so if you're experiencing massive fluctuations and inconsistency with your Facebook ad results then in this video I just want to show you something that we do to stabilize our ad account account performance and it allows us to scale our client ad accounts with more predictability and you're not worrying if you know one day you're going to open up your ads manager and your rowad has just completely dropped through the floor so typically like this is what happens when start running your account so you might have some ads and after some testing you might see some
ads that are working pretty well so once they start working pretty well your natural instinct is to then go and scale them right so what can happen is when you start to scale they start to work really well but then kind of like all of a sudden or even just maybe over a weekend or a couple of day period you will just see like a massive drop in performance and you'll have all of these Campa PS that were once working they'll just drop off a cliff and you know if your only way of getting customers
and growing your business is through ads this can be a pretty scary time because all of your profit is just kind of like completely dropped and you don't know what to do or another thing that sometimes happens is that you might have some ads in the testing phase work well but even literally as soon as you starts to scale just the costs are never the same as what they were during the testing phase and it just drops so you're always kind of stuck at that limit of maybe spending I don't know maybe like $1,000 a
day and you just can't seem to like break through that barrier because every time you actually try to scale the campaign performance drops and this is pretty normal like a lot of people experience this so one thing that we do um inside our client's accounts is we use cost caps to control the cost that we're seeing inside the account so basically this allows us to say to Facebook Hey I only want to pay this much for a conversion and then Facebook is going to go out there and do its best to try and find you
those conversions for that price so it's super simple to set up so let's just say you have an ad that is working in the testing phase and you want to duplicate it and use a higher budget to scale then this is how you set up the the cost cap so um say you duplicate the set and you want to increase the the budget let's just say you testing at 20 20 and let's just say you want to go to like2 200 right to try and scale um basically what we would do here and in this
funnel example we're sending ads to for a high ticket coaching program and the ads go to a vssl and then underneath the vssl is like a calendar for them to schedule a call so we're going to optimize for calendar schedules in this example now now all you would do here is you can see the cost per result goal here so you would just basically add in the the cost that you want to pay for that conversion so in this example it's how much we we want to spend to basically get a calendar um a calendar
booking of someone who's basically opted in to speak to our sales team so let's just say for the average for us um of what we want to be profitable with is 150 and there's some nuances here that I'm going to explain in a second but I just want to show you like how it basically works so you can add it in here and you just want to make sure that it's on cost per result goal so this is basically saying hey Facebook in this campaign I only want to pay 150 for someone to book in
my calendar and that's it that's pretty much the only change you'll do so now meta will go out there and they will try and spend the full budget of200 a day um whilst making sure that they only get calendar schedules for $150 so basically what this does it stops basically meta putting your campaign into the auction where they could get like more expensive um calendar bookings so in this example let's just go back here um you might start your campaign and you might be getting calendar bookings for you know 150£ 150 but then maybe like
something changes or like over the weekend you'll like experience huge spikes in your cost and you might start getting calendar bookings for like £300 £400 £500 and if you know from your kpis and your funnel economics that you can't be profitable at that price point then that's where these cost caps can come into play because if you have the cost cap on then Facebook isn't going to charge you this much money for those calendar bookings and it probably won't spend the budget because if it can't find the conversions for that price then it's not going
to spend the budget and it's going to try its best to find those conversions for that cheaper price so it's basically going to stop you from you know spending you know 200 um 200 300 400 500 pounds to get a a calendar booking in this example but again this isn't obviously just for calendar bookings you can do it for cost per lead as well so if you're generating leads for a webinar and let's just say your target cost per lead is $10 then you can also set the cost cap for $10 if you're doing it
direct to a sales page for a low ticket product and you know that you can be profitable at £40 CPA then you can obviously set the cost cap at40 as well so basically what this is going to do is going to set some caps on the amount that you can pay cost per conversion and it's going to stop those massive fluctuations in cost like we talked about ins the inside the ad account now there are a few things to know um that you want to have in place before you set something like this set something
