically 20-30% profit margin
- ONLY when profit margins are here, should we look at scaling
If you still do not have a winning ad set when reading this, please do not go any further. It’s best you go back to planning, and devise an adset that actually delivers. If you need help with this, do get in touch with us. Otherwise you need to do more testing with your ads until you find a sweet spot.
METHOD 1: Increase the budget of your winning ads
This is the easiest way to scale your campaign, but you cannot just 10X your ad budget and expect it to deliver the same conversion, lead or sale rate.
If you increase the budget too much too soon, it could cost you alot of money. It could be like pouring diesel on a fire and having it explode very quickly, leaving you all our of fuel (funds) to continue your journey to success.
Some things you need to know.
- The Facebook algorithm optimizes your ad over time, ensuring the best results. This is why you often see an ad start to perform better as time goes on.
- If you increase your budget too fast, it can destabilise things and throw off the algorithm, which can cause your ROI to MASSIVELY drop. When your ROI drops, you lose money. Fast.
Generally speaking, you shouldn’t increase your budget by more than 20% per day.
Once you increase your budget, pay close attention to the ad performance daily. Depending on the size of your targeted audience, your ROI might not increase at the same rate as your ad spend.
If you keep blindly spending money on your campaign in this fashion, you may reach a saturation point where you’re spending more than you’re getting.
Which puts you back at losing money and working to negative ROI (which no brand should be working too after at least two months of refining activity).
METHOD 2: The Detail is in the Data. Take an indepth look into Facebook’s Audience data
Facebook knows all about your future customers, so much so you should be interrogating them all the time to find out more about the data they hold of your future customers.
Facebook collects information specifically for people like you who want to spend money on ads. When you created your winning ad set, you created an audience for those ads. Facebook Audience Insights allows you to get so much more information about that audience than you believe.
How it works: When you first created your ad, you typically should have saved your audience. If you didn’t, you’ll have to manually input into Audience Insights, which doesn’t take too long.
Once you open up your original audience, you will have lots more new insights to work with. You’ll know their gender, lifestyle activities, pages they like, products they purchase, income information, relationship status, and countless other things.
Facebook has gathered all this information and is serving it up to you with cherries on top.
All of these data points can be used to create new, highly targeted audiences. For example, you may have originally targeted your audience because you knew they cared about eating clean.
Do not stick your finger in the air and randomly guess about your audience when Facebook has done it for you.
In Short: Be sure to create new audiences from the Audience Insights, then A/B test these audiences to find winning ads for them.
METHOD 3: Expand Lookalike Audiences
Lookalike audiences are extremely powerful. Mastering these audiences is probably the most difficult and time-consuming as there are so many moving parts, but if you can master this beast then you’re on your on your way to becoming more profitable.
The steps go like this:
- First you create a Facebook Pixel, which is a small bit of code that you put onto your website.
- You set up the pixel to track specific events, like conversions, sales, or opt-ins. Every time one of these events happens, Facebook places a small piece of code in the browser of the person who took action. Ultimately, it’s a cookie.
- Using the data collected by that pixel, you can then have Facebook create a lookalike audience. They will look into your pixel data and create a much bigger audience that closely matches the people who took action.
Why is this so good?
Instead of blindly targeting people you think might be interested, you’re targeting an audience who very closely matches people WHO HAVE ALREADY CONVERTED.
Facebook is doing the market research for you. They’re figuring out who would be interested in what you’re selling. Not only that, they are bringing them to your shop door.
Remember, Facebook has so much data on everyone, they know your audience far better than you do and they allow you to connect the dots and pay to access your potential customers easier than any ad tool out there.
Facebook know what they like and hate. They know that they’re into music by Drake, like content surrounding Veganism and Animal cruelty. They know that a lot of them live in the south cost of the UK.
You don’t know any of this, and Facebook won’t tell you, but they will build an audience for you using their data.
Remember that winning ad set we mentioned? If you have a pixel set up with that ad, you can then create a much bigger audience that precisely targets only people who took action on your ad.
That kind of hyper-specific targeting allows you to find the right audience and then scale your ads to that audience.
By the way, don’t worry if you don’t know how to install the pixel on your site, we’ll cover that in our future post, or we’ll do it for you if we are working together.
In short: Create your Facebook Ad pixel, then use it grow your audience and expand the locations you are delivering ads. Your audience sets will grow and give you more people to talk too that actually want to hear from you.
Scale Your Brand With Growth Hacking
You’re not going to be able to grow your brand if you do not have the team or capability to support you in growth hacking new business. You either need to learn how to scale your campaigns through education and hours of testing, or allow us to do it for you.
If you do not take action, you’ll either end up staying on the low end of what you’re earning or trying to scale and completely draining your cashflow. Both of which are terrible options.
If you’re gonna build a great brand, you first need to develop a digital blueprint and solid foundation that underpins the brand.