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DATA & DECISIONS . Scaling Business Services . 2020

Online Business Account Restructure

A new account structure took return on ad spend from 2.2 to 3.3

Andy Houston author chipBY ANDY HOUSTON
2.2→3.3
return on ad spend
~$60K
extra profit
2 weeks
to make the change
+50%
stories over feed

Context

The owner ran a business with about a million visitors a month. Some of his customers had stayed six or seven years by his numbers, starting on a $15 product and reaching $6,000 to $10,000 in lifetime value. He ran his own Facebook ads and joined the coaching program of the agency I worked at, where I coached.

Problem

His ads returned 2.2 times what they cost. Small choices in the account's structure carried real money at that traffic: how tests were split, which placements got budget, and how far to trust Facebook's own numbers.

Approach

He applied a new account structure and rebuilt his split-testing process in a new ad account in his first two weeks of coaching. Then he asked about having the agency run the account, so I audited it. The audit found three things. Most of the targeting still ran worldwide, so segmenting it more carefully was the next gain. His Instagram stories placement was consistently doing about 50% better than the Instagram feed, and beating Facebook as well, which made a stories-specific funnel worth testing. And Facebook's attribution was likely at least 10 to 20% off from what was really happening, which I told him before any plan was built on it.

Stack

  • Facebook Ads
  • A new ad account and testing structure
  • Placement and age breakdowns
  • Attribution check against the business's own numbers

Result

+$60K
profit from a restructure

His return on ad spend went from 2.2 to 3.3, then 3.4, and the change was worth about $60,000 in extra profit. He then asked the agency about running the account, with an audit to scope it.

+$60K · PROFIT FROM A RESTRUCTURE

Return on ad spend went from 2.2 to about 3.3 after the restructure, worth about $60,000 in extra profit.

Impact

The whole gain came from the account's structure, and he made the change himself with coaching, so the skill stayed in his business. The audit gave him the next moves and a warning about how far to trust the platform's numbers.

Lessons

Look at how the account is built before buying more traffic or making more ads. Here the structure alone moved return on ad spend from 2.2 to about 3.3.

Why this matters to you

For owners and in-house marketers who run their own Facebook ads.

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