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Master the Transition to Facebook Ads Single Campaign Broad Targeting

Published on: November 17 2023 by Nick Theriot

Master the Transition to Facebook Ads Single Campaign Broad Targeting

Table of Contents:

  1. Introduction
  2. Background of the Facebook Ads Account
  3. The Problem with Multiple Campaigns
  4. Transitioning to Single Campaign Broad Targeting
  5. Setting up the Single Campaign
    • Setting the Daily Budget
    • Selecting the Best Performing Ads
    • Determining the Target Audience
  6. Scaling the Campaign
  7. Analyzing the Results
    • February Performance
    • March Performance
    • Improving the Three-Month LTV
  8. Conclusion

Transitioning a Facebook Ads Account to Single Campaign Broad Targeting

Introduction

Transitioning a Facebook Ads account from multiple campaigns to a single campaign broad targeting can have a significant impact on profit. In this article, we will discuss the process and steps involved in making this transition and the remarkable results it can yield.

Background of the Facebook Ads Account

The Facebook Ads account we will be discussing in this article was previously running multiple campaigns. However, these campaigns were not delivering the desired results, resulting in a monthly loss of $12,000. The average return on ad spend (ROAS) was 1.43x, with a monthly ad spend of $36,000 and revenue of $51,000. The three-month customer lifetime value (LTV) was $6,200, but it was not enough to offset the losses.

The Problem with Multiple Campaigns

The primary issue with having multiple campaigns in a Facebook Ads account is auction overlap. When different campaigns in the account target the same audience, they compete against each other in the auction. This leads to higher costs, decreased performance, and lower efficiency. In the case of the discussed account, the auction overlap was causing a high cost per thousand impressions (CPM) and negatively impacting overall profitability.

Transitioning to Single Campaign Broad Targeting

To address the issues caused by multiple campaigns, the decision was made to transition to a single campaign broad targeting strategy. This involves creating a single campaign with broad targeting settings to reach a wider audience and avoid auction overlap.

Setting up the Single Campaign

The single campaign was set up with a daily budget equal to 10% of the previous total daily ad spend, which was around $2,000. The best performing ads, determined based on spin and cost per action (CPA), were selected for the campaign. The targeting settings were set to broad to reach a larger pool of potential customers.

Scaling the Campaign

As the performance of the single campaign improved, the daily budget was increased by $20 per day. This increase in budget was achieved by pulling budget from other campaigns in the account. By gradually scaling the campaign's budget, the potential reach and effectiveness of the ads increased.

Analyzing the Results

The results of the transition to single campaign broad targeting were remarkable. In the first month of implementing this strategy (February), the ad spend increased to $62,000, but the profit reached $22,000. The 2,074 customers acquired during this period also showed the potential for increased value over the next 90 days.

The positive trend continued into March, with an ad spend of $100,000 and a profit of $35,000. The number of new customers acquired rose to 3,800, and the 90-day LTV reached $63,000. These results highlight the potential for continued growth and increased profitability with the single campaign broad targeting strategy.

Improving the Three-Month LTV

Although the business's gross margins were satisfactory at 70%, there was room for improvement in the three-month LTV. With an average order value (AOV) of $58 and a three-month LTV of $68, efforts were made to increase the LTV to approximately 70 to 75% of the AOV. By doing so, the additional revenue generated in the first 90 days could add to the overall profitability of the campaign.

Conclusion

Transitioning a Facebook Ads account to single campaign broad targeting can lead to a significant increase in profitability. By eliminating auction overlap and optimizing ad spend, businesses can achieve better results and a higher ROI. The important factors to consider are the campaign's daily budget, the selection of the best performing ads, and continuous monitoring and scaling of the budget. With the right approach, businesses can experience substantial growth and improved profitability in their Facebook Ads campaigns.

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