Yuma 4×4

Media and Communications

👑30 How to Create LTV Audiences for Facebook/Instagram Ads

👑30 How to Create LTV Audiences for Facebook/Instagram Ads

Coming up on today’s version of the Art Marketing
Podcast, we’re going to be talking about getting ready for the fourth quarter buying season. Specifically, we’re talking about cold audience
targeting on Facebook and Instagram. About how to create an LTV audience and some
of the use cases with LTV audiences that you probably never thought of. Hey guys, thanks for joining me, Patrick here
today. Now let’s talk about what is the number one
question we seem to get about Facebook ads. Right? Like, are we on board our customers, we get
them into the system, and we immediately encourage them to get all set up on Facebook, and to
start running ads. And the first question out of their mouth,
for the majority of the time, I would say, at least for our customers anyway. The question that always seems to come up
first is, what cold traffic, I.e. when I say cold traffic, new people that have never heard
from you or seen you, should I be targeting? How should I be going after people that have
never heard about me, never seen me? Cold traffic. And, it’s a great question, too right? Cuz it stands to reason, if you’re attempting
to sell your photography or art, finding some new eye balls to get in front of, likely would
be a good idea. So, I have some great news for you there as
we’re going cover this today. And then really make some strong recommendations. So, if you’re already experienced with Facebook
ads, I think you’re really going to enjoy the LTV audience creation piece. If you’re just getting started, I think you’ll
enjoy the primer on cold traffic and targeting. And if you’ve never run an ad before, I think
I’m really going to attempt to break things down conceptually for you, here. In the hopes that, when you do get ready to
run Facebook or Instagram ads, not only are you going to have a better understanding of
how to go about that, but you’re also going to do some of the prep work that’s going to
set you up for success. And so, that’s kind of my thought process
on where this will all go. This episode is really it’s a follow up a
continuation of last weeks episode. Which we entitled the Fourth Quarter Marketing
Audit. So I think if you’ve not heard that one, it
might be a good idea to stop this one right now, go back, listen to that one, then come
back here. But if you just listened to this one, it’ll
still be good, stand alone. So to briefly sum things up. We’re focusing the podcast over the coming
weeks on getting ready to sell for the fourth quarter. The buying season is coming, more arts traditionally
sold in the fourth quarter than the other three, sometimes combined. So you want to set yourself up for success,
and you want to sell more art this fourth quarter, more art, more photography, this
fourth quarter than have ever before. That’s our goal. So, today’s episode is going to focus on how
you go about creating an LTV, by LTV, I mean, Lifetime Value audience. So, what that is, how you go about creating
it, some of the ramifications, some of the conceptual, we’re going to cover all of that. And obviously, this would be an audience you
can use both this fourth quarter, as well as, all year long, when you’re running ads
on Facebook and Instagram. Now, all of which, I endeavor to explain,
but got to set the table first. So permit me if you will to kinda get some
background. Number one, and maybe going into a slight
humble wreck here, but why should you listen to me on this subject? Who the heck am I and what do I know? And I actually did an audit on this cuz I
was really curious, and so, I went back and looked and the first ad I ever ran on Facebook,
was going all the way back to 2010, so I’ve actually been doing this for eight years now. Which is a long time, actually. And I actually went back, looked at all the
accounts I’ve had under management during my career so far, and was sort of blown away
to see that I actually managed well over one million dollars, doing my Doctor evil thing
with the finger. Now granted, look, I have friends that spend
a million a month, so in the grand scheme of things, that’s not a big number. Especially stretched over the eight years,
but I was actually sorta blown away by it, and proud of it, strangely, the fact that
I’ve gotten over that mark. Regardless of where it ranks in the pecking
order, I should hope it gives me at least, enough street cred to delve in today’s subject
material. And or you to know that it’s valuable and
it can help you out. And so, I think knowing how long I’ve been
doing this, how much money I’ve managed in Facebook ads, a great question that I openly
ask myself is, well what is the one thing that you’ve learned over those years and all
of that’s spend, that sticks out the most to you, that’s the most profound? What I would say, how I would answer that
is, what I both learned and continue to learn on a daily basis, yes I have the scars to
show for it, plus the fresh ones that continue to happen. What I see every time we persuade our customers
to dive into Facebook and Instagram’s for the first time, after they go after cold traffic,
