Scaling to $150K per month. Breakdown of our testing, scaling, and retargeting campaigns.

scaling to $150k per month with facebook and instagram ads

So far, this year has been a crazy ride for us. Shipping issues, Chinese new year, IOS update, Facebook bans, and you name it. Everything hit us so badly, yet we managed to scale different eCommerce stores to over $100K in monthly sales.

Here is how I managed to scale a store with an average order value of $250 from $0 to $150K this month with a 3.8x return. I am going to break down this post into 3 parts.

  1. How we tested (initial phase).

  2. How we scaled (the exact steps).

  3. And a look into our retargeting campaign.

If you’re a complete newbie, I recommend looking at our subreddit, where we post and talk about starting an e-commerce business from scratch.

So let’s get to it!

Testing Initial Phase

The goal is to find 5-10 adsets that we can rely on consistently to bring in sales. This is how we did this. Since the pixel didn’t have much data, we started with cold interests (easy gold, isn’t it?). This is how it looked.

  • 20 Adsets targeting different interests and behaviors.

  • Each adsets had a $5 adset budget to start.

  • 4 ads per adset (2 different videos with 2 different ad copies.)

  • each adset is at least 2M in size

20 Adsets? Yes, come up with ideas and be creative. 10 adsets targeting the close interests of our target audience. No, you don’t have to find 10 interests from the blue ocean; find 3-4 interests, and Facebook will suggest the other interests to target (trust Mark, he has more information than we all have combined)

Next 10, time to be creative. Since we are selling a high ticket luxury product here, we targeted people who have a rich lifestyle. For example, People who travel on first-class flights spent their summer in the Maldives, Likes luxury cars (don’t follow the crowd, don’t target BMW as your interest, everyone likes BMW even though some can’t afford it. go the extra mile by targeting specific BMW models like BMW X6), etc…

Your audience is small? Don’t be afraid to target everyone in your geography (we call it an open audience).

Pretty basic stuff, right?

We let it run for 4-6 days and find the best ones. I would be looking at at least 3 purchases with a good Cost per link click, cost per Add to cart, and Cost per purchase at this stage. Even if I am not getting sales at this stage, I will let it run for few more days if the other metrics are promising.

The final step of the testing phase. Duplicated the original adsets, which looked promising with a high budget. Which started as a $5 adset is now set to1 x Target cost per purchase. In our case, our target cost per purchase is $40. So the budget of our duplicated adset is $40.

This stage aims to make sure what seems to be a good audience in the initial testing phase will still be a winning audience when we scale. I am talking about spending more than $1000 a day on an adset.

Also, this phase helped me to sort the adsets by ROAS, which is useful in different scaling campaigns down the line.

The only thing which helps me decide at this point is consistency in sales. For example, if an adset generates its first sale on the 1st day and the second sale comes after a week, I will not move forward with that adset.

Testing Creatives

While I waited for our final testing campaign results, I created a new campaign for creative testing. A CBO campaign with one ad set with dynamic creative testing turned on. We used the best audience from the initial testing for targeting (Don’t worry about overlap at this stage).

The dynamic creative had

  • 3 Image Creatives.

  • 3 Video Creatives.

  • 4 Primary Text (Ad copies).

  • 4 Headlines.

  • And 2 CTA (Learn More and Shop Now)

Set a high budget ($200 per day and let it run for a week). After a week, break down the sales by dynamic creatives and find the best combination with a low CPA or High ROAS.

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Scaling Phase

Once we have identified 3-6 profitable adsets, we move onto the scaling stage. There is no one way to scale a campaign. But here is what worked for this ad account and one of my favorite. Keeping things simple.

Sort the winning adsets by ROAS and stack them into one adset. For example, if you have 5 adset with a ROAS of 4 or above. I would create a new adset in a new CBO campaign with all these 5 adsets stacked into them. I prefer less than 3 adsets when scaling and large audience size. In our case, the audience size was more than 32 Million.

This is how it looked.

  • CBO campaign with 10 x Average/Target Cost per purchase. our budget was $400

  • Only one adset stacked with profitable interests.

  • Audience size more than 32 Million.

  • 6 Ads. A Combination of different creatives and ad copies from the dynamic creative testing.

Scaling Rule:

  1. If the campaign performed well, increase the budget by 20% every 48 hours.

  2. If the campaign is too good. Dupe and double the budget.

  3. If the ROAS drops below 2.5 (Our break-even is 1.9). Try other methods of scaling.

By now, you will have a lot of data in your pixel. While you scale, also start testing the LLA on the side following the same initial testing plan.

Every day check the adsets and ads. If you see something not performing, kill them (also make sure you give them enough time before making your decisions).

No, I don’t add new creatives to a campaign already running. However, suppose I want to introduce new creatives or make changes to the ad sets (other than the 20% budget change). Then, I duplicate the whole campaign and make the changes.

Your goal of this stage should be to get out of the learning phase as quickly as possible. After your adsets complete learning, your cost per purchase will drop. so be patient about your margins and try to complete learning as quickly as possible

Finally Retargeting

Retargeting depends on the amount of money you spend and the traffic you drive. We are currently spending around $1,500 per day for this store. Driving 2,500 to 3000 people to our site and around 250,000 in daily impressions. Here is how our retargeting looks.

Re-Targeting Middle of the Funnel

One campaign with an ad set budget. 3 adsets and 5 creatives each talking about the benefits and why they should buy it.

  • Adset 1 ~ Video Viewers 95% & IG/FB Post Engagers (Past 7 Days)
  • Adset 2 ~ Video Viewers 95% & IG/FB Post Engagers (Past 8-14 Days)
  • Adset 3 ~ Video Viewers 95% & IG/FB Post Engagers (Past 14-30 Days)

The first adset will be kept running no matter what, as long as it is break-even or profitable. The second and third campaign will be turned off if it doesn’t bring in profit.

Re-Targeting Bottom of the Funnel

Campaign #1

one campaign with an objective of catalog sales targeting all the website visitors, ATC/IC past 7 days.

Pretty simple. Just sync your catalog with Facebook and create a catalog sales campaign (aka Dynamic ads).

Campaign #2

Adset 1 ~ Targeting all website visitors past 7 days. 5 ads with testimonials and offer ad copies.

Adset 2 ~ Targeting all Add to Carts and Initiate Checkout (Past 14 Days). Again 5 ads with a 15% discount code (finally, it’s time to be generous)

There you have it! As I said, everything is kept pretty straightforward. Okay, I will be honest with you guys, the ad copies are aggressive and seducing.

I hope you guys found this helpful. If you have any questions whatsoever, Feel free to reach out. Also, if you need any help with marketing, email, and SMS automation. I am here; I am a Performance marketer who gets paid if you do well 🙂

If you’re an eCommerce business owner who needs help to x3-7 Your online sales. Click here to schedule your free discovery call with me.

I can’t wait to see where we can take this in the next few months. Happy Selling, Everyone 🙂

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