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Why Your ROAS Going Down While Scaling Can Be More Profitable

DimNiko Marketing | Why Your ROAS Going Down While Scaling Can Be More Profitable


I had a call this week with a food company that was hitting a 7x ROAS, which for them was extremely profitable as their breakeven ROAS was just over 2x.

They were doing about $170K in monthly revenue and his problem was ‘SCALING’.

Read More: How We Improved Our Client’s ROAS Using Story Ads

He mentioned to me, “I don’t want my ROAS to go below 5x as I scale up the ad spend and it does that everytime I increase ad spend”

I understand where he is coming from. We spend more on ads we want our ROAS to maintain or improve but that is very rarely the case with most brands.


Even with a lower ROAS your brand can be more profitable.

You might think that sounds a little whack but hear me out.

This business owner I was speaking with was spending about $500 a day on Facebook ads with a 7x ROAS. 

I explained to him that even if your ROAS drops to 5x or 4x when you increase the spend you will increase your revenue, your number of customers and your overall profit.

Let’s say he increases his ad spend to $1,000 a day and the ROAS drops to 5x, his daily revenue is now $5,000 instead of the $3,500.

A $1,500 increase in your revenue, with a $500 increase in costs and a reduction in ROAS.

Let’s expand this further to scale.

Let’s say he is spending $5,000 a day and the ROAS drops to 3x.

He would be making $15,000 a day, ad costs would be $5,000 and there has been a significant increase in customers.

Brand owners need to understand that volume of customers is more important to profit vs profit per customer.

For example: You could acquire 1x customer with a $20 profit per customer and total profit would be $20 


You can acquire 100 customers with $10 profit per customer and the total profit would be $1,000.

Even though you are making less profit per customer, because you are acquiring a higher volume of customers you make more profit overall.

I haven’t even mentioned the fact that because you have more customers now you will get more repeat business and overall profit will grow even more on the backend.

In summary, don’t be scared if the ROAS goes down when you scale and understand volume of customers is more important than profit per customer.

Now that you fully understand this concept it is important to note, it is not easy to scale to $5K or $10K a day in ad spend. 

That is why our clients choose to work with us because we have significant experience scaling brands to these levels and beyond.

If you want to have a chat with us to see if we can help you, book a call below:

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How To Model Creatives & Dramatically Drop Your CPA

DimNiko | Modeling Creatives

How do you maintain profitability while scaling? 

Everyone wants to double or triple their ad spend and see consistent results BUT very few brands successfully achieve this.

One of our clients has been with the Agency for 6 weeks and we have taken them from spending just under $500/ day to $3,000 / day, with the CPA dropping from $50 to $30 in that time period.

I am going to show you a step by step breakdown of the creative changes we implemented on the account to see this result.

Read More: 5 Best Practices for Ecommerce Facebook Ad Creatives

Step 1: I Spoke to The Client & Asked Him What Are the Top 10 Reasons People Buy Your Product.

This allowed me to understand the buyers behaviour of why they want or need the product.

And this helped me map out my creative ideas for the brand.

Step 2: I Stalked the Brands Competition on the Facebook Ads Library and Saved Any Videos / Images I Thought Stood Out as Quality.

Over the years I have also downloaded 1000’s of videos and images and added them into a Google Drive folder breaking them down by niche so I have really amazing creatives to look at when I need to make new ones.

Step 3: I Found 10 Videos I Wanted to Model and Broke Them Down

If you look close enough you will see that every single video ad follows a formula. Often they will include things such as; problems, benefits, features, social proof, reviews, user generated content, showcasing products and a call to action.

For these 10 videos I broke down the structure of it and then made the video ad copy relevant for our client. For example a videos structure might have been this:

Problem > Push Pain Point > Introduce Product / Brand > Benefits > Social Proof > Guarantee > Call To Action

All of these 10 videos were different, had different editing styles and ensured the client had 10 dramatically different styles so we could hopefully see big changes in results.

Step 4: Get a Video Editor to Make the Video

For this part you will show the video editor the original video you want to model, you will give them the video ad copy you want in your video and the footage / photos you want in the video. 

Get them to model the video exactly so the transitions and the editing style is the same, but only this time it has your brands content and messaging within it.

Read More: Why You Need to Start Using UnBoxing Videos to Increase Your Ad Performance

Step 5: Add It Into Your Ads Manager and Wait

Now that you have 10 different videos to launch, add them into campaigns and watch the results improve and your ability to scale occur.