what I don’t feel like is discussed or mentioned anywhere near enough, when discussing Facebook
ads and cold traffic, I think, is actually, the secret to success with Facebook and Instagram
ads. Now, are you ready for this? Whether or not you’re going to be successful
running ads on Facebook and Instagram, it obviously comes down to a whole bunch of things,
right? Yes, it comes down to your targeting, yes
it comes down to if you’re creative, yes, it comes down to your website, where you’re
driving the traffic. Yes, it comes down to your lead capture abilities
that you have on the site. Are you effectively gathering emails, and
then, of course, it comes down to your follow up marketing, right? There’s lots of lots of things that can contribute
along the way to whether or not you get a really ROI out of your ads. But if I had to pick one thing, and only one
thing that is the most important, that I could have absolute mastery of, that I would be
the best at, that I could use the magic wand and wave, and it would be so? It’s eliminating the waste. Yep, eliminating the waste. It’s eliminating showing your ads to people
that are not a good fit. That, in my estimation, really is the whole
ball of wax. That’s the most important part. You get that bit sorted, and then everything
else is down hill. You can sort out your creative, you can sort
out what landing pages that you drive them to, you can sort out your follow up marketing,
all of those things. But if you’ve got a ton of waste in there,
you’re going to be paying Zuckerberg a whole lot of money. So, I think that’s the biggest thing. It’s eliminating the waste. And so, okay Patrick, great I get it, so how
do we go about doing that? I want to start briefly with some options. And again, we’re talking specifically about
cold traffic, here, at least for now. Getting your photography and art, in front
of people for the first time. All people that have never heard of you, never
been exposed to your art, never visited your website, don’t know you exist, et cetera. So, let’s talk about the options that we have
available to us. For an example, let’s say you’re a landscape
photographer, right? So number one, you could attempt to do what
is called interest targeting. I.E. show my ads to people on Facebook and
Instagram, that have expressed an interest in landscape photography. So, you go into the Facebook ads manager and
you search for what they have available and you find some options that have expressed
that interest, that are interested in that subject, right? So, that’s a way you can go. For number two, let’s say you could also target
people that like certain pages. And so, not every page is available, if they
have low follower counts, you can’t do this, and it’s sort of hit or miss on what’s available
on Facebook, what Facebook lets you do. But let’s say with the landscape photographer
example, go ahead and show my work to people that like Ansel Adam’s page. So, that’s a way you could go about doing
it. You could show your ads just to the people
that are on Facebook, that have liked that page. So, that’s a way you can go. And let’s say to, to things really simple. The number three way, that you could go about
using a targeting cold traffic on Facebook is what are called look-a-like audiences. Okay? Now, yes, there’s some others, like there’s
demographic data, show my ads to people with a household income of this or that, as well
as you can target people with certain job titles and some other stuff in there. But those are all the topic of a different
discussion. So, for now and for the purposes of this podcast,
let’s just say there’s the three ways, right. So, we’re on number three, the look-a-like
audiences. So, let me define them. This is a two step process. step one, you grab an audience that you have
created, and again, there’s a whole bunch of options here, it could be an audience of
people that have visited your Facebook page. Or, an audience of people whose emails you
have and that you uploaded to Facebook. Or, it could be people that have engaged with
your page, I.e. people that have left a comment, that have liked, that have shared. That can be an audience. It could be an audience of people that have
watched one of your videos or even watched 25 percent of your videos, or 50 percent of
your videos. So, there’s a whole bunch of different ways
that you can create the base level audience. And the one that most people do is that they
target people that have purchased something from their website. You create an audience of those folks, and
that serves as the base, that’s step one. So, you have to pick an audience that serves
as step one, right? Step two, you grab that audience and you tell
Facebook, hey Facebook, use your algorithmic powers and sorcery and take this audience,
and then go find me everyone out there that you can, that looks just like these people. And so, for the rest of my explanation here
in the short term, let’s use the example that most people use. Right? And that’s if people have purchased on your
site. Right? And quickly to explain how this works, if
you’re new, you start a Facebook ads account, or social Facebook ads account, but Facebook
