How to Scale Facebook Ads Dropshipping (Horizontal + Vertical)

Introduction

In this guide, we'll explore effective strategies for scaling your Facebook ads, especially if you've already identified winning ads from your initial testing campaigns. This approach is particularly timely as we gear up for Black Friday, a prime opportunity for maximizing sales in your dropshipping business.

My Experience

Having been in the dropshipping industry for over four years, I have managed to generate more than £4.1 million in sales through a single branded niche dropshipping store, investing around £1 million in ads. In my most recent metrics, I recorded 1.2k in sales from 26 orders with 2,000 sessions. Some may question my 1% conversion rate, but the performance should be assessed in relation to the cost per click (CPC).

Understanding Conversion Rates

A 1% conversion rate might seem underwhelming, but its effectiveness is contingent on your CPC. For instance, my CPC stands at approximately 17p (around $ 0.20). This translates to about £17 for every 100 visitors. Therefore, to cover ad costs, I need less than one sale in that group of 100 visitors. In contrast, a higher CPC (like $ 1) implies the need for at least $ 100 in sales for ROI. Additionally, your average order value (AOV) plays a crucial role; if it's low, it may hinder your ability to cover ad costs—even with a reasonably low CPC.

Analyzing the Campaign

Taking a closer look at one of my campaigns, which utilizes ad set budget optimization (ABO), I've conducted extensive testing over the past few weeks:

I have switched off underperforming ad sets.
For successful ones, I employ two scaling approaches: horizontal scaling (duplicating ads) and vertical scaling (increasing ad budgets).

When performing vertical scaling, I often increase budgets randomly rather than mathematically calculating precise percentages. For example, if an ad is performing well with a return on ad spend (ROAS) of 8.8, I'll bump it up significantly. As Black Friday approaches, it's crucial to adjust the budget swiftly to capitalize on successful ads.

Data Monitoring

While scaling, it’s essential not to rely solely on one day’s data. I analyze a combination of daily, three-day, one-week, and two-week views to ensure that I make informed and reliable decisions.

Sometimes, my ad tracking can be misleading, showing only £500 in sales on Meta when I've actually achieved £1.2k. This discrepancy can affect ROAS calculations, so it's vital to approach metrics with a nuanced perspective.

Scaling Strategies

Vertical Scaling

To scale vertically, consider the following:

Increase Budgets: Gradually raise your ad set budgets by 10-50% every few days or even daily. You can actively monitor performance and adjust even throughout the day during high sales periods.

Horizontal Scaling

For horizontal scaling, the process involves:

Duplicating Successful Ad Sets: This allows you to test new ads while retaining effective setups.
Targeting Winning Locations: After identifying which countries perform best, focus your ad targeting on those regions. Eliminate countries that haven't brought in consistent sales.

Testing New Interests

In conjunction with testing new ads, consider adjusting your target interests. Begin by removing previous interests and selecting new ones suited to your niche. Aim for an audience size above 20 million to ensure ample reach.

After making these changes, it's always a good idea to rename your campaigns to reflect your updated targeting strategy for better organization and efficiency.

Conclusion

By utilizing both horizontal and vertical scaling techniques, you can effectively enhance your Facebook ad campaigns and maximize profitability in your dropshipping venture. Analyze performance rigorously, make data-driven decisions, and be prepared to adapt your strategy quickly.

Keywords

Facebook Ads
Dropshipping
Scaling
Conversion Rate
Cost Per Click (CPC)
Return on Ad Spend (ROAS)
Horizontal Scaling
Vertical Scaling
Average Order Value (AOV)

FAQ

1. What are horizontal and vertical scaling in Facebook ads?
Horizontal scaling involves duplicating successful ad sets to test new variations, while vertical scaling focuses on increasing the budgets of existing successful ads.

2. How should I evaluate my ad performance?
Evaluate your ad performance through multiple timeframes: daily, three-day, one-week, and two-week views to ensure reliable decision-making.

3. What is the importance of average order value (AOV)?
AOV is critical because it determines how many sales are needed to cover advertising costs. A higher AOV generally allows for better profitability even with lower conversion rates.

4. How do I adjust my targeting based on performance?
Analyze which countries and interests perform best and tailor your targeting accordingly by switching off underperforming areas and focusing on the top performers.

5. What if my ads are showing fewer sales than expected?
Sometimes, ad tracking systems like Meta may not accurately report all sales. Thus, it's essential to look at overall trends rather than just one day's metrics.