One key here - eCPC dramatically ramps as a campaign goes on, given the same target demographic.<p>If he was targeting a demographic like women in SE Asia, 18-35, then his test campaign would have first seen cheap clicks. Facebook's algorithms would find the cheapest users within that demographic, who are the least in demand by other advertisers, for whatever reason. CPC's would be low right off the bat, with a $200-300/day campaign.<p>Then, when he just suddenly increased to $100,000/day, he would have absolutely tore through the cheap available impressions within a matter of minutes, leaving only the more expensive users, with much higher CPC's.<p>As soon as the CPC skyrocketed, he should have pulled the plug on the campaign. But, it sounds like, there was a bad mix of both him being inexperienced with online advertising (needing training in their office) and FB sales reps encouraging him to let it ride.<p>If he had slowly increased budgets, from $300/day to $500/day to $1,000/day, he probably would have started to see a spike in CPC as soon as he moved it up to $1,000/day, and a vertical "holy crap KILL THIS CAMPAIGN" spike in CPC when he hit $1,500/day - $2,000/day.<p>It's really hard to manage campaigns at that volume - and there's entire teams of people needed to manage a campaign at the level of $100,000/day.<p>This reminds me of those Groupon horror stories. The small businesses were wrong to not running the numbers on deals that would clearly absolutely destroy them. But, the sales people at Groupon were even more in the wrong by taking advantage of those small businesses to turn a quick profit.