and Instagram, they’re combined, when you do that, you get what’s called the Facebook
pixel. It’s just a line of code. You go and you place this on your site, and
you set up a conversion. So what happens is, I come to your website,
I purchase a piece of art, after I purchase that piece of art, after I’ve given my credit
card details, and the shipping and everything’s worked out. I get on a checkout success page. A goal page and on that page, the Facebook
pixel fires, and Facebook says, “oh, okay, here’s Patrick, I know who he is, I know his
Facebook page, I know his user ID, I know all that stuff. And I know he just purchased, so I’m going
to go ahead and place him into this audience.” Which is why, by the way, you want to get
this dog on Facebook pixel on your site immediately, if you have an eCommerce enabled site. So, more on that, if you don’t, that’s okay
too. We’ll get on it in a second. But that is what most people do. Right? They create an audience of people that have
purchased and then, over time, as people continue to purchase from you, they fill this audience
up. It’s been said that, Facebook has essentially
over a hundred and 80 thousand data points per person on each and every one of us. Scary, a little bit, yes. But a data set that big is just so striking
and profound that there’s no set of human eyes or any team of humans could possibly
parce on their own. We couldn’t look at those 180,000 data points
and say, “Alright, let’s get in here as a team, start analyzing this and try to pick
out the trench”, right? That would just be so much data in there,
you could never do that. So, Facebook’s algorithm, sifts through this
massive data set, it grabs all of these random characteristics of people that have purchased
on your site, and it determines what, if anything, do these folks all have in common. It’s like, do they like the same sports or
the same pages or the same movies or food? Are they the same age? Socioeconomics status, do they shop at Whole
Foods? Are they single, married, gay, straight, have
kids, et cetera, et cetera? So, that’s what happens. All of these people come and they purchase
at your site, there’s all of these hidden data points that we never get to see, that
tie these people together and it forms a profile, right? So, you give that to Facebook. And what they do is, they go ahead and they
say, “okay, here is what ties all these people together. The magic algorithm does this, and then you
use that, and here comes the air quote, “to create a look-a-like” audience. Facebook, go and create me an audience of
people that look just like these people, that purchased on my site. Right? So you pick an initial data source and you
tell Facebook to create a look-a-like audience, and then you go ask Facebook to show your
ads to these people. This is the third way, that you can go after
cold traffic. Right? So, we talked about the interest targeting. We talked about targeting friends of a certain
page, people that like a certain page. And then our third example, the look-a-like
audience to keep things simple. So, okay, you’ve got that. You’re tracking with me. Let’s contrast these options. Let me give it some concrete, real world examples,
too. So it makes sense. And let’s, of course, keep in mind, what we
now know is the whole ball of wax argument, my argument, which is, eliminating the waste,
you’re ads to the wrong people, is the secret sauce to this entire operation. So in either of examples number one or number
two above, and let’s just say that is out interest targeting and our people that like
the page, by targeting those examples of cold traffic, what are you going to end up with? You’re going to end up with a really wide
swatch of the world. You’re going to end up with a huge mixed bag
of people. You ever see Napoleon Dynamite? I like this analogy, in Napoleon Dynamite,
Uncle Rico and Kip, Napoleon’s brother, they’re selling Tupperware, right? And they’re sitting down, looking at this
map, and they’re kinda like, okay, and they’re doing it door-to-door in their cars, right? And they’re looking at this map, and they’re
like, “okay, you’re going to go up and do this area, I’m going to go work this area.” And then Uncle Rico goes on the map and said,
“don’t go down here.” And he’s pointing to the poor part of town,
because these folks don’t have any money. Don’t even bother, don’t waist your time,
going there. Right? That analogy, I think, works for Facebook
ads. When you think about people that like a certain
page, or are captured in a particular interest, landscape photography, my earlier example,
there’s going to be a huge mix bag of folks. Rich, poor, everything in between, ready to
buy, not ready to buy, such a mixed bag. Some people just like landscape photography
cuz they’re landscape photographers. They’re not going to buy any thing to you. Some people just like photography in general. There’s just a huge swatch of, it’d be like
taking everybody out of a concert or something. There’s going to be such a range of different
people in there. And so, when you think about showing ads to
those people, what’s going to end up happening is, there’s going to be a ton of wasted ad
spend. Your ads are going to go in front of these
