Scaling Facebook Ads into Profit Engines

In this energetic episode, Chad Kodary interviews Jason Hornung, an expert in paid advertising, about his expertise in scaling Facebook ads. They discuss the importance of paid ads for scaling businesses, the three phases of a successful ad campaign, and strategies for maximizing the performance and profitability of ad campaigns.

Watch full podcast below...👇

Introduction and Background

Jason Hornung has been a prominent figure in the online marketing world since 2005. His journey began with direct mail and SEO, but he eventually found his niche in paid advertising. Over the years, he built a successful marketing agency and became well-known for his ability to convert traffic into sales across various offers. This expertise led him to create the Academy of Advertising, where he shares his knowledge and strategies with others.

Early Days in Online Marketing

Jason's initial foray into online marketing involved SEO and email marketing. However, a significant event, Google's Panda update, caused a drastic drop in traffic for many of his clients, leading him to explore more controllable methods of driving traffic. This experience was a turning point that pushed him towards mastering paid advertising.

Building the Academy of Advertising

As Jason's reputation for delivering results grew, so did the demand for his expertise. This led to the creation of the Academy of Advertising, where he began sharing his successful strategies through courses and training programs. One of his most notable products, the Facebook Ads Boot Camp, helped numerous marketers achieve their goals.

Paid Ads as a Solution for Scaling

Paid ads are essential for scaling businesses beyond the limitations of organic and affiliate marketing. They offer control and predictability, which are crucial for sustainable growth.

Why Paid Ads?

Organic and affiliate marketing can only take a business so far. Once a business reaches a certain point, paid ads become the most effective way to drive significant growth and compete in the market.

Control and Predictability

Paid ads allow business owners to control their growth. By adjusting ad spend, businesses can increase their customer base predictably, ensuring a steady influx of leads and sales.

Low Ticket Offer Campaign

Chad Kodary and his team at DashClicks launched a low-ticket offer campaign to attract new customers and introduce them to their software services. This strategy involves offering valuable educational content at a low price to build trust and familiarity with potential customers.

Campaign Structure

The campaign starts with a $27 offer that includes several courses and a 30-minute call with the DashClicks team. This call also serves as a demo for their software, DashClicks Pro, which comes with an extended 30-day free trial.

Additional Offers

The initial offer is followed by an order bump of $67 and two upsell offers: a $197 annual subscription for an agency website and a $497 course, Dash University. These additional offers aim to increase the average order value (AOV) while providing more value to the customers.

End Goal: Software Subscribers

The primary goal of the low-ticket offer campaign is to convert customers into long-term software subscribers. By providing valuable educational content and a seamless onboarding process, DashClicks aims to build trust and encourage users to continue using the software.

‍Building Trust and Familiarity

The educational content and demo calls help potential customers understand the value of DashClicks Pro. This familiarity increases the likelihood of them becoming long-term subscribers.

Subscription Conversion

By offering an extended free trial and ongoing support, DashClicks aims to convert these initial users into paying subscribers. The goal is to create a steady stream of recurring revenue from software subscriptions.

Upsell Offers

Upsell offers are a critical component of the low-ticket offer campaign. They help increase the average order value and provide customers with additional tools and resources to succeed.

Order Bump

The first upsell is a $67 order bump that includes proposal templates and a mini-course on product knowledge. This offer has a high take rate, indicating its value to the customers.

One-Time Offers (OTOs)

The campaign includes two additional upsell offers: a $197 annual subscription for an agency website and a $497 course, Dash University. These offers provide significant value and help customers achieve their goals more effectively.

Testing and Initial Results

Testing and analyzing the initial results of an ad campaign is crucial for understanding its effectiveness and making necessary adjustments. Chad and his team began their campaign with a $200 daily budget, testing 36 different ad sets.

Initial Performance

Within the first few days, the campaign showed promising results, with an average order value (AOV) of approximately $94 and a return on ad spend (ROAS) of 1.76. These metrics indicate that the campaign is performing well and has the potential for scaling.

Analyzing Results

By closely monitoring the campaign's performance, Chad and his team can identify which ad sets are performing best and make data-driven decisions to optimize the campaign further.

Validation Period

The validation period is a critical phase in running a successful ad campaign. It involves letting the campaign run without making any changes to ensure consistent performance and gather more data.

