One of the most difficult tasks for any e-commerce brand to take on is scaling their ad spend and their revenue. Just ask anybody that’s tried to manage their own ads for their online store, this is an art form. If you scale too quickly, you run the risk of not seeing ROI. If you do it too slow, you miss out on revenue opportunities.
In this article we break down 3 points that we’ve learned by helping our clients scale from $6K/month to $60K/month in Facebook Ads.
A slow-churn funnel
All too-often accounts pay too much attention to their day-by-day stats and awareness. Almost like day trading stocks. They tend to live & die by the ROAS of that day.
The best approach for stability is to build awareness, generate consideration and target for purchase. If you have a higher AOV it will help solidify your slow-churn funnel. Buyers don’t make large purchases quickly, yet another reason to not freak out about day-to-day stats.
Generate interest in TOF, keep them warm in MOF and when they are hot (add to cart, etc) and then we hit them with the BOF ads. We like to stretch out the funnel as long as we can. It’s more sustainable, manageable and stable when that funnel period is stretched out as long as possible.
The creative needs to be of a good quality, but it also needs to be centered around what the audience responds to and engages with. At higher spending levels, the creative that worked at the beginning (small budget) probably won’t work. I.e. something that’s super well-designed and maybe a single image. You really have to monitor soft stats on the ads now that you’re spending higher – which ads are getting the most comments, CTR, ATC rate, etc. Double down on what’s working immediately. This will always change, so monitoring it is crucial.
The creative you use and where you use that creative will have the most impact on the performance. Especially with broad targeting. Creative is one of the last-remaining levers we can pull now because micro-targeting doesn’t work well anymore.
Well-produced creative that answers objections and gets people excited will work far better than you can imagine.
Highlighting of business efficiencies – or lack thereof
At $6K/month the impact on the overall business may not be huge on the business itself (it’s a small piece of the overall pie). Once you get into the $25K/$30K range you begin to highlight some of the parts of the business that should be remedied.
What sort of warts am I talking about? Fulfillment issues, availability of products, efficiency of sales and support staff, etc. Any areas of improvement that should be made get magnified.
As soon as those things are fixed or improved, you will see a massive improvement to the overall business. The best marketing and advertising in the world will still hit speed bumps if the business has things they should improve on.
Account management stability – Try to keep the account management in-tact throughout the lifespan of your scaling efforts. This sort of stability ensures that we don’t introduce new ideas of how accounts should be managed, how spending should be spread, etc. This is especially helpful if you had a plan outlined early and are able to stick with that very plan through the scaling process.
Scaling is one of the hardest things to do when you are managing Facebook ads. By following some of these points in this post it should help align your mindset for how to scale. Like anything, it’s not a one-size-fits-all solution, but until you commit to scaling you will never know how it’s going to work for your business. The key here is to not scale too aggressively, even if you have the means to do it.