To successfully scale your campaigns, it’s crucial to avoid common mistakes, as each misstep can cost you both profits and effort. This article covers the top 5 mistakes in scaling and provides practical tips to prevent them.
Mistake #1: Abrupt Scaling
Once a campaign has been tested, it might seem like increasing budgets severalfold will lead to greater volumes. This is a frequent beginner mistake and can lead to the following issues on major platforms:
- Account Blocks: Sudden budget increases on fresh accounts may raise suspicion from search engines and social media platforms.
- Reoptimization: Larger budgets can trigger the system to explore new audience segments, essentially restarting the optimization process.
- Rapid Burnout: If the budget depletes too quickly, you’ll have to pause the ads—more on this later.
The main issue with rapid budget increases is unpredictability. Even if a platform allows a sudden rise in ad spend, the likelihood that a $100 campaign will perform equally well on a $1,000 budget is low. For this reason, scale gradually, allowing time for optimization while monitoring results at each stage.
Solution: Increase the budget by no more than 20% per day, depending on the platform.
This rule applies to scaling by increasing ad spend in a single ad account. If you’re scaling by adding more accounts or traffic sources, you can move faster.
Mistake #2: Ignoring Lead Cost Trends
Eventually, the cost per lead (CPL) will rise—a natural consequence of scaling. As audiences saturate and become accustomed to your ads, the pool of potential customers shrinks.
A high CPL is a red flag that the campaign may need to be stopped or adjusted. If lead acquisition costs exceed profitability, the strategy may end up breaking even or operating at a loss.
How to calculate maximum CPL:
Payout per action × Approval rate=Maximum CPL
For instance, with an average approval rate of 30% and a payout of $10, the maximum CPL would be $3.
If the actual CPL approaches or exceeds this threshold, it’s time to halt or rework the campaign to reduce acquisition costs.
Mistake #3: Miscalculating Budgets
Different scales and budgets require tailored approaches. Even with a tested campaign, affiliates can’t overlook budget management. When funds run out, several issues arise:
- Insufficient Leads: You may fail to meet the advertiser’s minimum lead requirements.
- Campaign Pauses: Stopping campaigns for budget reasons necessitates reoptimization upon restarting.
- Payment Issues: Failing to pay for ads on time could result in your payment details being blacklisted.
To avoid these problems, plan your budget based on payout frequency. Daily payouts are the easiest to manage, but if payouts are monthly, ensure you have a 30-day reserve.
For classic scaling (daily budget increases), you can predict expenses using the formula for the sum of a geometric progression:
Add costs for tools and resources to this amount. If the total seems excessive, consider testing cheaper traffic sources, negotiating faster payouts, or slowing the scaling pace.
Mistake #4: Neglecting Data Collection
Simply increasing budgets during scaling can quickly lead to rising CPLs. To maintain efficient lead costs, monitor audience reactions and refine strategies.
Key metrics to track:
- Click Statistics: Identify which ad creatives perform best.
- Scroll Depth: Analyze where users drop off on landing pages to optimize content.
- Traffic Quality: Discuss lead quality with managers to identify ineffective targeting or irrelevant audiences.
- Local Context: Keep up with regional news that might impact campaign performance.
- Placement Stats: For teaser and push networks, evaluate the performance of each site displaying your ads. Add ineffective sites to blocklists.
Monitoring these metrics will help optimize campaigns as you scale, adapting to the unique needs of new audiences.
Mistake #5: Relying on a Single Traffic Source
Focusing exclusively on one traffic source can eventually lead to stagnation, particularly with smaller networks like banner ads, push notifications, pop-ups, or email lists.
Once you’ve exhausted the available audience, results plateau even as budgets increase.
Solution: Diversify by exploring additional traffic sources or wait for platforms to refresh their audience pools.
Conclusion
Scaling is a critical process that determines the profitability of your campaigns. Avoid the mistakes outlined above to increase your chances of successful growth and maximize your strategies’ potential.
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