Importance of Patience

During this period, it's essential to resist the urge to make changes, even if the campaign shows promising results. This patience allows the algorithm to learn and optimize the campaign for better performance.

Monitoring Performance

While it's important not to make changes, it's still crucial to monitor the campaign daily. If any significant issues arise, adjustments may be necessary to maintain performance.

Scaling Strategies

Once a campaign has passed the validation period and proven its effectiveness, it's time to scale. Scaling Facebook Ads requires careful planning and execution to maintain performance and maximize results.

Vertical Scaling

Vertical scaling involves increasing the budget of existing successful campaigns. This method has the highest probability of replicating results and maintaining performance.

Horizontal Scaling

Horizontal scaling involves creating additional campaigns with similar targeting and messaging. This approach can help reach a broader audience and increase overall ad spend without disrupting existing campaigns.

Spiral Scaling

Spiral scaling involves introducing new messaging and creative elements into existing campaigns. This method keeps the content fresh and engaging, helping to maintain performance as the campaign scales.

Replicating Results

Replicating the success of a campaign requires a systematic approach and careful attention to detail. By following proven strategies and frameworks, businesses can achieve consistent results and drive growth.

Framework for Success

Having a clear framework for running and scaling campaigns is essential. This includes understanding the different phases of a campaign, making data-driven decisions, and knowing when to scale.

Continuous Optimization

Even after scaling, continuous optimization is necessary to maintain performance. Regularly analyzing ad set performance, making data-driven adjustments, and testing new elements are key to long-term success.

Learning and Adapting

Successful advertisers are always learning and adapting. Staying updated with the latest trends, tools, and strategies in paid advertising helps businesses stay ahead of the competition and achieve their goals.

Accuracy of Tracking

Ensuring the accuracy of tracking in your ad campaigns is crucial for making informed decisions. It helps in understanding which ad sets are performing well and which are not.

Challenges with Tracking

Tracking accuracy can vary based on setup, offer, and market behavior. Even advanced tools like Hyros aren't always 100% accurate.

Choosing a Tracking Tool

Decide on a single source of truth for tracking. For many, the Facebook Pixel offers over 90% accuracy when installed correctly.

Source of Truth

Having a reliable source of truth for tracking your ad campaigns is essential. It ensures you make data-driven decisions.

Consistency is Key

Whether you choose Facebook Pixel, Hyros, or another tool, stick with it. Consistency in your tracking method is crucial for accurate data.

Consider Long-Term Goals

For longer-term attribution, tools like Hyros can help track performance over time, especially for recurring revenue models.

Scaling Campaigns

Once you have validated your campaign, the next step is scaling. Scaling Facebook Ads effectively requires strategic planning.

Vertical Scaling

Increase the budget on existing successful campaigns. This has the highest probability of maintaining performance.

Horizontal Scaling

Create new campaigns with similar targeting and messaging to reach a broader audience.

Spiral Scaling

Introduce new messaging and creative elements into existing campaigns to keep content fresh and engaging.

Replicating Results

Replicating successful campaigns is crucial for sustained growth. Focus on proven strategies to achieve consistent results.

Increase Budget on Successful Campaigns

Start by increasing the budget on validated campaigns. This method has the highest probability of replicating results.

Ad Set Performance Analysis

Regularly analyze ad set performance and make data-driven decisions to optimize campaigns.

Analyzing Ad Set Performance

Analyzing the performance of individual ad sets helps in optimizing campaigns. It ensures you focus on the best-performing elements.

Data-Driven Decisions

Use empirical data to identify high-performing ad sets. Allocate more budget to these ad sets for better results.

Performance-Based Ranking

Rank ad sets from highest to lowest performance. Distribute additional budget to the top performers.

Budget Descaling

When scaling campaigns, you may hit a point where increasing the budget negatively impacts performance. Budget descaling can help.

Back to Previous Levels

If performance drops, reduce the budget to the previous successful level. This helps maintain consistent results.

Avoid Shutting Off Campaigns

Instead of shutting off underperforming campaigns, adjust the budget. This approach helps in sustaining performance over time.

Point of Diminishing Return

Every campaign has a point of diminishing return. Identifying this point is crucial for effective budget management.