like this up number one is that you need to make sure that you have some understanding of the data and you need to make sure that there is a lot of data already inside of your ad account if you're just starting a brand new ad account I wouldn't advise you know going starting bidding with cost caps because at this point Facebook hasn't spent any data in the account and your pixel doesn't have any data so it's going to be very hard for Facebook to try and find those conversions for like a really cheap price so
I would only advise doing this once you have data and you know what your average CPA is so in this example I know that I can get calls booked from anywhere between like 100 to 300 but I know that if I want to be profitable with my ad campaigns I need it for it to be £150 right so that's why I set the cost cap at 150 now if I hadn't had all that data inside my account I wouldn't understand what my my kpis are and what would be profitable for me so that's just one
thing to note make sure that you have data another thing to note as well is that when you do this and you do the cost per result goal Facebook is purely optimizing for Price Right the cost it's not necessarily optimizing for the quality so what you could potentially see is that people people are booking in on in this example booking in on the calendar but you might find that the quality of people that come from these campaigns are a little bit less quality because Facebook is purely just being like right how can I find some
the cheapest possible people to book in the calendar and it's not necessarily finding like the right people so that's why it's actually important to if you're running like a high ticket coaching program sales Fone or with a vssl it's not only important to track the cost per call but it's important to track the cost per qualified call so you want to check okay like every time someone gets on the call with you you need to Mark whether they are qualified or not and then you want to relay that to your basically your your metrics whether
you're using hyros or something like that to figure out okay which campaign did this person come from and then once you understand that you can work out what your cost per qualified call is and that is kind of like the main metric that you want right so you could have a one campaign with a cost cap that's getting a really cheap cost per call which is like $100 but if the cost per qualified call is $1,000 because most of those people aren't qualified then it's still not a very good campaign even though your cost per
call is technically lower whereas you might have another campaign that doesn't have a cost cap and your cost per call could be £300 which is obviously expensive but your cost per qualified call might be £350 so that's actually cheaper than the cost out campaign theoretically so that's just something to note as well that just because Facebook is getting you the cheapest conversions possible doesn't mean that these are actually quality people and they might not be your your ideal customers it's a little bit less important when you're doing Costa conversion because you're actually getting people to
pay you but when you're generating leads whether that be you know email leads or call booking leads then obviously the quality of that person matters more than if you're already getting money from that person and being profitable so that's just something to note as well you could also um try and understand if you are doing direct to a sales page understanding the lifetime value of that person right so a lot of e-commerce businesses they will run this type of model where their CPA inside of Facebook might be and I'm just going to use round numbers
here it might be $50 and the average order value on the first day purchase might be 40 so they're losing $10 with every purchase oh I don't know why I wrote eight they're losing $10 on every purchase but they're doing this because they know that the lifetime value of this customer could be on average the lifetime value is $300 because people after a few months purchase another product they buy an upsell a down sell they buy the same product again obviously depends on the business right so they're happy losing $10 because they know over the
next six months they're going to get an extra $260 from this person right on average but what you also want to look at if the CPA of the cost campaign maybe you could get it down if you do a I'm just going to give you like a theoretical example but let's just say you do a cost campaign for $40 and it works and you're getting purchases for $40 that's great but let's just do actually let's do like 45 right $45 and your aov on this is still let's say it's still 40 right so you're losing
$5 but if these are like low quality customers who are buying this then you want to check the lifetime value from people from this specific campaign and you might find that maybe these people don't buy again right and actually the LTV is only $40 they buy that one that first time and then they never buy again again this is an extreme example but I'm just trying to get the point across whereas like the quality of the customer actually matters over the long term in profitability of the business so even though here your CPA is $50
which is more expensive than the 45 the lifetime value of people from this campaign is only $40 where the lifetime value of people from this campaign is 300 so therefore you would much rather have this right as long as your business can sustain the the cash loss which is a bit more advanced a bit more technical but I'm just trying to get the point across here that the quality of the customer or the lead does matter to the overall profitability of your business even though the initial pricing and the initial cost might look pretty good
