With a looming recession making headlines all summer, many companies are hyper-concerned about their growth coming to a halt and revenue flatlining. If that’s the case for you, you might be faced with two conflicting tasks:
- Reduce spend 💲
- Increase revenue💰
You’re trying to save money and make money, and that’s exactly why you need to run more ads. Thankfully, launching many controlled ad tests will help you to reduce your CPA and increase revenue exponentially in a short amount of time.
Reduce CPA by 1.6x in just 2 months
Here’s a real CPA trajectory of one of our partners that increased the amount of ads they were running:
Monthly ad spend: Approximately $200k
👉 Savings of about $240K in the first 2 months, and $1.07 Million in 6 months, compared to if they kept the same CPA.
👉 Increased purchases from ads by about 53% in just two months, and 89% in 6 months.
Here’s how we did it (and how you can, too)
We call it the Outlier Method:
- Launch a new big idea ad set.
- Pause ads that are underperforming.
- Increase budget to your wins (A.K.A. “outliers”) and pause everything else.
- Scale wins by creating at least 3 iterations each.
- Iterate on your winning iterations.
Finally, repeat the whole cycle with a brand new big idea ad set. But you have to move quickly.
The key to saving money: act quickly
When it comes to pausing and scaling, don’t wait for statistical significance. By that point, you’re wasting money on underperforming ads and the opportunity cost of scaling your wins. Here’s what your timeline should look like:
- Start pausing underperforming ads within 24 hours
- Find and move budget to the outliers by day 3
- Start making creative iterations of your outliers to launch ASAP
- The Outlier Method should be completed within 1-2 weeks for each big idea
- At least 2 big ideas launched each month
The key to ad performance: great creative, and lots of it
Ready to launch more ads to reduce your CPA? You’ll need a lot of great creative. For each big idea, you’ll need about 20 creative assets. When scaling the wins, you’ll need about 20 more. If done twice a month, you’ll need about 80 creative assets per month. If this seems out of reach for you, we can help, just like we helped our partner above.
Your Growth Partner
Need high-quality ad creative fast? Use Primer’s on-demand online platform to get videos, images and landing pages produced by top marketing designers.
If you’re looking for help scaling and testing your ads, you’ve come to the right place. We’ll handle it all for you – the creative strategy, design, production, reporting, and media buying. You just enjoy the wins.