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Problems with scaling out offers: Demo of ~500k (7)

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So I have a few campaigns up making around $150/day, but the spend is pretty low. I capped my cpc at a point where I know I will be making 100% ROI or greater, but capping the cpc at this level is at the tail end of their recommended bid. Rec bid is .13 - .35, my bid is at .12.

I have my budget set to $1000 a day but the campaign spends nowhere near that amount. Is my capping of the cpc limiting my traffic? If I wanted to scale this out and spend > 150-200 a day (I'd love to be spending around 400-500 a day on this), do I just increase my CPC cap and take the hit on ROI?

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Let's do the math here,

Which is better:

A) Spend $500/day at 50% ROI

B) Spend $200/day at 100% ROI

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Well I'm more asking about the way in which Facebook works that would be applicable, I'm getting pretty good CTRs on that demo, which I figured was the way FB granted traffic, not so much based on bid (but the evidence is gathering that bid is pretty important too).

I mean I could have my CPC double easily since they are quite low right now, if I lifted my cap, and then it's not really worth it if I spend $500 on 50% ROI while I can spend $200 for 100-200% ROI.

Have you tried scaling something like this in a similar position and if so, do your CPCs jump up more than you'd like? Of course I'll test everything, but just wanted some insight from others that have been there, done that.

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Yes this is exactly what you need to do if you want more traffic. Or you need to test new ads that get even higher CTRs.

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Sometimes it seems that there is no rhyme or reason as to how FB works.

You'll definitely need to test this out to see what works. We could all speculate about what will happen but you won't know until you try it. Gotta remember that you're dealing with FB and normal logic does not always apply

I would create a copy of the ad in a separate campaign with a higher CPC. Track them both and let the numbers tell you which one makes you more money.

-Aaron

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So when I increased the budget and lifted my cap, the ad CTR's halved and the CPC doubled, essentially killing my profits. Pretty much the only thing to do here is to make better ads because ads that are good on a limited budget/capped cpc may not be as good when you try to scale.

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Lower margins on higher spending make you lots of money.

Higher margins on low spending is the reason why people never learn to scale.

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