Inside the very first week with the client we saw the CPA drop massively because creative changes allow that to happen. Making small tweaks to targeting or bidding strategies will not get you profitable. Focus on the big levers in your Business.

Hope this helped and you get some great results from it.

If you want me to do an audit of your ad account, your creatives and your website, book a call below and I will show you how to triple your budget while maintaining good results!

Book a call here:

Chat soon,


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Facebook Ad Copy Is Useless In eCommerce Ads

DimNiko | Copywriting

When you are selling physical products the video or image of your ad is significantly more important to acquiring customers versus ad copy.

You need to understand that consumers buy a product once they see it, understand how it works, see how it will fit into their life and see why they need it.

The best way to do this is through video creatives or image creatives NOT with ad copy.

Try and explain what a product looks like, how a product feels, try and explain how to use a product, try and use words to show how a product helps.

It is very difficult to do this in eCommerce.

But, with video and images you can showcase what a product looks like, explain and show how it feels, explain how to use it and physically show how it helps.

With the vast majority of the ad accounts we manage, we tell the client to put much more time and effort into the video/image creative vs ad copy.

Read More: Secret Facebook Keyword Targeting Strategy

Ad Copy is Better in Niches Such as Lead Generation VS. eCommerce.

People will buy when they trust a brand, when they understand how the product will fit into their life and their objections have been handled. All of which are much easier to convey in a video vs text.

You are much better off spending the time you are writing copy, creating extra videos or images. 

You will see a much bigger uplift in results if you spend more time working on new videos and new images for your brand.

The best strategy suggestion I have for you is to create multiple images and videos, use a dynamic creative campaign, keep the ad copy and headlines brand generic and I am sure your results will improve as your core focus is now the image / video.

Just think about it for a second, are you more likely to buy a product after reading about it or watching a video explaining and showing it?

That is why you buy from image/video ads from Facebook, Youtube or TV vs the newspaper or magazines.

That is why you want to physically see a product vs just read about it.

So next time you are thinking about copywriting for your ads, turn that attention to your video / images as you will see much better results.

If you are spending over $500 a day and struggling to scale past that lets have a chat.

Book a call here:

Chat soon,


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Is Your Low Average Order Value Stopping You From Scaling?

DimNiko | Average Order Value

Anyone struggling to scale up their Facebook Ads should take a look at their AOV.

I jumped off a call with a brand owner who had an AOV of $25 US and was spending $1500 a day on ads. He couldn’t scale to that next level of spend and was stuck.

When we broke down the metrics the breakeven CPA was about $10. Meaning he had to spend less than $10 on his ads to acquire a customer profitably.

Anything more than a $10 CPA was unprofitable which makes it much harder to scale when your AOV is so low.

He has a few options if he wants to scale the brand.

Obviously he can improve his media buying, improve his creatives or increase his website conversion rate but a great opportunity is to improve the AOV.

This can be done with a price increase, offering to buy multiple of the same item, introducing other products as bundles to name a few.

Read More: Difference Between Cross-Selling and Upselling – Why You Should Set It Up Right Now!

Giving your customer the opportunity to spend more at checkout doesn’t mean all of them will, but a percentage will and this leads to a nice increase in AOV.

Let’s hope he implements the advice I gave him and his AOV increaseds from $25 to $35.

His breakeven CPA now increases too, allowing him to spend MORE money on advertising to acquire a customer profitably. 

As Facebook Ads are essentially an auction between advertisers, the advertiser that is willing to pay the most to acquire a customer will win (we don’t want to spend the most but that is how the Facebook ad platform works)

You can try for days, weeks or even years to improve your ad account CPA by using media buying tactics to maybe drop the CPA from $8 to $6. Or by simply increasing the AOV you now improve your profit on the first touch point and you can spend more to acquire that same customer. 

This will allow you to scale your ads past where you are stuck.

I could also dive into LTV and how that allows you to spend more on your Facebook ads but it’s crucial to be as profitable on the front end as possible so you can scale. 

Got any thoughts on this? Would love to hear them.


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Why Scaling Back On Your Ad Spend Can Actually Help You Scale

DimNiko - burning Money

If you’re spending $1K or $2K a day on paid traffic and it’s unprofitable you are pretty much burning your money.

