Solved: Meta Ads - Ad Spend vs. Number of Ads in Campaign

Hi there,

Thanks for getting in touch! Happy to give you some initial thoughts and guidance based on my experience with Meta Ads, specifically ASC campaigns. Sounds like you're on the right track, but there's a few things I'd consider before rigidly sticking to a "one new ad per $50" rule.

We'll need to look at Performance Metrics...

The most important thing is to monitor your key performance indicators (KPIs). If you're scaling your budget and your cost per acquisition (CPA) is rising, or your return on ad spend (ROAS) is declining, it's a sign that your existing ads are becoming saturated. In this case, introducing new creative makes sense. However, if your CPA is stable and your ROAS is holding steady as you increase spend, adding more ads might not be necessary. You could even dilute performance by splitting the budget too thinly.

One thing to watch out for is ad fatigue. As your audience sees your ads more frequently, they become less responsive. Keep an eye on metrics like click-through rate (CTR) and conversion rate. A significant drop in either of these metrics can indicate ad fatigue and a need for fresh creative. We've seen this loads of times, particularly with retargeting campaigns. The CTR just plummets after a while.

I remember one campaign we worked on for a software client. We saw great results initially, but as we scaled the budget, the CPA started to creep up. We introduced new ad variations, but it didn't really move the needle. What ultimately worked was refreshing the ad copy and using some UGC style videos. It gave the campaign a new lease of life and brought the CPA back down.

I'd say you Don't get Hung Up on Formulas...

I wouldn't get too hung up on a specific formula. It's more about understanding the underlying principles and adapting your strategy accordingly. The right number of ads in an ASC campaign will depend on a variety of factors, including your target audience size, your budget, your creative quality, and your campaign goals. Its better to focus more on CPA than following a formula. I'd rather spend more money if the leads convert, than save money and not get any leads.

When you increase your budget, give the existing ads time to adjust. Meta's algorithm needs time to learn and optimise for the new budget. Give it at least a few days before making any significant changes. If you're constantly tweaking your campaigns, you're not giving the algorithm a fair chance to work its magic. One thing I often forget is just how long it take Meta to adjust. So I'd bare that in mind when waiting before makeing any changes.

Also, remember that not all ads are created equal. Some ads will perform better than others. Meta's algorithm will automatically allocate more budget to the best-performing ads. Let the algorithm do its job, but also keep an eye on performance and pause any ads that are consistently underperforming. We've got a client currently who has some ads that just wont perform - this is normal!

You probably should Think About Placements...

Before adding new ads, consider optimising your existing placements. ASC campaigns automatically distribute your budget across all available placements, but you can adjust the placement settings to focus on the placements that are performing best for you. You can also exclude placements that are underperforming. We sometimes do this to rule out the obvious problems. For example, nobody really uses the Audience Network anymore, so we'll often turn this off right away.

Have you also considered testing different ad formats? Video ads, carousel ads, and collection ads can all be effective in ASC campaigns. Experiment with different formats to see what resonates best with your target audience. Also, remember that the creative is king (or queen!). High-quality visuals and compelling copy are essential for success with Meta ads. Make sure your ads are visually appealing and that they clearly communicate your value proposition. This is what many companies fail at so it's an easy win for you.

You'll need to Split Test Creatives...

If you're seeing diminishing returns as you scale, it's time to introduce new creative. But don't just add new ads randomly. Instead, focus on split testing different ad variations to identify what works best. Test different headlines, body copy, images, and calls to action. Run each variation for several days until you get statistically significant results.

Once you've identified a winning ad variation, create more ads that are similar to it. This will help you scale your campaign without sacrificing performance. It's also worth testing entirely new creative angles. Sometimes, a completely different approach can unlock a whole new level of performance. We've seen several SaaS clients see really good results with UGC videos - lots of angles to test there as well. One client saw a 30% increase in conversion rates after switching from professional-looking ads to raw, authentic UGC videos.

Remember, this is what works for us and our clients. Every business is different so you may need to test all of this and more. If you're looking for some more expert help then feel free to book in a free consultation. I've detailed my main recommendations for you below:

Scaling Meta Ads campaigns can be tricky, and it's easy to make mistakes that can cost you money. That's why many businesses choose to work with an experienced agency. An agency can help you develop a data-driven strategy, create high-quality ads, optimise your campaigns for performance, and scale your spend effectively. We've helped loads of businesses achieve significant growth with Meta Ads. If you'd like to discuss your specific situation and see how we can help, feel free to book a free consultation. We're always happy to chat and share our insights.

Regards,
Team @ Lukas Holschuh