Unlimited success with unlimited budget

To start this blog off, let’s play a game of true or false:

The unlimited ad budget strategy is the smartest way to advertise.

This statement is as true as steel. With an unlimited ad budget, money can flow uninhibited into the marketing pot. Want to know how? Sit tight as we spill all the beans.

Now let’s get the ball rolling.

For the sake of this article, we will take two companies for an example:

FIRM A
TARGET CPO: $10
MONTHLY FACEBOOK ADVERTISING BUDGET: $10,000

The advertisers start running campaigns, keep track of the results and optimize them accordingly: turn off every ad with a CPO > $10 and scale what is below target, but still stay inside the lines of the monthly budget, no matter the results. This means that if the results are not favorable, the designated budget of $10,000 is still splurged. On the other hand, if their CPO is really low (which is good!), they are still limited with their budget of $10,000, can’t scale further and therefore can’t make extra profits. Kind of a bummer, if you ask us.

FIRM B
TARGET CPO: $10
MONTHLY FACEBOOK ADVERTISING BUDGET: not limited

Okay, now it’s Firm B’s turn. They too based their target CPO at $10 and are careful not to let their ads run wild. However, firm B does not have a set amount of dollars per month for advertising, but instead uses the unlimited budget strategy. This means that when they see which ads are bringing them sales, they keep increasing the budget and scale like there’s no tomorrow. That in turn, brings them more sales and catapults the profits into space.

See where we are going with this? You have to fish where the fish are. Swim with the sharks.

Marine metaphors aside, if you limit your budget for scaling you practically hang a closed sign on your store’s front door. The fact is that capping marketing spend, particularly for performance marketing, leaves sales on the table. There will of course be successful campaigns in both cases, but when your budget is limited, you can’t harness their full potential.

If you have not yet jumped on the unlimited budget bandwagon, you need to do it pronto. Suppose that we were selling $50 bills for $25, wouldn’t you want to buy as many as possible? Or would you say that you can’t, because your January budget for discounted bills amounts to $100 and that you will only take four.

Honestly, if unlimited marketing budget could speak, it would cite Michael Scott from The Office when he said:

From limited results to unlimited growth

The unlimited ad budget approach challenges advertisers to move away from the traditional budget-setting mindset and shift to a more strategic position. We know that at first the thought may seem as intimidating as dancing along to Wannabe by Spice Girls when you hear it blasting in the mall. But trust us, it brings in the big bucks.

It’s all about target CPO/ROAS

Now let’s look at another essential metric: target CPO/ROAS. The first thing you need are tangible goals. Nothing works if you do not define and stem from your target CPO or ROAS. This is how you know what works and what doesn’t.

In other words: drive decisions based on data rather than your gut instinct. When you see which ads are winning according to the criteria you have set, then you can use the unlimited ad budget strategy and watch your sales go through the roof.

When you calculate your target CPO/ROAS and optimize your ads with keeping it in mind, it doesn’t matter how much money you put in because if you push what brings you money even further, it all comes back in insane amounts. And if you keep your target metrics in check, there is virtually no limit on spend.

A scale a day makes the sales go cray

Why does this work?

Because you are not limited to spending for instance $50 per day. You can spend $500/day on advertising and scaling – if it makes you more sales and brings you more money, why not! Money starts flowing in when you start treating advertising as an investment and not as an expense. It is true that sometimes when you scale, CPO tends to rise a little or ROAS can lower, but if it stays within your boundaries and you make a 1000 more sales it’s still a win-win. At the end of the day, you earn more. It’s as simple as that: You make real profits by selling large quantities of products.

You may be thinking that this is the usual yada yada. However, we speak from experience. We have witnessed companies going from earning $10k a month to earning $1 million a month. And it’s all because they identified the most successful ads and scaled the *ROAR* out of them. Repeatedly.

Trust us when we say that the unlimited budget strategy is a big deal.

The sky’s the limit

The trick is to keep doing the thing that brings you success over and over again. The same goes for other ways of advertising. You can for example try PR articles or experiment with influencer marketing. If you see that this is your cash cow, let it moo! Just keep doing what brings you success and don’t think twice about investing your bucks into these newly found money makers.

What we’ve learned:

  • When your budget is limited, you can’t harness the full potential of Facebook advertising
  • If your ads are successful, you can’t take advantage of their potential because your budget is limited
  • If your ads aren’t performing well, it makes no sense to keep spending the designated budget
  • Unlimited budget creates real profits and brings sales to the table
  • You have to set target CPO/ROAS to see what works and what doesn’t

But how do you keep track of successful ads and evaluate them in detail?

We have the answer ready at our fingertips: With ROAS monster, of course. By using the app you will have real-time data of all your ad accounts easily accessible, you will sail through successful ads, and immediately see which are the right ones to scale. If you want to read more interesting articles and grasp more knowledge, check out our previous blog posts about the importance of AOV and real ROAS.

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