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Duplicate Adsets or Raise Budgets? - Shopify Dropshipping Ep.9

Published on: December 21 2022 by Jonxpaul

In the world of Shopify dropshipping, there are many strategies that you can use to maximize your profits. One of the most common strategies is to duplicate ad sets or raise budgets. In this article, we will explore the advantages and disadvantages of both methods and help you decide which one is right for your business.

Advantages of Duplicating Ad Sets:

1. More Targeting Options: When you duplicate an ad set, you can target a different audience or geographic location. This can help you reach a wider audience and increase your chances of making a sale.

2. A/B Testing: Duplicating ad sets allows you to test different creatives, copy, and targeting options. This can help you identify what works best for your audience and optimize your ad campaigns.

3. Saves Time: Instead of creating a new ad set from scratch, you can duplicate an existing one and make minor adjustments. This saves time and allows you to focus on other aspects of your business.

Advantages of Raising Budgets:

1. Increased Reach: When you raise your ad budget, your ads will be shown to more people. This can help you reach a larger audience and increase your chances of making a sale.

2. Consistent Performance: If your ad set is performing well, raising the budget can help you maintain that performance and increase your ROI.

3. More Data: Increasing your budget allows you to gather more data on your ad campaigns. This can help you make more informed decisions and optimize your ad campaigns.

Disadvantages of Duplicating Ad Sets:

1. Increased Costs: Duplicating ad sets can increase your ad spend, especially if you are targeting a new audience or geographic location.

2. Cannibalization: If you have multiple ad sets targeting the same audience, they may compete with each other and decrease performance.

3. Limited Reach: Duplicating ad sets can only take you so far. Eventually, you will need to expand your targeting options to reach new customers.

Disadvantages of Raising Budgets:

1. Diminishing Returns: Raising your budget too much can lead to diminishing returns. Eventually, you may reach a point where you are spending more than you are making.

2. Limited Targeting Options: Raising your budget does not give you any new targeting options. If your current targeting options are not working, increasing your budget may not solve the problem.

3. Ad Fatigue: If your ad is shown too frequently, it may become less effective and lead to ad fatigue.

Both duplicating ad sets and raising budgets can be effective strategies for increasing your Shopify dropshipping profits. However, it is important to weigh the advantages and disadvantages of each strategy and determine which one is best for your business. If you are looking to expand your targeting options and test new creatives, duplicating ad sets may be the way to go. If you are looking to increase your reach and maintain consistent performance, raising budgets may be a better option. Ultimately, the key is to constantly test and optimize your ad campaigns to maximize your profits.

- Scaling a winning product is key to success in the ecommerce industry

- Beginner gurus often teach the duplication method, but it is not the optimal way to handle a winning product

- Raising budgets is a better method, and aggressive scaling is preferred

Methods for Scaling:

- Duplication method: taking a winning ad set and duplicating it multiple times

- This method is like gambling and is not optimal because each ad set has its own DNA

- Beginner gurus often recommend duplicating ad sets 10 times or more, but this is backwards

- The original winning ad set should be left alone and optimized

- A winning product is defined as having the majority of ad sets profitable

- Raising budgets is the optimal way to handle a winning product because it takes full advantage of profitable ad sets

- Most common scaling methods include raising budgets by 30-40% every 48 hours, but this is slow and lures in competition

- Aggressive scaling involves doubling or tripling budgets every 2-3 days until reaching an equilibrium of best net profit

- Margins do not matter as much as overall net profit

- Beginner level scaling should involve budget manipulation rather than the duplication technique

- Aggressive scaling is preferred to prevent competition from stealing data and maximize profits

- Product research and finding winning products is the biggest impact on success in the ecommerce industry.

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