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HOW TO OPTIMIZE FACEBOOK ADS FOR ROI

HOW TO OPTIMIZE FACEBOOK ADS FOR ROI


– [Paul Ramondo] Oh jokes on
you fam caz I’m back. I’m back for another instalment. [Upbeat Electronic Music] [Upbeat Electronic Music] [Upbeat Electronic Music] – [Paul Ramondo] So we’re
from Nusa Lembongan and hour in Seminyak. We’ve just
arrived in our villa, and let me tell yea it’s
not bad, not bad at all. Let’s just quickly have a look around. We’ve got the private pool. We’ve got a bathroom here.
You can make yourself pretty. We’ve got the bed, comfortable. And how cute is this? Awww! They’ve got wardrobe space,
and this is a little water fall It’s not a waterfall at
the moment, but you know. And than there is the shower. The thing with the shower is I’m all about showers like
caz how could you not be showers are just the
best, just 100% the best. The thing about a shower is
you’ve got like the normal little spray thing. You always need that rain shower vibe. You know what I mean? This is the villa final part of this day. I think I’m going to have myself
a much needed flower bath. Also, here’s the injury
I got from yesterday. I got my hand off that
scooter. Got the knee. And I got it all up my leg as well. So great bruised and scarred. But yeah the plan is it’s Corona season I’m going to smash some Corona’s
and um than we are going to go explore Seminyak, and
go out for a nice dinner. It’s going to be 100. I wasn’t lying when I
said it was Corona season. Cheers So anyway this is basically
my second last day here. Tomorrow is my last day, and
than I fly home on Friday. I’ve got so much work to
do, and I have amazing desk to do it. Some decent Wi-fi and
internet to do it with. So I’m excited to get stuck into that which will be mad fun. And yeah I think that’s basically
going to be my afternoon. Get work done, because you can’t rest. Look the thing about
being an entrepreneur. I hate that word as well. Incoming rant incoming rant I just don’t like the word entrepreneur I think it’s just adopted
this disingenuous connotation as a result as the advant of Instagram and everyone being an instapreneur
and all that kind of stuff. It just feels a bit dirty to me. So real talk though the thing
about being an entrepreneur, or the thing about being
a small business owner you can really never stop working. I am 4 or so years into doing this whole entrepreneur thing. And I like to consider why I’m doing this. I’m just a small business
owner, and the thing about running a small business
is you see the highlight reel that everyone posts
on Instagram of their lives and running their business. Look at how sick this is. And I’m guilty of this too. Like you look at my content “Oh I get to fly business class” I’m not paying to do all that stuff like I’m using the assets at my disposal. For example, if you’ve seen my how to get free business class
upgrades on QUANTAS vlog that I released a year or two ago that’s how I fly business. I’ll link it above, but
that’s how I fly business. I pay for a normal economy ticket or normal flex point tickets, and I use my points to upgrade. And just the thing I’ve been
thinking a lot about lately is just this facade that everyone is PRing themselves on Instagram.
Everyone is putting forward the best possible version
of themselves on Instagram to the public, on Facebook. And I have been guilty of this,
and I’m still guilty of this and I’m trying really really
hard to be as transparent, and as open with my content
as possible just to give you a real insight as to how
much I do actually work and how much goes on
behind the scenes and how we do a board metre. You
know the first time I took 6 or so days off was earlier
this year which you might remember from the museum vlog that I did. But even than I was still
working , networking, still there having meetings. I was still grinding. I was still on my emails. I was still making sure
that I could keep the lights in my business on. It’s the same thing while I’m here. Yeah, I’ve been “away” and
I’ve been travelling and vlogging and creating content. It’s all a part of my business. And I’m so grateful, and it’s so sick. I literally haven’t stopped
since getting here, and I’m not complaining about that at all. I love it. I absolutely love it. The first time I get to sit
down in this beautiful air conditioned room in this
beautiful villa, and work and work towards my passions,
and work towards my goals. Work towards what I’ve wanted
to build for myself, for others, and for this world.
It’s absolutely incredible, and I’m so grateful. I’m so
fortunate to be able to do that. The opportunity cost for me
being able to do these things, and me being able to post this content. Look at this mountain that I
just hiked, and look at this volcano I just hiked. Look at me flying business class. The reason I am able to
afford all those luxuries. All those experiences is that
one I’m not really paying for them. I am but I’m not.
It’s all connected to my business. Everything in my
life that I do is centred around my business first. And
that’s where I’m at in this part of my life, and I love
it. I’m not saying that’s what you should be doing? But just
to really give you an insight the grind, and the hustle is
real. It never stops, and for me anyways it is really hard
to switch off. I try to do things like meditate, use
headspace, and journal. All these other kinds of mindfulness
activities to try and help ground me, and centre me as a person
because there is so much more to life than just my business.
