We have a profitable low 5 figure monthly ad spend and we have to project a mid six figure monthly ad spend for funding purposes. We got to a profitable ad spend by snipping the campaigns that don't work. I really couldn't reliably tell anybody that I could go to mid six figure spend with anywhere near the same returns until I figure out what's working so I'm wondering if there is a way to give a more reliable ad projection than what we're currently doing or whether VC projections are as bullshit as this projection is turning out to be :)
Projections for scaling can be difficult.
For Facebook ads, part of the question will be whether you haven't captured all of your core audience because of budget. If you have narrowed down what's working and have been hamstrung by the spend, then Facebook projections can be pretty reliable as long as you're maintaining the core demographics.
For AdWords and paid search, if you're losing impression share due to budget then projecting based on that will be pretty reasonable. If you have to expand into new keywords to make the budget expansion happen, I would be conservative with the estimates and would not assume a 1 to 1 based on past performance.
Hope this helps!
best,
Paolo
Answered 11 years ago
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