Monthly Ad Spend


Scaling an Ad Account to $17,000 / Day While Reducing CPA by 25% for a Coffee Company



Scaling an Ad Account to $17,000 / Day While Reducing CPA by 25% for a Coffee Company

Today, I wanna share something crazy.

It’s the results from a campaign we ran for one of our premium agency clients, Vitacup.

Vitacup is a company from San Diego, California that make vitamin and superfood infused coffee and tea products.

They were on a mission to grow their company… but they were stuck.

Vitacup were past 7 figures in revenue, but their cost to make a sale was well over $50 and super inconsistent.

Worst of all, they were burning through investor cash fast… with a 3 month payback period on LTV (lifetime value of a customer).

From an ad perspective… they were having issues scaling their account.

The goal was to keep their CPA (cost per acquisition of a customer) under $50 and scale to $140,000 / month.

So – before we started – we did an audit of the account to get clear on the best strategy moving forward… and there was 4 key issues:

The client had way too many different offers & landing pages running at the same time.

It was virtually impossible to know which was working.

As we all know… 80% of sales come from 20% of your marketing efforts – but we didn’t know which 20%.

The conversion value wasn’t set… so the ROAS (Return on Ad Spend) data was irrelevant – making it impossible to optimise.

Next to no lookalike audiences were used… only interest targeting.

Rules were not used in the ad account to optimise the campaigns… and overall – the account lacked structure.

Oh and here’s the crazy part:

Over 400 campaigns were uploaded in the previous month alone.

This was a recurring pattern, where 50 campaigns would be uploaded every few days to try and stop campaigns from dying off.

As you can imagine… that’s a lot of work, it’s super annoying, and most of all… it’s not necessary to get great results.

Now – just to be clear:

This is absolutely no shot at whoever had run this account before… 

It was simply the situation we were in.

We identified the quick wins we could see to help Vitacup dominate and scale as quickly as possible.

Here’s what happened next:

We created 2 landing pages with clear offers and prepared to only run ads to those.

Based on the historical performance of the account, we created a clear & coherent structure for the campaigns to follow.

Here’s what it looked like:

We launched high budget CBO (campaign budget optimisation) campaigns.

Inside them, we used dynamic creatives, so we could test multiple ad images, videos, and versions of ad copy at once.

Spend was at $800 – $1000 / day per campaign with 10 adsets each inside them.

We put the best performing audiences from the past in the adsets… and included Lookalike audiences throughout.

Madgicx was harnessed so we could find new audience pools to further optimise the CPA.

Now – why did we do these things here?

Well firstly, we wanted to cover off a common mistake people make when it comes to scaling ads.

So many media buyers, and companies, struggle with scaling their campaigns.

But one of the easiest ways to scale is simply start your campaigns at a higher budget.

Sounds way too easy – but trust me, it works.

By starting our campaigns at higher budgets, and combining the best audiences and creatives, we were able to reach the 50 conversion per day threshold fast… which stabilised delivery.

Dynamic ad creatives helped with avoiding ad fatigue.

Plus – with the bigger pool of audiences we now had, the ads weren’t fatiguing nearly as fast.

Through the first month of working with Vitacup:

We increased the ad spend by 60%, and reduced the CPA to $33 using rules inside the account.

As we scaled the account – we were able to quickly learn the ad account specific signals.

This helped us know how many conversions to expect each day – so we could set up rules based on how the account performed each day.

For example:

On any given day, if the CPA was under $55 by 8am – we knew we’d have a great day and would scale the account that day.

If it looked bad initially, we would slow the spend and reset it at midnight.

As mentioned, when starting the account, we were spending $800 – $1000 / day.

As results started coming in below KPI, we scaled.

From $2k per day, to $5k and over $9k per day regularly, just using automated rules.

In the second month with Vitacup, we doubled the adspend and kept the CPA around $44.

On the biggest day of spend throughout the campaign, we spent $17,000 at a $39 CPA.

Now, whilst this all sounds great – here’s the truth:

This wasn’t easy.

It’s not as simple as getting all your best audiences and creatives and just launching CBO’s at $1000 / day.

You need to deeply understand your customer.

Know the best ad account structure for your niche and offer.

You must have a proven offer that converts.

And you need to know what campaign structure will work best for your application.

When you nail these 4 things (plus tons more)… you can do amazing things

If you’re interested in working with us, click below and schedule a call today.

Additional Resources

eCommerce Titans Podcast

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