people, and never are going to buy, that are likely never going to follow you, there’s
just going to be a lot of waste, right? And I think I see many times where it’s like
this common refrain, where somebody posts in the group, yeah, you know, I took your
guys’ advice, I didn’t, I tried to get into the ads manager and chose some ads with some
interest targeting, and I spend 150 bucks and I only got two email subscribers. Well, of course, you picked the wrong targeting
and there was just a tremendous, tremendous amount of waste in there, right? So, as a disclaimer, don’t misunderstand,
I’m not saying that you can’t target interests or fans of, and that doesn’t work in certain
circumstances, it certainly does, it works fantastic in some circumstances. And also, when you’re just getting started,
you don’t have a large data set yourself, it’s a chicken in the egg situation, it can
be valuable to leverage those audiences. But that’s the subject of another podcast. So for now, let me move into example number
three. And of course, I’ve gotta give another analogy. And I love going to fishing. I don’t know why it just seems to work, in
my mind. Apologies if you hate the fishing analogies. But, let’s stick with it. So let’s say okay, three boats. Right? We got three boats. And let’s say there’s the interest targeting,
there’s fans of such and such page, Ansel Adam’s from our above example, and then we’ve
got our look-a-like audience. So those are all three boats, in the same
harbor. All three boats are fishing for salmon, okay? In the interest targeting and fans of page
targeting boats, you’re essentially going to go tell the captain, “captain, okay here
are the GPS coordinates of where I want you to fish. I want you to motor the boat out there to
that fishing ground, stay on top of it, and fish. Catch as much salmon as you can. There’s going to be big salmon and small salmon
at that location. Some is not even going to be of the legal
size at all, so make sure you measure. There going to be silver, pinks, king salmon,
there’s going to be salmon of all shapes and sizes. And not only that, there’s going to be a multitude
of other species there, too. There’s going to be halibut, lingcod, rock
cod, and arctic char. You don’t want any of those fish though. So throw them out if you catch them. Good luck.” So those two boats stem off to go fishing. In the look-a-like example though, number
three, right? What are you telling the captain? “Captain, this is exactly what a king salmon
looks like. It’s this long, this tall, it weighs 45 pounds,
puts up a heck of a fight. If you see one, catch one. And oh by the way, there’s no coordinates
for you. You can fish in the entire ocean. If you find one of those fish, drop a line
and catch it.” So, you think about that analogy and that
in my mind is how powerful it is. You are trusting in Facebook’s algorithm,
with a look-a-like audience, to go out and find people that look exactly like the kind
of people that you want on your site, about to buy, have purchased, have showed signals
that are valid. So that’s a great way to think about it and
why the look-a-likes are so powerful, why the look-a-likes are pretty much every ones
initial go to audience. As soon as you have any measurable data set. The fact that you can tell Facebook, to search
their entire advertising platform and network to look for people that look just like your
buyers, it’s profound. It’s why Facebook is just destroying Google,
in terms of online advertising. They have so much data on everybody, they
know how to do this, right? It’s just an amazing, amazing concept. Okay? That’s the look-a-like audience. And it sounds like they’re the way to go,
right? So, how do most people use them? And then, let me set that up first, and then,
let me pivot to the LTV, which is really the subject of this podcast. So, what most people do, we’ll stick with
the landscape photographer example, they have a website, they have the Facebook pixel installed,
when people purchase on the website, the Facebook pixel registers it as a purchase conversion,
you then build an audience of those folks. You then create the look-a-like audience of
those folks. You say, Facebook, use your data, use your
magic, use your sorcery in your algorithm, go and find me people that look exactly like
the people that have already purchased on my site. That’s the cold audience, that’s the look-a-like
game, that’s what everybody uses. And in and of itself, it is profound. It works so incredibly well. So now, let’s pivot to what this new LTV feature,
when I say new, I think it’s maybe it’s a year old, the feature, maybe six months, but
it doesn’t get any where near the amount of attention that it should. Which is why I’m happy to do a podcasting
about it. Now, again, LTV, Lifetime Value of your customer. Let me just break that down. If your customer purchases just once, say
they spent 100 dollars with you on a piece, then you never saw or heard from them ever
again, then their LTV is 100 dollars. If you have a collector type customer, who
has purchased say six pieces from you, over ten years, then you sum up the total value
