Chapter 7: Ads Strategy
When campaigns are consistently profitable, it’s time to scale. Before we get into the best scaling strategies, there’s a few things to keep in mind when starting the process. First, some campaigns or ad sets have a “sweet spot” when it comes to daily budgets. For example, an ad set might be unprofitable spending $10/day, profitable between $20-30/day, and unprofitable again spending more than $30/day. If ramping up budgets results in less profitable ads, don’t be afraid to tone down the individual daily budgets, and simply create more ads! This concept is referred to as “Horizontal Scaling”, or scaling by creating more campaigns of smaller budgets. Similarly, “Vertical Scaling” refers to directly increasing a given campaign’s daily budget. A proper scaling strategy will utilize both horizontal and vertical scaling techniques.
When vertical scaling, it’s important not to change a campaign or ad set’s daily budget too drastically. We mentioned that daily spend is the only part of an ad set you should ever edit after hitting “Publish”, but even simple budget changes can have adverse effects on performance. For this reason, we recommend increasing daily budgets by no more than ~20% every 4 days. Typically, this pace of increase is acceptable to the algorithm and shouldn’t have any negative effects. However, if you double your daily spend on an ad set at once, don’t count on seeing the same profitable results.