In this instructional video, Hernan Vazquez explains that when scaling Facebook ad campaigns, marketers should concentrate on only two key metrics: Cost Per Acquisition (CPA) and Average Order Value (AOV). He argues that common metrics such as CPM, relevance score, clicks, or leads are secondary and can distract from true profitability. Vazquez walks through a typical funnel, sets realistic cost thresholds for each stage (lead, add‑to‑cart, purchase), and shows how to evaluate whether an ad set is performing well based on CPA relative to the product price. He then discusses how scaling inevitably raises acquisition costs, so the only sustainable way to maintain or improve ROI is to increase the AOV through upsells or higher‑ticket offers. Practical advice includes organizing a Facebook Ads dashboard by funnel steps, duplicating winning ad sets, and avoiding over‑optimization of low‑impact metrics. The video ends with a call to action to join a free Facebook group and engage in the comments.
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Hey everybody, what's up? On this video you'll find out the 2 most important metrics to scale your Facebook ads. Hey everybody, what's up? This is Hernan and welcome to another video and thank you once again for watching this video. Now on this video I wanted to tell you guys a little bit about my 2 most important metrics, the metrics that I'm always taking a look when I'm trying to scale any type of Facebook ads campaign. Now with that said, if you're interested in scaling your Facebook ads campaign or getting better results with your Facebook ads or with your digital marketing as an overall, I would suggest that you do 2 things. Number one, that you share this video or comment or like it, whatever you're watching this video, do something with this video. Why? Because that will trigger the algorithm to show you more of these videos, which will continue to help you, and then we will continue to meet each other and blah, blah, blah, which is pretty cool. And number 2, that you come and join the free Facebook group. It's a great community of amazing entrepreneurs. It's completely free to join, and there's a lot of good stuff happening in there. So there's gonna be somewhere, a button somewhere around here so that you can join. Okay, so let's talk about metrics when it comes to Facebook ads. This is kind of funny because I keep on hearing entrepreneurs and talking to entrepreneurs and business owners and digital marketers that I think that they are kind of focusing on the wrong things, right? So for example, I was on one of the coaching calls that I conduct every week with one of my clients, and he was telling me that he was worried because his CPM was going up and his relevance score on his Facebook ads were going down. In case you don't know what a CPM is, CPM is whatever Facebook is charging you to show your ad to at least 1,000 people because it's cost per 1,000 impressions. That's what CPM is. And then the relevance score is like a metric that Facebook puts out that shows how relevant your ads are to that specific audience. So if you have a lot of people clicking on it, liking it, commenting, you usually have a higher relevance score. And supposedly the higher the relevance score, the lower your cost to run that ad is because it makes sense, right? Facebook wants to give their user interface, or their user base rather, a really good experience, so that was their running their relevance score. But the point was that he was worried because his CPM, his cost per 1,000 impressions, was going up and his relevance score was going down. And I told him, okay, but tell me a little bit about your funnel. How's that performing? Oh, my funnel's performing awesome. What do you mean? Well, I mean, you know, I'm hitting all my KPIs, my key performance indicator, meaning I'm getting leads, you know, paying what I want to pay for. I'm getting sales paying what I want to pay for. And then I told him, okay, so why are you worrying about CPM? Why are you worrying about relevance score? That's completely irrelevant. Well, you know, I was watching some YouTube videos and the guys told me that I should be worrying about that. And that is kind of an epidemic that I see happening with entrepreneurs. It doesn't matter if you're starting out or if you're, you know, a seasoned veteran. This guy was spending heavy money on Facebook and he was still worrying about, you know, the little things. So on this video, I kinda wanna go after that and tell you what are the 2 most important metrics that you always wanna pay attention to no matter the rest. So what you need to understand when it comes to Facebook ads is that every funnel has steps, right? You may— let's say that you're running a webinar funnel. You may have 4 or 5 steps. You have people visiting your landing page, number one, then maybe you have people opting in, number 2. Then you have people watching the webinar, number 3. Number 4, you have people going to the sales page and adding to cart. Number 5, you have purchasers, right? And out of these 5 metrics, they all have priorities. What do I mean? I mean that number 1 is the sale. That has the number 1 priority. That's also known as your CPA, or cost per acquisition— how much you're paying to acquire a new customer. So your CPA It's above any other metric that I can think of. That's like number one top priority. And that has prominence, that has priority against any other of the metrics that Facebook will report back to you. So let's say that at most you wanna pay $10 per lead, you wanna pay, I don't know, maybe $30 per attendee, maybe $100 per add to cart, and then maybe if you're selling, let's say that you're selling a $1,000 product, you wanna pay at most $500 per acquisition. That will give you