of those purchases, and their LTV is say, let’s just say, 10,000. So, that is how you would go about creating
an LTV audience. You would put in the total values of purchases
that these folks made, and that’s the LTV. Now, in our previous example, we created a
look-a-like off of the folks that purchased on our site. So, let’s contrast that audience with the
LTV audience, how do they differ in creation? With the LTV audience, you’re going to combine
all of the data you have from your website, which is the same data that the initial example
would be minus the purchase prices. So, you’re going to export all the orders
out of your shopping cart, you’re going to fill out a spreadsheet with a first name,
last name, email, everything that we covered in the last episode, and you’re going to include
a column that has their LTV value. But, in addition to that, which makes the
LTV so great, you’re also going to coddle together all of your offline data. So all the pieces that you sold at shows,
or in person, or to a doctor’s office, or if you had a gallery operation going on, or
to family or to friends, everything you have data on. So it’s the combination of all the online
data with all of the offline data, the kitchen sink, and then you’re going to go ahead and
upload this to Facebook and you’re going to create an audience. So, you’re going to create the audience, with
all that additional data that Facebook did not necessarily had, because it’s a combination
of online and off, and you have the real actual dollar amounts, that they’ve spent with you,
and you’re going to say, here’s this audience, Facebook, go and find, use your algorithm,
go and find people that look just like this with these additional data points be in there. So, that alone should get the gears turning
in your head, right? It’s a profound technique. But in a second, I’m about to level your game
up even more. But that’s it. What’s great about it is so many of you have
so much data out there. You’ve been artists, you’ve been photographers,
for years and years and years, you’ve made sales, and you do not have this all on a spreadsheet. You’ve never even thought to put this all
together in a spreadsheet. You probably don’t even have it organized. You’ve got some receipts in the attic, you’ve
got some stuff in files here and there, some stuff’s buried in your email, some stuff you
might have in your eCommerce shopping cart, or perhaps it’s all offline data. It doesn’t matter. It’s about creating this first initial audience
and getting started. Now, let me come with sorta some rapid fire
bullet points. The more data, as a general rule of thumb,
that you give Facebook, the more Facebook is going to go to work for you. The more accurate its algorithm is going to
be. And it’s going to find you more and more people
that look ideally to your customers when you give them that data set. So, when you go about inputting all of this
additional information, and especially including the dollar amounts these folks have spent
with you, you’re giving Facebook a ton more data than would have had otherwise. In addition, in the digital sense, yes, Facebook
knows who they are, knows who they purchased, but a lot of times, you guys have first names,
last names, you have their address, you have their phone numbers, so that’s additional
data that would not have been available in just the straight digital gathering, in the
gathering way. So, that makes it really powerful. So, obviously the more data you give your
look-a-like the more accurate and this the targeting will have less waste. The whole ball of wax, I referenced earlier. You’re only going to be showing your ads to
king salmon, I’m sticking my fishing one. Now, the real question becomes, how much data
do you need to make this technique effective? Very good question there. And to be honest, we’re not entirely sure
just yet. Yes, we have benchmarks that are out there. Yes, we have what’s recommended. Yes, the numbers are supposedly so much better
when you get a bigger data set, that’s just a rule of algorithms in general. The more data you have, the better off they
are. But, we’re testing this now. I’ve got a number of different customers that
are putting their lists together. And we’re going to get to the bottom of what
constitutes the minimum level of data set and all of the tests that I’ve run personally,
I’ve seen a great level of success with. Or admittedly 5,000 records and above. So, there’s a lot of data there and that probably
sounds daunting, you’re like, 5,000 records? I don’t have 5,000 people that I know, let
alone have 5,000 people that have purchased from me or do I have 5,000 records in general. And I get that it doesn’t apply to most of
you out there. Totally get that. And that is A Okay. Here’s why. You can combine audiences. So your LTV is not big enough yet, well it’s
all good. Combine it with some other audience, throw
all that in the ad group and get going. You have to get started somewhere. And for many of you, you have way bigger lists
then you think you do, especially when you dig into your records and get all of your
historical data, all of your historical receipts, all of your offline data. So, I believe that starting with this exercise