another thing to note as well which we do and it's not just we do I think a lot of people do this as well is that one of the risks with the cost cap campaigns is that you aren't guaranteed to spend the money right so if we send a cost cap of like I said $150 for a calendar schedule if Facebook can't find the conversions for that price then it's not going to spend any money so that's like one big problem another big problem as well is that based on and I'll be honest I don't
know the full science behind it but sometimes different levels of cost caps can perform per form better and worse and it's not necessarily like the lowest cost cap works the best so what we do to um avoid like the campaigns not working or the campaigns not spending money is we'll create multiple versions of the cost cap so in this example let's just say our Target CPA for this calendar booking is 150 I might create one two two three four cost cap campaigns now this cost cap might be a cost cap of you know my main
CPA which is like 150 150 right because that's like what I know is profitable and that would be like a good cost for us I'll also probably try one a little bit lower just to see if we can squeeze a little bit more profitability from the campaign so I might do one for 150 but you know these are like two really good scenario but you're also the lower the cost cap obviously the more restrictive you are on Facebook and it's algorithm trying to find you like customers so I also like to create cost caps are
a little bit higher than our Target CPA so I'll do a cost cap campaign and again this is just an example but like 160 and I might do another one at 170 now if I was doing leads for maybe a web webinar registration and my average cost c a lead is like $10 then I'll probably do one for $8 $10 $12 and then maybe like $15 or $16 or maybe even $20 now obviously I don't really want in this example I don't really want Facebook to get me calendar bookings for 170 but as long as
I'm not like dramatically unprofitable on that obviously I wouldn't set it to be like a thousand because you know then if it's going to get me calendar bookings for $1,000 then that's not going to be profitable for me so you want it to be be close to kind of like your average CPA but the idea here is is that you're giving Facebook's algorithm bit a little bit more room to work so therefore it's got more of a chance of finding new customers now we found that sometimes and not always but sometimes for example if this
is the four-part scenario this one um might not spend all right this one might not spend any money let's actually do some different colors so this one the 140 might just be too low and it's not going to spend any money this one might spend money and it's getting those calendar bookings for you know about 150 which is good this one might be too expensive right so it might be getting like too it might not um be too expensive for us but then this one could actually get just because you set the cost cap at
$160 doesn't mean that it's going to get you calendar bookings for $60 doar it could actually also be cheaper so again just giving the algorithm a little bit of room to work and sometimes lead to a lower cost per conversion just because you set the cost cap that is the maximum you want to pay it doesn't mean Facebook is definitely going to get you cost per conversions for that amount so typically what we will find if we'll do like a four-part testing process like this where we'll create four different cost caps for the exact same
ads set so this by the way all of this here this is all exactly like all these ads are exactly the same the adsets the same the targeting is the same the ads inside the finger the same it's basically if you in the testing phase find an adset and a set of ads that are working you would just duplicate it four times and set a different cost cap for each one and then you will test the cost cap to see which works and what doesn't and then you know once you leave it to run maybe
for like you know three four five days maybe even seven days you'll get an idea of which ones are going to work and if for example you know number two here at $40 cost cap that's just not spending any money maybe like you'll find that sometimes even over a week it might spend like $1 or something like that and if it's not going to spend money then after like you know a few days I'll just turn it off and if this for example um isn't spending or maybe it's going up like it's too expensive at
170 then I'm going to turn this off and then I've got two here that then I can continue running and continue to run and scale because these could be getting me you know bookings for 150 and maybe this one is working even better in getting me calendar bookings for 120 so I'd keep those on and I would continue to scale so I wouldn't ever just I rarely I mean I have done obviously at some points but I I would rarely just create like one cost cap for one ad set and just let it run um
I like to create variations of it just so then it allows me to kind of test which type of bidding strategy actually works works best so again if you just starting out and you're like you don't even have ads that are working you don't even have audiences that are tested and working and you don't really know what your like average CPA is if you're a complete beginner then like this is something a little bit more advanced and you don't really need to worry about it but if you are a more experienced media buyer and you
are struggling to increase the budget in scale without kind of you know your out account to the ped and losing you loads of money then try and implement this strategy inside of your campaigns for a bit more consistency and predictability and a bit more safety when you're scaling so you're not just kind of like losing all of your money overnight so that's it any questions about this strategy just let me know in the comments below thanks for watching and I'll see you on the next one [Music]
