What should I expect for ROI when running cold Facebook ads to new audiences?

With cold Facebook ads, you should expect to only break even in the first year—meaning you’ll likely just earn back what you spent on ads. You probably won’t see profit until year two or beyond. This is an investment in acquiring leads that you’ll convert over time through consistent marketing. If you’re not prepared to wait 1-2 years for ROI and can’t sustain that cash flow, don’t run cold ads. Most advertisers in any industry operate this way—they get their money back on the initial sale and profit comes from the second, third, and fourth sales to those customers.

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Asked by an artist considering cold advertising · Answered by Nick Friend and Patrick Shanahan · art-marketing-podcast · 2020-09-01