Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

Published on: December 25 2022 by The Facebook Disrupter

- Direct-to-consumer (DTC) businesses are growing in popularity, and Facebook Ads can be a valuable tool for scaling these businesses.

- However, there are different strategies for using Facebook Ads, including incremental lift with broad targeting and return on ad spend (ROAS) or marginal efficiency of return (MER) optimization.

Incremental Lift with Broad Targeting:

- This strategy involves targeting a broad audience and using Facebook's algorithm to identify individuals who are most likely to convert.

- The goal is to maximize the incremental lift, or the increase in conversions that can be attributed to Facebook Ads.

- Advantages of this strategy include lower costs per conversion and the ability to reach new customers.

- However, it may not be as effective for driving immediate sales or maximizing return on investment (ROI).

ROAS or MER Optimization:

- This strategy involves optimizing Facebook Ads based on their return on ad spend (ROAS) or marginal efficiency of return (MER).

- The goal is to maximize the ROI by targeting individuals who are most likely to generate revenue for the business.

- Advantages of this strategy include more precise targeting and the ability to measure and optimize ROI.

- However, it may be more expensive and may not be as effective for reaching new customers.

- Both incremental lift with broad targeting and ROAS or MER optimization can be effective strategies for scaling a DTC business with Facebook Ads.

- The choice of strategy will depend on the specific goals and resources of the business.

- Experimentation and testing may be necessary to determine the most effective approach.

Table of Contents About Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

In the world of digital marketing, there is a significant rift between lift versus robust incremental lift versus return on ad spend. This gap lies between the best marketers with elaborate campaigns and those who believe broad targeting doesn't work. However, this is not always the case, and there are many factors to consider when it comes to the value and volume of users you are reaching.

Factors to Consider:

- Lift versus robust incremental lift versus return on ad spend

- The difference in business models for different companies

- The raw numbers and their impact on future cash flow

- The cost of targeted audiences versus broad targeting

- The accuracy of interest groups and lookalike audiences

- The liability you create for Facebook's business model

- Creative testing and the importance of dcts at Broad scale

- The impact of reaching twice as many people

- The importance of looking at channels outside of Facebook for revenue

- The significance of incremental lift for business growth

While it may be tempting to focus on return on ad spend, it's important to consider the bigger picture and the impact of incremental lift on future cash flow and projectable results. By looking at channels outside of Facebook for revenue and reaching a broader audience, you can increase the efficiency of your marketing efforts and grow your business. It's crucial to understand the raw numbers and their impact on your business model and to prioritize incremental lift over return on ad spend.

Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

Scaling a DTC business with Facebook Ads: Incremental Lift w/ Broad Targeting vs ROAS or MER

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