August 31, 2018

11 Powerful Ways to Scale Your Shopify Facebook Ads

Facebook Ads Scaling Guide
You're done with data analyses and you see that your product is "working" even if you're break even. The most important thing is that you get a proof that your audience has an interest in your product, they wish to buy it. You just need to refine more. So, now is the right time to scale your Shopify Facebook ads. Let's touch upon the topic of scaling tactics related to dropshipping business specifically and learn some Facebook advertising tips.

Vertical Scaling of Shopify Facebook Ads

Vertical scaling means you increase the budget on your ad sets. See how you may do it wisely.
Increase your budget by 20% and no more - Basic scaling method
When this scaling method is recommended:
  • Small audience - It's perfect for a small audience (around 250,000 or less)
  • Not big budget - It doesn't require a big budget, so it's relatively risk-free
  • Beginner - It's easy for implementing even you're a beginner

How it works: for instance, the budget of your ad set is $15. You increase a budget to $18 in 24 hours since your ad is approved and become active. Sure, you may do it later than 24 hours but not earlier than that. In another 24 hours, you increase an amount till $21.60. So, increasing looks like this
The start budget
+20% in 24 hours
+20% in 24 hours
+20% in 24 hours
+20% in 24 hours
Why there is a 20% limit?

  1. Sustain losses: If your budget is $20 and your CPM is $10, you get 2,000 impressions. CPM means how much you pay for 1,000 impressions. If you increase your budget three-fold and set $60, for instance, you don't get 6,000 impressions because your CPM will increase and become $20 (not $10). It means you get 3,000 impressions (not 6,000).
  2. Optimization starts again from the very beginning and it negatively affects your ad performance.

Keep an eye on your CPM:

After increasing the budget by 20%, pay attention to your CPM, it shouldn't increase by more than 20%. If it increases too much, you may get the same number of impressions which means you may pay more for the same number of impressions and it's a waste of money.

If we get back to our previous example when your budget is $20 and your CPM is $10, you get 2,000 impressions. In this situation, your CPM should be no more than $12.

For instance, each time you increase your budget by 20% and your CPM changes this way:
  • $15 budget and $10 CPM
  • $18 budget and <$12 CPM - This is Ok as $10+20%=$12
  • $21.60 budget and $13 CPM - This is Ok as $12+20%=$14.40
  • $25.92 budget and $16 CPM - This is NOT Ok as $13+20%=$15.60 and if there is $16, CPM increased by 24% (not 20%). At this level, it's time to stop increasing budget as you pay for a less number of impressions which means you lose money.

Wait and see how your CPM changes and don't increase amount till reducing CPM. If your CPM didn't reduce in about 4 days, reduce your budget from $25.92 till $23 for instance.

Summary. This scaling method has 3 rules:
  1. Scale (increase budget) not earlier than in 24 hours
  2. Increase budget by no more than 20%. You may increase by less than 20% but not more.
  3. Your CPM should be increased by less than 20%, otherwise, it makes no economic sense.

Horizontal Scaling of Dropshipping Facebook Ads

Horizontal scaling means you create new ad sets targeting new audiences for your product.

Most probably you created a website conversion targeting ad with Purchase objective. It's profitable and you're ready to move forward. See how you may expand your existing working ad set.
Create new website conversion ads with 10 to 20 different audiences. So, you will have maybe 5 new ads. Use Facebook ads audience insights tool to search for targeting ideas.
Create retargeting ads based on View content, Add to cart, Initiate checkout, Purchases. By the way, retargeting ads are cheaper than targeting, so you may boost your ROI. read how to create retargeting ads.
Create new ads with other objectives. If Purchase is an objective of your initial ad set, the objectives of the new ads should be View content (VC), Add to cart (ATC), Initiate checkout (IC). By duplicating successful ad sets you will have 18 new ads.

Why 18? It's because you have 1 audience of your initial ad and 5 audiences with 10 to 20 different audiences mentioned in the point #2. 1 plus 5 is equal to 6 which means you will have 6 ad sets with VC, 6 ad sets with ATC, 6 ad sets with IC. 6 + 6 + 6 = 18.
Gender. Check the existing ad set, find out which audience responds best Male or Female, duplicate the ad set and create a new one.
Note: in case your Facebook ad account is disabled, read the steps how to unlock it and a list of possible reasons.
Age. Duplicate the ad sets to create new ad sets with age ranges (or age range) that are working. There are 6 age ranges (18-25, 25-34, 35-44, 45-54, 55-64, 65+) which means you have 6 possibilities for creating ad sets.

Don't think that you should create ads for each range. Look at the reports of the initial ad set and see what age ranges works best. For instance, if you see that the most responsive audience are the 35-54 age-old, duplicate the existing ad set to create 2 ad sets: one is with 35-44, the other one with 45-54. If you're not sure how to analyze age, read this.
Devices. Duplicate the existing ad sets and create ad sets with Desktop, Mobile, iPhone, Android.
Placement. Again, after you analyze the data of the existing ad set and see which placement has higher performance (Facebook news feed, right-hand side, Instagram, Messenger or Instant articles), duplicate it to create a new ad set for the most responding audience.
Create a lookalike audience (or LAA). This method means that you create custom audiences and Facebook finds people most similar to those in that audience. Create a lookalike audience for View content, LAA for Add to cart, LAA for Initiate checkout, LAA for Purchase. Create lookalike audiences for 1%, 3% and 5% population. In the end, you are able to create more than 2,000 ad sets using lookalike audiences. Read how to create lookalike audiences and how to set up ad sets using them.
Create ad sets for English speaking countries. Most probably you targeted the US, so now you may target Canada, Australia, the UK, New Zealand.
Create ad sets for other countries. There are the second and the third tier countries you may target too. Read the list of 13 best countries for dropshipping.
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Content Creator at Dropwow
Gulnur Ismailova
Content Creator at Dropwow