So recently i saw some people asking if increasing adspend in FB to scale campaigns will have a negative impact on CPC or the overall performance.
I will share with you the method that works for me.
Let’s say you have targets under one adset that gives you around 2 million audience. It doesn’t mean that all 2 million are active on FB all the time every single day. So let’s assume 30-40% of them (from this audience) are active every day on FB.
That brings down the audience to 800000 (40%). Meaning you have access to 800000 people every day in your niche. Just because your campaign is getting good ROI, if you blindly increase your adpend you will end up burning your money pretty soon.
Now my challenge is finding the sweet-spot. Meaning.. how much i can increase my daily adspend and still get a desired ROI consistently.
If i’m spending $50 per day with – 5% CTR – $0.15 CPC – 100% ROI – Consistently,
I will now increase my daily spend slowly up to $100 and check if it is affecting my CTR – CPC and ROI. I will gradually keep increasing until I have a negative effect on my above mentioned metrics.
When i spend more than $250 if FB is charging me more CPC or CTR drops (If you want to speed things up and you are OK with a 30% ROI it’s a different case), I will consider $250 as my sweet spot for this campaign.
Now Let’s assume you have a budget of $50/day for this campaign and you are reaching 7000 people
with a CTR of 5% you are getting around 350 clicks
with a CPC around – 0.15
You are making a profit – $100 (ROI 100%)
Adspend: $250/day – 5 times more reach
So which one will you choose?