Eric Deeran says raising ad spend usually increases cost per acquisition, and advertisers wrongly blame the auction. The real culprits are ad decay and audience size. Tweaking bids and audiences barely moves the needle compared to scaling your audience and understanding how ads lose effectiveness over time.
And every time you try to push the spend up, your CPA drifts up and you start blaming the auction, you blame the Meta platform, you blame all of these things, but you don't really understand why it's happening. And so you try to tweak bids, you try to tweak audiences, but in reality, those are the 2 levers that matter the least. And so here's what actually happens. Every single one of your ads has a half-life, meaning that it has an expiration date. And so depending on how big your audience is, that's the other thing that can really affect this.
