Inside a Facebook ad account spending 20k/pm (How to structure an ad account for scale)

Inside a Facebook ad account spending 20k/pm (How to structure an ad account for scale)

Optimizing a Facebook Ad Account for Scaling: Insights from a $20K/Month Campaign

Introduction

Managing a successful Facebook advertising campaign for an eCommerce brand requires meticulous planning, strategic structuring, and continuous optimization. Recently, my agency embarked on onboarding a client with a monthly ad spend ranging from $10,000 to $20,000. In this article, I will share the insights gained during our initial audit and discovery call, illustrating how we structure and refine a small to medium-sized Facebook ad account to facilitate scalable growth and maximize returns.

Client Background

The client operates an eCommerce store in the health and wellness niche. Their marketing has been managed by an external agency for over a year. Although the account achieved a peak Return on Ad Spend (ROAS) of 6x in April last year, performance has steadily declined since, with last month’s ROAS averaging around 3x. While iOS 14 privacy updates likely contributed to this downturn, a deeper look revealed fundamental structural issues that exacerbated the decline.

Key Observations from the Initial Audit

  1. Common Errors and Oversights

During the audit, several minor but impactful mistakes surfaced:

  • Campaign Optimization Issues: Some campaigns aimed at landing page views (LPV) or add-to-cart (ATC) events instead of optimized purchase campaigns, which are more aligned with sales objectives.
  • Budgeting Practices: Use of lifetime budgets in certain campaigns led to irregular budget allocation, reducing control and predictability.
  • Audience Expansion: Many ad sets employed Facebook’s audience expansion feature, which hampers precise audience testing and scaling efforts.
  • Audience Stacking: Testing campaigns contained multiple interests within single ad sets, blending interests, lookalike audiences (LLA), and broad audiences, making it difficult to identify top performers.

  • Strategic Recommendations for Improvement

Our primary goal was to establish a more robust and scalable account structure, particularly focusing on top-of-funnel (TOF) campaigns and audience testing.

Top-of-Funnel (TOF) Strategy

The existing TOF campaign was underperforming, partly due to limited testing and poorly segmented audiences. We identified the following issues:

  • Overly Broad Ad Sets: Interest-based ad sets were pooled together in single campaigns, with some interest stacks containing 6-7 interests, diluting targeting precision.
  • Audience Expansion Usage: Several interest groups incorporated audience expansion, reducing control over who actually sees the ads.
  • Creative Quality: While creatives were varied and engaging, the targeting and structure needed refinement to improve efficiency.
  • Copy Weaknesses: The ad copy was more product-centric rather than problem-focused, which is less effective in the health niche where addressing specific pain points resonates better with audiences.

Proposed Solutions

To enhance testing and scaling, we recommend:

  • Campaign Segregation: Create dedicated testing campaigns with Ad Set Budget Optimization (ABO) for granular interest testing, and separate scaling campaigns with Campaign Budget Optimization (CBO).
  • Interest Testing: Segment interests into individual ad sets to track performance accurately. Regularly introduce new secondary and indirect interests to broaden the testing landscape.
  • Audience Refinement: Avoid blanket stacking and instead test interest groups separately to discover high-performing segments.
  • Creative and Copy Optimization: Sharpen the copy to include compelling hooks that emphasize the key problems your products solve, followed by detailed product information. Use a variety of creatives, including images, videos, and carousels, to identify what resonates best.

Middle and Bottom of Funnel (MOF & BOF)

Compared to TOF, our assessment of MOF and BOF campaigns was positive, with well-targeted audiences and satisfactory results. Key points include:

  • Effective Segmentation: Separate campaigns based on engagement and intent, such as website visits, content views, cart abandonment, and checkouts.
  • Creative Variation Deficit: Despite good results, there was limited creative testing at these stages. We recommend increasing creative diversity, especially UGC (User-Generated Content), which builds trust and rapport.
  • Strong CTA and Incentives: Incorporate clear calls-to-action and consider discount offers or special incentives to encourage conversions among warm audiences.

Holistic Account Strategy

While respecting the previous agency’s familiarity with the brand, we advocate for essential industry best practices:

  • Routine Testing: Commit to continuous experimentation across creatives, audiences, and placements.
  • Data-Driven Optimization: Feed higher-quality data into the pixel through refined audience targeting and creative strategies, enabling Facebook’s AI to optimize ad delivery more effectively.
  • Account Restructuring: Launch new campaigns aligned with this refined structure within the coming week, ensuring a foundation geared towards scalable growth.

Conclusion

Transforming a Facebook ad account from good to great involves systematic restructuring, diligent testing, and adaptive strategies. This is not about instantly scaling from zero to $100K but about methodically refining the account to unlock consistent, predictable growth. By focusing on strategic segmentation, rigorous audience testing, creative variation, and problem-focused messaging, brands can position themselves for sustained success on the Facebook advertising platform.

If you’re managing or planning to scale a Facebook ad account, consider these principles as a roadmap to build a resilient, high-performing campaign structure. Continuous learning, adaptation, and leveraging Facebook’s AI capabilities will be your strongest tools in achieving and surpassing your performance goals.

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