Nicolas KorvessisChief Executive Officer, Scale Lab · CEO Of Scale Lab 🧪 Scale Your Business With The 'Pyramid Of Growth' See how it works below! 👇

Want to scale your paid ad campaigns? Avoid this common mistake...

30 Jul 2023 · 1 min

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In this segment, the speaker explains why starting a Facebook ad set with a large fixed budget (e.g., $100) is a common mistake. Launching with too much spend prevents the platform from gathering sufficient data, leading to low confidence in performance. Instead, the speaker advises marketers to evaluate key ad metrics—cost per purchase, CPM (cost per thousand impressions), and cost per link click—when deciding which ads to scale. An ad with a slightly higher cost per purchase but significantly lower CPM and link‑click cost is preferable for scaling, as these metrics indicate better overall efficiency and data confidence.

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Because a lot of people will say, okay, well, I know that I need to spend at least $100 to get a sale. I'm going to set the ad set to start off at $100. That's a bad idea because you're just shoving all this budget into Facebook and it doesn't have enough data and you don't have enough confidence yet to be able to just do that. The confidence that you need is by looking at these ad metrics, right? So this one looks really good on paper. It's getting a good cost per purchase, but when it comes to scaling it, It looks like it wouldn't do as well, whereas this one up here, it's got a little bit of a higher cost per purchase, but at the same time, the ad metrics are tremendously better. It's got a much cheaper CPM and a much cheaper cost per link click, and those are the key metrics that you wanna really look out for is when you decide to start scaling things.