How to scale with Madgicx

The truth is that scaling your business is every owner’s dream. It’s also the dream of many advertisers who want a hand in their client’s success.

Well, what if I told you that Madgicx can help you along your journey to the point of scalability? 

No, we aren’t claiming that with Madgicx alone, you can become a gazilionnaire. But, when following the Madgicx recipe for scaling your ad creatives and audiences, you can bake something, well, Madgicxal.

With the right approach and some effort, you can do the groundwork that’s needed.

What do we mean by scaling?

Scaling your business means setting the stage in your business for unencumbered growth. Scaling a business usually requires a lot of planning, some funding, and a trifecta of great systems and processes, an excellent team, and your technology.

A simpler definition would be to increase revenue at a faster rate than your costs. 

Sounds great, right?

The tricky part is ensuring you can meet the demands of your growth in terms of product volume and infrastructure. Once you know you’re able to meet a higher demand, you can use advertising on Facebook as a way to scale your business.

What is vertical scaling?

When we talk about scaling, some of us will have vertical scaling in mind. This is optimizing your ads and increasing the budget on successful ones incrementally, scaling upwards. This can be a lengthy and costly process and slow going before you reap definitive rewards. It’s also risky to have all your budget banked on one ad.

Vertical scaling often works well for more substantial daily budgets. 

Don’t forget about the learning phase - every manual adjustment you make to your ad set puts it back in Meta’s learning phase, which can take long to produce good results again. This is unless you use Madgicx AI Bidding, which bypasses this process, meaning your ad isn’t disrupted with a bid adjustment.

Keep reading to see how Madgicx uses vertical scaling.

What is horizontal scaling?

Now, with horizontal scaling, you take your winning ads and use them across different audiences you’ve identified in the testing process, giving them each a similar budget. 

This way, you may find that your winning ad creative that yields a high return may work well across many different audiences, so it scales out, not just up.

Vertical & Horizontal Scaling - how to scale with Madgicx

You would do this by duplicating your winning ad creative to create new ad sets, each with a unique audience to test but with the same budget. 

Although it may take a little while to start seeing results, horizontal scaling is a much less risky option, as you have your eggs in many baskets with the potential to yield exponential results. Horizontal scaling is a favored approach for advertisers of both small businesses and larger companies.

At Madgicx, we like to use a combination of both; you’ll see how further down. 

So, where do we begin?

Testing your ads

No one knows how an audience will react to their ad. If they did, creative agencies wouldn’t exist. You can’t assume what will resonate with your audience; you can only test different ad versions.

There are so many factors that go into a successful Facebook ad, like appealing creatives, the right messaging, ad format, and ad type. 

Unless you conduct split testing on your ads, you won’t know for sure which ones have better results and why. This is where Madgicx comes in because it analyzes the performance of all of these elements, giving you a clear idea of what works and what doesn’t with your audience. 

This way, you can assemble a super ad from the best-performing creative elements.

In this article, we’re focusing on how to scale, not test ads, so you should read our in-depth explainer article on how to A/B test your ads using Madgicx if you’re not sure how to do it.  

In a nutshell, you should:

  • Test all your ad formats and variations - Use “Creative Insights” in the 360° Meta Audit menu to guide you on formats and variations missing from your account.
Missing ad formats highlighted in Creative Insights
  • Use broad audiences for testing - Broad audiences let Facebook’s algorithms decide who to target. You can create them in the “Audience Launcher.
Broad audience option in the Audience Launcher.
  • Protect your budget - Add a stop loss automation, and another one to turn off ads during the hours of the day that don’t perform well. You can see this performance in “Auction Insights” in the 360° Meta Audit menu.
Days and Hours widget in Auction Insights.
  • Let them bake - Let them run for at least a week or until they’ve spent more than double your average cost per purchase so they’ve gathered enough data.

Once you’ve A/B tested your ads thoroughly and all ad formats and versions have accrued enough data, you can then move on to the next step… scaling your ad creatives while testing target audiences.

Creative scaling and audience testing

After testing creatives, you can take the winners and test audiences to understand if specific audience segments work better than broad for you. That's horizontal scaling: winning creatives across multiple audiences.

Here’s how to do this in Madgicx.

  1. Head to the “Audience Launcher” and select your winning creatives when creating new audiences.
Audience Launcher in Madgicx.
  1. Create and test new lookalike audiences based on the high-performing audience segments you identified in your prep work. Play around with the lookalike percentage, try adjusting your recency settings to 30, 60, 90, and 180 days, then test them all. 
  2. Discover and try new similar interests in the “Audience Studio.” You’ll find Madgicx’s suggestions listed for you. You can mix them with other audiences you’ve created to create new ones with all the criteria you’ve specified. 
Create new audiences in the Audience Studio in Madgicx
  1. Launch the “AI Marketer’s” interest suggestions when it identifies new ones.
Launch AI Marketer suggestions
  1. Launch these creatives into existing ad sets in the “Ad Launcher” if you already have scaling campaigns running, or you can create a new one.
Launch winning creative into existing ad sets in the Ad Launcher.
  1. Use “Targeting Insights” and “Audience Studio” to analyze audience performance and pick your winning audiences.

Audience scaling

Once you’ve let your audiences gather some data and have winning ones, you can scale them using these Madgicx tools. Remember, we’re focusing on Acquisition audiences as these are potential new customers.

  • Use Automation to scale vertically - Increase the budget of your winning ad sets by 20% every 2-3 days for as long as the positive momentum is maintained. If you're less conservative, you can scale even more aggressively. 
  • Use AI Bidding to scale more efficiently - To use on large audiences that have big budgets, like your Acquisition stage audiences. AI Bidding is a bid-modifying feature that helps you spend your ad budget on the right audience segments. It will analyze your ad set to identify any underperforming audience segments and automatically reallocate their budget to the audience segments within the ad set with better results. First, you should duplicate ad sets to create a backup and benchmark, then use AI Bidding on the old ad set because it needs the historical data. The best part is if you only use AI Bidding, it doesn’t cost you more or send the ad set back to the learning phase, so you skip those delays and see results faster than doing it any other way.

AI Bidding is only available to Madgicx users, and you can find it in the second column of the ‘Ad sets’ tab in the Ads Manager 2.0.

AI Bidding in the Ads Manager 2.0.

You can slide the toggle to activate it or you can implement the AI Marketer suggestion when it comes up.

Now, you’ve scaled both your ad creatives and your audiences to build super ads and super audiences. The world is your oyster!

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