It’s undeniable—Facebook ads are considered almost a necessity now in digital marketing campaigns worldwide.
However, ad costs are rising. In 2021, the average cost per click (CPC) for Facebook ads increased by 17% from 2020. Cost per thousand impressions (CPM) has also increased by 41% in August 2022 compared to the same period last year.
And while Facebook ads can really be an effective way to grow your brand, scaling them is a totally different story. After all, it’s a constant battle between increasing your ad budget and managing the increasing costs.
Expert insights from ex-Facebook and ex-Netflix leaders
Last DTC Breakthrough, Chronos Agency Co-founder and CEO Joshua Chin sat down with Rich Burns and Christopher Low.
Rich is the Co-founder & CEO of ROAS Media, one of the highest-spending independent agencies in the region for Meta, Facebook, Google, Tiktok—you name it. He was at Facebook for two years.
Chris, on the other hand, was a pioneering Marketing team member at Netflix where he served for six years.
Together, they discussed some pretty unusual but effective strategies that eCommerce brands can follow to scale their ads effectively.
Using Facebook Live videos as ads is a gamechanger
Rich tells a story about one of their clients in the US who were making a quarter of a million dollars a month. Within the first six weeks of working with ROAS Media and using FB Live videos as ads, they were able to double that to half a million.
Now, check this out. Those FB Live videos broke all the best practices. They were 20-40 minutes long, which goes against the usual recommendations to keep videos short—but they were crushing. So ROAS Media kept running them as ads, and the brand kept growing.
What made the Facebook Live ads so effective?
If you want to pursue this video strategy, here are some tips:
- Do something where you can be comfortable while providing value and entertainment
- Capture viewers’ attention right away
- Think of the video as a retail scenario where you have a potential customer and only 10 or 20 minutes to make a pitch.
Using Facebook Live videos as ads is a gamechanger
Rich recalls one client they had in Australia who was already making multi-seven figures per month. Incremental reach stayed at 1% or 2%. Even if they did a lot of crazy ad strategies—look-alike audiences, custom audiences, you name it. Nothing was happening because the market was already saturated.
So they decided to focus on the results of the creatives and observed the following patterns:
- A newly launched creative would be at its absolute peak for two to three days before it would start dipping.
- Ad creative number two would repeat the same pattern—a massive spike.
Today, here’s what they do: if ad creative number three doesn’t show the spike in the first few hours, they automatically pause the ad and pull it out. Then they replace it with ad creative number four and observe the pattern once again.
Since you’re scaling your ads and putting big money behind those ads, there’s no need to wait around for the so-called “learning phase” if the ad creative isn’t performing well at the start.
For brands with a large Facebook or Instagram following, here’s another strategy you can run with:
- Launch your creatives organically
- Let them sit for one to three hours and wait for the engagement metrics to build up
- Pull the best performing ones into your mid-funnel audience
Day trading during big events or product launches
Applying day trading skills and experience to Facebook ads? Yes, it’s possible—and it’s effective!
In a nutshell, this is how it works: Increase the budget every 15-minutes on your big spending accounts.
A huge part of how Facebook works right now is momentum. When add accounts are in the learning phase, there’s a 24-hour clock where you can make changes, and this includes scaling and adjusting budgets.
ROAS Media used to do this year-round, but they now reserve this strategy around new product launches or big sale events like BFCM, so they can really run with the momentum.
Personalize on a measured scale
There’s been much ado about personalization and its positive impact to business growth. During DTC Breakthrough, Chris shared a different perspective on how to implement a personalization strategy.
For example, when Netflix launched Narcos, Christopher’s team created 150 different variants of one creative. The logic behind was that they needed to talk to every single audience out there.
What they learned was that out of the 150 creatives they toiled over, only 10% of those creatives will generate the bulk of impressions and clicks.
They had to learn the hard way. Today, instead of pouring so much time and effort into 150 creatives, Chris says that his team has reached the sweet spot of creating 7-10 quality and effective creatives per campaign.
Take advantage of ad metrics and website metrics
Finally, scaling will not be possible without studying and analyzing data. Chris emphasized that regardless of the data platform you’re using or who you’re partnering with, that it’s important to track your data on a daily basis.
This includes both ad metrics and website metrics. That way, you can properly see the trends happening within your ad account, what’s working, what’s not, and what you need to focus on.
Unlock the full power of scaling Meta ads and other strategies for your eCommerce brand
Scaling Meta ads is just one of the many issues that eCommerce brands and agencies are dealing with right now.
As the digital marketing industry continues to expand, it’s even more important to stay on stop of growth strategies. There’s more where that came from. Head over to DTCBreakthrough.com to access the full sessions and even more content.