-
Sustainable CPA ~ Increase budget? (FB ADS)
So, I’ve run into this quite a few times. Making decent profit from certain adsets, to the tune of $35 \~ $50 CPA (purchase) on a $134 \~ $174.99 product with 92% profit margins (850% of it profit), would prefer it lower, like $18 \~ $25, but it’s sustainable & profitable.
Do I increase these ad sets so they may leave the learning phase after 50 purchases per week? Will CPA cost decrease?
-
1 Reply
-
Typically when scaling advertisements, the margin % decreases due to increase of cost. This is because as your Target audience increases, the chances of those audiences willing to make purchase at the same % also decreases.
This doesn’t mean you shouldn’t scale. While the % might decrease, consider this senario, would you rather make 70% of 10k or 50% of 50k ?
Log in to reply.