And what a lot of Brands don’t want to hear is you might actually need to pull back your ad spend, and as you can imagine most see this as a negative.

It doesn’t matter how good you think your ads are, your creatives are or your website is… if it’s not profitable you are doing something wrong and need help.

One of my calls last week was in this exact situation. They were telling me how good their creatives were, how they have this incredible in house creative team and the product is amazing blah blah blah but I calmly pointed out to them…

BUT your results are unprofitable, just over a 1x ROAS so it doesn’t matter how good you think you are, your market disagrees.

They were spending $2K a day on ads and I made it super clear to them they should actually pull back their ad spend and fix the foundations of their ad account first to ensure long term success.

This is why it can actually help.

Be Profitable Before Scaling

Firstly you need to understand to scale aggressively you need to be profitable with your ads or you are losing money for every dollar you put into ads.

You need to pull back your ad spend to really focus on the things that are working and double down on those areas to ensure that consistent growth over time.

If something isn’t working at your current ad spend, there is no way it is going to work at a higher level of ad spend. You will just lose more cash.

To give you a real life example, we had a client come on with us that was spending $3K a day with a $110 CPA and monthly revenue was $153K.

We took over and we knew the CPA was far too high so we told them we were going to scale down the spend, optimise what is working so we could take 1 step back and then take 2 steps forward to actually scale.

By dropping the ad spend and working on heavy optimisation of what was working we were able to squeeze a lot more out of the current campaigns and set some solid foundations for growth.

Month 1 together we dropped spend from $93K to $72K, so we dropped the spend by $20K and this actually dropped the CPA to $83, remember it was $110. 

Which meant we actually increased their monthly revenue while dropping spend by $20K for the month, which is pretty insane, imagine spending $20K less on Ads for more revenue.

During that first month together we were able to get clear on what was working and communicate this to the client to get us more creative, more assets for the ads so we could scale profitably.

So we had taken that necessary step back, then Month 2 together we started scaling

Increased spend upto $96K for the month and the CPA dropped even further to now being $72 and monthly revenue was $213K

So we are 2 months in working together, we are sitting at the same level of spend when we took over but monthly revenue has gone from $153K to $213K, $110 CPA to $72 CPA.

So What Should You Do If You’re Unprofitable At a High Level of Ad Spend.

Analyse your account, look at what is actually working, pull back on spending on unprofitable campaigns, double down on the winning campaigns or creatives.

Trust me, once your ad account foundations are set correctly at a lower ad spend you will be able to scale far beyond where you were before.

If you actually want help analysing your ad account results to take your brand to the next level let’s have a chat.

Book a call here:

Chat soon,


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5 Best Practices for Ecommerce Facebook Ad Creatives

DimNiko | Ecommerce Ad Creative

Facebook Ad creatives are crucial to the success of your ecommerce ads. Without high quality ad creatives you will not see good results and you will not hit your goals.

You can have the best Facebook Ads strategy in the world but if you creatives are average the ad will not perform and you will not make any sales.

The top 5 best practices for ecommerce facebook ad creatives are as follows:

1. Build Top of The Funnel Creatives

Top of the funnel creatives are speaking to potential customers that have not come across your brand before, they have never been to your website and have never purchased from you.

So the creatives you are showing them need to showcase the product, need to talk about the benefits of the product, the solution your product offers the market, any key features your product has and it would also be good to add into the content social proof from your customers.

2. Have Organic Style Middle of The Funnel Creatives

Middle of the funnel creatives are targeting potential customers that have interacted with your brand on social media but never made it to your website or purchased before.

As these potential customers have already shown some interest in your brand you now need to show different aspects of your product through your social media creatives.

This should include, unboxing videos, taste testing videos, trying on clothes, reaction videos and in use videos. These facebook creatives show more about the product and encourage the potential customers to buy.

Read More: KILLER eCommerce Facebook Ad Examples 2020

3. Direct Bottom Of The Funnel Creatives

When you are running facebook ads to the bottom of the funnel, you are targeting customers that have made it to your website but have not purchased yet.

The type of ad creatives you want to show to them are direct and they handle the last objections they might have to buy your product.

These can involve review videos, testimonials, competitor review videos, product experience pieces. These are you last ditch effort to get the customer to buy your product.

4. Test multiple angles / ideas for top of the funnel

You might have 1 idea you want to test with your ecommerce creatives but the truth behind marketing is you need to test test test and then test again.

