How to Scale Facebook Ads in 2023

The easiest way to scale Facebook ads is to have more capital to invest and to have a larger allowable inefficiency within that investment. In order to do this, we all ultimately have to look at improving our unit economics.

Either we improve the PSM of a customer or the volume of customers. Improving the PSM can be done most easily by lifting the LTV. We can also have a smaller profitable scaling margin per customer if we have a higher volume of customers.

The economics of customer acquisition does not exist in isolation, however. Because we have existing customers, and because not all revenue is driven by paid acquisition efforts on the day of the revenue being acquired, the efficiency at which we need to acquire new customers needs to be weighed against our revenue floor.

How much money would you make today if you spend no money on ads?

This is our revenue floor, and this number should improve as we improve either the volume of profitable customer journeys we acquire or the profitable scaling margin per customer that we acquire. As this revenue floor goes up, so does the allowable efficiency of customer acquisition!

The most effective way to scale a brand is to scale your efficiency so that ultimately you can scale your revenue floor so that ultimately you can be less efficient at a higher volume. 

View Reddit by CTtheDisrupterView Source

Best website to start freelancing?

Less crowded & full of opportunities

Leave a Comment

Your email address will not be published. Required fields are marked *