a 2 to 1 ROI on the front end, which is pretty awesome. So with that said, if you're paying $500 or less per acquisition, right, on that ad set, and you're paying $30 per lead, who gives a shit, right? You're getting sales within your KPI. A lot of entrepreneurs, what they would do is go out there and turn off that ad set because the cost per lead is too high, right? And that makes zero sense. Now, the same happens, and have in mind that the cost per acquisition usually is the last thing you see. So you need to be making decisions based on early wins. So for example, let's say that the most that you wanna pay per add to cart is $100, okay? So it's $100, that's the most that you wanna pay per add to cart. And that's awesome. If you're getting add to carts for less than $100, it doesn't matter how much you're paying per attendee. It doesn't matter how much you're paying per click. It doesn't matter how much you're paying per lead. All right, now if you launch an ad set at $100 a day and that ad set is bringing you— it went through an entire cycle, meaning a 1-day run, 24 hours, and then it got you like 1 lead. You paid $100 and you only got 1 lead. That's probably not gonna convert, right? But if you're seeing movement throughout the funnel, just leave that damn ad set alone. And in some cases, even spend more money on that ad set because it's getting you the KPIs that you want to work with. So when I'm training my Facebook Ads team, I always tell them, listen, this is a numbers game, number one, but also there are priorities that you want to have in mind. So priority number one is always the cost per acquisition, all right? It's always, always, always the cost per acquisition. It doesn't matter at that point how much you're paying per lead if your cost per acquisition is great, okay? Again, if you have a $400 Cost per acquisition for a $997 or $1,000 product, that's awesome. Who gives a shit about leads, right? And then the second thing that you really, really wanna pay attention to is how much is a client worth to you? In other words, the average order value or the average cart value in some cases, depending if you're running an ecommerce store or the average cart value is actually pretty, you know, it's broad to any kind of funnel that you're running. Between the cost per acquisition and the average cart value, those 2 metrics alone will tell you if you're ready to scale or not. Because again, let's say that you have a $997 product that you're selling, right? That's the average, that's like your average cart value because you're only selling one thing at $1,000. That's great. Now your cost per acquisition, let's say that your cost per acquisition is $400, okay? $400, you put $400 and you get $997 back, that's awesome. I can do that all day long. Now the problem becomes when you're trying to scale and you have a 2 to 1 ROI, right? When you're trying to scale, you will end up paying more per customer. Why? Because you're broadening your spectrum. You're going after a higher or colder and colder and broader and broader audiences. So the amount of heavy weight or heavy lifting that your funnel will need to do is a lot more. So usually you end up paying more per lead, more per add to cart, and more per acquisition. So the problem with that is that when you're trying to scale, your ROI shrinks, right? I talked about that in a video that I'm gonna put somewhere around here. So your ROI shrinks. Now what you need to do is— that is inevitable, that is gonna happen and will keep on happening because that's the nature of how Facebook works. But what you need to do on that case is to increase the average order value. It's really, really hard to, you know, go out there on Facebook and try to decrease your cost per click or try to decrease your CPM because that's being ruled by millions of advertisers that are out there spending money on Facebook, and that will determine how much money, you know, how much you need to pay per 1,000 impressions. But it's really easy to just turn around and work on your funnel so you can have an upsell for another $997 or $500 or $2,000 product, whatever, and then your average order value will be much higher. That means that the gap between the average order value and the CPA will give you your ROI or your ROAS in this case, your return on ad spend, and that will allow you to scale much higher. So there's only 2 metrics that you need to worry about. CPA, how much you're paying to acquire a customer, and average order value. That's it. If you're getting in the weeds with, you know, my CPM and my reach and my relevance score, those are all metrics that you can use to kind of give you an overall, like, bird's-eye view or an overall view of your funnel, how it's performing. But don't worry about them too much. If you're getting leads or if you're getting sales, which you wanna do, just don't touch that ad set. If anything, scale it, duplicate it, whatever you have to do. In terms of scaling, but don't go crazy with a million different things. Have your dashboard in a way on Facebook ads that will make sense. I usually like to have my different steps on the dashboard so it makes sense. I can say, okay, so this is a good ad set, this is a bad ad set, this is a good ad set, this is a bad ad set, and then just go from there. Do not worry. There's a million little things that you could do, but the main point and what the big dogs are focusing is how much they're paying to acquire a customer. And how much money each customer makes to them on the backend, all right? So I hope this helps you. If you have any questions, please drop them in the comments below. I'm pretty active on the comments below. And don't forget to join the free Facebook group. It's 100% free. And I'll see you guys on the next video. Bye-bye.
