Matt Paulson explains that Meta, Google, and YouTube all have ad spend ceilings where ROAS drops once you hit capacity. The key is recognizing the limit and pulling back instead of pushing harder. He recommends increasing creative volume and diversifying targeting, but says there's no magic formula, just constant testing.
Here's a very big one for anybody that scales and knows, they're gonna know exactly what I'm talking about. So how do you approach overcoming ad spend ceilings?
Yeah, so I went to the Hormozi Marketing Workshop and like I asked him like that very question of like, you know, my business is working, like how fast should I try to scale this thing up? And you know, the answer was like, it depends how big your balls are. Like really, that's what he said is like, how much guts do you have? And it's like, oh, that's a good way to put it. Ad ceilings are real. We run into them all the time because we'll advertise Meta and Google and YouTube. That's fishing in the ocean. Sometimes the best ROAS is fishing in ponds of my buddy Charles buys leads on Google and he sells them to me, but there's only so many I can buy. And then if I try to buy all of them, the ROAS goes down. So it's like you kind of have to— Understand the channel, know when you've kind of hit your limit, and then have the courage to stop spending more money. And then if your ROAS goes down, you dial back. On the networks though, that's kind of a different thing than a lead share deal or buying newsletter ads from somebody or co-reg. Those are very different kind of things. On the networks, it's more creative volume is kind of the thing that everybody goes to today. It's different types of targeting. It's more networks. Is there magic to it? I don't think so. Just keep trying different stuff.
