To maximize profitability during peak sales events like BFCM and navigate the post-holiday dip, e-commerce operators must strategically manage ad spend with cost controls. This episode highlights how to scale budgets effectively when performance is high and, critically, how to adjust controls immediately after a sale to prevent overspending on underperforming ads.
Key takeaways
Don't prematurely lower cost controls during peak sales (BFCM) even with discounts, as conversion rates are likely to double, allowing higher spend at lower CPAs.
After a major sale, immediately reduce cost controls by a minimum of 25% to prevent Meta from overspending on underperforming ads, as its algorithm will assume continued peak performance.
Increase creative asset volume significantly before major sales to allow ad platforms to scale spend profitably against cost controls (e.g., doubling creative assets can double the probability of scaling ad spend).
Be prepared to adjust cost controls daily as a media buyer, especially around sales events, as performance dictates optimal spend, not fixed daily budgets.
Consider running BFCM sales for an extended period (e.g., the entire month of November) to allow ad campaigns to optimize fully and capitalize on prolonged consumer purchase intent.
Themes
ad creativepaid acquisitionperformance marketingseasonality
In this episode, your hosts Cody and Taylor discuss the recap of Black Friday Cyber Monday (BFCM) and the concerns and strategies of clients during that period. They highlight the importance of cost controls and how they can be used to scale ad spend efficiently. They also share success stories of brands that utilized cost controls effectively during BFCM. The conversation then transitions to the strategies for Q1, with a focus on health and wellness brands and an emphasis on the need for a creative flywheel and the benefits of seeding with a variety of content. This episode concludes with a reminder to take full advantage of the low CPMs during the Christmas and New Year period.
01:33 Recap of BFCM
08:52 Cost Controls and Scaling
09:22 Brand Highlight: Omni-Channel Worldwide Betting Brand
15:22 Brand Highlight: Clean Supply Company
21:34 Heading into Q1
25:48 Importance of Creative Volume and Variety
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Frequently asked about this episode
What does this episode say about ad creative?
Don't prematurely lower cost controls during peak sales (BFCM) even with discounts, as conversion rates are likely to double, allowing higher spend at lower CPAs.
What does this episode say about paid acquisition?
After a major sale, immediately reduce cost controls by a minimum of 25% to prevent Meta from overspending on underperforming ads, as its algorithm will assume continued peak performance.
What does this episode say about performance marketing?
Increase creative asset volume significantly before major sales to allow ad platforms to scale spend profitably against cost controls (e.g., doubling creative assets can double the probability of scaling ad spend).
What does this episode say about seasonality?
Be prepared to adjust cost controls daily as a media buyer, especially around sales events, as performance dictates optimal spend, not fixed daily budgets.
What does this episode say about ad creative?
Consider running BFCM sales for an extended period (e.g., the entire month of November) to allow ad campaigns to optimize fully and capitalize on prolonged consumer purchase intent.
