How the Top Advertisers Outspend and Outperform The Competition
How to Build a Bigger Budget (and Leave Competitors in the Dust)
It was late 2020, and businesses everywhere were scrambling to adjust to the changes brought by iOS privacy updates.
Suddenly, ads that had been printing money for years weren’t performing. Budgets were being slashed, and everyone seemed panicked about their CPA going through the roof.
But in the middle of this chaos, a small group of advertisers was thriving.
Their secret wasn’t a hack, a fancy new bidding strategy, or some exclusive targeting feature. It was their ability to outspend their competition.
Not recklessly—but strategically.
Let me show you how they did it, what today’s leaders are doing, and the steps you can take in 2025 to ensure you dominate while others struggle to keep up.
The Economics of Dominance
Dan Kennedy once said, “The business that can spend the most to acquire a customer wins.”
Most businesses interpret this as needing deeper pockets. But here’s the twist—those businesses weren’t necessarily wealthier. They were smarter. They’d built a system that allowed them to recoup their ad spend faster and, more importantly, profitably.
Picture two businesses:
Business A spends $10,000/month trying to make all their money on the front end with no clear path to recoup additional revenue from existing customers.
Business B spends $20,000/month because they understand the power of backend sales. They use a combination of order bumps, upsells, and repeat purchases to increase their average order value (AOV) and lifetime customer value (LTV).
Guess who wins? Business B doesn’t just have a bigger war chest—they’ve built an ecosystem that maximizes every dollar spent and reinvests profits to scale further. Even if Business B makes less on Day 1, they net greater profit in the long run.
What Market Leaders Are Doing Differently
If you want to outspend your competition, you need to operate on a different level.
Here’s what leaders in the space are doing:
1. Mastering Unit Economics
High-Ticket Offers: They don’t rely on $27 products or Day 1 sales to turn a profit. Instead, they use premium pricing and high-ticket offers to increase their AOV.
Recurring Revenue Streams: Subscriptions, memberships, or service retainers ensure consistent cash flow and longer LTV.
Backend Optimization: From order bumps to upsells, and by offering additional products or services, these businesses are experts in increasing AOV and maximizing lifetime customer value (LTV).
2. Investing in Brand Building
Short-term conversion campaigns are great for sales, but long-term branding creates a moat. Companies like True Classic Tees have leveraged hyper-specific messaging for different customer cohorts to generate trust and loyalty, allowing them to spend more without fear of diminishing returns.
3. Leveraging Backend Automation
The leaders aren’t just focused on the first sale. They use email marketing, retargeting ads, and community-building strategies to nurture leads into buyers and buyers into repeat customers. This backend strategy ensures that every dollar spent on the front end is maximized.
4. Testing and Learning Relentlessly
Top advertisers aren’t married to any one strategy or creative. They embrace testing, viewing every campaign as a data-gathering opportunity. This adaptability ensures they stay ahead of algorithm changes and market trends.
Building A Bigger Ad Budget In 2025
The world of advertising is shifting, but the principles remain constant. Here’s how to prepare:
1. Build Resilient Funnels
Focus on the entire customer journey, not just the click.
Test simple funnels that allow you to validate offers before scaling.
Incorporate backend strategies like retargeting and nurturing sequences to boost conversion rates at every stage.
2. Prioritize Economics Over Vanity Metrics
Shift your focus from ROAS to MER (marketing efficiency ratio). Look at your total ad spend versus revenue generated across all channels.
Optimize pricing, AOV, and LTV to afford a higher CPA without losing profitability.
3. Get Creative-Centric
Rely on broad targeting but use specific, relevant creative. Speak directly to your audience’s pain points and desires.
Segment audiences by motivations and craft messaging for each group to improve relevance and resonance.
4. Embrace AI and Automation
Use AI tools to streamline ad management, write copy variations, and test creative concepts quickly.
Automate repetitive tasks to focus on high-level strategy.
5. Invest in Brand
Don’t just sell; educate, entertain, and inspire. Run campaigns that build awareness and trust even if they don’t convert immediately.
Consistency across touchpoints—from social media to email—will strengthen your brand equity and reduce ad costs over time.
Outspending your competition isn’t about throwing money at the problem.
It’s about creating a system where you can confidently invest more, knowing that every dollar generates returns down the line. By mastering your economics, investing in branding, and leveraging automation, you can play the long game—and win.
So, while your competition is stuck debating which ad set to pause, you’ll be scaling confidently, knowing you’ve built a foundation that’s practically unshakable.
2025 is your year to dominate.
The only question is—how big are you willing to go?
Landon
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