TechnicalOpinion

How to scale you ad account

Mark Builds Brands1m 26s

The speaker explains how to scale ad accounts by testing new creative within 10-20% of profitable spend using CBO campaigns. The critical strategy involves setting minimum spending limits for new ad groups and increasing overall CBO budgets to accommodate tests, preventing Facebook from concentrating all budget on existing winners.

Summary

The speaker provides a framework for scaling ad accounts starting from a profitable baseline (using a $5,000 income/$2,500 expense example yielding 2X ROAS). Rather than making large jumps in spend, the recommendation is to test new creatives within a conservative range of 10-20% of current expenses per day, which in this example translates to $250-$500 daily test budgets.

The technical implementation uses CBO (Campaign Budget Optimization) campaigns, though the speaker notes that manual budget allocation works similarly. The key operational principle is that whenever launching a new ad group or creative test, two actions must occur simultaneously: (1) increase the overall CBO budget to create room for the new test, and (2) set a minimum spending limit on that specific ad group. Using the example of a $1,000/day CBO with a $100 minimum test spend, the total budget must be increased to $1,100/day.

The speaker emphasizes that failing to set minimum spending limits creates a critical problem: Facebook's algorithm will concentrate all budget toward the best-performing existing ad groups (the "winners"), starving new tests of impressions and data. This leads to a dangerous cycle where old creatives eventually exhaust their effectiveness ("die"), but no tested alternatives exist in the pipeline because all testing budget was consumed by winners.

About this episode

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Key Insights

  • The speaker argues that without setting minimum spending limits on new ad groups within CBO, Facebook will automatically redirect all budget to existing winning creatives, preventing new tests from receiving meaningful spend and data.
  • The speaker recommends testing new creatives in the 10-20% range of current profitable daily expenses rather than making larger budget jumps, as a conservative approach to scaling.
  • The speaker claims that increasing the total CBO budget before launching a new creative test is essential—if you have $1k daily spend and want to test a $100/day creative, you must raise the CBO to $1.1k, not simply reallocate within the existing budget.

Topics

CBO campaign managementAd creative testing methodologyBudget allocation strategyMinimum spending limitsFacebook algorithm behaviorAd account scaling framework

Transcript

[0:00] Let's say you have $5,000 in income per day and $2.5 thousand in expenses. This will give you a ROAS of 2X. If you take 10% of this amount, it will be approximately $250 in expenses per day. 20%—that would be $500 in expenses per day. I would conduct testing in this exact range. As for the testing itself, nothing changes here. I do everything through CBO, but it doesn't matter if it's CBO or [ __ ], both options work. It all just depends on how you want to manage it. But I would use CBO, and every time you test a new ad group, of course, everything is broad and you need to set a minimum spend…

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