You can never be sure what will convert until you test it. So I would brainstorm 5 different ideas/angles for your top of the funnel and test all of them one after the other and see which converts best. If you have the budget you can test them at the same time.

Read More: Are You Really Testing Creatives on Facebook Or Is It Luck Of The Draw?

5. Use the Facebook Ad Library to stalk your competition and good brands in the eCom space

This tool allows you to see exactly what ads your competition is running. You should spend a good few hours stalking your competition and good brands in the space to see what others are doing and try to adapt that to your own brand.

These are the best practices to ensure you have world class ad creatives.

If you are spending over $500 a day on ads and want help with your creatives click the link below and let’s have a chat

Dan (Head of Partnerships At The DimNiko Agency)

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Facebook Ad Vs Google Ad: Which is Better?

DimNiko - Facebook vs Google

Is it better to advertise on Google or Facebook? And what is the difference between Google ads and Facebook ads and why do some brands choose Google, others choose Facebook and some choose both. Firstly to determine which is better Facebook ads or Google Ads, we need to understand the difference between Google Ads and Facebook Ads.

Google Ads

Google Ads are a search based platform showing ads based on Keywords. Meaning ads are shown to people looking for specific items or very closely related items to the search. If you are actually searching on google for ‘blue light blocking glasses’ you will see ads related to blue light blocking glasses. Google ads are shown to people that are already intending to buy or looking for items. So the ads are usually very relevant to the search.

Read More: Facebook Ads & Google Analytics Reporting Discrepancies

Facebook Ads

Facebook Ads are different. They work on the method called interruption marketing. Meaning the ad is actually interrupting your social media time as you are not on the platform actively looking for items. Facebook holds a lot of data on its users, and advertisers utilise that data to show you ads related to what you are interested in.

If you have recently been browsing websites or doing research on blue light blocking glasses, Facebook gets access to that data and therefore the advertisers target interests similar to what you are searching and that is how ads related to what you are searching for show up on your Facebook feed.

There are Positives and Negatives to Both Platforms So Let’s Dive into Facebook Ads vs Google Ads.

Google Ads are very specific to what someone is searching for so typically they will have a higher return on ad spend compared to Facebook Ads as the ad will only show up if people are searching for specific keywords. Google Ads are great for very specific or niched products that have low competition. A negative of Google Ads is that you have a limited budget as there are only so many people at one time actually actively searching for your related keywords you are advertising for. Another negative is you can only convey your product or service with words on Google.

Facebook has a much larger potential buyer pool. Meaning you can have much larger budgets on Facebook and acquire many more customers compared to Google. But typically Facebook Ads will have a lower return on ad spend compared to Google Ads. Facebook allows you to show images and videos so you are able to showcase your brand much easier compared to Google. You can show customers using your products, how the product works and even show your brand message.

So ultimately is it better to advertise on Facebook than Google Ads?

95% of eCommerce brands are better to be using Facebook Ads and only a small percentage of brands are better off on Google Ads. But there is merit to running both platforms at the same time. If you are looking to scale a brand to higher levels of spend, revenue and profits Facebook is the way to do that. If you are looking for higher returns on every dollar spent with lower ad budgets use Google Ads.

If you want help scaling your brand with Facebook Ads make sure to book a call with our team and we can show you what opportunities you are missing & how to grow the brand.

Good luck out there,

Dan (Head of Partnerships at DimNiko)

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KILLER eCommerce Facebook Ad Examples 2020

DimNiko - Ecommerce Ads

Facebook Ads are the best way to scale any Brand in 2020. You have more customers than ever that are wanting to buy products, you just need to make sure your ads are speaking directly to them.

If you are an established brand or dropshipper this will help improve your ad results. I am going to focus on video examples as they convert the best for our clients and in the eCom space. Being able to showcase different elements of your product, features, benefits, solutions, and customers using it with video is a big advantage compared to static images.

At the DimNiko Agency we manage just over $2.5 Million a month in ad spend so we see exactly what is working and we have 10 calls a week with high-level brands wanting to work with us so we get access to a lot of data right now.

