Yuma 4×4

Media and Communications

The Strategy Behind My Facebook Ads

The Strategy Behind My Facebook Ads

So, when it comes to methodology of actually testing and scaling
Facebook ads, don’t give me your strategies…
-Right. …but just talk about your sort
of philosophy for doing that. Are you a very systematic person? Like I know you’re an interesting
kind of person. because you’ve got this creative side.
–Right. Were you thinking very creatively
about the brand, but you’re also very data, you know–
-Yeah. That’s a really good,
good way to be essentially. Talk about your methodology
overall for both, for testing
and scaling Facebook ads. Right, right.
It’s a great question. Another thing is it’s not
as contradicting at each other, it’s actually empowering
each other. Now, my methodology with Facebook
is that there’s two routes to take. Facebook ads can be
a traffic source of how you basically build a brand
and push it forward and to building something
that is not essentially reliable on Facebook ads, but then, there’s another side
of Facebook ads where you’re building a store
or a pop-up shop or just like an offer, and then wanting Facebook ads
and traffic to that offer, and you can only rely on Facebook ads,
which is completely fine, we still do that today, right? Those two methodologies are
if when we’re going to “churn and burn” or like the “fast make money”
type thing, it’s essentially–I can’t go as deep
because that will be like three hours. But in a nutshell, and most people
who actually have experienced Facebook ads will
understand this, is I test a lot of different angles with
an auto bid campaign essentially, right? I run $10, $20 a day ads
on different angles on targeting. Let’s say, I have a specific product
and I want to win traffic to it, There’s a take, for example,
a dog product, right? So, I’ll be targeting
dog interests, right? But it depends on how much money
I want to put in to invest and to actually testing it. I can be testing
five different audiences and putting like an auto bid,
$20 on each of those audiences. That will essentially result
on $100 a day because $20 times 5 is $100 or I can invest less and only put one ad
and combine all the audiences. Now, we usually scale any ad
that is auto bid that is giving me
a profitable return on investment after two, three days. And by profitable
return of investment, of course, I mean that I’m making more
after expenses of advertising and after cost of goods. So, if I’m saying $20,
a dog leash, or whatever, I need $10
to even buy the product, and I’m just paying $5
to get a purchase through ads, I’m left with $5 profit. So, if I’m left with profit,
after two, three days, I usually scale. Now, there’s a million
different ways to scale, so don’t take this absolute
what I’m about to say because there’s a lot of different ways
to do the same thing There’s not like some of them are best,
some of them are good, They’re different routes. How I do it is I just went
very big ad set budgets, where like a $1,000, $2,000 a day
with a manual bid. And a manual bid for me
is less. I don’t treat is a manual bid,
I actually call it budget control because I can put
$1,000, $2,000. But if the bid is correctly,
I will only spend a specific percentage of that manual bid
of budget depending on the bid
that I’m actually putting on it. So, if I’m putting
a $2,000 budget, but I’m bidding
like $20 cost per purchase, maybe one day, I’ll only spend
$300 out of the $2,000. On another day,
will spend $800, maybe another day,
I won’t spend anything at all. But it’s more controlled
and it’s more sustainable. And on top of that, that’s the way
I basically push numbers like higher. I test on the audience level alone and whatever worse,
we’ll duplicate that, completely the same targeting. and I will target a manual– I will do the same thing,
but with manual bid. Of course, there’s all
the different testing structures. Today, I even went
to 10 different audience segments which includes
USA, Canada, Australia, New Zealand, UK, first-world country Europe, third-world country Europe, Asia, top tier Asia,
low-tier Asia. Literally 10 different segments.
South Africa. And then, I test those 10 different
segments and then suddenly– this is another thing. This is the golden nugget
about Facebook has that people don’t understand. They go straight to US and Canada. And you’ll be surprise
that from the past year, the audience, the countries
that worked for us the most, like 90%, maybe 80% of the time
were not actually US and Canada. Sometimes it will be South America,
sometimes it would be Asia, sometimes it would be Australia. And I’d tell you exactly why, as well. In the US, let’s say, for example,
we have a 5% conversion rate, okay? But we’re paying about $30,
$30 CPM, which we’re paying $30 to actually show
or ad to a thousand people, but we have a 5% conversion rate. But let’s say,
we’re targeting Mexico, Okay, at a conversion rate,
there’s only 2%, lower than the US, but we’re paying $3 to show our ad
to a thousand people which essentially means
we’re paying a 10th of the price that we’re paying for the US
to show our ads, but our conversion rates
are only half. So, essentially,
Mexico will bring us much more money, because we’re paying much less, but the conversion rate
together with how much we’re paying to show our ads to audience
eventually adds up to bring us more revenue. So, don’t only focus on
first-worlds, we actually even– Sometimes we don’t even start
with USA, Canada, we’re going on target like third-world
if our product is cheap. And then, you’ll notice
all these different changes. But don’t be strict on USA, Canada,
Australia, and the top five, A quick tip as well,
and I’ll close this question, is go and search
the top 25 GDP countries in Google, and those should be your countries
that you want to target. Those include
a lot of European countries that– ‘Cause at the end of the day,
USA as rich as the Netherlands, but the Netherlands
has much cheaper traffic. You know what I mean?
-Yeah. And that’s funny,
just using GDP as metric ’cause I know
you try to eyeball it a lot. People will try to be, “Oh, that country.
That country, that country, But you missed ones that you– Exactly. Yeah. Give Latvia enough respect,
you know. Exactly. Yeah, dude. Who says Latvia doesn’t have a few people
that want to buy dog collars? Yeah, and the eCommerce trend
is growing globally, so it’s those emerging markets are going
to be massive opportunities for people. -Yeah, exactly.
-Very cool. So, you’ve given a lot of sort of insight
into scaling, testing, things like that, but talk a little bit more
about the other aspect that we’ve talked a lot about
which is the creative funnel. So, basically starting with
how your brand– starting with your brand, then how your brand appears to
customers usually through social media, Facebook ads, through…

Leave comment

Your email address will not be published. Required fields are marked with *.