now, which so few photographers or artists have ever likely done, is going to pay dividends
down the road. Facebook’s algorithm seems to be getting better
and better each and every day. I mean that’s just fact. I could do things now that I couldn’t even
come close to doing six months ago. It just keeps getting better, which is amazing. The point here is that no matter where you
are in your journey, as a photographer or an artist, you should start making your LTV
list. You should be diligent about your customer
LTV list and you should start getting going on it today. I mean it’s literally as simple as a spreadsheet
or a Google doc, you don’t need some fancy CRM or data base. A spreadsheet will work just fine. If you’re super old school, get a piece of
graph paper. Somebodies gonna have to digitize it at a
point but that’s not neither here nor there. Now, I have some even more insight and a profound,
profound level up that I want to drop on you and it has big implications, I mean it’s just
profound. There’s no other way to say it. So, let me drop it. And then I have even more awesome that I want
to wrap things up with and some real world examples you’re probably just not even thinking
of. So, first, let’s get going with the level
up. Here it is, you ready? The negative signals are just as important
as the positive signals in your LTV list. The negative signals you send to Facebook,
in this list, are just as important as the positive signals and even more than the variation
in positive signals. What do I mean? So, you throw together your entire database
list into this spreadsheet. All of the records you have on customers,
and potential customers, even friends and family. You assign values to everybody that has purchased
something, and here it is, you assign values to everybody that has not purchased something. If you have a list of say 1,000 people, that’s
what you’ve been able to put together, everything that you’ve got, just to make the math easy,
let’s say only 150 people on that list have purchased something from you. Or 15, it doesn’t matter. Okay, great. You take the values for the 150 and you plug
them in. And then you go ahead and you plug in a zero
for everybody that’s not purchased anything from you. Those are additional data points for Facebook
to work with. In many cases, you probably have people on
your list that are never going to buy from you, it’s A okay. Tell Facebook who those folks are, and include
the data to generate your look-a-like. The data on those folks is actually potentially
almost as valuable as the data on those that purchased one or many pieces from over the
years, because it’s more data Facebook can use to refine their signal. And that’s just profound, isn’t it? More over, the data on the people that purchased
more than once, the variation of positive signals I referenced, is just so incredible. I mean my buddy Mathew, he’s been on the podcast,
I immediately told him to start making this list and he’s got one collector that is like
his super fan, right? This guy’s bought 20 pieces from him. His number one super fan and serious collector. How powerful is it to be able to put that
guys LTV, his lifetime value, into a list, and say go and find me another one like that,
right? You want to find another 20 like that. You’ll take as many as you can get. So that is essentially how to create the look-a-like
LTV audience in Facebook with the both positive and negative signals. And that’s a super new technique that I don’t
think a lot of people are talking about, it should hopefully be new to you, and really
get the gears going. So, let’s discuss some real world implications
in this. And perhaps some examples of working this
through that I think most people have not thought of. And that we sort of been coming to a conclusion
to. As we think about the best way to empower
our varied customer base and the best ways to insure that they’re going to be successful. Let’s just start here and say, “okay, here’s
real world example number one.” You’re an artist that’s been doing the show
circuit for years and it made great sales, over a long period of years, right? It could be ten or 15 or 20 or 30 pieces a
year. You did okay in the fairs and you’ve been
doing that forever. Go and get those receipts and emails and get
them into your LTV list. You probably have gathered quite a few contacts
of people that did not buy over the years. Your list is probably way, way bigger than
you thought it might be, again, it doesn’t matter if you don’t have an email address,
first name, last name, phone number, address, and LTV will do. That’ll work fantastic. There’s a way to stitch it together. Real world example number one. Real world example number two. Let’s just say that you’re a full time photographer. Perhaps the majority of your business is on
the service side of things. Perhaps you do weddings or portraits, or let’s
say, you’re my buddy, Mike Taylor, right? He shoots long exposure, night time, I guess
you would call it spectral photography. Dude’s a legend at it. What does his business look like though? The majority, which I think is a bucket a
whole lot of photographers are in, is running classes at the national parks around the U.S.