But when your business is your life, and your pursuing
what is meaningful to you, and not what is expedient, that is
a Jordan Peterson reference. If you don’t know check out
Jordan Peterson. He is a Canadian psychologist. 12 rules
for life is an amazing book. When you pursue what is meaningful
and not what’s expedient it just brings you so much
joy. Time flys and I don’t want to be doing anything else. I
could be out snorkelling in Bali. I could be out drinking.
I could be out partying. But I’m here because I’ve
gotta work, and I’ve got to get these things done. And it’s not
because I have to do it, but I want to do it, and that’s
what so important. I hope this little monologue gives you just
a bit of insight in terms of the psychology behind why I do
what I do. How I do what I do and a bit of an insight on
behind the scenes. Everything is not as glamorous as it seems
on Instagram. Every is PRing themselves. Everyone is the
best Public Relation Version of themself to the gramme. I’m
trying really hard and I’m still trying to get there. I’m trying
really hard to give you as much of a transparent insight
in terms of what my life is like. And how much goes into
creating the life I’m trying to build, and the impact I’m
trying to have in the world. I’m going to go and set my
laptop up over there and get sucked into it. [Chill Alternative R&B Music] Alright, I’ve been smashing
at work all afternoon. I’m making a lot of progress which
is really really good. To give you a bit of behind the
scenes in terms of what’s been happening I’ve been working
on the hidden campaign. Which you may remember from a previous
episode on the vlog. We had a meeting with Zac at the
hidden office in Perth. F*** yeah! I mean yeah man woooo!!!
And basically we are in the kill zone at the moment, so we
are 10 days out. Let me zoom this in a bit. Which basically
means that we need to pump as many tickets as possible.
Now the Facebook Ads have not been delivering, and this has
been an interesting thing you can take home behind the scenes.
So one of the biggest goals when your building a digital
marketing funnel, specifically a Facebook Ads digital marketing
funnel with Instagram and Facebook placements you want
to make sure your spending and investing your money in areas
in which you are going to generate as much awareness
in the attraction page in the funnel at the very top to than
escalate your relationship with that initial awareness
that you’ve created in the attraction phase of the
funnel to escalate into the courtship phase of the funnel
where they get to know you a bit better. You can romance
them a little bit. And finally move them on to the commitment
part of the funnel where you essentially drop a knee and
you ask them to buy from you. Now what’s been happening is
over the past 3-4 days in terms of some of the optimizations
that I’ve been making we’re trying to balance the return
in ads spent. So throughout the whole funnel we’re trying
to balance return in ads spent so that it makes the most
basically we get the most bang for our buck right. And one of
the ways that we can do this especially when you have a
big budget campaign like this is by putting bid caps. Now
you can either set a bid cap for conversion campaign at a
target cost. It averages out the average cost per purchase
target cost per purchase across the campaign. Or you
can try and get the lowest cost per possible with a set bid
cap. Now, the target cost and the set bid cap are both custom
optimizations you can make and this is going to be
variable to the amount of money that you’re willing to spend
to acquire potential purchase or customer. Now, one of the
downsides with doing this with Facebook and one of the
reasons you always have to keep optimising your ad campaigns
and keep checking them on the daily is that sometimes the
ads don’t deliver. Because Facebook’s trying to distribute
all your ads and sometimes if it’s trying to meet that
bid cap or whether its a target cost bid cap or it is a set
bid cap for the lowest cost it gets confused. Basically it’s
like well given the market place dynamic in this point
in time the target market that you are targeting and for
the budget you’ve set to maintain that return of ads
spent for the overarching media spent you have for your
campaign we are not going to deliver these ads, because
these ads are not going to be coming in at the set parameters
you put for that bid cap. That is what I’ve been working
on. I’ve been optimising the campaign. It’s increasing
and tweeking with all the optimizations in the bid
caps to try and get as many sales through while also
still maintaining a steady return on ads spent. It’s
a very iterative. It’s also been made a lot harder since
the GDPR laws came into affect early last year. As
well as the Cambridge Analytica scandal that also happened
earlier last year. Back in the golden days of Facebook you
used to be able to see all of the custom website audience
data that were in your custom audiences and you
happened to get a really good understanding of the network
you were casting over the audiences that you were trying
to capture conversions from. Now, because of GDPR and the
Cambridge Analytica scandal and a few other things the changes
in Facebook terms, conditions and policies. A lot of this
data is hidden unless it’s intra Facebook. Audiences
that are intra Facebook for example event audiences,
video retargeting audiences, engagement with your Facebook
page. Your Instagram account people sending you Instagram
messages or anything like that. Anything intra Facebook you
get pretty accurate data in terms of the audiences that
fill all those buckets. However, anything extra
Facebook no honey you can’t see that data. It makes
delivering the campaigns quite challenging because if your
mixing data which you got from intra Facebook with data
you got from extra Facebook aka data that is hygienic data
you can actually see that you have a pretty steady confidence
interval in terms of it actually being hygienic data
and actually representing the amount of people that are in
that bucket intra Facebook. And you mix that with data
that is extra Facebook for example people that have
visited your website or customer audience conversion data or
anything like that. You mix those two together, and the
add estimates at the ad set level become a bit confused
which makes planning out your funnel and it also
makes delivering your ads to the funnel very challenging.
