What Should I Do If I See That the Ad Is Working?
The short answer is, once you see that the ad is working well, you should start increasing your budget. Gradually raise the budget until you notice that either the ad can’t spend more or increasing the budget causes your cost per click to rise. When you reach that point, the best course of action is to duplicate the entire campaign to target a new area.
Full Explanation
When an ad is performing successfully, it’s important to capitalize on its effectiveness by scaling your efforts. This means not just maintaining your current budget but increasing it. By raising the budget, you give the campaign the opportunity to reach a larger audience or generate more clicks. However, this increase should be monitored carefully because there are two possible signals indicating limitations on how much you can scale up.
First, the ad might reach a saturation point where it can no longer spend additional budget effectively. Second, increasing the budget might lead to a rise in your cost per click, which means it becomes more expensive to get each engagement or conversion. Both are signs that the current campaign has maxed out its capacity.
At that point, rather than continuing to pour more money into a saturated campaign, it’s wiser to duplicate the campaign targeting a new geographic area or demographic if applicable. This allows you to maintain efficiency while expanding your reach.
Step-by-Step Breakdown
- Identify that the ad is working: Confirm that the current campaign is producing positive results.
- Gradually raise the budget: Increase the budget incrementally to test if more spending yields comparable returns.
- Monitor spending and cost per click: Watch for signs that the budget cannot be spent further or that the cost per click is rising.
- Duplicate the campaign: Create a copy of the successful campaign targeting a new area to continue scaling effectively.
Real Examples
Imagine your ad campaign is running smoothly, and you see strong engagement. You start by slowly increasing the budget from $100 to $200 a day. The ad continues to spend this amount without negative effects on performance or costs. You raise it again to $300, but now you notice the ad is either not spending the full budget or cost per click begins to climb. This tells you the current campaign’s limit. Instead of pushing further, you duplicate the campaign and launch the new version targeting another location or demographic, allowing continued growth.
Common Mistakes
- Raising the budget too quickly: Sudden budget increases can cause cost inefficiencies or budget not being fully spent.
- Not monitoring cost per click: Ignoring rising costs can reduce your return on ad spend.
- Continuing to increase budget on a capped campaign: This wastes money once the campaign can no longer scale efficiently.
- Failing to duplicate campaigns for new areas: Limits growth potential and misses expanding your reach.
FAQs
Q: How do I know if the budget can’t be spent further?
A: You’ll notice that your daily spend stops increasing despite a higher budget setting.
Q: Why does cost per click increase when raising budget?
A: Increasing budget may expose your ad to less efficient audience segments, raising the average cost.
Q: Is duplicating the campaign the only way to scale?
A: According to this approach, duplicating the campaign to target a new area is the recommended next step once you hit scaling limits.
Key Takeaways
- Start raising your budget as soon as your ad shows it’s working well.
- Increase the budget gradually while monitoring spending and cost per click.
- Stop increasing budget when your campaign hits spending or cost efficiency limits.
- Duplicate the successful campaign targeting a new area to continue expanding.