The Right Way To Use Facebook Ads - A Case Study

How does a brand that makes $150 million a year strategise for their Facebook ads? 

"Today, True Classic spends $200,000 a day on advertising, with a focus on Facebook’s AI targeting to help get the product in front of potential customers."

I am not saying this, An article by retail brew said it after interviewing the founders in 2022.

I wanted to break this down further and also highlight a few thing that caught my eye.

These can be crucial insights in how million dollar brands use Facebook ads.

My brain broke down the statement into three parts:

Part 1: True classics is spending $200,000 a day 

It clears out the fact that It is true. Good brands do spend 6 figures a day on Facebook ads.

People are not throwing out fancy numbers on YouTube and social media.

Companies that understand how facebook ads work and what the advertising platform was made for, get high volumes of conversions from facebook ads at scale, just like the case in point - True Classics

Part 2: With focus on Facebook's AI targeting

This part explains that they are one of those brands... Who truly understand why Facebook ads were created and how the platform has evolved.

They are aligned with the fact that Facebook ads is a business amplification platform... that uses AI to serve great ad to their users which will enrich the experience of that user in front of the most viable customer.

The customers gets the right products that will solve their problems. The advertisers gets conversions that generates revenue for them.

Due to the positive experience provided by Facebook to the customer and the advertiser

The customer will spend more time on Facebook

The advertised will spend more money on Facebook

Ultimately, Facebook also wins.

Part 3: To get the product in front of potential customers 

The brand is showing faith in Facebook's targeting abilities to get the attention of the right customers.

Unlike most advertisers who try to control this targeting system by using elements like... detailed targeting, custom audiences, lookalikes, cost caps and what not.

The brand is willing to give full freedom to Facebook's AI algorithm to find out the right customers for them.

This results in the most efficient cost per actions and great insights in return. It is also a learning curve for brands as they get to understand...

Who according to Facebook's AI is a better customer to go after for the brand.

Of course, it might be challenging to believe these insights at the first glance, but weather we like it or not these insights are spot on in terms of who your potential customer is.

After all, it is decision made by an AI that has gone through data of billions of customer profiles.

Finally, 

I want to mention this quoted statement of a co-founder of the brand that says...

“We kept putting content out and pushing budgets, for every dollar, we’re making $2. As long as that number wasn’t creeping down to break even, we were in a good spot,”

They were comfortable scaling at a 2x ROAS. In other words they cared less about ROAS and more about how they could acquire more customers.

In order to do so they kept putting out content or in other word kept making more better ads.

So from this breakdown I learned that, 

Scale is not a internet throwaway phrase, it's real.

Brands operating at scale use Facebook ads to reach a wide base of new customer instead of forcing spends and trying to control it.

They have faith on facebook's AI targeting and they focus on providing quality ad creatives which the AI can analyze and serve it to the right customers.

Smart brand don't worry about Facebook ads ROAS.

Hope you found this breakdown valuable.

Really appreciate you reading this,

Kaustubh