And a lot more challenging than what it was in the past say
a few years ago. Even just a year and a half ago. A quick
little hack that you can use that takes a little bit more
time is to temper your extra data that’s extra Facebook
right. Outside of Facebook for example your website audience
data if your creating website custom audiences you tether
that data, because it’s not being shown inside of Facebook
with the data you get from your google analytics account.
Now it takes a bit longer, but it will give you a better
inference in terms of the amount of people that have
visited your sight right. And than they’re going to be a part
of those audiences when you pull them over to Facebook
even though Facebook is not showing the data. The plan
right now is I need to make a client phone call, and wait
for this food to come as well. Get some substance in me,
and I’ll see you soon. Alright, time to give Zac a
call. Better give the client the update, and have a big
discussion in terms of what the strategy is going to be moving
forward. My goal right now is to aggressively push the ticket
sales as fast, and as hard as we can so here we go. – [Paul] Mr. Zac, dude
your on the vlog say hi! – [Zac] Hi, what’s up? – Are you naked man? – Yeah man yeah woops hahah. I was about to have a shower I
didn’t know you were going to call. But I’m ready to talk business. I’m always ready to talk business. – Dope Dope. I was just telling
the vlog that. Let me just fix the camera angle up. I was
just telling vlog in terms of what’s been happening in
ticket sales, and what’s been happening over the past few
days in terms of optimizations we’ve made and we’re basically
10 days out and this is the kill zone. And basically I
just want to have a chat about the change and strategy, and
a bunch of optimizations that I’ve made today. And get your
permission to push forward on some other optimizations, and
ideas that I have to basically generate any sales in the next
10 days as much as possible. Alright, so I’ll give you the
low down of what I’m thinking. I’ll tell you what I’ve done
and what I’m thinking alright. Optimizations I’ve made a few
days ago were f**** great. Here is the f**** problem
none of the ads are delivering like at all. And I’m looking
at all the data, and I think I worked out why they aren’t
delivering. There’s a lot of variables going on. Ads obviously
we re optimise campaigns the ads the reenter learning
phase. Because the ads have reentered learning phase they
haven’t been delivering as much as they should be. On top
of that because we are on a lifetime budget now and not a
daily budget, and because we had a seven day conversion
window there wasn’t enough time or data to propagate through
which is why they haven’t been delivering as much. Now on
top of that we’ve also got the other issue which is, because
we’re running so many ads to the same people now and because
the more and more people that are purchasing tickets
the smaller the net we have to target people it’s getting
tighter and tighter. Hold on foods here give me two secs.
Alright, I got some calamari and I got some chips. I’m a
happy boy let’s call Zac back. Hey hang on champion. You
look so zen right now. – [Zac] Huh? – You look so zen right now. Okay so – Basically it sounds like
there’s an issue with the lifetime. – I think it’s so much lifetime strategy. I think it’s the combination
of the lifetime strategy with the bid caps. So what
I’ve done is I’ve removed all the bid caps, and than what
I’ve also done is I’ve combined the majority audiences. So
in Brisbane there was 3 more campaigns running, and
I’ve combined the going and interested. I’ve split tested
the people going but haven’t purchased and the people
that are interested but not purchased and split testing
those. Neither of them were delivering. So than I combined
both of those ad sets into the same audience into a new
ad set. Turned up the budget so I could get a larger net,
and what I’ve also done is remove the big cap and I’m
going to monitor, and I’ve done this for Sydney as well. I’m
going to monitor the return in ads spent over then next few
days, and than like I said remove big cap. The other thing
as well is what I think is happening here is because we
are spending so much and we are targeting the same audiences
as things are coming down into crunch time what I think
might be happening in the back end is that we are
cannibalising our own delivery to our audiences, because we are
trying to deliver too many ads from different campaigns
to the exact same audiences. Does that make sense? – That does make sense. – What I’m hoping is the
combination by removing the bid cap further optimising the campaigns,
and collating them into larger ad sets with bigger
audiences that Facebook can do the heavy lifting for us, and
we will get the idea of what the return in ads spent is
going to be like hopefully by this time tomorrow if not sooner
as a result of the changes that we’ve made. And what I’m
also thinking of doing is, and this is where I need your
permission for is to turn off the attraction campaign for
Sydney and Brisbane. – So the campaign is trying
to find new customers. – Yeah that’s what I’m thinking
just for the next few days just to see if that has an
affect on what’s happening at the bottom of the funnel. We
can leave them on. This is the thing though, you know what,
this honestly disregard exactly what I just said.
