Scaling Facebook Ads: Vertical vs. Horizontal
In this article, we'll delve deep into the fascinating world of scaling Facebook ads, exploring the concepts of horizontal and vertical scaling. We'll demystify these techniques and help you uncover the ideal scaling method that aligns perfectly with your unique business goals and budget.
So, what's the secret behind horizontal and vertical scaling, and which one is the right fit for your business?
Vertical Scaling: The Classic Approach
Vertical scaling is what usually comes to mind when we talk about scaling Facebook ads. It involves increasing the budget of an already successful campaign or ad set. You've probably heard about the gradual budget increase rules like 10% every day or 50% every 2-3 days, and they do have their place.
However, it's worth noting that vertical scaling tends to work best with more substantial budgets, ideally for ad accounts spending at least $1k to 3k a day. But fear not, it can still be effective even with smaller budgets.
So, how does vertical scaling work? It's simple. Take a winning ad, ad set, or campaign and boost the budget. Different experts have their own formulas, but my advice is to increase it by an amount that suits your available resources. These days, Facebook's "learning" process resets regardless of whether you raise the budget by a few cents or a thousand dollars. What truly matters is testing the increased budget within your means.
Keep these important pointers in mind when using vertical scaling:
- Don't expect the exact same results as before; some drop-off is to be expected. The aim of scaling is to increase your economies of scale, which often comes with a slightly higher cost per purchase. However, if your business is properly set up, you should make more money in the long run.
- Allow some time for readjustment and the "learning" process to kick in again before you start seeing favorable results. Scaling an existing campaign or ad set can disrupt performance if the new budget doesn't align.
- Vertical scaling works best when you have higher profit margins that can accommodate the increased cost per purchase.
- Remember to keep testing! There's no magical "winner" that will always work. You need to constantly explore new audiences, creative variations, and winning strategies. The difference now is that you'll be investing more, which can yield faster results.
- Keep an eye on audience-specific budget caps, especially in smaller niche markets or local regions. They can pose a challenge, but creativity and adaptability will help you overcome it.
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Horizontal Scaling: A Safer Bet
For small businesses (and honestly, most businesses), I highly recommend considering horizontal scaling. This approach minimizes risks while offering similar benefits to vertical scaling.
Allow me to illustrate with an example. Let's say you have a highly successful Lookalike 90-day purchase audience. Now, to scale effectively, duplicate that audience and experiment with variations using your new budget. Test a Lookalike 5% instead of 1%, or explore a 30, 60, 180 day purchase audience. explore audiences on time spent, and page engagers. If an interest-based audience is performing well, seek out similar interest groupings. The beauty of horizontal scaling is that it enables you to test new audiences for improved performance and, if both audiences prove successful, congratulations! You've successfully scaled your ads!
If you have an interest group where the audience is more than 1 million, you can just duplicate the adset and budget it accordingly.
Here are a few things to keep in mind while implementing horizontal scaling:
- Horizontal scaling can take longer than vertical scaling if you keep the ad set budgets the same.
- To speed up the process, consider increasing the budget of the new ad set while creating a new audience. This hybrid approach combines the best of both worlds without the same risks associated with vertical scaling.
- In cases where you have limited targeting options due to a niche market, you may reach the scalability limit relatively quickly. In such situations, prioritize maximizing your lookalike audiences.
So, which approach is best for your business? While I personally lean towards horizontal scaling for its safety and sustainability, every business is unique. There may come a time when increased spending becomes necessary. In those instances, a combination of both approaches tailored to your specific needs will yield the best results. Remember to monitor and adjust budgets cautiously, keeping a close eye on performance.
Ready to elevate your Facebook ads to new heights? Let's conquer the scaling challenge together and unlock the full potential of your business!
Sales And Marketing Specialist at Sheikh IT
11 个月Great written
Building @ AmplifiedAdvisors.io
1 年Great read Simran. Never thought about Facebook needing another learning phase for increased budgets.