so, he runs classes, where he takes people to a national park for a weekend or a week
or whatever, and he teaches them how to make these complex exposures. And that’s the majority of his business. That’s the main pillar of his business. His side business, is selling fine art prints
of his work and while it’s growing, it certainly does not constitute the majority of his business. So what’s a guy like Mike to do? He takes all of his student’s records, over
the years, and he creates one LTV audience. Every single solitary student, that’s taken
one of his classes, how much they paid for the class, first name, last name, eaddress,
all the things that we have in the template. And he creates an audience of his students. Then, he goes in, he grabs his online data,
and his offline data, and he makes a second audience for anyone that’s bought fine art
prints from him. From anyone that has purchased from that particular
site level, his business. And when it’s time to sell his classes, he’s
going to have an LTV audience to show his ads to. When it’s time to sell his prints, he’s going
to have an LTV audience to show his ads to. So you can split the various different pillars
of your business, whatever it might be. You could be walking dogs on the side, it
doesn’t even matter. The LTV concept works fantastically for both
instances. And I think, more over, there’s so many people
that I hear this all the time from customers, both artists and photographers, like, all
of my following is just other artists. These people are never going to buy anything. I get that. I get that. So let the list, split your list. You’ve got an LTV for one, you’ve got an LTV
for the other. And Mike’s case is the perfect example. And I think, too, that many, many photographers
have businesses like this, many artists do too. So put the LTV concept to work in these other
pillars of your business and you will just be blown away. Yet another reason why you want to get going. Now let me give you real world example number
three. And I think, yeah, this is my favorite one,
as it applies to all of you equally, and again, I find it to be profound, again. Many of you that are listening out there,
you’re not full time photographers or artists. In terms of selling your work, okay? You have day jobs, side hustles, other ways
of making income while you would certainly like to be full time, the maths just don’t
pencil just yet. That’s okay, right? More over, I would say many of you struggle
with this question about your niche. You have work that spans a few different genres
and when the thought of having to pick a niche and go all in, it makes your head hurt. How could I possibly do that? Do I have to start a separate site, a new
name, focus on a direction. All really, really difficult questions to
answer. There’s no easy answer to any of those. The niche question. You know, let’s say you’re a full time wedding
photographer. And you shot weddings the last 25 years, but
you want to get your fine art career going and perhaps, let’s say, you’ve taken up drone
photography. You started doing it, and all these exotic
locations you’re going to and beautiful wedding venues to supplement that side of the business,
but now you’ve gotten so good at it that you’re really enjoying it and you kind of want to
start selling your photographs of your drone photography, right? You want to build out that portfolio. Or, let’s say, you’re an artist that paints
a mixed bag of different subject materials, you have for years, and you’re day job has
been teaching kindergarten, let’s just say, for the last 20 years, or ten years or whatever. In all of those cases, over the years, we
have cultivated relationships with folks that have come to know, like and trust you as a
person. All be it, in a different capacity perhaps
than your art, like your wedding clients are not necessarily fine art purchasers. The lady that’s teaching kindergarten, all
of those parents and potentially students, are not likely purchasers of your art. But, these are people, they’re attention,
and guess what? That’s attention that knows, likes, and trusts
you. They’ve come to know and like and trust you
as a person. All be it on a different capacity than your
art, guess what though? Attention is attention. Technically that’s all attention that you
own, so you can leverage these folks that know, like, and trust you and you can include
them in both your regular audiences and your look-a-like audiences. Now sure, they haven’t bought a piece of art,
but perhaps they have some empty wall space in the office. They’re starting their journey to buy some
art, and they’re not exactly sure what they want to get yet. So it might be a good idea to let them know
you have a serious portfolio of art for sale. And guess what? These people love you. People like dong business with people they
