How to Expand Your Audience Without Killing ROAS

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 In today’s newsletter 

• Scaling Beyond Budget: How to Expand Your Audience Without Killing ROAS

• AMEX fraud is real, and it can be nasty

• Increase Your Organic Amazon Position

• DTC Playbook: Olipop – Tech Stack Edition

• How much are code leaks costing your DTC business?

• Latest News:

  Let's Dive Into It! 👇

You’re now scaling vertically—pushing the budget on winning ads while maintaining profitability.

But now, you’re hitting limits.

📉 CPAs are creeping up
🔁 Frequency is rising
⏳ ROAS is plateauing

At this stage, more budget won’t solve the issue.

The next move? Audience Expansion. Instead of squeezing more from the same pool of buyers, you discover new audiences while keeping performance strong.

Here’s how to do it the right way.

Step 1: Tap into Lookalike Audiences

Lookalikes remain one of the best ways to scale without losing quality.

🎯 Who to build lookalikes from?
✅ Past Purchasers → Targeting the top 1% gives you an audience that closely resembles your best buyers.
✅ Repeat Buyers → Higher intent than one-time purchasers = better LTV.
✅ Engaged Visitors → Those who added to cart but didn’t check out.

📌 How to structure lookalikes?

• Start with 1% → Test before expanding to 2%, 3%, and 5%

• Exclude: Past Purchasers in 365 days using a custom audience.

Step 2: Let Meta’s AI Find More Buyers with Broad Audiences

Old-school targeting is dead. Instead of narrow interest-based audiences, trust Meta’s AI to find high-intent users dynamically.

💡 What this means for you?
✔️ No restrictive interests → Meta can optimize freely
✔️ Lower CPMs → Bigger audience pools reduce costs
✔️ More stability at scale → Less reliance on hyper-targeting

🎯 How to structure broad campaigns?

• Set broad targeting (18-65, All genders, All placements)

• Run your best-performing creatives.

• Let Meta optimize for the most engaged segments

📌 Example: We switched from interest targeting to broad targeting for one of our client brands

• 60% Decrease In CPA - From $83 to $34

• 21% drop in CPMs - From $24.72 to $19.05

• 25% boost in CTR - From 1.93% to 2.5%

Step 3: Discover New Markets with Geo Expansion

If you’re only advertising in one country, especially in the US - Your advertising costs (CPMs) are much higher than other countries.

Expanding to similar markets can open up a new stream of profitable sales.

🌍 How to expand without tanking ROAS?
✅ Start with Tier 1 markets → If running US ads, test Canada, UK, Australia first.
✅ Use localized pricing & currency → There are in-built shopify geo settings for this.
✅ Duplicate winning campaigns → Keep creatives the same, but adjust messaging if needed.

Bringing It All Together: The Right Way to Expand Audiences

📌 Step 1: Build 1-3% Lookalikes of high-value buyers.
📌 Step 2: Introduce Broad Audiences with no restrictions and let Meta optimize.
📌 Step 3: Test new geo-markets without changing core creative.

Scaling isn’t about spending more. It’s about creating new pools of profitable buyers.

What’s Next?

Audience Expansion is just one piece.
Next, we’ll talk about Creative Expansion—how to refresh winning ads to keep them converting without losing their edge.

If you like my testing & scaling frameworks, you can

Hire Me for your DTC Brand: https://calendly.com/sai-185y/dtc-daily

AMEX fraud is real, and it can be nasty..

Zach’s team caught something wild - three AMEX cards, across three businesses, got compromised. The kicker? These cards were being used to run Facebook ads.

Even with 2FA and encrypted passwords in place, the fraud managed to creep in. They only caught it because they moved their Meta spend away from AMEX and noticed the rogue charges.

Here’s the deal:

• Check your AMEX statements like a hawk. Compare every charge against your ad platform spend

• If you’re using AMEX for ad spend, you may want to talk to your bank to safeguard frauds and alert you at all times if something doesn’t seem right

You need to catch something before it catches you off guard. Stay sharp out there!

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We’re continuing our DTC Playbook series with Olipop, the rapidly growing functional soda brand that’s redefining the beverage industry. Last week, we analyzed Lovevery, and this week, we’re diving into Olipop, a brand that skyrocketed from $1 million to $500 million in revenue in just five years, closing 2024 at half a billion dollars.

Here’s what we’ll cover this week:

Monday: Olipop – Tech Stack
Tuesday: Olipop – Ads
Wednesday: Olipop – Social Media
Thursday: Olipop – Website
Friday: Olipop – Email Flow

Let’s kick off with Olipop’s tech stack—the powerhouse of tools that supports their meteoric growth.

5 Tools Powering Olipop’s Success

1️⃣ Rebuy Engine
Olipop uses Rebuy Engine to drive personalization and increase average order value (AOV). From dynamic upsells to smart product recommendations, Rebuy ensures a seamless, tailored shopping experience that boosts conversions.

2️⃣ Beam Impact
Beam Impact enables Olipop to integrate social impact into their customer experience. This app allows customers to allocate a portion of their purchase to causes they care about, fostering brand loyalty while making a difference.

3️⃣ Intelligems
To optimize their pricing and promotional strategies, Olipop leverages Intelligems. This tool helps them test different price points, promotions, and subscription models to maximize revenue and customer satisfaction.

4️⃣ Stay Ai
Stay Ai powers Olipop’s subscription management. With advanced features like churn prediction and seamless billing, Stay Ai ensures that Olipop’s subscription model is smooth, scalable, and retention-focused.

5️⃣ Shogun
Olipop uses Shogun to design high-converting landing pages and optimize their website experience. With its drag-and-drop builder, Shogun helps Olipop create visually compelling pages that drive both traffic and conversions.

Stay tuned for tomorrow’s deep dive into Olipop’s ad strategy. With their innovative approach to functional beverages, there’s a lot we can learn about standing out in a crowded market!

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Have any questions that you need help with?

Ask here - look out for Friday’s issue where Ibrahim will answer them.