What I’ve learned spending close to $1M on Facebook ads

If you think getting high-performing Facebook ads is like winning the lottery, you couldn’t be more mistaken. After spending over $900,000 on Facebook ads across multiple industries—including eCommerce, real estate, festivals, and mobile apps—at SH1FT, we’ve gained valuable insights into what makes ads successful.

Facebook advertising is an intricate game of data, strategy, and adaptability.

Those who see consistent results know far more than those who struggle to make it work. Here are some essential lessons we’ve learned from managing high-budget Facebook ad campaigns that actually drive results.

1. Start with a Bigger Audience Than You Think You Need

A common mistake among new advertisers is trying to over-target and refine their audience down to the most specific niche possible.

They end up with an audience size of around 100,000 people, thinking this precision will lead to better conversions. But in reality, this is far too small.

Facebook’s interest-based targeting is not foolproof.

The platform might assume that I enjoy hunting just because I watched a wildlife documentary, even though I’ve never gone hunting in my life.

This is why it’s crucial to start with a broader audience—at least one million people—so Facebook’s algorithm has enough data to find the most relevant users for your offer.

The algorithm is your best friend; let it do the heavy lifting.

2. Retarget with a Large Enough Audience

Segmenting your retargeting audience too early can be a major setback. Some advertisers make the mistake of breaking their retargeting campaigns into multiple micro-audiences—people who visited the site in the last 7 days, 14 days, or 21 days.

At the start, it’s much better to consolidate all your custom audiences into one large group. This prevents over-exposure, where people see the same ad too many times, which leads to ad fatigue.

When your audience pool is too small, your ad frequency skyrockets, and your conversion rates plummet. Keep your retargeting audience broad initially and refine it as you scale.

3. Don’t Scale Until You Have Consistent Results

woman working on laptop
Scaling Facebook ads too soon is one of the biggest mistakes advertisers make.

Scaling Facebook ads too soon is one of the biggest mistakes advertisers make. Just because you spent $2 and made $10 in one instance doesn’t mean you should immediately ramp up your budget to $100 per day.

A single sale doesn’t indicate success—it could be pure luck. You need consistent results over at least two weeks before considering scaling. Aim for a steady flow of conversions, ensuring that your ad strategy is solid before increasing your budget.

Scaling prematurely can cause unnecessary waste and lead to erratic performance.

4. Retargeting Is Where the Real Money Is

If you’re not investing enough in retargeting, you’re leaving money on the table. While many advertisers allocate the bulk of their budget to cold audiences, the reality is that the highest return on ad spend (ROAS) usually comes from retargeting.

Your past visitors, engaged users, and previous customers are the most valuable audience segments. You should spend just as much time creating high-quality, compelling ads for your retargeting audience as you do for cold traffic.

Remarketing is the key to turning interest into conversions.

5. A Low CPC Doesn’t Always Mean Success

Many advertisers obsess over cost-per-click (CPC), believing that lower CPCs automatically translate to better performance. But cheap traffic doesn’t mean profitable traffic.

Would you rather have 1,000 visitors with only one conversion, or 50 highly targeted visitors that result in four conversions?

The latter is far more valuable. Instead of focusing solely on CPC, measure the real impact by tracking your overall return on ad spend (ROAS) and customer acquisition cost (CAC).

These are the metrics that truly determine success.

6. Analyze and Optimize Your Demographics

It’s not just about reaching people; it’s about reaching the right people. That’s why demographic analysis is crucial.

Monitor the age groups, genders, and locations that generate the most conversions. But don’t rush to conclusions too quickly. You need at least 2,000 to 10,000 data points before making any decisions.

Making changes based on small sample sizes will lead to misleading results and unnecessary adjustments that can hurt your campaign.

7. Prepare Before Scaling Your Budget

money bills
Scaling isn’t just about increasing your ad spend—it requires careful planning.

First, ensure your credit card has a high enough limit to handle your planned spending. If your payment gets declined, your ads may pause, causing you to lose momentum and optimization. Having multiple credit cards or backup payment methods can prevent unnecessary disruptions.

Second, check that Facebook allows you to spend the daily amount you plan to scale to. Some accounts have ad spend limitations, and you don’t want unexpected restrictions when you’re trying to grow.

Finally, be patient. Sometimes, spending $100 per day gives you the best results, while other times, $100K per day might be the sweet spot.

The key is to scale systematically, testing different budget levels until you find the optimal spending amount for maximum profitability.

What Truly Matters in Facebook Ads?

woman working in marketing
Once you’ve nailed the technical aspects of running Facebook ads, the real magic happens when you understand audience psychology.

You’re not just running ads; you’re building relationships. The best-performing campaigns come from brands that already have strong connections with their customers. If your audience resonates with your brand, your ads will perform better because they aren’t just advertisements—they’re extensions of an already engaging brand experience.

At the end of the day, Facebook is just a distribution platform.

The power of your campaign lies in the entire marketing strategy behind it. From brand positioning and content strategy to customer experience and social proof, every piece of the puzzle plays a role in your success.

Master the fundamentals, test rigorously, and scale smartly.

When done right, Facebook ads can become one of the most profitable channels for growing your business.

Final Thought

The next time you launch a Facebook ad campaign, remember: It’s not a game of luck—it’s a game of skill, data, and persistence. Implement these strategies, keep refining your approach, and watch your results skyrocket. Happy advertising!