$180,000 per month on Facebooks Ads 3x ROAS

Introduction

In this case study, we will delve into one of our clients who is currently spending around $ 60,000 a month on Facebook Ads. While this amount may not seem excessive, the results have been impressive, achieving a Return on Ad Spend (ROAS) ranging from 2.6 to 2.7. Overall, this business generates approximately $ 3 to $ 3.5 for every dollar spent on advertising, supported by a healthy gross margin of 60-65% on their products.

The Current Ads Strategy

The client’s advertising strategy leverages effective CBO (Campaign Budget Optimization) campaigns, strategically organized by either product or geographical location. For instance, if the campaign focuses on a specific product, it is designated as a single CBO campaign. Conversely, for targeted marketing in diverse regions, such as the US, UAE, or specific European countries, we create separate campaigns to account for the distinct marketing angles suitable for each market.

Over the past month, our metrics have shown promising trends. The client has spent around $ 60,000, achieving a unique click-through rate (CTR) of 4.42% and maintaining a competitive cost per click (CPC). To break it down, the business typically generates $ 262 in revenue for every dollar spent, aligning with their past performance of around $ 3 to $ 3.5 back for each advertising dollar invested.

Scaling the Advertising Strategy

Even though we have significantly increased ad spend since the client first came to us—where they were initially spending between $ 1,000 to $ 1,400—we are developing a cohesive plan to further boost their daily spend. Our goal is to reach an increase to about $ 4,000 to $ 5,000 a day. This ambition is grounded in a solid framework for creative testing, including a diversified ad approach that incorporates both image ads and video ads.

Creative Testing

We have observed that image ads often perform better than many might assume. While video ads generally yield higher engagement, the effectiveness of strong image ads can be just as impactful, particularly for certain products. This client initially relied heavily on image ads, and we produced decent outcomes with basic offerings.

Moving forward, we’re introducing additional elements into the creative mix. This includes 3 to 10-minute Video Sales Letters (VSLs) and User Generated Content (UGC) videos. For the VSLs, we plan to leverage voiceovers that change our narrative while reusing footage, maximizing our footage resources for diverse storytelling.

Authenticity and Raw Content

In today's ever-evolving advertising landscape, maintaining authenticity is critical. An increase in consumer skepticism necessitates strategies that emphasize raw, authentic content. By presenting genuine experiences, we can foster trust and engagement among potential customers. Brands doing exceptionally well often incorporate UGC, ensuring their ads resonate on a personal level.

Notably, the approach of white listing ads—where brands advertise content from real users—has proven effective in decreasing acquisition costs. By linking creators' accounts to the brand, we can present these ads as more organic and less commercial. This tactic plays into the growing trend of consumers favoring authentic narratives over polished advertisements.

Conclusion

As we continue to test various strategies, including long-form VSLs and a blend of raw UGC content, the goal is to discover what specifically resonates with our target market. Each brand and product requires a tailored approach, and through iterative testing, we're confident in our ability to optimize the client's advertising efforts and achieve substantial growth.

Keyword

Facebook Ads, Creative Scaling Strategy, ROAS, CBO Campaigns, Image Ads, Video Ads, User Generated Content, VSL, White Listing, Authenticity, Digital Marketing

FAQ

Q1: What is a good ROAS in Facebook Ads?
A1: A good Return on Ad Spend (ROAS) typically ranges from 2 to 4, meaning you earn $ 2 to $ 4 for every dollar spent on ads.

Q2: How can I scale my Facebook Ads successfully?
A2: To scale effectively, focus on A/B testing various creatives, utilizing CBO, analyzing performance metrics, and optimizing budget allocations based on campaign performance.

Q3: Why are image ads still relevant?
A3: Image ads can be very effective, especially for visually appealing products. They often draw attention quickly and can lead to high engagement and conversion rates.

Q4: What is white listing in advertising?
A4: White listing involves using a creator's account to run ads, making them appear more authentic and organic, which can improve engagement and conversion rates.

Q5: How important is authenticity in advertising?
A5: Authenticity is paramount as consumers are increasingly skeptical. Raw, genuine content helps establish trust and connect with audiences on a personal level.