There is a very simple rule when it comes to advertising.

Control = Profitable scaling

Unfortunately this is where many fall off, namely because they do not have the correct foundation to scale ads in the first place. So here is a complete guide to how we did this for BOSANT and Treningsgiganten.

Metrics og KPI's

To scale an ad account you must base scaling on actually achieved numbers.
This involves knowing exactly what you should look at, why and what you make decisions based on.

1. Here are the concrete metrics I base scaling on:

   • Ad spend [The most important]

   • CPM

   • Target CPA

   • Breakeven CPA

   • AOV

   • Target ROAS

   • Breakeven ROAS

Accounting Controll

Without good control of numbers, you will not scale profitably over time. It is that simple. This is the reason I always make sure to have control of the following:

• COGS (Cost of Goods)

• AOV (Important that it is from the correct source)

• Contribution margin (What are your variable costs)

• Calculation per product (including all costs)

If there are multiple products, you must have multiple calculations Use the numbers to calculate the following:

• Breakeven ROAS

• Breakeven CPA

• Target CPA

Margin after Contribution margin This must correlate with the marketing budget you have each month.