The Physical Law to Increase Ad Spend (10x Profitable!)

Scaling ad spend while maintaining profitability is a challenge many brands struggle with. Often, advertisers believe that increasing budget automatically leads to diminishing returns. However, by understanding and applying the "law of conservation of energy" to your advertising strategy, you can expand your audience and boost profitability without sacrificing efficiency.

The "Law of Conservation of Energy" in Advertising

The physical law states that energy cannot be created or destroyed—it only transforms from one form to another. When applied to advertising, this concept helps us see audiences as a fixed system. The key isn’t finding more people but transforming how you communicate with them.

Here’s how to put this principle into practice:

Step 1: Transform Your Messaging

The same audience that isn’t responding to your current ads may engage enthusiastically if your message resonates better. Audience needs and perceptions evolve over time, and your messaging must keep up.

1. Identify Audience Segments

Break your audience into smaller, behavior-based segments. For example:

• People unaware they have a problem.

• Those aware of their problem but unsure of the solution.

• Individuals actively seeking a solution.

2. Speak to New Pain Points

Understand that customer challenges change. If you can address a previously overlooked issue, you’ll unlock a larger portion of your total addressable market (TAM).

3. Reframe Your Product’s Benefits

Instead of focusing on technical features, emphasize the emotional or practical transformations your product offers. For example, a skincare brand could target new audiences by addressing fears about uneven results (“No more streaks or zebra stripes”).

Step 2: Expand Awareness at the Top of the Funnel

Most advertisers focus heavily on "hot audiences" who are already considering a purchase. While effective, this strategy limits scalability. To grow, you need to:

1. Target Problem-Aware Audiences

Create campaigns that educate potential customers about the problems they might face—even those they haven’t yet recognized.

2. Build Brand Awareness Campaigns

Invest in storytelling ads that introduce your brand and mission. These campaigns may not convert immediately but will prime your audience for future purchases.

3. Utilize Broad Targeting

Let platforms like Facebook and Google optimize for you. Use broader targeting parameters to reach potential buyers who fit the profile but haven’t yet interacted with your brand.

Step 3: Focus on First Touchpoints

Scaling doesn’t mean doubling down on existing audiences. Instead, work on:

1. Improving Entry-Point Ads

Make sure the first ad your audience sees is compelling and addresses their specific needs.

2. Testing New Creatives

Constantly test fresh visuals and copy that appeal to different segments of your audience.

3. Retargeting Wisely

Rather than bombarding users with retargeting ads, use data to identify where they are in the buying journey and craft tailored messages.

Real-Life Example: Expanding a Skincare Brand’s TAM

A skincare brand specializing in self-tanning products struggled to scale because they only targeted users already familiar with similar products. By shifting focus to:

• Addressing fears of uneven tanning results.

• Educating first-time tanners about how easy and safe their product was to use.

• Highlighting positive results through customer testimonials.

The brand unlocked a new, larger audience. The result? A 25% lower cost-per-acquisition (CPA) and a 3x return on ad spend (ROAS) within two months.

Conclusion: Transform, Don’t Replace

The "law of conservation of energy" teaches us that audiences don’t disappear—their needs and preferences simply change. By transforming your messaging, expanding awareness, and optimizing first touchpoints, you can scale your ad spend profitably and reach untapped market segments.

Ready to apply these principles? Start experimenting today and watch your campaigns scale with confidence.