6 Comments
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Jen Dell's avatar

Thanks - this is super helpful. Looking forward to the part 2.

Josh Lachkovic's avatar

Glad you liked it Jen!

Josh Lachkovic's avatar

Loved sitting down with you on this, and what a great resource and primer on all things paid social.

YOUR DOCTOR KLOVER's avatar

This is a really crisp explanation of why “just turn up the budget” is basically a controlled way to discover the edges of your current system.

The key idea I took away is that CAC blow-ups at scale are rarely a “platform problem”, but they’re a signal that you’ve hit one (or more) bottlenecks: audience saturation/quality drift, creative fatigue, insufficient conversion volume for learning, weak measurement, or a funnel that only worked for early adopters. Your Meta example makes that intuitive: scaling forces the algorithm out of the ready-to-buy pond and into colder water, so everything you’ve been getting away with gets exposed. 

I also liked the implicit “pre-flight checklist” framing: before increasing spend, ensure you have (1) reliable measurement, (2) a creative system (not a single winner), and (3) an experimentation cadence that can absorb higher volume without overfitting. That’s the difference between scaling spend and scaling performance.

Ròna Leslie-Cunningham's avatar

Looking forward to your measurement essay. I work with a tool that quantifies value through propensity (likelihood to buy) and delta (change in propensity) as metrics. Keen to hear your approach. Staying tuned for the next one!

civics's avatar

Great read, learned a lot about ad spend and quantity of ads.