Read More: The Ultimate Facebook Ecommerce Integration Guide 2020

Here are 12 Brands that are Absolutely Dominating Their Ad Creatives in 2020:

First Day – Supplement Company

Cuup – Clothing Company

Fabletics – Sports Apparel Brand

Lumin – SkinCare Brand

Barner – Bluelight Blockers Brand

Dollar Shave Club – Shaving Brand

Fittrack – Fitness Item Brand

Black Wolf Nation – Skincare Brand

The Oodie – Clothing Brand

Goose Creek Candles – Candle Company

Notecube – Giftable Brand

BarkBox – Dog Brand

We are personally working with some of these brands so you are seeing the best converting eCommerce Facebook ad examples at high levels of spend right here.

Go through each one of these brands and learn from the very best right now. You will start to see trends and patterns of content. The major point you need to take away is to test many different creative ideas and angles and measure what converts best. These world class ads give you the best starting point possible.

If you want help scaling your brand with Facebook Ads make sure to book a call with our team and we can show you what opportunities you are missing & how to grow the brand.


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6 Crucial Factors Stopping You From Scaling Paid Traffic Profitably

DimNiko - Scale Campaigns

Here are 6 quick improvements you can make to your ads in the next 7-10 days that will improve your results. 9 in 10 ad accounts I look at are making these mistakes. And these accounts are spending anywhere from $10K to $150K a month in ad spend. So beginners and even experienced brands have serious room to grow.

1 – Exclusions at your Top of Funnel

I can bet your cold traffic ads are still not targeting purely cold traffic which means your ads are not scalable even though they are profitable. Good chance you are hitting a spend ceiling and cant scale anymore and this is the reason. Make sure to exclude FB & Insta engagers, website visitors and customers from TOF ads

2 – Start using Dynamic Creative

Give your prospects a better user experience with DC and let Facebook choose the best combinations to put in front of your audience not you. We are finding great success scaling accounts past $10K a day ad spend with dynamic creative

Related Post: Are You Really Testing Creatives on Facebook or Is It the Luck of the Draw?

3 Use Broader Audiences

Facebook is smarter than all of us put together so if you have a decently seasoned pixel broaden your campaigns. Stack interests into an ad set, stack lookalikes into an ad set, even run no targeting and let FB optimise. This is allowing us to scale accounts fast and profitably.

4 Have a clear account structure

You need clear TOF campaigns, MOF campaigns, BOF campaigns and retention campaigns (Potentially these depending on your brand). This will stop a lot of the audience overlap and it allows you to show different creatives to different audiences.

5 Make some better TOF creatives

Every account has so much more room to improve TOF creatives. Stalk some of your favorite brands using the ad library and make some better god damn creatives.


Your customers are a goldmine for more profits and user generated content. Incentivize them to film content for you, in exchange for a free product or discounts or giveaways whatever it may be. The more content you get from them the more UGC you can test and the further you can scale

Related Post: Are Your Ads Actually Scalable

I am sure this helped a lot. If you have any questions book a call below and let’s work through this together.

Dan (Head of Partnerships at DimNiko Agency)

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Do Your Ads Actually Speak To Your Target Audience?

DimNiko - Target Audience

If you are struggling to lower your CPA, maybe you are facing the same issue a lady I was talking to last week was dealing with.

She was spending about $10K a month on Facebook but could not scale further without seeing a horrid return in results.

After taking a 5 minute look at her current ads and her ad account I could tell straight away what the problem was.

The product was appealing mostly to a younger target market that were facing a set of specific issues

But the problem was her ads were not aligning with that.

Her ads were targeted towards a totally different audience.

To me it was super obvious but often being inside the Business everyday stops you from seeing things from a different perspective

The target market she should have been tailoring her ads towards is a much larger market and much more emotionally driven audience

So I know once she tweaks her creative strategy she will see an improvement in results and will be able to scale quickly

For you right now, this is what you should do.

Take a look at your ad creatives

Your images, your videos, your ad copy messaging

And ask yourself who is this actually appealing too?

And then ask yourself…

Is that who I want it to appeal to?

Are you actually talking about the real problems your niche is experiencing?

Are you making it incredibly clear that your product is the solution to their problems?

And then really hammering home the benefits of your product?

Plain and simple

If your ads are appealing to the wrong target audience how can you expect your ads to scale profitably?

You cant.

If you want me to have a peek inside your brand

And spot the obvious issues you are making

And help solve them so you too can scale to $5K / $10K or $20K a day in profitable ad spend

Book a call below and let’s work through this together.

Peace Out.

Dan (Head of Partnerships at DimNiko Agency)