Scaling Meta Ads - Penny Method

Question 1

What is the method they used to scale their ads from a few hundred per day to $$,$$$ per day?

Answer 1

The penny method

solves a $10M problem

Question 2

What will our ad campaigns be constantly doing?

Answer 2

Fluctuating up and down

Depending on:
- how long ad’s been in market
- major election
- holidays

So how to know whether to scale up or down?
- The penny method

Question 3

What is the penny method?

Answer 3

Every day

Media Buyer adjusts the adspend for each ad set inside the campaign depending on performance.

Daily changes are ideal for accounts spending $$$+ per day

Adjust each ad set by approx. $100 per day

Ex. Good Performance, Budget Increase ($0.01)

Start with $100 per day ad spend
- adset not 50% profit over few days, turn it off (double AOV)
- adset performing well, increase budget by $100.01 (one penny) to $200.01
- adset performs well on D2, increase by $100.01 to $300.02 (two cents)
- adset by Day 7, budget is $800.07 (seven cents)

Ex. Bad Performance, Budget Decrease to ($0.99)
- adset has $800.07, bad day, adjust to $800.99
- adset has second bad day, adjust to $700.98
- adset has third bad day, adjust to $600.97

WHY?

• Overall, the $0.01 change is more about reinforcing human discipline and reducing decision fatigue than directly manipulating the algorithm.

Tracking Adjustments:
- It creates a clear audit trail for media buyers to track daily changes. When reviewing ad performance in Meta’s Ads Manager, the penny increments make it easy to spot when and how budgets were adjusted.

Psychological Discipline:
- It enforces a strict routine, encouraging media buyers to follow the system without second-guessing or making emotional decisions based on short-term performance swings.

Question 4

When do we want to make budget changes or release new ads?

Answer 4

At Midnight
- if updating budget or release an ad mid day, Meta will try to spend entire budget at poor cost per acquisition

Workaround
- can set time of your account in different time zone
- allows you to make changes ahead of time

Set start time
- at midnight always