HORIZONTAL SCALING - How to scale your ads to the moon
First things first, to understand this blog, you need to understand what the word ‘scaling’ means in terms of digital ads. Let’s imagine you are running an ad which is providing you with a good return on investment (ROI). Then, you would definitely want to invest more in ads to generate more revenue. This whole process of increasing ad spend is called ‘scaling’.
If you ask a dozen different Facebook advertising experts how to properly scale accounts, you’ll no doubt receive a dozen different answers.
Scaling effectively doesn’t follow an easy-to-follow recipe. Let’s learn about the 2 ways you can scale your successfully running ads, verticle scaling and horizontal scaling.
When you simply increase the budget of your campaign without making any changes to it, it is known as vertical scaling. This depends entirely on the budget being the only lever you can pull for improved ROI.
Let’s imagine you are spending $100 on ads and getting 5x ROI i.e. $500. Now you want to increase your revenue. What people usually suggest to you: "It is simple, just increase the budget mate! Spend $500 now and you’ll earn $2500 easily. It’s a no brainer ”
What actually happens:
You increase your budget 5 times and your ROI drops from 500% to 250% 😧
Why would this happen?
- Facebook knows! All the experts spending millions in ads often see this trend.
- Your ad has reached all the users that fit best along with its title, text copy, geography and/or image in initial $100 to $300 and after that, it is just forcefully spending (or better say wasting) your budget.
Now you must be wondering, what’s the solutions then?
The answer is ‘horizontal scaling’
In this case, we will spread testing across multiple ad sets, audiences, and types of creative with the overall purpose of building a more stable account structure for long-term, scalable success.
Instead of depending on only one lever in case of verticle scaling (just pulling it to increase the budget of your one ad set), here we are creating new ad sets to distribute our budget evenly, hence, we have various levers to pull and have more control over our ads. It is a great method to find new ad sets that may perform way better than the original one.
Sounds a bit confusing?
Let’s make it visual.
Vertical vs Horizontal Scaling
Here we are simply increasing our budget by pouring in 5 times more money on to our original ad set.
And here, we have created 4 new ad sets and instead of pouring our budget on top of the original ad set (Ad 1), we evenly distributed it across 5 of them. This provides us with more control over our ads and creates many more opportunities to find out a better ad set than the original one.
I have tested it with small budget campaigns (by small I mean not in million dollars) and Jon Loomer, Sam Ovens and many more experts have spent millions of dollars each year and confirmed that if the new ad sets are crafted carefully with strategy, there are high chances of gaining results which would look like this:
So now we have learnt about the 2 least talked strategies which are most important, it’s the time to learn how to create new ad sets which can be guaranteed to provide 80% to 200% performance of our original ad set and not get flopped.
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If you’re a business owner looking to scale your business to moon, get in touch with us and we will get back to you with a carefully crafted strategy which your competitors would not have even touched.
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