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Horizontal scaling methods

Horizontal scaling: we use horizontal scaling when we want to get more results, scale faster, distribute spend for
consistency, and optimize for super low costs. Horizontal scaling helps with finding audiences that potentially can
perform well.

Methods to use:

1. Create Open Audience

2. Create Interest Audiences
3. Create Lookalike Audiences
4. Create Retargeting Audiences
5. Target Additional Countries

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1. Create open audience “control”
The open audience ends up becoming one of the most powerful audiences over time.

What it is — an audience with one country and no audience, targeting segments, age, or no gender selected.

Why we do it — we create open audiences when we have no conversions or previous data, we create open audiences to
gather further insights for targeting and allow the pixel to learn more.

Why open audience — we start with 1 open audience, we then use Fb’s algorithm to derive audiences, and we then
derive multiple audience insights from the open audience.

How we do it — we select a country and then leave the rest of the targeting criteria open.

Parameters — when creating open audiences for the first time, you will initially see a spike in costs as the pixel is having
to use ad spend on testing to find what audiences get the best results. It takes on average 14 days spending $10/daily if
for the pixel to identify the best audience if your starting with 0 conversion data.

Main purpose — to increase pixels learnings, to add consistency to our ad account results over the long term.

Expected success timeline — results become more prominent after 14 days and are reported to have the best success
after 30 days and have shown to become extremely consistent after 60-90 days of being active.

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2. Create interest audiences
Interests audiences are hit and miss on results and typically work best when initially starting out.

What it is — an audience that has a specific interest, behaviour, or has self identified.

Why to do it — we create interests audiences to identify further opportunities or to gather results and insights about
your audience if you have no prior data. Once we gather enough conversion data for the pixel we immediately focus on
lookalikes and custom audiences and try to avoid targeting future interests.

How we do it — we select one interest per ad set and each interest audience size is recommended to be above 1M+.

Parameters — Interest audiences are less likely to be removed by FB if audience size is over 1M+. Interest audiences
are updated slowly so interest audiences can quickly become maxed out with increased spend.

Main purpose — to gather further insights and data so we can better leverage custom audiences and lookalikes.

Expected success timeline — it’s expected to take at least 7 days to see results.

**Interest audiences have historically shown to be inconsistent and have had the highest chance of being removed
therefore interest audiences are not apart of our greater 4-phase system but are a way to jump start initial results when
data is needed.

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3. Create lookalike audiences
The more conversion volume you have the more accurate your lookalike audience becomes.

What it is — an audience that looks like our current customers and people who took specific actions on our website.

Why we do it — by creating lookalike audiences, we rapidly expand our audience size and threshold spend. Lookalike
audiences change as results come and constantly refresh on their own saving us time and ad spend.

Why lookalike audience — we use Fb’s algorithm to derive audiences. It gives us the ability to reach an even larger audience
size that is constantly being updated.

How we do it — once you’ve had at least 100 pageviews, create a LAL on pageviews. Once you’ve had 100 leads, create a
LAL on leads. Once you’ve had at least 100 purchases create a LAL based on purchases. You start at the top of your funnel
and create LAL’s on each stage as soon as it has sufficient number of conversions. (100+ needed) and (1,000+ recommended)

Parameters — when creating LAL’s for the first time, use 1% audiences and keep your country(s) to what’s proven. Once
you’ve tested and proven LAL’s at 1%, try 1-2% and see if they work if it does keep going up 2-3%, 3-4% etc.

Main purpose — to use your own data to create lookalike audiences, this helps avoid competition, constant rising interests
costs, and leverages the algorithm to provide you with consistency and long term growth.

Expected success timeline — results tend to become more prominent after 4-7 days and the best results are reported when
lookalike audiences are gather 50 conversion events within 7 days.
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4. Create retargeting audiences
The retargeting audiences are best used when targeting non-converters and current customers.

What it is — an audience of people who have completed any event other then our optimization goal event.

Why we do it — to increase conversions, to capture non-converters and to up-sell current customers.

How we do it — create a custom audience for pageviews. Then if that audience works continue to test deeper funnel events
and if it does not work still test deeper funnel events e.g view content / add to cart.

Parameters — when creating retargeting for the first time initially create a 30 day audience, then test 60 day and 180 day.
Spend $2.50/daily if audience size is less than 100, spend $5/daily if audience size is between 100-1,000 and spend
$10/daily if audience size is between 1,000-10,000 and spend an additional $10/daily for every additional 10,000 people in
the audience.

Main purpose — To increase conversions, capture non-converters, upsell current customers and increase returning
customers.

Expected success timeline — results tend to become more prominent after 4-7 days and the best results are reported
when custom audience size is above 1,000 for retargeting.

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5. Target additional countries
Targeting additional audiences is best used when you have hit a plateau or if your looking to rapidly expand audience sizes to scale.

What it is — an additional country we target to further scale and expand our conversions.

Why we do it — to expand audience size when we have encountered a plateau.

How we do it — we initially target similar countries to our current targeted ones. We then repeat the process for creating
open audiences, and lookalikes within that new country to identify opportunities and rapidly scale up spend.

Parameters — once you have encountered a plateau in an initial country, you can repeat the audience scaling process in an
additional new country to further scale results.

Expected success timeline — results tend to become more prominent after 7 days and the best results are reported when
enough audience testing has happened for at least 30 days.

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