1Scaling Readiness Assessment
Prerequisites Before Scaling
Scale ONLY When:
- ☐ Profitable at current spend level
- ☐ 30+ conversions/month achieved
- ☐ Stable performance (2+ weeks consistent)
- ☐ Negative keyword list is robust (100+)
- ☐ Landing page is optimized
- ☐ Conversion tracking is accurate
Missing any item? Fix it first—scaling unprofitable or unstable campaigns amplifies problems.
The Scaling Mindset Shift
| Old Mindset (Wrong) | New Mindset (Correct) |
|---|---|
| "I want to spend more" | "I want to maintain profitability while growing" |
| "More budget = more customers" | "More budget should mean more profit" |
| "Double the budget and see" | "Increase methodically and monitor" |
Understanding ROAS Degradation at Scale
Critical Reality: ROAS typically decreases as you scale. This is normal and acceptable.
| Scenario | Spend | Revenue | Profit | ROAS |
|---|---|---|---|---|
| Current | $5,000 | $25,000 | $20,000 | 500% |
| Scaled | $20,000 | $70,000 | $50,000 | 350% |
The Decision: Option B has lower ROAS but 150% more profit. Scale even with ROAS degradation, as long as you remain above breakeven.
2Automated Budget Scaling System
Why Automate Budget Management
Manual Scaling Problems:
- Time-intensive—requires constant attention
- Inconsistent during weekends/vacations
- No automatic pullback when performance declines
The Budget Increase Rule
| Setting | Recommended Value |
|---|---|
| Name | "Budget Increase 3%" |
| Campaigns | Select target campaigns |
| Condition (Lead Gen) | Cost per conversion < $30 |
| Condition (E-commerce) | ROAS > 4x |
| Action | Increase budget by 3% |
| Maximum budget | $500/day (example) |
| Frequency | Daily, midnight |
| Data range | Last 7 days (CRITICAL) |
The Budget Decrease Rule
| Setting | Recommended Value |
|---|---|
| Name | "Budget Decrease 3%" |
| Condition (Lead Gen) | Cost per conversion > $40 |
| Condition (E-commerce) | ROAS < 3x |
| Action | Decrease budget by 3% |
| Minimum budget | $100/day |
| Data range | Last 7 days |
The Buffer Zone Concept
| CPA Range | Action |
|---|---|
| < $30 | Increase budget 3% |
| $30-$40 | No change (buffer) |
| > $40 | Decrease budget 3% |
Why Buffers Matter: Prevents constant micro-adjustments from minor fluctuations.
The Compounding Effect
| Starting Budget | 30 Days | 90 Days |
|---|---|---|
| $100/day | $242/day | $1,427/day |
3% daily compounds faster than expected.
3The Feeder Campaign Strategy
Understanding the Performance Max Plateau
| Week | What Happens | Performance |
|---|---|---|
| 1-2 | Warm audiences convert | Excellent CPA |
| 3-4 | Warm audience depletes | Sharp decline |
| 5+ | Struggles with cold traffic | Poor/stagnant |
The Cause: Performance Max prioritizes easy remarketing wins over new customer acquisition.
The Three-Tier Campaign Architecture
Tier 1: Feeder Campaigns (Cold Traffic Acquisition)
- Standard Shopping campaigns (non-brand)
- Non-brand Search campaigns
- Aggressive bidding for new traffic
- Primary new customer acquisition engines
Tier 2: Performance Max (Warm Traffic Conversion)
- Higher ROAS targets than feeder campaigns
- Functions as sophisticated remarketing
- Captures traffic generated by Tier 1
- Brand terms excluded
Tier 3: Brand Protection Campaigns
- Dedicated Brand Search campaign
- Dedicated Brand Shopping campaign
- Separated from all non-brand activity
How the System Works
- Feeder campaigns generate cold traffic: Standard Shopping shows products to new searchers, non-brand Search captures category interest
- Visitors enter remarketing audiences: Google identifies them as interested prospects
- Performance Max converts warm traffic: PMax targets high-intent returning visitors with higher ROAS goals
- Brand campaigns protect baseline: Prevents PMax from claiming branded conversions as acquisition
Bidding Strategy by Tier
| Tier | Goal | Strategy |
|---|---|---|
| Feeder | Maximize new traffic | Target CPA, accept higher CPAs for cold traffic |
| Performance Max | Convert warm traffic efficiently | ROAS target 20-40% higher than feeder |
| Brand | Capture branded searches | High ROAS targets (brand converts well) |
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4Manual Scaling Framework
The 20% Rule
- Increase budget by 20% increments
- Wait 2 weeks between increases
- Monitor CPA/ROAS at each level
- Only continue if performance holds
Why Gradual Works: Doubling budget overnight = algorithm disruption and performance crash. 20% increases = stable growth.