Recognize the Limits

Understand that beyond a certain budget, performance may decline. Adjust strategies accordingly.

Optimize Budget Allocation

Focus on the budget level that provides the best return on investment. This ensures sustainable growth.

Back to Previous Budget

If increasing the budget leads to a decline in performance, reverting to the previous budget can help.

Sustaining Performance

Reducing the budget to the last successful level helps maintain consistent results without starting over.

Strategic Adjustments

Make gradual adjustments rather than drastic changes. This approach helps in sustaining campaign performance.

Long-Term Campaigns

Long-term campaigns require ongoing optimization and strategic planning to maintain performance.

Continuous Monitoring

Regularly analyze and adjust campaigns based on performance data. This helps in achieving long-term success.

Adapt to Market Changes

Stay updated with market trends and adjust strategies accordingly. Continuous learning and adaptation are key.

Scaling Challenges

Scaling Facebook Ads is not always a smooth ride. Various challenges can arise, requiring careful navigation and strategic adjustments.

Algorithm Disruptions

One major challenge involves disruptions to the algorithm. When you significantly increase your ad budget, the Facebook algorithm may struggle to adjust, leading to a temporary drop in performance.

Audience Saturation

As you scale, your targeted audience may become saturated. This can lead to increased costs and reduced ad effectiveness, requiring new strategies to maintain performance.

Maintaining Successful Campaigns

Keeping a campaign successful over the long term involves more than just initial setup. It requires ongoing attention and strategic decision-making.

Consistency Over Change

One key to longevity is consistency. Avoid making frequent changes to your campaign unless absolutely necessary. Letting a well-performing campaign run without interference often yields the best results.

Monitoring and Adjusting

While consistency is vital, regular monitoring is also crucial. If performance metrics indicate a problem, make strategic and isolated adjustments based on data.

Direct Response vs. Awareness Ads

Choosing between direct response and awareness ads depends on your business goals and budget.

Immediate ROI

Direct response ads aim for immediate returns, making them ideal for businesses needing a quick ROI. They drive conversions and sales directly.

Long-Term Engagement

Awareness ads focus on building brand recognition over time. They are more suitable for businesses with larger budgets and long-term goals.

Strategic Testing

Testing is a crucial component of running successful ad campaigns. However, it must be done strategically to avoid unnecessary costs and effort.

Isolated Tests

When a campaign underperforms, conduct isolated tests on specific variables such as ad creatives, audience targeting, or funnel elements. This approach helps identify the exact issue without disrupting the entire campaign.

Data-Driven Adjustments

Base your tests on empirical data. Use performance metrics to guide your decisions and make informed adjustments.

Building Trust with Customers

Trust is a critical factor in converting prospects into customers. Building trust involves multiple touchpoints and consistent messaging.

Educational Content

Providing valuable educational content helps establish authority and trust. Offer insights and solutions that address your audience's pain points.

Consistent Engagement

Regularly engage with your audience through various channels. Consistent communication helps build familiarity and trust over time.

Allocating Budget for Different Strategies

Effective budget allocation is essential for maximizing the performance of your ad campaigns.

Prioritize Direct Response

For businesses needing immediate returns, allocate the majority of your budget to direct response ads. These ads drive conversions and sales directly.

Set Aside for Awareness

While direct response ads should take priority, allocate a small portion of your budget to awareness campaigns. This helps build long-term brand recognition.

Direct Response Ads

Direct response ads are crucial for businesses seeking quick returns on their ad spend.

Immediate Conversions

These ads are designed to drive immediate actions, such as purchases or sign-ups. They are highly effective for generating quick revenue.

Clear Calls to Action

Ensure your direct response ads have clear and compelling calls to action. This increases the likelihood of conversions and maximizes ROI.

Academy of Advertising

Founded by Jason Hornung, the academy provides expert guidance on running and scaling successful ad campaigns. It includes courses, training programs, and a supportive community.

From the basics of ad creation to advanced scaling strategies, the Academy of Advertising covers all aspects of paid advertising. It is an excellent resource for marketers at any level.

After tuning in to this episode, we trust you're ready to elevate your Facebook Ads game. Stay tuned for more valuable insights and strategies to grow your business into a million-dollar venture.