The "Breakdown Effect" with Facebook Ads

facebook ads Aug 11, 2020

Ever wondered why your Cost Per Result skyrockets as your budget increases?

I was doing research this morning and came across "The Breakdown Effect" with Facebook.

"The delivery system uses both bidding and pacing to determine how to deliver your ads. Pacing is the mechanism that allows the budget to last the entirety of the schedule. Discount pacing lowers your bid when appropriate to help get the lowest-cost results available, balanced with ensuring we spend your full budget by the end of the campaign."

What does this mean?

Imagine you have a box of candy with 4 different colors.
​Blue, red, green, yellow.

You have to spend 4 hours picking out the blue candy.

At first, it's very easy because there's a lot of blue candy in the mix...

As the minutes go by, it becomes more difficult to identify the blue candy.

By the 3rd hour, you might be completely out of blue candy.. but you still have to keep going until 4 hours is complete.

Facebook works in the same way.

With a small budget, there's a lot of 'blue candy' for Facebook to acquire easily. This results in low costs.

But as you raise budgets and force Facebook to spend X per day, the results are more difficult to achieve.

So how do you overcome this?

It's easy. You create additional marketing to align with 'Yellow Candy', 'Green Candy', and 'Red Candy'.

This is why it's so important to build creatives for every marketing angle and why it has an entire module in Full-Time Ecom.​​

TLDR: Creatives for every angle will keep your Cost Per Result down as you increase budgets.

All the best,

Dylan
Founder of Pondir

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