Scaling by Budget Level
| Budget Level | Scaling Actions |
|---|---|
| $3K-$10K/month | Add second campaign, expand keywords, test PMax |
| $10K-$50K/month | Implement feeder strategy, separate brand, geographic expansion |
| $50K+/month | Full campaign architecture, product segmentation, customer acquisition bidding |
When to Pull Back vs. Push Forward
Pull Back Signals:
- ROAS drops 30%+ below breakeven
- Cost per acquisition exceeds lifetime value
- Conversion rate drops 50%+ from baseline
- Quality of leads deteriorates significantly
Push Forward Signals:
- ROAS remains above breakeven
- Absolute profit dollars increasing
- Room to capture more market share
- Business can handle growth operationally
5New Customer Acquisition Optimization
The Hidden Attribution Problem
Typical Customer Journey:
- Day 1: Customer sees initial ad (Search or Shopping)
- Day 3: Customer searches and browses website
- Day 4: Customer ready to purchase, PMax captures sale
Google Ads credits Performance Max, even though it only captured an already-warm customer.
Backend Tracking Framework
Track These Metrics Weekly:
| Metric | What It Reveals |
|---|---|
| New Customer Orders | Actual first-time purchasers |
| New Customer Revenue | Revenue from true acquisitions |
| Incremental CAC (iNCAC) | Cost to acquire each new customer |
| Repeat vs. New Ratio | How much spend goes to existing customers |
Enabling Customer Acquisition in PMax
- Navigate to Bidding Strategy section in PMax campaign
- Find "Customer Acquisition" option
- Select "Bid higher for new customers"
- Set incremental value (30-60% above existing customer value)
This tells Google: "I'll pay more for a new customer than a repeat customer."
Customer List Management
- Upload complete customer email list to Audience Manager
- Create high-value customer segments
- Update weekly for high-volume accounts
- Monthly minimum for all accounts
6Scaling Checklists
Pre-Scaling Readiness
- ☐ Profitable at current spend (positive ROAS)
- ☐ 30+ conversions/month achieved
- ☐ Stable performance (2+ weeks consistent)
- ☐ Negative keywords comprehensive (100+)
- ☐ Landing page optimized
- ☐ Conversion tracking accurate
- ☐ Backend tracking set up for new vs. repeat customers
Automated Rules Setup
Increase Rule:
- ☐ Name: "Budget Increase 3%"
- ☐ Select target campaigns
- ☐ Condition set (CPA or ROAS threshold)
- ☐ Action: Increase by 3%
- ☐ Max budget limit set
- ☐ Frequency: Daily, midnight
- ☐ Data range: Last 7 days
Decrease Rule:
- ☐ Inverse condition with buffer zone
- ☐ Min budget limit set
- ☐ Same schedule as increase rule
Feeder Campaign Implementation
- ☐ Create dedicated Brand Search campaign
- ☐ Create dedicated Brand Shopping campaign
- ☐ Exclude brand terms from all other campaigns
- ☐ Build Standard Shopping campaign (non-brand)
- ☐ Build Non-brand Search campaigns
- ☐ Set PMax ROAS target 20-40% higher than feeder
- ☐ Enable customer acquisition bidding in PMax
Weekly Scaling Monitoring
- ☐ Review automated rule activity
- ☐ Check new customer vs. repeat customer ratio
- ☐ Monitor iNCAC trend
- ☐ Verify feeder campaign new visitor volume
- ☐ Compare backend data to Google Ads reports
- ☐ Assess ROAS degradation vs. absolute profit growth
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7Common Scaling Mistakes
Mistake #1: Using "All Time" Data Range
The Error: Leaving automated rule data range on "All time"
Why It Fails: Historical success hides recent failure
Fix: Always use Last 7 days for automated rules
Mistake #2: Scaling Unprofitable Campaigns
The Error: "Let's scale and optimize will fix it"
Reality: Scaling amplifies problems—unprofitable becomes MORE unprofitable
Fix: Achieve profitability BEFORE scaling
Mistake #3: No Buffer Zone
The Error: Increase at $30 CPA, decrease at $31 CPA
Reality: Campaign oscillates constantly, never stabilizes
Fix: Create 20-30% gap between increase and decrease thresholds
Mistake #4: Ignoring Backend Data
The Error: Trusting Google Ads attribution completely
Reality: PMax may be claiming repeat customers as acquisitions
Fix: Track new vs. repeat customers in your backend weekly
Mistake #5: Scaling Without Brand Separation
The Error: All campaigns can bid on brand terms
Reality: PMax claims easy brand conversions, inflating its performance
Fix: Dedicated brand campaigns with brand terms excluded everywhere else