Facebook Ads is one of the most effective marketing platforms that you should leverage to grow your business. Having spent over $2.5 million dollars running various types of campaigns for a wide range of clients I think I have a few tips that would help you if you are starting out. 

I often meet business owners and entrepreneurs asking me how they can keep the CAC (Customer Acquisition Cost) consistent while scaling their PPC ads. Well, the answer to that question is unfortunately not that simple. However, I have seen some trends and patterns that I want to share with all of you generating leads for your sales team and preparing to scale your ad-spend. 

Why Facebook Ads Cost Start Climbing When You Scale Your Campaigns?

In order to control your Facebook Ads cost first we need to address why the Facebook ad cost usually jumps up for your given campaign. 

Here are some of the main reasons why ad-cost going up after you launch your campaign.

Ad Frequency and Ad Fatigue Increases Over Time

The first thing you should look at when the ad cost starts climbing is the ad-frequency. Ad Frequency and ad-fatigue is often the single biggest reason why your cost per lead starts rising sharply. The ad frequency stands for how many times a user is seeing your ad each day. 

When your ad-frequency starts going above 2 to 2.5 it’s a good time to monitor the campaigns and change the creatives. Higher ad frequency will result in lower CTR (Click Through Rate) in most cases. 

The more your audience see the same ad creatives over and over again, the higher the chances of ad-fatigue. Ad Fatigue means that your target audience has seen the same variant too many times to take any compelling action. 

One quick way to find out how often you should change your creatives is to find out how quickly your ad-frequency rises.

This largely depends on your audience size. Lets say that you are targeting dentists in New York vs dentists in USA.

The first campaign (dentists in New York) will hit a higher frequency sooner compared to the second campaign (dentists in USA) because the audience size is smaller.

So, when creating a Facebook marketing strategy it’s usually better to go with a decent audience size unless you are selling niche products & services to a particular clientele.

You are not optimizing your Facebook Ads for different placements

Facebook Ads manager allows you to run campaigns not just across Facebook but also Instagram and the Facebook audience network. 

The Facebook audience network is an ever-growing list of website and apps allowing inventory space to showcase Facebook ads.

In order to ensure that your ads are reaching your target audience make sure that you are creating ads for all possible placements.

A good practice is to split test your campaign with different ad-sets for difference placements.

When you split test different placements you can identify which placement is working better on your campaign and double down on that.

Note: Create all different creative variants in order to ensure that you are optimizing the ads for all different placements.

You have made changes to the landing page that have a lower conversion rate

Apart from the Facebook ads another key element that determines your overall cost per lead is your landing page. It’s quite common for marketers to conduct a lot of a/b testing on their landing page. However, not all tests are successful.

Your lead cost could be simply high because the conversion rate on one of your landing page vacation is lower than average.

In order to find out if your landing pages may be the real culprit I have a really easy method that I think you should try.
Take the historical data for the last 30 days. Set it as your landing page’s baseline conversion. Now, when you launch any A/b test, keep a log of all the changes and track to see if your conversion rate is going up or down compared to your baseline. 

In that way you attribute if your landing page design is helping your lead cost or not. 

You Don’t Use Custom Rules To Weed Out Underperforming Ads

Lately, I have noticed Facebook taking up too much of the budget in the first 12 hours of any given day.

Custom rules come handy in situations like this allowing you to pause all underperforming ads thus saving you a bunch of money every single day.

The single biggest reason why you should be using custom rules is to check on unwanted daily budget spend and improve your cost per lead. 

Recommended custom rules:

  • Adset level rule pausing any ad that goes over a certain ad-spend daily.
  • Resetting all ads to resume daily
  • Pushing for more impressions for best performing ads daily

Setting the custom rules to daily allows your algorithms to work every single day to get the best cost per lead for your campaigns.