know, like and trust. That’s the long and the short of it. So, you can grab all of these folks, whatever
contact information you have on them, you can call it your fan list, and you can upload
it to Facebook. You can include LTV info, if it’s applicable,
and the wedding photographer example, you know, those are big deals. Those are big deals so throw that LTV in there. It’s applicable. And you can start showing ads to just this
audience to start. And if it works, it pencils, you can create
a look-a-like out of those folks, too. That might just work. That is a great way of getting some like minded
people that know, like and trust you. So, I think this concept of an audience of
folks that you know, in other capacities, is a pretty dog gone interesting place to
start. And it is certainly where I would start, should
I start selling my art or my photography. It’d be photography, I couldn’t do art to
save my life. But I can take photos. So, that I think is a third profound example,
and I think man it ticks a whole bunch of different boxes and I know that there’s so
many people out there that are listening, that have these connections, or have been
cultivating these relationships their entire life, as we all have, and perhaps you have
some sort of interesting and nuanced and unique circumstance that is unique to you, and you
haven’t even thought about it in this capacity, but it’s a fantastic way to go. I would absolutely want to let everybody know,
that knows, likes, and trusts me. That my art is for sale and oh God yeah, Patrick,
he was awesome, he did such a great job at my wedding, I had no idea he does this drone
stuff. Oh this drone stuff is pretty sweet. I can’t even believe he got this photo here. This thing would look fantastic in my office. I’m going to buy it. You get the gist. It’s an interesting argument that not a lot
of people are making that I think could really work. So, let me sum things up. There was a lot going on here. Get to work on your LTV audience. Step one is your ruminating on the bigger
subjects is to do the organizational work and get everything into the spreadsheet. Gather all that data you have, go back as
far as you can, and start building your spreadsheet. Right? This is going to give you a great starting
point, to target on Facebook and Instagram. And especially, especially, as the fourth
quarter approaches, although you’ll be able to use this audience throughout the year. Now, in the coming episodes, we’re going to
reference exactly how to utilize this audience and targeting and how it’s going to fit into
our play looks, our updated play looks, that we’re going to do for the fourth quarter. And don’t worry either, I’m not going to leave
you hanging, in addition to the spreadsheet, that I’m going to place in the show notes,
that you can use as a template to get started, I’m also going to create a video that will
walk you through exactly step-by-step, what it looks like to take this list that I’m asking
you to create, how you upload it to Facebook, how you make sure it all looks good, and then
how after the fact, you set up the look-a-like audience, after the fact. There’s some detailed steps in there. The video, it’s going to walk you through
the whole thing. And I’m going to put that video on You-tube. We’re starting to take both as a podcast and
our storefront brand, our You-tube channel way more seriously. And there’s a ton of good stuff there already. So I’m going to put a link to our You-tube
channel in the show notes or you can just search You-tube for our storefronts, highly
recommend you subscribe. Highly recommend that you tick the little
bell, so you get notified when we’re doing the live broadcasts. All of the podcast episodes are starting to
go out there. All of the supplemental material to the podcast,
I.e. this video that I owe you on this podcast, will be up there, you’ll be able to watch
it, it’s just easier if it’s on You-tube, you can find it any time you want. So, all of that stuff is going to go up there,
so hit that link, subscribe, hit the bell, get notifications when we’re going live, and
let’s get ready to hammer the fourth quarter and sell more art than we ever have this holiday
season. Thanks for listening. And have a great day.

1 thought on “👑30 How to Create LTV Audiences for Facebook/Instagram Ads

  1. 00:29 – What is the #1 question we seem to get about FB ads
    03:19 – Cold audiences
    06:27 – Let's start with the options
    12:19 – Let's contrast these options
    16:13 – Lookalike audience
    18:23 – LTV audiences
    21:19 – Some rapid fire bullet points
    24:49 – Negative signals are just as important as positive signals
    27:25 – Concrete real world examples
    34:43 – Summing things up

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