I’m just workshopping in my head right now. That makes
no sense at all. Caz turning those off won’t have an affect
on the commitment side of the campaign, because that’s
targeting cold traffic which has nothing to do with the
traffic at the bottom of the funnel. So leave them on.
Plus, we’re getting pretty good landing page views like really
cheap landing page views. From the 10th of February
to the 13th of February 624 landing page views, but 23 cents per view on the landing page. – That’s who’s going through the website? – Yes correct. – Is it going through the ticket booth or going through discover hidden. – Discover hidden discover
hidden because the discover hidden landing page is a way
better sales page than the Brisbane landing page it’s
just a check out page do you know what I mean? And on top
of the funnel we are trying to educate people about
what’s going on with the event right? So if you landed on the
really sexy discover hidden page than their going to
click through right to the initiate checkout for
their city as opposed to. – But it’s only one extra click. – Yeah 100% but as well because
their cold we need to warm them up a bit more before we
go and ask for their purchase – Yeah sorry yeah I agree. – So the other thing as well
is the Sydney attraction artist promo campaign is
also doing really well. And it’s delivering properly.
So the attraction artist campaign for Sydney we’ve
got 1,097 landing page views at 23 cents per landing page
view over the past 3 days which is really good. It means that
people are watching the video content, looking at the
ads, engaging with them, and clicking through, and going
to the discover hidden landing page. Which than allows us
to re target them on the commitment end of the funnel.
The large reason I believe for the last few days they
haven’t bought is, because the ads haven’t been delivering
properly which is the big changes I’ve made this
afternoon which is why I’ve also removed all the bid caps.
Last time we spoke I increased the big caps, and than they
still didn’t deliver because we are trying to maintain
the return in ads spent while also getting as many purchases
as possible that’s what we were discussing on Sunday
I believe. I didn’t want to like turn the bid caps off
because I didn’t want what happened to Perth happen to
Brisbane and Sydney especially when the budget is already so tight. Do you know what I mean? But we haven’t been converting
anything. We have a very small amount, but not enough.
It’s very challenging. – Yeah I’m just looking at my
graph yeah. Apparently, I’ve got two sort of trend lines.
The trend line that we were on. – Yeah no worries. Sorry I might
just cut you off for a bit. Are you saying that the trend
line we were seeing on before we changed the strategy was
generating more sales and a higher return ads spent. No
more sales quantity wise than. – Sorry hang on. What I’m
saying is if we strap line the data from what we had three
changing strategy and than strap lined the data from
changing strategy we end up with a lot of ticket sales at
the end when you strap line. – Yeah I understand, but we also – We end up with like a raw
and just like a raw and happy to hear. This from a very
basic apple to orange just comparison. We are going to
end up selling less tickets on now than the path where we were on. – Yeah got it. I agree with
you. And the reason that we were selling more tickets
before is because the daily budget that we were running
with before were a lot higher than what they are now,
because we’ve adjusted all the budgets to fit the lifetime
budget goal in each city. And that’s also tempted by the
fact that we haven’t really used any budget over the last
like two days. We’ve only spent 2,000 dollars over the
last two days, because all the bid caps have stopped the
purchases going through. Does that make sense? – Yeah okay so next question
is why was our daily cap higher and now that we’re
close and we have increased the data and than we set our
daily limit why would the daily limits be set at start be
higher than what we have to spend daily right now? – 100% so the reason I set
them higher was because again the ads weren’t delivering
through as much as what they were. Some of the daily budgets
were at 125 dollars, but we were still earning 50-55
dollars worth of that daily budget. Does that make sense?
Because of the bid caps. – When we were on a daily budget? – Yeah. So I turned the daily
budgets up so that we would get more people through given
the bid cap and the return of ads spent cap. So here’s the solution – What I’m saying is were we
spending. Was our daily limit just after we updated the
budget was our daily limit going to run our prior to getting to here? – If we were running that
daily budget at that level yes it would have yes. – Why? Haha – What do you mean? – Why were we spending – So because of the bid caps,
and because weren’t meeting the budget I turned up all
the budgets to get as many sale through while also
maintaining the return in ads spent before we did the I can’t
remember the date that I did it. Before I did the large budget
optimization prior to that Saturday during the Wednesday
maybe two weeks ago. Because we weren’t getting the sales
through with the bid cap. So I was trying to balance
the return of ads spent goal with our overall budget.
Does that makes sense? – Yeah yeah it does I just – Don’t sugar coat anything
just be frank it’s all good. – No no I’m not sugarcoating
I don’t dare to with you. – No not at all. – I get the bid cap side
of things, and I get tryna generate sales. But if we were
spending an amount per day that meant that now we don’t
have the sources available for the rest of the campaign that’s the part that doesn’t make sense. – Yeah so the budget we were
spending more than what was going to happen with the total
end of the campaign in mind, but what we were actually
spending was not going to get us to the budget at the end of the campaign. Does that make sense? So we
set the daily budget limit, but we’re only meeting fractions
of that limit everyday variable to the bid cap to
maintain returns in ads spent. – So we actually didn’t end up
spending that amount of money – Correct Correct which is
why I turned it up even more so that we could maintain
the return of ads spent and deliver to as many other
people as possible without dropping below the return in
ads spent goal that we were trying to achieve. – Yeah so when we turned it
up we than started spending enough sustainable amount right? – Not so much. So I made so
many optimizations its hard for me to say, but I know for
a fact that I can go through and build a report for you if
you want. Basically like let’s say I increased one of the
ad sets that we’ve spent that was generating you know a 15x
return in ads spent right. Let’s say one of the optimizations
I studied was 100 to 225 dollars daily. At 100 dollars
daily because of the bid caps we weren’t spending all of
our budget. We might have been spending let’s say 40- 50
dollars. So 50% of that 100 dollars. So I turned it up
higher which wasn’t going to make the lifetime budget to get more
sales through at that return in ads spent it still wasn’t
meeting the $225 daily budget. So it just gave us more room to play with. – So that means we still
shouldn’t have been spending more than what we have now right?
So if you turned up the limit to above what would be
sustainable. If we weren’t hitting – What do you mean? – If we’re setting it to 100
dollars and are spending 40 dollars than you wouldn’t be
spending 100 each day. If you move it up to 200 so you spend
100 each day which is our daily budget so it
wouldn’t be sustainable. – Yeah so basically what I
was trying to do was balance the diminishing marginal returns
that we were experiencing without replicating the
massive loss that we made in media spend in turning up the
budget for Perth leading up to the few weeks leading up
to Australia Day. So I didn’t want to turn the budget up,
remove the big cap. If I turned the budget up, removed the
big cap, and let it role it would have spent all the budget
but the return in ads spent would have disappeared. Than
we wouldn’t have had any budget left, and we’re trying
to get as many sales through at that point in time. We are
still trying to get as many sales through. But I didn’t
want to turn it up without a bid cap, because of the
return of ads spent would have dropped significantly. I
didn’t want to replicate what happened with Perth over
that two weeks prior. Alright phone calls over
it went for two hours. This is the thing about
running a business you just got to put fires out all
the time and it was a really productive chat. The work
showed a lot of things that were going on. A lot of
extraneous variables carrying the market place that we have to
deal with, and we have to just build strategies to find
solutions to hit the goals that we are trying to meet for this
festival. To hit the sales goals, and the ticket sales
we are trying to meet for this festival so big chat big
chat. And it’s now like 6:30 in the evening uh I’ve got a
lot more work that I need to do and yeah the second last hour
of the “working vacation”. I’m going to get sucked back into
this work. I might close the vlog off here. My name is Paul
Ramondo thank you so much for watching. (beep noise) If
you’re not already subscribed go ahead and hit the
subscribe button (click noise) Turn the bell notifications
on (ding noise) so you get notified when
I upload a new video. Let’s queue the explosion, and
I’ll see you in the next one. Peace

1 thought on “HOW TO OPTIMIZE FACEBOOK ADS FOR ROI

  1. Thanks so much for watching! ☺️ Please subscribe to my channel if you enjoyed this vlog 🙂 You can also click here 👉🏻https://www.youtube.com/playlist?list=PLWziI3himwPrlQ-iSbxbHzp9_A9IwpZWK to watch all episodes from my Bali vlog series.

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